This Week In Crypto | 24 - 30 November

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Dacxi

Nov 30, 2021

5 MIN

Famous Well-Known Superannuation Fund to Invest in Crypto

Metaverse Market Opportunity to Cross $1 Trillion

Japan Gains a Significant NFT User Base

Salvadoran President Invests More than $5million in Bitcoin

Russia’s Crypto Transactions Have Hit $5 Billion Annually

 

The global market continues to look promising for crypto assets despite a dip in its prices. A $47 billion worth Australian superannuation fund has decided to include Bitcoin in its investment portfolio. The Salvadoran president has bought 100 bitcoins afresh for $5 million. 

Researchers predict that the Metaverse market will soon present an opportunity of more than $1 trillion, while one-fourth of the Japanese crypto investors have admitted to holding NFTs. Finally, in this week’s crypto news, the Russian Central Bank has put out an estimate saying that the country’s crypto transactions have hit $5 billion annually.

 

Famous Well-Known Superannuation Fund to Invest in Crypto

In a significant boost to the market credibility of cryptocurrencies, Rest Super, an Australian superannuation fund, has decided to invest in cryptocurrencies. It will become the first retirement fund in the country to do so. The decision of Rest Super is expected to infuse new energy in the notion of crypto assets as investable instruments due to their sheer size. 

The fund holds nearly US$47 billion in assets under management, and their member base is 1.8 million strong. However, the fund is going to play safe and cautious. The CIO or Chief Investment Officer of the fund, Andrew Lill, has said that the fund wants to tread “carefully and cautiously” by initially investing a small amount as part of the fund’s diversified portfolio. Lill sees potential in crypto assets as a “good place to invest” in the era of inflation. He also believes that empowering members with exposure to crypto and blockchain tech could result in a “stable source of value.”

 

Metaverse Market Opportunity to Cross $1 Trillion

According to a report published by Grayscale, the well-known crypto investment firm, bringing Metaverse to the market could mean a market of more than $1 trillion in the next few years. The report pivots its optimism on a new online experience that the metaverse has created. It has done so by integrating crypto tokens, defi services, NFTs, decentralized governance and decentralized cloud storage to the metaverse platforms. 

The researchers have also analyzed the data for global all-time metaverse wallets - since the start of 2020 - to find that the user base has reached 50,000 as of June 2021. They believe that several other factors might play a determining role in the growth of the sector. These factors include growing average leisure time, an increasing amount of money spent on digital hobbies, a paradigmatic shift from premium to free-to-play gaming and other web3.0 innovations like the play-to-earn model.

 

Japan Gains a Significant NFT User Base

One in four crypto investors in Japan had an NFT-holding experience, suggests a survey. While 26% of Japanese crypto investors have had an NFT-holding experience, 39% of the holders never sold their NFTs and were not sure of the NFT’s values. Another 22% did not sell their NFTs while being aware of their value. 19% of respondents benefited from selling their NFTs. 

As far as the central theme of these NFTs in the Japanese market is concerned, Art continues to lead the charts, followed by games, metaverse, entertainment and sports. To match up to the surging popularity of the NFTs, Japanese crypto exchange Coincheck launched its NFT marketplace in 2021. There are many believers in Japan’s potential in leading the NFT market owing to its preference towards pop culture, anime, and manga. 

 

Salvadoran President Invests More than $5 Million in Bitcoin

Amid the dip in the BTC prices, El Salvador has invested more than $5 million into Bitcoin. President Nayib Bukele announced on Twitter about purchasing 100 coins when the BTC prices dropped below $54,000. The dip in the asset’s price was driven by a Covid-19 induced global market sell-off. The fear among investors resurfaced after a new coronavirus variant was discovered in South Africa. 

President Bukule has a history of buying Bitcoin when its price is dipping. Earlier, El Salvador bought 200 Bitcoins when the price had hit nearly $52,000. To date, the country holds 1,220 BTC, including the latest buy of 100 coins. As of now, the country has more than $66 million worth of Bitcoins. 

 

Russia’s Crypto Transactions Have Hit $5 Billion Annually

According to an estimate published by the Bank of Russia, the total yearly volume of crypto transactions of the Russian population is around 350 billion rubles or US$5 billion. The central bank infers that this volume of transactions makes Russia one of the crucial markets for the crypto industry. Russia is also one of the world’s largest Bitcoin mining countries. 

Moreover, the Russian Federation is one of the global leaders in visits to the Binance crypto exchange. It comes as the second contributor of traffic on Binance, only after Turkey. However, the success with Crypto does not take away the fact that the Central Russian bank still considers financial stability, investor protection, money laundering and criminal financing as major risks associated with crypto. 

 

Market Update

Bitcoin:

Recent market studies suggest that long-term Bitcoin holders hoverits around a several-years high. Yet, the markets are not saturated with profit-taking as many of these holders keep reducing their spending while continuing to add to their positions. 

Ethereum:

Since the EIP-1559 protocol came into effect, more than 1 million Ether had been burned. The EIP-1559 protocol reformed the Ethereum fee market modified the gas fees limit and introduced a burning feature.