This Week in Crypto | 25-31 August



Aug 31, 2021

10 MIN

Microstrategy Adds 3097 Bitcoins to its Stash for $177M

Budweiser Splurges $120K on Beer.eth Domain and NFT Art

DeFi Continues its Momentum, Amasses $157 Billion in Total Value Locked 

More than 10% of Younger Americans Bought Crypto With Their Stimulus Checks

Following the Footsteps of El Salvador, Cuba, too, may Legalize Cryptocurrencies in the Country

Welcome to another edition of Dacxi weekly crypto updates. This week shows that the institutional adoption of cryptocurrencies has not lost momentum. Microstrategy continues to buy more Bitcoins. With its recent purchase of Bitcoins, Microstrategy's Bitcoin holdings have touched 109,000, combinedly worth over $5 billion, at current prices.

A famous beer brand Budweiser, on the other hand, spent $120,000 to buy a Budweiser-themed NFT art and Beer.eth domain. The DeFi space is growing rapidly, with its $157 billion TVL standing testimony to it. Cryptocurrencies continue to remain the darling of the masses as 11% of young Americans bought crypto with their stimulus checks. Interestingly, governments around the world are changing their stance on cryptocurrencies. The recent country that may recognize and regulate cryptocurrencies is Cuba.

Microstrategy Adds 3097 Bitcoins to its Stash for $177M

One of the most prominent corporate Bitcoin proponents, Microstrategy, bought 3097 Bitcoins for $177 million. Headed by Michael Saylor, Microstrategy has been regularly buying Bitcoins for the last one year. 

With this purchase, Microstrategy now owns 109,000 Bitcoins. It makes Microstrategy one of the largest holders of Bitcoin, the world's largest cryptocurrency by market cap.

Between July 1 and August 23, the business intelligence software vendor Microstrategy bought 3097 Bitcoins as its 8K form filed with the United States Securities and Exchange Commission indicates so.

The SEC filing also shows the average price at which Microstrategy bought its 3097 Bitcoins. As per the filing, the company spent $45,294 per Bitcoin during their recent purchase.

So, what do all these show? Having begun their crypto purchase in August 2020, Microstrategy has come a long way today. Today, Microstrategy's Bitcoin holdings are worth above $5 Billion. The company has become the "Poster Boy" of sorts or face of the corporate Bitcoin proponents.

Budweiser Splurges $120K on Beer.eth Domain and NFT Art

A leading beer brand at a global level, Anheuser-Busch's Budweiser, has bought an NFT art to use on its Twitter profile. But the news wasn't released by the company. Instead, it was discovered through the records of OpenSea marketplace. 

The records show that the beer brand spent 8 ETH on August 24th to buy a rocketship NFT with Budweiser branding on it. The dollar figure at the time of Budweiser's purchase was $25,704.

Interestingly, the beer producer also bought a Beer.eth domain for 30 ETH on OpenSea's Ethereum Name Service. 

Created by Tom Sachs, the Budweiser-branded NFT art consists of three beer cans. At the time of writing, it is still visible to its 200K+ followers on Twitter.

DeFi Continues its Momentum, Amasses $157 Billion in Total Value Locked 

The most happening spaces in the crypto industry today are DeFi and NFT, without a doubt. Both these impressive segments are setting new records regularly for some time now.

DeFi's TVL touched an all-time high as it almost touched $157 billion on August 22. It is a big deal as many experts believe that TVL is the most crucial indicator regarding DeFi’s growth.

Among all DeFi projects, Interoperability-focused protocols are attracting the majority of funds, especially the ones focused on liquidity mining pools and cross-chain bridges. 

The last two weeks of August have played an instrumental role as many DeFi tokens surpassed their all-time highs during this time. In fact, statistics indicate that a majority of top-10 DeFi tokens saw a price gain as high as 20% over the last 30 days. Bancor and THORChain had a dream run as both posted above 115% gains.

More than 10% of Younger Americans Bought Crypto With Their Stimulus Checks

CNBC and a research firm Momentive joined hands to survey and find what young Americans did with their stimulus checks.

Interestingly, younger Americans went on an investing overdrive after receiving their stimulus checks. Almost 50% of younger Americans used their stimulus checks for making investments.

The respondents were 18 to 34 years old at the time of the survey. Crypto was among their top-most choices, with 11% of them putting their stimulus money into cryptocurrencies. There were 5530 respondents in the survey.

When it comes to the most preferred investment instrument among the respondents participating in the survey, stocks trumped all other options. Almost 15% of respondents said they funneled their stimulus checks into stocks. 

The third and fourth most preferred investment instruments were mutual funds and exchange-traded funds (ETFs), as they received 15% and 6% votes in the survey respectively.

The respondents were also asked if they view cryptocurrencies as a long-term investment, short-term investment, or are investing purely out of excitement. It was found that 60% of young Americans consider crypto as a long-term investment, whereas 21% of them consider it a short-term investment. On the other hand, 26% said that they are investing in crypto because of excitement.

Following the Footsteps of El Salvador, Cuba, too, may Legalize Cryptocurrencies in the Country 

With its economy battered by sanctions against it by Donald Trump, the previous president of the United States, Cuba has to pause accepting deposits in the United States dollars.

To tackle the economic challenges put forth by the American sanctions, Cuba may soon recognize and regulate cryptocurrencies.

The Al Jazeera report shines further light on the topic as it indicates that Cuba's central bank will prepare rules to bring crypto transactions into the mainstream.

Once the legality of cryptocurrencies in Cuba is tackled, crypto-related businesses may soon be able to apply for relevant licenses to operate in the country.