Monday, October 10, 2022 7:36 PM
Data from CryptoCompare shows that the price of Bitcoin rose from around $19,000 to around $20,400 at the start of the week, before undergoing a correction that dropped it back to $19,200, the crypto’s current level. -change.
Ethereum’s ether, the second largest cryptocurrency by market capitalization, traded similarly to BTC, starting the week around $1,300 and jumping quickly to approach the 1,400 mark before a correction will bring ETH back to its current level of $1,320.
Headlines in the cryptocurrency space this week focused on a number of topics, with a major development coming from the Financial Stability Oversight Board, whose first major cryptocurrency report warned that the market needed more oversight, as the widespread adoption of digital assets poses risks if the market grows without it.
The report notes that the scale of digital asset-related activity has increased over the past few years and that, although “interconnections with the traditional financial system are currently relatively limited, they could potentially increase rapidly.”
A panel of experts pointed out that existing laws already cover a lot of activity in crypto markets and urged agencies including the U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) ), to prioritize the application of cryptography. He recommended that Congress provide more resources to police the crypto market.
During the week, the European Council also voted across European Union cryptocurrency markets.
Asset Regulation (MiCA). The MiCA is set to bring the issuance of digital assets under the wing of institutional regulation and establishes a first regime for digital asset service providers in the EU.
MiCA also imposes reserve requirements on stablecoins and aims to avoid a collapse similar to that seen in the Terra ecosystem earlier this year. The regulation provides for an adaptation period of 12 to 18 months to prepare for the new laws.
These developments came in the same week as SWIFT, the Society for Worldwide Interbank
Financial Telecommunication, presented a framework for a global central bank digital currency (CBDC) system while claiming to have a solution for interoperability between different networks.
The move comes after experiments involving the central banks of France and Germany as well as commercial banks including HSBC, Standard Chartered and Wells Fargo. SWIFT says it hauled the pit
transactions between different blockchains using both CBDCs and fiat currencies.
SWIFT’s framework is relevant as central banks have been considering digitizing fiat currencies through blockchain technology for years, but concerns about how CBDCs in different countries might interact using these different networks have arisen. popped up. Through SWIFT, they could be interconnected for cross-border payments through a single gateway.
Solana Suffers Major Outage, BNB Chain Stopped $100M+ Exploit
During the week, there were several high-profile incidents in the cryptocurrency space. The week
started with Solana, a high-performance blockchain, suffering a major outage that prevented it from
process transactions on a misconfigured node. The network was restarted to solve the problem.
This is not the first major blockchain outage. So far this year, Solana has handled a number of
multiple crashes and degraded performance issues. In September 2021, Solana went offline for 17
hours.
Popular cryptocurrency exchange Coinbase also suffered an outage during the week, with a technical glitch halting withdrawals involving US bank accounts. The exchange revealed over the weekend that for unspecified technical reasons it was “unable to accept payments or make withdrawals involving US bank accounts” and added that its team was aware of the issue. and worked to resolve it.
Additionally, BNB Chain, Binance’s native BNB token blockchain, has been shut down following an exploit in its cross-chain bridge that saw attackers flee with an estimated $100 million worth of cryptocurrency. .
BNB Chain reassured the public that its systems were in lockdown and user funds were safe, and the
network resumed shortly after being interrupted.
These incidents are known to affect confidence in the market and come during a prolonged bear market that has seen total assets under management across all digital asset investment products plummet. In September, they fell another 12.7% to $22.5 billion, according to CryptoCompare’s Digital Asset Management Review.
The AUM of Bitcoin-based digital asset products fell 10.7% to $15.6 billion, while the AUM of Ethereum-based digital asset products fell 19.3% to 5 .49 billion, now accounting for 24.5% of total AUM, compared to Bitcoin’s 69.4% market share.
MakerDAO will invest $500 million
The decentralized autonomous organization behind Maker, the organization that supports the cryptocurrency-backed stablecoin DAI, is allocating $500 million to invest in US Treasuries and
corporate bonds.
The funds come from the protocol’s overcollateralized stablecoin, 80% of which goes to
short-term US Treasuries, while 20% goes to investment grade corporate bonds. Moving
comes after a MakerDAO community voted on it after a proposal was made in late June.
The fixed income allocation aims to diversify the DAO’s balance sheet, limit its exposure to a single asset and grow its income.
Francisco Memoria is a content creator at CryptoCompare who is in love with technology and dedicated to helping people see the value in digital currencies. His work has been published in many reputable industry publications. Francisco holds various cryptocurrencies.
Featured image via Unsplash.