🚀 Ethereum accelerates with EIP-7732, 💸 Canadians still prefer cash to crypto!
Welcome to the Daily Tribune, Friday, July 5, 2024 ☕️
Hello Cointribe! 🚀
Today is Friday, July 5, 2024, and like every day from Tuesday to Saturday, we summarize the news of the past 24 hours that you shouldn't miss!
But first…
✍️ Cartoon of the day:
A quick look at the market…
🌡️ Temperature:
Rainy 🌧️
24h crypto recap! ⏱
Ethereum accelerates with EIP-7732 🚀
Ethereum introduces a new improvement proposal, EIP-7732, aiming to revolutionize the block validation process on the blockchain. This change, supported by Vitalik Buterin, divides block creation into two distinct parts: consensus and execution, thanks to the Enshrined Proposer-Builder Separation (EPBS). Additionally, a Payload Timing Committee ensures that blocks are submitted within the specified timeframe, thereby increasing network efficiency and speed. EIP-7732 allows for faster transactions, reducing confirmation times to between five and twenty seconds, and could strengthen Ethereum's competitive position in the market. This advancement requires a complete network upgrade and thorough evaluation by the Ethereum community. 🔗 Read the full article here.
Boom in crypto venture capital investments 💰
Despite a declining crypto market, venture capital investments reached $3.19 billion in the second quarter of 2024, slightly up from $3.16 billion in the previous quarter. The number of transactions also increased, from 682 to 739, approaching the record of 775 transactions in the second quarter of 2022. The median transaction size increased from $3 million to $3.2 million, and pre-money valuations surged from $19 million to $37 million. This resilience indicates strong competitiveness in the field, despite the withdrawal of generalist venture capitalists. The United States still dominates, but regulatory constraints could drive companies to seek funding abroad. If this trend continues, 2024 could become the third-best year for venture capital investments in crypto, after 2021 and 2022. 🔗 Read the full article here.
Banking transparency and crypto: BIS unveils new rules 🔍
The Basel Committee of the Bank for International Settlements (BIS) has approved an innovative framework for disclosing bank exposures to crypto-assets, marking a turning point in the regulation of the digital asset market. Starting in early 2026, banks will be required to publish detailed information about their crypto activities, which will be done using public tables and models to provide a clear view of their exposures. This initiative aims to strengthen transparency, improve market discipline, and facilitate risk assessments by regulators. In parallel, the Committee has approved amendments to the prudential standard for cryptos, clarifying criteria for stablecoins to benefit from preferential regulatory treatment under group 1b. These revisions demonstrate ongoing adaptations of regulations in response to the rapidly evolving crypto market, while maintaining strict prudential requirements to ensure financial system stability. 🔗 Read the full article here.
Canadians prefer cash to crypto 💵
A recent survey by the Bank of Canada reveals that Canadians still prefer cash transactions over cryptocurrency payments. In 2023, approximately 20% of purchases in Canada were made in cash, while less than 3% of Canadians used bitcoin for their payments. Despite a favorable infrastructure, with over 3,000 bitcoin ATMs, crypto adoption remains low. Conversely, electronic transfers and digital wallets like PayPal are experiencing increased usage. Paradoxically, Canadian institutional investors show a growing interest in cryptos, with 39% of them holding digital assets in 2023, compared to 31% in 2021. This institutional adoption is facilitated by the approval of Bitcoin ETFs, offering direct exposure to the crypto market. 🔗 Read the full article here.
Crypto of the day: Gala (GALA)
Gala is a web3 ecosystem powered by the GalaChain blockchain, which aims to transform entertainment industries such as gaming, music, and cinema. GalaChain stands out with its open-source resources, allowing developers to easily create custom tokens, smart contracts, and node networks.
The native crypto, GALA, is used to reward node operators and offers voting rights for governance. GALA has mainly been distributed through rewards for nodes and is used for transactions within the Gala ecosystem, providing benefits such as reward opportunities and governance functions.
Recent Performances
Current price: €0.01838
Percentage increase/decrease: -18.36% (decrease in 1 day)
Market capitalization: €590,823,729
Rank on CoinMarketCap: 83#
Bitcoin: Heading below $50,000?
The cryptocurrency market is currently marked by a significant drop in bitcoin, causing concern among investors and analysts. Several experts predict a possible descent below the psychological threshold of $50,000. Bitcoin's historically weak performance in the third quarter, especially in August and September, could worsen the situation. Richard Galvin of Digital Asset Capital Management believes that political uncertainty, with the possible election of a less crypto-friendly Democratic candidate, could also weigh on the market. Andrew Kang anticipates a potential drop to $40,000, followed by months of volatility before a possible recovery. Alex Kuptsikevich of FxPro observes that bitcoin has breached the lower boundary of its descending channel, making a drop to $51,500 more likely than a rebound to $65,800.
The causes of this drop are manifold. The recent liquidation of approximately 1,300 BTC, equivalent to $75.53 million, by the German government has intensified selling pressure in the market. The imminent reimbursements from Mt. Gox, scheduled for early July, could exert additional pressure with a massive distribution of over $9.4 billion to reimburse more than 127,000 creditors. Bitcoin's drop below the 200-day moving average, set at $58,492, triggered massive liquidations in the derivatives market, reaching $100.4 million. Moreover, the decoupling of bitcoin from U.S. stocks does not help the situation. Investors must therefore remain vigilant against the possibility of prolonged volatility influenced by economic and political factors.