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- Crypto Alpha - Week 38 2024
Crypto Alpha - Week 38 2024
All things Crypto, Web3 and Blockchain to keep you updated
TL;DR
Louisiana Adopts Bitcoin for Utility Bills
Fed Cuts Interest Rates by 50 Basis Points
Ethereum's 'Pectra' Upgrade Split into Two Phases
SEC vs. Consensys: Ethereum Win, MetaMask Battle
Solana Launches 'Seeker' Crypto Smartphone
Binance Launches FIDA Futures Trading
Jupiter Expands DEX with Coinhall, SolanaFM
ckBTC Bridges Bitcoin to Cosmos via Osmosis
Re Member Fund on Avalanche
Franklin Templeton's Tokenized Fund on Avalanche
Binance Founder to Be Released from Prison
Revolut Set to Launch Stablecoin
And much more!
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Bitcoin Highlights of the Week
Louisiana now accepts Bitcoin and other cryptocurrencies for public services, including utility bills, making it the first U.S. state to do so. This move aims to attract tech-savvy residents by providing more payment flexibility and streamlining services. State officials believe this modernization will appeal to a younger demographic and demonstrate cryptocurrencies' practical uses beyond investment.
This decision may inspire other states and prompt federal discussions on crypto regulations. While it poses regulatory challenges, Louisiana's bold step sets a precedent that could influence the future of cryptocurrency payments across the country, showcasing a practical application for digital currencies.
The Federal Reserve cut interest rates by 50 basis points, lowering the federal funds rate to 4.75%-5%, marking the first significant cut in over four years. This move addresses concerns about the U.S. economy, noting slowed job gains and a slight rise in unemployment despite good growth. The Fed aims to balance maximum employment and price stability, continuing to reduce Treasury and mortgage-backed assets.
Lower rates may increase Bitcoin's appeal, as traditional assets become less attractive. Historically, rate cuts boost liquidity, potentially driving demand for Bitcoin. Fed Chair Jerome Powell will discuss the decision further at 2:30 PM EST.
During the World Liberty Financial launch, Trump credited his NFT projects' success for changing his view on Bitcoin. Initially a Bitcoin critic, Trump saw his NFTs, minted on Polygon and purchased with crypto, as eye-opening. He mentioned his son Barron, an avid crypto user, as influential in this shift.
While Trump's new pro-crypto stance has garnered support from the crypto community for his second presidential run, some remain skeptical about his true motivations. Despite these doubts, Trump's position contrasts with other candidates like Harris, who show little engagement with the crypto industry, making him a favored choice for crypto enthusiasts.
Germany's Commerzbank and DZ Bank, two of its largest banks, are set to offer Bitcoin and crypto trading services, reflecting growing institutional demand. Commerzbank partnered with Deutsche Boerse's Crypto Finance to provide trading access for corporate clients, while DZ Bank teamed up with Boerse Stuttgart to enable its 700 cooperative banks to offer crypto services. This move follows Zurich Cantonal Bank's recent entry into retail crypto services.
With over $1 trillion in combined assets, Commerzbank and DZ Bank's involvement significantly boosts Bitcoin's mainstream adoption in Europe. Their regulated services cater to professional investors, emphasizing portfolio diversification and risk management. This development marks a major step in Bitcoin's integration into European finance.
On Sept. 18, former President and 2024 Republican nominee Donald Trump made headlines by purchasing hamburgers with Bitcoin at Pubkey, a Bitcoin-friendly bar in New York City. This marked the first time a former U.S. president used cryptocurrency in a transaction. The event, attended by Bitcoin advocate Anthony Pompliano, was also shared on Trump’s Truth Social account.
The visit came shortly after Trump announced a new token through the World Liberty Financial platform. Despite previously criticizing Bitcoin, Trump has included Bitcoin miners in his 2024 campaign. During the event, he handed out “crypto burgers” and emphasized his potential to win New York’s electoral votes.
Daily Alphas of the Week
Ethereum Highlights of the Week
Ethereum developers have announced the Pectra upgrade will be divided into two phases to manage its complexity and reduce potential bugs. The first phase, set for early 2025, includes eight Ethereum Improvement Proposals (EIPs) like EIP-7702, aimed at enhancing wallet user experience.
The second phase, still in development, may introduce changes to the Ethereum Virtual Machine and PeerDAS for improved data availability sampling, reducing costs and boosting Layer 2 scalability. This strategic split aims for a smoother rollout, enhancing validator efficiency and smart contract performance, pushing Ethereum closer to mass adoption.
Google Cloud has introduced a Blockchain Remote Procedure Call (RPC) service compatible with Ethereum, enhancing blockchain data interaction for developers. Initially supporting Ethereum's mainnet and testnet, the service aims to extend to other blockchains within a year. It includes a free tier, offering up to 100 requests per second and 1 million daily requests, and supports EIP-1474, simplifying integration with Ethereum-based applications.
This service promises improved reliability for decentralized applications (DApps), particularly during high network traffic. Google Cloud’s entry into the blockchain space is poised to be a significant development for Web3, aiding developers in creating more scalable and reliable DApps.
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A Texas federal judge dismissed Consensys' lawsuit against the SEC, which aimed to prevent the regulation of Ether as a security. The court ruled that the SEC's investigation was not final enough for legal review. This decision marked a partial victory for Consensys, as the SEC also quietly ended its investigation into Ethereum 2.0.
Despite this win, Consensys faces ongoing legal challenges over MetaMask's Swap feature, which the SEC claims involves selling unregistered securities. Consensys plans to file a motion to dismiss this case. The outcome could significantly impact how blockchain companies operate in the U.S., potentially leading to tighter regulations or a favorable precedent for the crypto industry.
At Token2049 in Singapore, Vitalik Buterin highlighted the significant drop in Ethereum's transaction fees on layer-2 networks, which now approach zero. He recalled past experiences of paying over $800 for a single transaction, noting the change from fees of $10 to under $0.01 as a major milestone for crypto's mainstream adoption.
Buterin also reported improvements in transaction confirmation times, with most transactions now processed in 5 to 15 seconds since the Ethereum Merge. Looking ahead, Buterin emphasized the importance of balancing mainstream adoption with decentralization and open-source values.
ENS Labs' partnership with PayPal and Venmo aims to enhance cryptocurrency payment adoption by enabling transactions with human-readable Ethereum Name Service (ENS) addresses. This integration simplifies the user experience, allowing transactions to use recognizable usernames like “Thomas.eth” instead of complex hexadecimal addresses. Marta Cura of ENS Labs believes this collaboration will bridge Web2 and Web3, unlocking new use cases in various payment systems and e-commerce.
However, mainstream adoption requires cooperation with traditional finance (TradFi) companies, which can slow down progress due to regulatory hurdles. Additionally, the use of ENS names may reduce address poisoning scams, enhancing security and user confidence in crypto transactions.
Solana Highlights of the Week
Solana Mobile has launched its new crypto smartphone, Seeker, previously known as "Chapter Two," following impressive pre-sales of over 140,000 units across 57 countries. The device is priced at $450 for 'Early Founder' buyers until the end of the Solana Breakpoint conference.
Seeker will feature four months of free Helium coverage, gaming rewards from Parallel Colony, and benefits from Moonshot's memecoin perks, enhancing its appeal to crypto enthusiasts. The Seeker smartphone includes a Seed Vault Wallet, an updated Solana dApp Store, and a Seeker Genesis Token, a unique NFT that provides exclusive rewards.
PlaySolana has unveiled the first handheld gaming console built on the Solana blockchain, named the “Play Solana Gen1” (PSG1). Announced just before the Solana Breakpoint event in Singapore, the console resembles retro devices like the Nintendo Game Boy. While it will support Solana's decentralized network, specific web3 games for the device have yet to be disclosed, and the launch date remains unconfirmed.
This move aligns with a growing trend in the blockchain gaming sector, as other teams, such as Mysten Labs with its SuiPlay0X1 console, also enter the market. As web3 gaming adoption expands, it remains to be seen how these ventures will perform amid increasing competition and interest in mobile gaming devices.
Binance has officially launched futures trading for Solana Name Service (FIDA), introducing the FIDAUSDT Perpetual Contract with leverage up to 75x. The launch occurred on September 19 at 12:30 UTC, leading to a notable price surge of over 30% for FIDA, which is currently trading at approximately $0.29 with a market cap exceeding $40 million. Earlier, the token's price briefly exceeded $0.33, reflecting heightened interest from traders.
In addition to the futures launch, Solana Name Service announced support for the newly unveiled Web3 mobile phone, Seeker, and revealed improvements to its offers table for enhanced user experience. Formerly known as Bonfida, SNS aims to be the premier blockchain naming service on Solana, contributing significantly to the ecosystem with innovations like the Serum Core engine and the first Perpetual Swap on Solana.
io.net has partnered with TARS Protocol to enhance AI and Web3 infrastructure on the Solana blockchain. This strategic collaboration aims to accelerate decentralized AI adoption and Blockchain-as-a-Service (BaaS) solutions. TARS focuses on creating an integrated platform that bridges AI and Solana, offering tools like the AI Console and TGPT search engine, while io.net provides a robust network of over 11,000 GPUs and CPUs, ensuring efficient AI model deployment.
The partnership promises reduced AI model training costs by up to 30%, enhancing scalability for complex applications. Together, the firms will develop a joint roadmap to facilitate innovation and support over 1,000 developers, improving deployment speed and flexibility within a decentralized framework.
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