Yellow Crypto Digest #2
Welcome to the Yellow Crypto Digest! Let’s discuss some of the latest and most influential last week’s news and events in the Fintech, crypto, and blockchain industry.
- Significant Improvements to Ethereum’s Scaling.
- OpenSea NFT Marketplace Valued at $13.3 Billion.
- Goldman Says Bitcoin at $100,000 is a Possibility.
- Kazakhstan Internet Shutdown Dealt a Blow to a Global Bitcoin Mining Operation.
Improvements to Ethereum’s Scaling
The Coinbase chief production officer known as Surojit Chatterjee published his prediction regarding the crypto industry throughout 2022. He foresees significant advances in terms of the scaling possibilities of the Ethereum Blockchain. He shared his predictions in a company blog post on Tuesday, where he specifically stated that Ethereum’s scalability would improve, but alternative layer-one networks will also see traction.
Through a two-hour Bankless podcast episode, the Ethereum co-founder Vitalik Buterin discussed his plans towards making Ethereum 2.0 a success. According to the podcast, to achieve ultimate scalability and centralization, Ethereum has to be more agile and lightweight in blockchain data so more people can manage and use it.
Buterin also proposed a new multidimensional Ethereum fee structure, titled “Multidimensional EIP-1559”, where he noted the different resources in the Ethereum Virtual Machines that have other demands in terms of usage. He said that there are different limits for short-term “burst” capacity instead of “sustained” degree within the EVM and showcased examples of block data storage, witness data storage, and even block state size changes.
However, JPMorgan took a stance against the Ethereum project and its native cryptocurrency token, Ether (ETH). JPMorgan highlighted that Ethereum is losing its rank within the decentralized finance (DeFi) space to the up-and-coming competitors and can lose further if it does not escalate the time taken for scalability upgrades.
NFT Marketplace OpenSea Valued at $13.3 Billion
A $300 million investment round was led by Paradigm and Coatue, which cemented the NFT Marketplace OpenSea as one of the most valuable private cryptocurrency companies.
In fact, on January 4, OpenSea announced that the investors valued the company at $13.3 billion at the Series C funding round, which was up from the startup’s 1.5 billion valuations in a $100 million Series B round initially announced last July.
These huge numbers showcase just how rapidly OpenSea has been leading the pact in regards to the process of trading non-fungible tokens (NFTs). The company plans on using the fund for product development, hiring, and startup investment to improve customer support and customer safety.
Goldman Says Bitcoin $100,000 is a Possibility
Goldman has published an estimation that Bitcoin’s float-adjusted market capitalization is just under the $700 billion mark, accounting for a 20% share of the store of value market, which comprises Bitcoin and gold.
Bitcoin can continue to take the market share from gold as a part of the broader adoption of cryptocurrencies, which makes $100,000 a possibility.
The value of gold, which is currently available for investment, has been estimated to be $2.6 trillion.
If Bitcoin’s share of the store of value market increases to 50% over the next five years, its price would go above $100,000, which would lead to a compound annualized return of 17% to 18%, according to Zach Pandl, co-head of global FX and EM strategy.
Melania Trump also posted a tweet where she celebrated the 13th anniversary of the Bitcoin genesis block. The Tweet went viral, and on it, she attached the raw hex version of the first block, where its coin base parameter contained a London Times headline about bank bailouts.
El Salvador also prepared 20 legislation bills intending to provide the legal framework regarding the Bitcoin bonds.
The raft of bills will help the government establish the legal and financial framework for the $1 billion Bitcoin bond issue, known as Volcano Bonds.
Kazakhstan Internet Shutdown Dealt a Blow to a Global Bitcoin Mining Operation
The Bitcoin (BTC) mining took a massive hit on Tuesday after Kazakhstan’s internet services went offline. This central Asian nation has seen violent clashes between protesters, police, and the army.
The protests initially started on the west side of the country, and the main reason for protests was the sharp increase in fuel prices, after which the protest quickly spread out throughout the entire nation.
As a result, the Internet was shut down nationwide on Wednesday. This shed light on the fact that Kazakhstan is quite a significant player in the crypto world, by the last year’s statistics, the nation became the world’s second-largest center for Bitcoin mining after the United States, according to the Cambridge Centre for Alternative Finance. Due to the outage, Bitcoin miners’ computational power sank.
NFA Disclaimer
Please note that we do not provide financial, investment, or trading advice. Investing in cryptocurrencies or tokens is highly speculative, and the market is highly volatile and largely unregulated. Anyone considering crypto investment activities should be prepared to lose their entire investment. Invest at your own risk!
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