Read in the Digest:
- Bitmain Shuts Down Activities in China, Texas to Use Mining to Capture Wasted Natural Gas
- Bitcoin Updates: Market Dominance, Daily Settlement Volume, Huge Transaction Growth
- Ethereum On-Chain Activity Explodes, ETH Consolidates
- Crypto Exchange CEO Holds Billions of Tether (USDT) for Easy Trading
- ConsenSys Announces Funding Round to Reach $3 Billion Valuation
Bitmain Shuts Down Activities in China, Texas to Use Mining to Capture Wasted Natural Gas
China’s increasing crackdown on crypto mining has seen more companies impose restrictions on the region, most recently, Bitmain. As a result of the ban, Bitmain announced that it will no longer ship to Bitcoin miners in mainland China.
The announcement comes after China banned mining in July and then imposed a blanket ban on all crypto-related activities. Similarly, eCommerce giant Alibaba (NYSE:BABA) has banned sellers from selling mining devices and cryptocurrencies.
Following this anti-crypto stance, Bitmain has said that it will follow local regulations and suspend domestic delivery starting from Monday, October 11. However, overseas business will continue as usual.
While China continues intensifying its stand, Texas has taken the initiative to welcome Bitcoin mining. Senator Ted Cruz has said that Bitcoin mining can be used to monetize energy that is otherwise wasted in oil and gas extraction.
Flipsider:
- China’s crackdown on mining has resulted in an increase in mining activities in North America, where nations and states are looking to become the next mining hub
Why You Should Care
With China’s crackdown, mining hubs are migrating to areas with friendlier policies to support the Bitcoin network.
Bitcoin Updates: Market Dominance, Daily Settlement Volume, Huge Transaction Growth
The crypto market experienced a significant resurgence, led by the biggest asset on the block, Bitcoin. Over the last week, Bitcoin has risen from $47k to its current trading price of $56,457.83.
The price rise has seen the dominance of Bitcoin reach a new 8-week high. With a market cap of $1.063 trillion, Bitcoin now accounts for 45.7% of the crypto market cap ($2.331 trillion). The closest is Ethereum, accounting for 18%.
Bitcoin’s dominance continues with the value settled on the Bitcoin network. Amidst a surge, Bitcoin’s daily settlement value hit an all-time high of $31 billion on October 6.
Glassnode has also reported a trend confirming Bitcoin’s increasing dominance. According to Glassnode, in the past month, transactions above $10M on the Bitcoin chain have set a record high, exceeding 70% for the first time.
Flipsider:
- While Bitcoin dominates, over the last year, Ethereum has experienced more growth at 390% compared to BTC’s 93%
Why You Should Care
Bitcoin continues to prove it is the premier cryptocurrency for a reason, and according to BitMEX CEO Alexander Hoeptner, at least four other countries will follow El Salvador’s footsteps in making Bitcoin a legal tender.
Ethereum On-Chain Activity Explodes, ETH Consolidates
Ethereum is one of the leaders of the crypto market resurgence, gaining almost 10% in the last 48 hours. Ethereum has moved from a 30-day low of $2,676.41 to trade as high as $3,673.31. ETH now trades at $3,567.10.
As the market consolidates, Ethereum has remained around $3,500-$3,600. However, while the price of the second-largest cryptocurrency stagnates, on-chain data shows significant growth on the network, which can be linked to the increasing popularity of both the DeFi and NFT industries.
According to the on-chain data, 155,230 new addresses were registered on the network on October 10. This is the highest number of addresses created in one day since May 18.
A similar spike in activity on the Ethereum network was reported by OKLink. According to OKLink, over 500,000 ETH have been burned on the network since the August hardfork. The current top three protocols for burning ETH are OpenSea, Uniswap V2, and ERC-20 USDT.
Flipsider:
- While the Ethereum network expands, the inflows have not created any major selling pressure for Ethereum.
Why You Should Care
The on-chain data support the explosion of DeFi (which has been predicted to replace the centralized economies). Ethereum, the leader in this space, is bound to benefit from the growth.
Crypto Exchange CEO Holds Billions of Tether (USDT) for Easy Trading
In an interview, the CEO of easy-to-use crypto exchange FTX, Sam Bankman-Fried, stated that he has bought billions of stablecoin Tether, along with trading in other cryptocurrencies.
Sam Bankman-Fried explained that Tether is easier to use than normal cryptos like Bitcoin, Ethereum, and Cardano. Banks will be less wary about facilitating money laundering because Tether is valued and backed by the U.S. Dollar.
Like other stablecoins backed by the USD, Tether has attracted a lot of use by traders looking to secure their gains because of its market stability. While conventional cryptos like BTC and ETH are prone to rapid price rise and fall, Tether remains 1 USDT to $1.
Flipsider:
- Regardless of Tether’s popularity, the project has been embroiled in controversies, most recently its use in financing Chinese debts
Why You Should Care
Stablecoins offer an alternative for banks and agencies who want to work with crypto but are afraid of its volatility.
ConsenSys Announces Funding Round to Reach $3 Billion Valuation
ConsenSys, a blockchain startup that builds and invests in projects built on the Ethereum distributed ledger and a major benefactor of the DeFi boom, is reportedly planning a new funding round of $250 million that will move its valuation up to $3 billion.
According to one of the sources, Golden Tree Asset Management and probably Arca are going to partake in the round. While details of the funding round were withheld, in April, ConsenSys announced what it tagged a “formation round.”
The formation round saw the company raise $65 million from JP Morgan, Mastercard (NYSE:MA), UBS, and other investors. The successful formation round perhaps led to the new funding round.
A crypto wallet and key gateway to the decentralized finance world, MetaMask is one of the most significant programs developed by ConsenSys. MetaMask has facilitated more than $9 billion in trade through its digital token swap feature.
Flipsider:
- As ConsenSys grows, other startups on Ethereum have recently attracted large valuations from venture capitalists
Why You Should Care
In 2021, venture capitalists have invested $20.v7 billion in cryptocurrency startups, signaling an increased interest and belief in the industry.
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