Crypto Scoop: Solana Becomes Fourth Largest Cryptocurrency By Market Cap

As the holidays draw closer, we see price gains among top cryptocurrencies. In this edition of the Crypto Scoop, we’ll review the following: 

• Solana’s price surge
• Ethereum’s Dencun upgrade
• Global adoption and regulatory initiatives.

Solana (SOL) Surges to 19-Month Peak 

While bitcoin traded at $44,000 and ETH at $2,2000, Solana (SOL) experienced a noteworthy surge, reaching a 19-month peak above $85. This surge allowed Solana to surpass XRP and BNB in market capitalisation to become the fourth-largest cryptocurrency. 

Surprisingly, meme-inspired cryptocurrency bonk (BONK) outpaced its counterpart Pepe (PEPE) to become the third-largest meme coin by market capitalisation. The Solana-based BONK has witnessed an astonishing 621% surge in value against the U.S. dollar in the past month alone.

In a crypto-confidence boost, Binance's survey of over 1,000 users reveals that a whopping 76% believe cryptocurrencies are powerful tools in the fight against income inequality. For 36% of respondents, digital assets aren't just a trend but a crucial part of home savings and retirement plans. The survey showcases a diverse crypto landscape, with users leveraging digital currencies to earn extra income (45%), save money (19%), and combat inflation (9%). 

Meanwhile, the United States Securities and Exchange Commission (SEC) has decided to delay its decision on Ethereum exchange-traded funds (ETFs) until May 2024. Meanwhile, Bitswise and Hashdex have begun advertising for their Bitcoin ETF while awaiting approval from the SEC.

Ethereum's "Dencun" Upgrade Promises Efficiency Boost with Proto-Danksharding

Ethereum's upcoming upgrade, "Dencun," is set to undergo testing starting January 17 on the Goerli testnet, with subsequent rollouts on Sepolia and Holesky. While the mainnet implementation timeline remains undisclosed, Dencun aims to introduce critical enhancements. These include tools to reduce fees, enhance bridge and staking pool functionalities, and limit self-destruct operations on smart contracts.

A pivotal feature of Dencun is Ethereum Improvement Proposal (EIP) 4844, known as "proto-danksharding." This proposal revolutionises data storage for layer-2 rollup networks, allowing temporary off-chain storage using a new format called "blobs." These blobs can be deleted after 18 days, offering a more efficient alternative to the current on-chain data storage practices. Developers believe proto-danksharding will significantly cut transaction fees on layer 2 solutions, marking a potential game-changer for Ethereum's efficiency and scalability.

Global Adoption And Regulation Across The Globe

A PwC report reveals that 42 countries engaged in discussions or passed crypto regulations and legislation in 2023. The report identifies four key focus areas of deliberation: stablecoin regulation, travel rule compliance, licensing and listing guidance, and overall crypto framework development. Over 20 nations implemented comprehensive crypto regulatory frameworks, highlighting a growing trend towards global cryptocurrency adoption. 

In a separate development, Google Trends data reveals Brazil has surpassed Nigeria in Bitcoin interest, solidifying its second-place position after El Salvador. This shift suggests a changing preference among Nigerian users, favouring the USDT stablecoin over Bitcoin.

In a groundbreaking move, Argentina joins the list of countries embracing crypto, with the government officially legalising Bitcoin and other cryptocurrencies for contract settlements and payments. This development, announced by the Minister of Foreign Affairs, International Trade, and Worship, Diana Mondino, reinforces Argentina's commitment to incorporating digital assets into its economic framework.