Dacxi Crypto Wealth | This Week In Crypto | 1 - 7 December

This Week In Crypto | 1 - 7 December

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Dacxi

Dec 8, 2021

5 MIN

Adidas Announces Metaverse Entry

The Indian Government is Not Considering a Blanket Ban on Crypto

Researchers Claim Ethereum’s Superiority as a Store of Value Over Bitcoin

Salvadoran President Leverages Price Dip to Stack More Bitcoins

DeFi TVL Hits All-Time High

The future of crypto and blockchain technology grows promising with each passing day. One of the largest global brands, Adidas has declared its Metaverse entry with specially designed Bored Ape NFTs. While the Indian Government has denied plans to introduce a blanket ban on crypto, the DeFi TVL has reached an all-time high. One of the most vocal proponents of a crypto economy, Salvadoran president Nayib Bukele has purchased 150 bitcoins, leveraging a bearish Bitcoin market.

 

Adidas Announces Metaverse Entry 

In another step forward towards the mainstreaming of blockchain technology, globally leading sports clothing line Adidas announced its entry to the Metaverse through its partnerships with the Bored Ape Yacht Club, gmoney NFT, and PUNKS comic. Adidas has explained its entry to the metaverse as an effort to explore the “world of limitless possibilities.”

The partnership with the Bored Ape Yacht Club has helped Adidas to redraw a Bored Ape NFT featuring the iconic Adidas tracksuit. Gmoney is a crypto and NFT influencer featured on the Fortune NFTy 50, while PUNKS comic is known for introducing crypto comics leveraging the technology of NFTs. 

 

The Indian Government is Not Considering a Blanket Ban on Crypto

Local media reports suggest that the Indian government is rather keen to regulate the crypto industry. According to a cabinet note on the proposed crypto bill, circulating in the government circle, the government wants the Securities and Exchange Board of India (SEBI) to look after the regulation process.  

As gathered from the proposed bill outline, investors will get a time period within which they will have to declare their crypto holdings and transfer to exchanges regulated by the SEBI. The bill might ban private wallets. The aim that drives the Indian government to regulate crypto is to prevent money laundering and terrorism financing. The government of India has also put on hold its CBDC plan as it is not keen at all to recognize crypto as legal tender. 

 

Researchers Claim Ethereum’s Superiority as a Store of Value Over Bitcoin

In a paper published on November 18th, four Australian researchers have extensively discussed the impact of Ethereum Improvement Proposal (EIP) 1559 on making ETH a better store of value than BTC. These four researchers are Ester Félez-Viñas from the University of Technology Sydney, Sean Foley from Macquarie University, Jonathan Karlsen from the University of Western Australia, and Jiri Svec from the University of Sydney.

The main driving factor influencing these four researchers to draw such a conclusion is that Ether, as a currency, offers better inflationary hedging properties than Bitcoin. They believe that this property makes ETH a superior storage of long-term value than Bitcoin.

It would be relevant to mention here that the EIP-1559 upgrade was carried out in August in which the network did burn a portion of transaction fees along with more than one million ETH from the circulating supply of more than 118 million. One of the most significant proponents of crypto-economy, Salvadoran president Nayib Bukele has purchased 150 bitcoins again, leveraging the asset’s bearish market. 

 

Salvadoran President Leverages Price Dip to Stack More Bitcoins

Nayib Bukele, the President of the Latin American country El Salvador, bought 150 Bitcoins at a price of US$48,670. With this purchase, El Salvador’s Bitcoin reserve reached 1,270 BTC. The plan of the government is to withdraw unrealized BTC gains in U.S. dollars to fund diverse developmental projects. 

The Salvadoran president has also announced the launch of a Bitcoin City, to be funded by $1 billion Bitcoin bonds. The city will feature prominent crypto companies, including the crypto exchange Bitfinex and Adam Back’s Blockstream. 

 

DeFi TVL Hits All-Time High

The total value locked in decentralized finance protocols reached an all-time high of $276.92 billion on Nov.9. Experts have identified several factors to be responsible for this surge, including the launch of new Ethereum-compatible networks such as Fantom and Layer-two compatible solutions like Arbitrum. 

Trading volume on decentralized exchanges such as Uniswap and Sushiswap has also been on the rise. The rise also points towards a tendency among crypto hodlers to lock up their tokens as collateral to receive loans that they can leverage again in some other crypto and DeFi related activity. 

Market Updates

Ether Futures ETF Up for Approval: Investment firm headed by Kevin Kelly , Kelly Strategic Management, has sought approval for an ETF in the US tied to Ether futures.