Crypto Scoop: Bitcoin Soars to $61,000 As Stakeholders Pursue Exciting Initiatives

As top cryptocurrencies recover from last week’s losses, the global crypto landscape continues to see significant developments. In this edition of the Crypto Scoop, we examine the following: 

• Price moves of top cryptocurrencies
• Tether's milestone initiatives
• Cardano’s announcement of the Chang hard fork launch
• Global crypto initiatives and regulation
• Sony’s entry into Web3 technology

Price Moves of Top Cryptocurrencies

Bitcoin soared past the $60,000 benchmark this week to reach $61,000, while Ethereum traded at $2,600. 

These price movements were part of a broader trend of increased global cryptocurrency ownership, which rose by 6.4% to 617 million by June 2024, up from 580 million at the end of 2023, according to Crypto.com’s latest market sizing report. The growth in ownership was primarily driven by key developments in the Bitcoin and Ethereum ecosystems, including the launch of spot exchange-traded funds (ETFs) linked to these digital assets. Bitcoin continues to dominate the crypto landscape, with its ownership growing by 5.9% to reach 314 million, accounting for 51% of all crypto holders. Ethereum also saw a sharper rise in adoption, with a 9.7% increase, bringing the total number of ETH owners to 136 million, or 22% of the global market.

This surge in Ethereum ownership coincides with significant network advancements, which Vitalik Buterin, Ethereum’s co-founder, described as making the network’s fundamentals “crazy strong.” He highlighted the dramatic reduction in transaction fees on Layer 2 solutions, noting that it makes Ethereum more accessible and cost-effective for users.

Meanwhile, US spot Ether ETFs recorded five straight days of outflows, marking their longest period of continuous outflows since their launch in July. These outflows, totalling $92.2 million from August 15 to 21, have been compounded by significant withdrawals from the Grayscale Ethereum Trust (ETHE), which exceeded $2.5 billion by August 21. However, Grayscale Investments announced the launch of a new investment fund for Avalanche’s native token, AVAX, aiming to offer investors exposure to Avalanche’s innovative multi-chain structure. 

Blackrock has recently overtaken Grayscale as the world’s largest digital asset manager. On August 21, Blackrock officially surpassed Grayscale in on-chain asset value, with Blackrock’s IBIT holding the largest share of Bitcoin among US Bitcoin ETFs. Bitcoin ETFs collectively hold around 910,153.83 BTC, translating to over $53 billion, with Blackrock managing 38.34% of this total.

Tether Expands Global Reach with New Minting on Tron, Aptos Integration, and UAE Dirham-Pegged Stablecoin Launch

Tether continues to expand its influence in the global stablecoin market with significant developments across multiple blockchain networks and the launch of new products. On August 20, Tether reportedly minted an additional $1 billion USDT on the Tron network, bringing its total tokens minted over the past year to an impressive 33 billion. This includes 19 billion USDT minted on Tron and another 14 billion on the Ethereum blockchain. Tether’s total supply, now at $116 billion, remains heavily concentrated on Tron and Ethereum, which together account for 88% of all USDT in circulation.

In addition to its activity on Tron and Ethereum, Tether is also expanding its USDT stablecoin to the Aptos blockchain, driven by its low transaction fees and robust developer community. The integration is expected to make USDT transactions on Aptos more cost-effective, particularly for microtransactions and large-scale operations, aligning with Tether’s commitment to providing innovative, reliable financial tools. Aptos, co-founded by former Meta Diem project leaders Mo Shaikh and Avery Ching, has recently seen a surge in network activity, processing over 326 million transactions in a single day, driven by the click-to-earn game launch Tapos 2.

Further expanding its portfolio, Tether announced the launch of a new stablecoin pegged to the United Arab Emirates Dirham (AED). This initiative, developed in partnership with UAE-based Phoenix Group PLC and supported by Green Acorn Investments Ltd, is set to leverage the UAE's regulatory framework for Payment Token Services. The Dirham-pegged stablecoin aims to facilitate international trade, streamline remittances, and provide a hedge against currency fluctuations, offering a digital representation of the AED. This new product joins Tether’s existing fiat-backed tokens, such as USDT and EURT, and reflects the company's ongoing efforts to enhance financial ecosystems worldwide.

Cardano Schedules Chang Hard Fork Launch For August 27, 2024

Cardano is preparing for a significant upgrade with the proposed Chang hard fork, tentatively scheduled for August 27. The upgrade, introduced by Intersect, a Cardano membership organisation, is designed to bring decentralised governance to the platform, marking a critical step in Cardano’s evolution toward complete decentralisation. Based on project progress, community feedback, and readiness updates, the proposal awaits a final decision on August 23, with September 3 as a potential backup date if any issues arise.

Named after the late Cardano evangelist Phil Chang, the Chang hard fork will introduce significant changes to Cardano’s software, making it incompatible with previous versions and giving ADA holders a more direct role in the network’s governance as the platform progresses into the Voltaire era. The hard fork follows the recent Node 9.1 upgrade, with 80% of stake pool operators (SPOs) adopting the new node. However, only 34% of exchanges have adopted the update so far, falling short of the 80% target.

Recent Developments in Global Cryptocurrency Regulation and Adoption

This week, several countries took notable steps to regulate, innovate, and integrate digital assets into their economies. The Seychelles National Assembly approved a draft bill to regulate virtual asset service providers (VASPs), requiring them to establish a substantial presence in the country. This move aims to balance innovation with anti-money laundering efforts, adhering to international standards set by the Financial Action Task Force (FATF).

In Nigeria, the government is pushing to overhaul its tax system to include the burgeoning cryptocurrency industry. The Federal Inland Revenue Service (FIRS) plans to introduce a new tax law targeting crypto activities, highlighting the need for the country to benefit financially from its significant crypto market.

Meanwhile, Wyoming is moving forward with plans to launch a state-issued dollar-pegged stablecoin by 2025, backed by US Treasury bills and repurchase agreements. Governor Mark Gordon discussed this initiative at the Wyoming Blockchain Symposium, underscoring the state’s commitment to blockchain innovation.

Russia is also making strides in the crypto world by exploring the establishment of two crypto exchanges in Moscow and St. Petersburg to facilitate international trade. Initially limited to major firms, these exchanges will be supported by stablecoins pegged to the Chinese yuan and the BRICS currency basket. In India, the government is preparing to introduce comprehensive regulations for the crypto sector, starting with a consultation paper to gather stakeholder feedback. This follows the G20 nations’ consensus on the need for unified crypto regulations, as Finance Minister Nirmala Sitharaman emphasised.

Finally, El Salvador continues its efforts to integrate Bitcoin into its national framework by launching a Bitcoin training program for 80,000 public servants. This initiative, part of President Nayib Bukele’s governance reform, aims to enhance public sector knowledge in Bitcoin, blockchain, and other emerging technologies.

Sony Group Takes a Dive into Web3 with the New Ethereum Layer-2 Network Soneium

Sony Group is making a significant move into the Web3 space by introducing Soneium, an Ethereum Layer-2 network aimed at bridging blockchain technology with everyday internet services. Announced by Sony Block Solutions Labs, a subsidiary of Sony, Soneium is designed to accelerate the adoption of blockchain by integrating it into sectors like entertainment, gaming, and finance. This initiative is part of Sony’s broader strategy to expand into digital assets following its acquisition of the WhaleFin exchange in July, which it plans to relaunch under a new name.

Soneium, developed in collaboration with blockchain infrastructure provider Startale, will use advanced technology from the Optimism Foundation and is expected to launch a testnet soon. The network has already attracted several key partners, including Chainlink and Astar, whose zkEVM solution will be incorporated into Soneium. Jun Watanabe, Chairman of Sony Block Solutions Labs, emphasised that Soneium aims to introduce blockchain technology to a global audience by leveraging Sony's vast reach across various industries. The network will eventually integrate with Sony's existing services to make Web3 more accessible to customers unfamiliar with blockchain.