Crypto Scoop: Bitcoin Surges Above $30,000, while DAI Emerges as Third Largest Stablecoin by Market Cap

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June, 23 2023

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Crypto Scoop

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We see new initiatives and updates in the crypto space amid price gains.

Bitcoin’s price scaled to $30,000 this week, while Ethereum traded above $1,800. In this edition of the crypto scoop, we’ll be reviewing the following: 

  • Price moves of top cryptocurrencies
  • Etherscan’s AI initiative
  • IMF’s cross-border initiative
  • Do Kwon’s arrest and sentence
Bitcoin's Price Chart

Bitcoin's Price Chart

Bitcoin Scales to $30,000, ETH to $1,800

This week, we saw the price of Bitcoin break past $30,000 for the first time since April. Ethereum wasn't left behind in the price rally as it soared to $1,800. The market capitalisation of the six largest stablecoins, including USDT, USDC, DAI, BUSD, TUSD, and USDP, increased by over $1 billion during the weekend, marking the biggest climb in three months. 

USDT, the leading stablecoin with a market cap of over $83 billion, had deviated slightly from its $1 peg last week. However, the price returned to its $1 level in the following days. Tether's Chief Technical Officer (CTO), Paolo Ardoino, attributed the fluctuation to fear, uncertainty, and doubt (FUD) prevailing in the market. According to Santiment, this increase comes after a gradual decline over the past 15 months and may indicate an increased buying power in the crypto market.

MakerDAO's DAI stablecoin rose this week to become the third-largest stablecoin by market capitalisation, surpassing Binance USD (BUSD), which declined to a market cap of $4,248,290,589. At the time of writing, DAI's market valuation stood at $4,713,612,491.

Shiba Inu recorded a brief price surge on Thursday with the announcement of a new feature. Shibarium, a metaverse and NFT-focused layer 2 blockchain within the Shiba Inu ecosystem, plans to introduce a system for authenticating real-world assets. The upcoming Shibarium ecosystem upgrade will enable users to link NFTs to physical items, providing proof of ownership and authentication for these assets. Shibarium is expected to launch later this year and will offer features such as blockchain gaming, decentralised entertainment, account abstraction, and international governance. One of the trust-building mechanisms in Shibarium will be the implementation of "Shibacals," which are authenticated collectables.

Etherscan Introduces AI-Powered 'Code Reader' Tool for Ethereum Contract Source Code

Etherscan, the Ethereum block explorer and analytics platform, introduced a new tool called "Code Reader" on June 19. This tool employs artificial intelligence to fetch and interpret the source code of a specific contract address. 

Powered by AI technology developed by OpenAI, this tool enables users to request explanations of either the entire source code or specific sections of a smart contract. Etherscan aims to assist users in understanding the functionalities of smart contracts by retrieving the "read" and "write" functions. By gaining this knowledge, users can make informed decisions on how to interact with the contract and explore potential applications within decentralised applications (dApps).

International Monetary Fund (IMF) Presents Blueprint for Cross-Border CBDCs

The International Monetary Fund (IMF) has presented a blueprint for cross-border central bank digital currencies (CBDCs) to enhance payment efficiency and safety while allowing compliance checks and capital controls. Tobias Adrian, the director of the IMF's monetary and capital markets department, highlighted current infrastructure limitations in cross-border payments and emphasised the potential of new platforms for CBDCs. 

Adrian explained, “The cost, sluggishness, and opacity of cross-border payments come from limited infrastructure. Our blueprint for a new class of platforms would enhance and ensure greater interoperability, efficiency, and safety in cross-border payments, as well as in domestic financial markets. ” 

In a separate report, the IMF acknowledged the growing interest in digital assets in Latin America and the Caribbean. Countries like Brazil, Argentina, Colombia, and Ecuador are actively adopting digital assets to serve the unbanked and enable faster and cheaper payments, among other benefits. The report also noted that many regional central banks are either adopting or considering digital currencies. While the IMF supports crypto regulation in these countries, it pointed out that an outright ban on cryptocurrencies may not be the most effective approach for countries.

Terraform Founder Do Kwon Sentenced to 4-Months Jail

Do Kwon, the founder of Terraform Labs, has been sentenced to four months in jail by a court in Montenegro. The court found him guilty of document forgery, and the verdict was announced on Monday. It was also stated that the time spent in detention would be counted towards the sentence. 

However, this is just one of his many legal battles, as he is still awaiting extradition for criminal charges surrounding the collapse of Terraform’s LUNA. Do Kwon, along with another Terra executive Han Chang-Joom remain in custody.