17 Jul, 2024

State Street Looks to Create Its Own Stablecoin

Quick TakeState Street is looking for ways to get involved in settling payments on the blockchain and is also considering creating a deposit token, Bloomberg reported.State Street has delved into crypto in the past. In 2021, the firm set up a new unit to focus on digital assets.State Street Looks to Create Its Own StablecoinState Street Corp. is looking into creating a stablecoin, Bloomberg reported on Wednesday. The global financial services firm is looking for ways to get involved in settling payments on the blockchain and is also considering creating its own deposit token. The deposit token would signify customer deposits on a blockchain, according to an anonymous source cited by Bloomberg. This wouldn't be the first time the country's 12th-largest bank delved into crypto. State Street Global Advisors partnered with Galaxy Asset Management last month to launch exchange-traded funds that provide exposure to crypto firms. State Street also built a new unit in 2021 within the firm focused on digital assets, tokenization and crypto. State Street did not immediately respond to a request for comment from The Block on its stablecoin plans. Other companies have launched stablecoins. Last year, PayPal launched its dollar stablecoin with Paxos, PayPal USD or PYUSD.There is no federal framework in place for regulating stablecoins in the U.S. Reps. Maxine Waters, D-Calif., and Patrick McHenry, R-N.C., have been working on a bill to regulate stablecoins on the federal level. However, one challenge has been who should be the primary regulator for stablecoin issuers. Work is also underway on the Senate side to regulate stablecoins.U.S. Securities and Exchange Commission Chair Gary Gensler has previously compared stablecoins to other securities, such as money market funds. However, his agency dropped an investigation into Paxos over the stablecoin Binance USD last week. In a statement on July 11, Paxos said the SEC's move will "unlock a new wave of stablecoin adoption by leading global enterprises."

12 Jul, 2024

Ethereum's Valuation Surge and Bullish Projections

Ethereum's Remarkable GrowthEthereum, the second-largest cryptocurrency by market capitalization, has experienced a significant surge since November 2022. According to a report by Glassnode and CME Group, Ethereum's valuation has increased by $354 billion, a 267% rise. This growth occurred despite the collapse of the leading cryptocurrency exchange, FTX, in November 2022, which was once valued at $32 billion. The report, titled "Digital Assets: Insights and Market Trends," provides a comprehensive overview of the digital asset landscape, emphasizing Ethereum's dominant position in the altcoin sector.Ethereum's Market Capitalization and StakingCurrently, Ethereum boasts a market capitalization of $451 billion, representing 41.7% of the total altcoin market, which stands at $611 billion. Validators have staked 32.2 million ETH, accounting for roughly 27% of the circulating ETH supply. This staking activity has generally increased over time, especially after Ethereum's transition to a proof-of-stake consensus mechanism with the completion of The Merge in September 2022. Since then, the ETH supply has decreased by 343,000 ETH due to a significant drop in issuance and the implementation of the EIP-1559 burn mechanism.Historical Market PerformanceHistorically, Ethereum's market performance post-Bitcoin halving events has been varied. In the 2016 cycle, Ethereum's price initially fell by 45% before skyrocketing by over 3,400%. In the 2020 cycle, its price more than doubled in the months following the halving and continued to rise by 2,150%. However, Ethereum has also faced deep corrections, with the most significant loss in the 2022-2024 cycle being 42%, compared to previous cycles that saw corrections exceeding 65%.Weekend Market Activity and PredictionsOver weekends, typically characterized by reduced market activity and lower trading volumes, Ethereum found renewed demand at around $3,100. Prominent crypto analyst Michael van de Poppe predicts that the upcoming launch of the Ethereum ETF next week could catalyze a significant price reversal, attracting more interest and trading activity.Insights from the ETH.CC EventInsights from the ETH.CC event highlight Ethereum's underestimated influence on social media and its crucial role in the future of decentralized finance (DeFi). The conference showcased Ethereum’s robust ecosystem, innovative projects, and its potential to revolutionize various industries. Van de Poppe expressed his optimism about Ethereum’s future, stating, "I’m happy to be long on $ETH!"Institutional Investments and Future PredictionsAdding to the excitement, Blackrock’s tokenization fund has amassed a remarkable $500 million on the Ethereum blockchain. This substantial investment underscores the growing confidence in Ethereum’s technology and its ability to handle large-scale financial operations, attracting more institutional interest.Echoing a bullish stance, crypto enthusiast Timothy Peterson predicts that Ethereum's price could soar to between $4,600 and $6,000 by March 2025, up from its current trading price of $3,120. He also believes there’s a 90% chance that Bitcoin will reach a new all-time high within the same timeframe. These projections are based on similar analyses he has conducted previously, reinforcing the optimistic outlook for Ethereum's future.ConclusionEthereum's impressive valuation increase, the anticipated launch of the Ethereum ETF, and significant institutional investments all point to a promising future for the cryptocurrency. As Ethereum continues to grow and innovate, it solidifies its position as a leading player in the digital asset space.