For crypto, it’s good riddance to summer
#Web3Weekly: Aug. 28 to Sept. 3, 2022
This post is adapted from a recent edition of my newsletter #Web3Weekly. If you’d like to receive it in your inbox every Sunday, subscribe here.
August couldn’t end soon enough for crypto traders, who suffered a “bleak month,” according to Coinbase. Unfortunately, there’s still a lot of uncertainty ahead for fall as well.
Six of the top ten tokens by valuation posted monthly declines in August, led by a 21% plunge in Solana. Bitcoin dropped 12%, and ether slipped 2%. The global token market’s capitalization fell nearly 11% to end the month just under $1 trillion, according to data from CoinMarketCap.
One bright spot amid all the bloodletting: Adjusted transaction volume in stablecoins leapt 33% in August to a record $866.2 billion, according to The Block Research.
The surge seemed to be a byproduct of recent U.S. Treasury sanctions against transaction “mixer” Tornado Cash. The crackdown has apparently forced more trading activity in stablecoins into the open, according to The Block.
Looking ahead, Ethereum is expected to complete its long-anticipated Merge in September, moving the popular network to a new proof-of-stake protocol for verifying transactions. App developers have generally been favorable on the technical benefits of the network upgrade, but the implications for markets are less clear so far.
Also worrisome for traders heading into fall: The U.S. Federal Reserve’s tough stance on inflation, which is spurring higher interest rates and increased aversion to risk among investors. That in turn has created serious headwinds for stocks, crypto, and other assets that may continue awhile longer.
The week’s other big headlines:
- Bitcoin mining difficulty has risen 9.3% over the last two weeks, the biggest increase since January, according to The Block Research. However, Bitcoinist reports that on-chain transaction activity among users has remained weak.
- Helium’s core developers are proposing a full migration to the Solana blockchain.
- The Cardano network’s vasil upgrade is set for Sept. 22.
- Ticketmaster has begun offering event tickets as non-fungible tokens through a partnership with Dapper Labs.
- Coinbase launched a voter registration tool on its website ahead of U.S. midterm elections in November, with an eye toward encouraging users to vote for pro-crypto candidates.
- The New York Times reports that Big Tech companies have begun shifting some hardware manufacturing out of China due to rising political tensions with the U.S. Other relatively low-cost countries like India are benefiting, according to the Times.
- A sample of people surveyed in 19 developed countries increasingly consider online misinformation a “major threat” to their national security, according to the Pew Research Center. Climate change was the number-one concern mentioned in the survey, identified as a threat by 75% of respondents. But misinformation was a surprisingly close second at 70%.
- The global soccer powerhouse FIFA is launching a new NFT platform in partnership with Algorand.
- Snoop Dogg and Eminem performed at the MTV Video Music Awards as Bored Apes NFTs via the metaverse.
That’s it for now. Thanks for spending some time with #Web3Weekly today! If you would like to receive these updates in your inbox, please subscribe here.
As ever, a quick disclaimer: This content is intended for journalistic purposes only, not as investment advice. For the latter, please DYOR and consult appropriate financial pros to make the most suitable choices for your needs.
Best wishes for a healthy and productive week ahead.
