Cardano Q4 2023 Report: TVL Growth and ADA Price Surge Outshine Competitors

Audy Castañeda
-
0
Cardano Q4 2023 Report: TVL Growth and ADA Price Surge Outshine Competitors

With the thawing of crypto winter, the Cardano ecosystem saw a significant increase in USD total value locked (TVL), soaring 166% quarter-on-quarter and 693% year-on-year.

Cardano (ADA) showed notable progress during the fourth quarter (Q4) of 2023, outperforming its competitors and demonstrating impressive growth across key metrics, according to a report by Messari.

Average Daily Transactions Soar in the Fourth Quarter

The report highlights that USD ADA revenue increased 66.7% quarter-on-quarter (QoQ), driven not only by ADA price action but also a 10.6% QoQ increase in ADA-denominated revenue.

Furthermore, the Cardano Treasury balance expanded by 2.6% quarter-on-quarter, reaching 1.43 billion ADA, in line with the growth trends seen in previous quarters. Currently, 20% of transaction fees contribute to the treasury, which can be adjusted through governance.

Another key metric, transactions, shows that Cardano saw 10.9% quarter-on-quarter growth in average daily transactions, outpacing the 1.6% quarter-on-quarter growth in daily active addresses. The ratio of transactions to active addresses has increased steadily over the past year, indicating an increase in power users. In the fourth quarter, the ratio of transactions to active addresses increased 9.2% sequentially and 45.0% year-over-year (YoY), reflecting higher average activity per user due to the introduction and development of several protocols throughout 2023.

In terms of participation, active participation decreased by 0.5% quarter-on-quarter for the second consecutive quarter, amounting to 22.8 billion ADA. Engaged participation also remained relatively stable in the second half of 2023. However, active and engaged participation saw a year-over-year decline of 10.2% and 9.6%, respectively.

Cardano TVL Reaches New Milestone

The Cardano ecosystem saw a significant increase in USD total value locked (TVL), soaring 166% quarter-on-quarter and 693% year-on-year. Indigo emerged as the largest TVL protocol, surpassing Minswap.

The TVL of stablecoins on Cardano increased 37% QoQ and 673% YoY, with the addition of Mehen’s USDM fiat-backed stablecoin scheduled to launch in March. Notably, TVL in USD reached an all-time high of $449 million on December 14, representing 166% growth in the fourth quarter. This increase contributed to Cardano’s rise in the TVL rankings from 15th to 11th during the fourth quarter, following its initial position of 34th at the beginning of the year. ADA-denominated TVL also hit an all-time high, peaking at just over 700 million ADA.

According to the report, Cardano’s TVL growth was primarily driven by the introduction of new stablecoins, namely iUSD and DJED, in early 2023. Stablecoins remained a crucial indicator of the health of decentralized finance (DeFi), as the total value locked in stable assets increased by 36.8% to $21.5 million.

Cardano stablecoin market capitalization also improved from 54th to 32nd place among other networks. However, non-fungible token (NFT) activity declined during the fourth quarter. Transactions and trading volume in the NFT space decreased by 8.0% and 33.8% quarter-on-quarter, respectively.

Each year, NFT transactions and trading volume decreased substantially, by 58.3% and 68.3%, respectively. The only metric that showed growth in 2023 was the number of unique sellers, which increased 213.2% year over year, with an average of 270 unique sellers per day.

The ADA price increased by 127.2% quarter-on-quarter, outpacing the overall crypto market increase of 53.8%. This fourth quarter increase contributed to ADA’s year-over-year change of 145.2%.

Therefore, ADA continues to show significant gains with its current trading price of $0.5724. This reflects a significant increase of 5.5% in the last 24 hours and 8% in the last 30 days. These figures further solidify the token’s bullish momentum as the market enters the mid-Q1 of 2024.

By Audy Castaneda

South Korea Will Expel Cryptocurrency Exchanges That Do Not Comply with Its Strict Conditions

Leonardo Perez
-
0
South Korea Will Expel Cryptocurrency Exchanges That Do Not Comply with Its Strict Conditions

Cryptocurrency exchanges that fail to meet South Korea’s stringent operating standards will be expelled from the crypto market, the country’s financial intelligence agency has said. The Financial Intelligence Unit explained that its annual work plan incorporates the insights of cryptocurrency experts serving on its advisory committees.

South Korea’s Financial Intelligence Unit (FIU) announced on February 12 that cryptocurrency exchanges that fail to meet its enhanced standards will be expelled from the country’s cryptoasset market. This also applies to digital asset companies trying to enter the South Korean cryptocurrency market.

Additionally, the South Korean government is reportedly considering implementing a trading system that would automatically stop suspicious transactions even before launching an investigation. This system, recommended by the Financial Action Task Force (FATF), is already in use in 49 countries, including Britain, Finland and Germany.

South Korea Reviewing All Crypto Transactions

The Financial Intelligence Unit (FIU) has reported a massive increase in the number of suspicious crypto transactions in 2023 compared to the previous year.

“Consequently, the number of suspicious transaction reports to the FIU by virtual asset service providers increased by approximately 49% compared to the previous year.”

Additionally, the FIU indicates that it has increased cooperation and communication with other law enforcement agencies. This is an effort to strengthen its position in the fight against illicit cryptocurrency transactions.

Data from Statista indicates that South Korea is projected to achieve annual revenue of $2.2 billion in the cryptocurrency market by 2027.

South Korea Will Implement System to Identify Suspicious Transactions

According to a report by The Korean Times, FIU’s new strategies for the cryptocurrency industry are detailed in the annual work plan, presented on February 12. The work plan is said to incorporate the insights of cryptocurrency experts who are part of its advisory committees.

Commenting on the agency’s plan to hold cryptocurrency exchanges to higher operating standards, FIU Commissioner Rhee Yun-su had this to say:

“In preparation for the enactment of the virtual assets consumer protection law starting in the second half of this year and large-scale registration renewals, the KoFIU will nimbly move forward with the necessary institutional improvements to ensure the smooth operation of the cryptocurrency industry,” Rhee Yun-su, the commissioner in the intelligence unit.”

According to the report, South Korea’s first virtual asset consumer protection law will take effect in July.

Will South Korea’s New Strategy Stop the Wave of Crypto Crime?

Starting July 19, 2024, South Korea will implement the Virtual Asset User Protection Law. This indicates a significant overhaul in the regulatory approach to cryptocurrencies. Such a law will impose strict penalties, including life imprisonment for individuals who engage in illicit crypto profits exceeding $3.7 million.

However, its main objective is to ensure the safety and security of the growing crypto industry in anticipation of substantial growth in the coming years. Meanwhile, despite significant law enforcement efforts in the cryptocurrency sector, not all law enforcement actions in the country have yielded successful results.

A media outlet recently reported that South Korean cryptocurrency traders faced accusations of engaging in arbitrage between local and foreign exchanges. However, they were acquitted after the initial trial. These traders were allegedly trying to exploit the price difference, known as the Kimchi premium, between South Korean exchanges and those operating abroad.

Prosecutors alleged that this price difference ranged from approximately 3% to 5%, resulting in a profit of around $3.2 billion.

By Leonardo Perez

Bitcoin Surpasses $52,000 and Recovers a Market Capitalization of $1 Trillion

Audy Castañeda
-
0
Bitcoin Surpasses $52,000 and Recovers a Market Capitalization of $1 Trillion

Bitcoin bulls have come back, with the world’s leading cryptocurrency surging past $52,000 on Wednesday following a long pause.

Bitcoin bulls are back in charge, with the world’s top cryptocurrency topping $52,000 on Wednesday, reclaiming its trillion-dollar market cap glory after a 26-month hiatus.

This rally follows a brief dip below $50,000 triggered by better-than-expected US inflation data, but investors shrugged it off, demonstrating resilient confidence in the future of the digital asset.

Bitcoin Shows Worth with $52,000 Default

This latest surge marks an important milestone, not only for Bitcoin but for the entire cryptocurrency ecosystem. After 26 months, the leading crypto asset has officially surpassed the coveted $1 trillion market capitalization, a testament to its growing adoption and mainstream appeal.

Several factors appear to be driving this renewed optimism. First, there is the bullish sentiment around Bitcoin, with many analysts and traders anticipating further price gains. Options traders are particularly optimistic and are betting that one BTC could reach $75,000 in the coming months, adding fuel to the fire.

Second, the recent launch of spot exchange-traded funds (ETFs) in the United States has played an important role. These ETFs allow investors to gain exposure to Bitcoin without owning it directly, attracting institutional investors and generating significant capital inflows.

Nearly $10 Billion Flowing into Crypto Market

Data from CryptoQuant reveals that a staggering $9.5 billion has entered the Bitcoin market through these ETFs since their debut in January. In fact, more than 70% of the new money invested in Bitcoin in the last two weeks originated in these spot ETFs, highlighting their growing impact.

Looking ahead, the upcoming halving event in April looms large. This scheduled halving, which occurs every four years, reduces the number of new Bitcoin entering circulation, which could affect its price due to increased scarcity. Bitcoin has historically witnessed major rallies following halving events, and many analysts believe this time will be no different.

“The upcoming halving will further restrict supply,” said Duncan Ash, head of product marketing strategy at Coincover. “If history repeats itself, we can expect continued BTC price growth in the coming months.”

According to an analysis by Grayscale, Bitcoin ETFs can fundamentally change the cryptocurrency’s supply-demand relationship, counteracting halving selling pressure.

Grayscale analysis notes that the current mining rate of 6.25 Bitcoin per block amounts to approximately $14 billion annually — considering the price at $43,000. In other words, to maintain current prices, $14 billion of buying pressure is required over the same period.

“After the halving, these requirements will decrease by half: with only 3,125 Bitcoin mined per block, that equates to a decrease to $7 billion annually, effectively easing selling pressure,” Grayscale notes.

The price of Bitcoin directly impacts the operating costs of the mining community. The upcoming halving event will halve the mining reward to 3,125 BTC, which will require BTC to maintain a high market value for mining to be a viable business model.

However, not everyone is singing an entirely bullish tune. While Swissblock analysts agree that the bullish trend is likely to continue, they caution against excess exuberance, warning of a possible slowdown in momentum and the market’s inherent volatility.

Ultimately, the future of Bitcoin remains uncertain, as with any cryptocurrency. However, this recent surge, fueled by bullish sentiment, ETF inflows, and the upcoming halving, suggests that the bulls are firmly in control for now.

By Audy Castaneda

CoinShares Reached Revenue of USD 108.4 Million in 2023, and other News

Leonardo Perez
-
0
CoinShares Reached Revenue of USD 108.4 Million in 2023, and other News

A recent report indicates that CoinShares reached revenues of USD 108.4 million in 2023, showing a recovery compared to 2022.

In its revealing Q4 2023 report, digital asset investment platform CoinShares highlights a robust financial year, generating a total revenue of USD 108.4 million in all of last year, according to published data.

In the last quarter of 2023, CoinShares reports significant revenue and profits, reaching the figure of $42.12 million. The firm also reports that adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to approximately $32.51 million, while its total revenue for the quarter stood at $19.36 million.

In comparison to 2022 results, CoinShares shows a notable recovery in 2023. In the fourth quarter of 2022, the company recorded a negative EBITDA of $30.11 million and a negative total revenue of $46.94 million. For the full year 2023, the company saw revenue, profit and other income of $108.4 million. Adjusted EBITDA for the year was $71.98 million, and total revenue was $47.95 million.

Binance Cryptocurrency Exchange Founder, Changpeng Zhao Has New Sentencing Date

In a new update to the case of Binance founder and former CEO Changpeng Zhao, the sentencing initially scheduled for February 23 has been postponed until April 30.

This rescheduling comes after an extensive investigation by US authorities, which led Zhao to plead guilty to violating the Bank Secrecy Act. As a result, he resigned from his position as CEO of Binance in November last year. This confession is part of a broader agreement in which Binance is expected to pay $4.3 billion to the United States government, while Zhao accepted a personal fine of $50 million.

Zhao is currently out on bail, which had been set at $175 million. However, his request to travel to Dubai was denied last December, as the US Federal Court imposed a travel ban, expressing concerns about a possible risk of escaping.

Crypto Whale Sells 8.78 Million in Ethereum, Generating Profits in the Cryptocurrency Market

In a clever move in the tumultuous cryptocurrency market, a whale known for his shrewd trading strategies sold a staggering $8.78 million worth of Ethereum (ETH). As revealed by data from the on-chain analysis platform LookOnChain.

The mysterious trader sold 3,360 ETH at an average price of $2,615, reaping profits totaling $1.3 million. This move follows a previously employed tactic, where the same whale sold 367 Wrapped Bitcoin (WBTC) worth $17.35 million at $47,288 two days earlier, securing a profit close to $1.35 million.

Transactions were carried out through three wallets identified by their addresses: 0xAc4c, 0x36c2 and 0x8B20. This strategy highlights the complexity and meticulousness with which these large-scale operations are planned.

South Korea Tightens Control Over Cryptocurrency Exchange

South Korea’s Financial Intelligence Unit (FIU) has made public its commitment to intensify surveillance of crypto exchanges in the country, as reported by the Korean Times on February 12.

Starting this year, the FIU plans to exclude platforms considered “inappropriate” from the local market, as well as expand the scope of control procedures to prevent the entry of unsuitable exchanges into the national economy.

As part of these measures, the regulator intends to implement a preventive suspension system for suspicious operations on existing platforms in South Korea. This system will freeze transactions, even during the pre-investigation phase.

The initiative, recommended by the Financial Action Task Force and considered by 49 countries around the world, seeks to strengthen security and prevent illicit financial activities.

By Leonardo Perez

Bullish Pays Up to $80 Million to Acquire CoinDesk and Replaces Several Managers, Including CEO Kevin Worth

Audy Castañeda
-
0
Bullish Pays Up to $80 Million to Acquire CoinDesk and Replaces Several Managers, Including CEO Kevin Worth

Bullish’s acquisition of CoinDesk has led to some changes, including the departure of the CEO and other key personnel. “CoinDesk will remain an independent subsidiary of Bullish and Sara is committed to maintaining CoinDesk’s independence and journalistic integrity,” a CoinDesk spokesperson said.

Global cryptocurrency exchange Bullish has reached an agreement to acquire online crypto outlet CoinDesk for a price between $70 million and $80 million.

CoinDesk is a popular cryptocurrency news platform owned by parent company Digital Currency Group (DCG), whose subsidiaries include cryptocurrency exchange Luno and asset management platform Grayscale Investments.

Bulls Save CoinDesk from Financial Trouble

Coinspeaker first reported the sale last November after both parties issued a press release confirming the acquisition. Although CoinDesk had suffered some financial setback, Bullish announced that it would now fund the publication without affecting the company’s independence:

“Bullish will immediately inject capital into several of CoinDesk’s most exciting growth initiatives which will power the launch of new services, events and products. We also want to express our unwavering support for CoinDesk’s commitment to journalistic independence.”

CoinDesk’s problems began when the publication revealed some financial irregularities observed in the balance sheet of the trading company Alameda Research. The news greatly affected the crypto sector and was followed by a strong bear market that significantly affected DCG. Although CoinDesk may have inadvertently compromised DCG, the media outlet continued to report stories about DCG owner Barry Silbert’s problems.

In November 2022, reports suggested that CoinDesk received an offer worth $300 million from a potential buyer. The company’s list of potential buyers included family offices, private equity firms and even rivals like Blockworks. Binance also considered purchasing CoinDesk through CoinMarketCap at one point.

As its financial situation worsened, CoinDesk laid off 45% of its editorial staff (reportedly 20 employees) to maintain the company’s financial stability. According to a memo from then-CEO Kevin Worth, the layoffs primarily affected the company’s media team.

A report from CoinDesk last week confirmed that Bullish has now replaced Worth with Sara Stratoberdha, the exchange’s former head of business development. Bullish’s confirmation that CoinDesk will continue to operate independently furthers the publication’s seemingly complex relationship with its owners.

“Sara and the CoinDesk leadership team are excited about the opportunity to invest in and grow CoinDesk Media, Events and Indices,” according to the report.

CoinDesk Management Team Restructured

Stratoberdha’s appointment as the new CEO is one of the few changes made to CoinDesk’s structure. The acquisition also forced several executives to resign, including Medial Chief Operating Officer and President Elinor Hirschhorn and Chief Global Strategy Officer Emily Parker.

Vice president of engineering John DeGuenther also left, while chief content officer Michael Casey is no longer full-time but could remain in another role. Interestingly, Bullish hired editor-in-chief Kevin Reynolds.

In a memo, Bullish CEO Tom Farley explained that the restructuring was necessary to organize the company’s media, indexes and events business in a more streamlined way. In a statement to CoinDesk, Farley noted the following:

“Kevin and the leadership team oversaw the evolution of CoinDesk into a leading global media company, effected the sale to Bullish, and successfully integrated the two companies. We thank them and wish them well.”

Bullish reportedly held a public meeting with CoinDesk staff to answer questions. Stratoberdha answered questions from staff and provided insight into the company’s plan for the future. For most staff, the biggest concern is whether CoinDesk will be allowed to maintain its independence.

By Audy Castaneda

Idle Energy May Generate Revenue for Brazil with Bitcoin Mining

Leonardo Perez
-
0
Idle Energy May Generate Revenue for Brazil with Bitcoin Mining

With increasingly accelerated global warming, companies, governments and society need to rethink solutions for the use of energy matrices.

Arthur Inc. and Genial Investimentos published a study on energy monetization, reuse of surpluses and driving demand for renewable matrices to mine Bitcoin and other cryptocurrencies.

How Much Bitcoin Mining Can Be Obtained from Idle Energy in Brazil?

According to the survey, if Brazil had used the idle and surplus energy that the country produced in 2023, it would have 165 million reais more on the bill.

With enormous potential to generate clean energy with wind and solar parks, the Brazilian territory can mine Bitcoin with greener energy. Arthur Inc. co-founder Rudá Pellini explained:

“Bitcoin mining fulfills the role of being a second source of energy demand, making several generation projects economically viable. The implications of the existence of an industry that consumes idle energy for the energy market are profound and will likely change some industry paradigms.”

When Brazil planned its energy network, projections for economic growth and, consequently, energy demand, were optimistic. However, according to Pellini, actual growth did not meet expectations. The Head of Research at Arthur Inc., Caio Leta, delved into the matter, highlighting the following:

“As a result, our generation system currently produces an amount of energy that exceeds what our market actually demands. This indicates not only an oversized infrastructure, but also that the economy did not grow at the expected rate. The full use of Brazil’s energy potential is linked to the existence of reliable demand.”

Miners also have no interest in competing with consumers and continuing to pay a high price for it. With the need for new sources to extract, cleaner and cheaper alternatives, solar and wind energy are strong candidates for mining activity. The leader of Genial Investimentos, Sergio Romani, said the following:

 “The way to take advantage of idle energy and, therefore, monetize it, is to carry out some industrial process of transforming raw material (energy) into a product (commodity), and Bitcoin can be understood as a commodity.”

Bitcoin Mining in Brazil: Revenues Could Reach 300 Million Reais

Data from Energy Tech and the investment platform estimate revenues of almost 300 million reais in 2026 in Brazil in distributed generation (DG). The calculation was based on ONS (National Electricity System Operator) projections on the growth of solar-powered mini-generators in DG, with capacities starting at 500 kW. If these activities had been carried out in 2023, the approximate revenue could have reached around 165 million reais.

“This means there is now an incentive for power generators to start mining BTC with their idle power, monetizing it and reducing energy waste. In other words, as long as the power grid is not near its peak demand, it is worth it for generators to mine BTC rather than waste this energy.”

Global Bitcoin Mining Trend

The study shows a global trend. In Argentina, for example, the Brazilian blockchain Hathor pays more miners who demonstrate the use of green energy. In the United States, industry giants such as Exxon Mobil, Shell and Duke Energy already use excess energy to mine Bitcoin, as does Tepco, Japan’s largest energy company.

With an audacious goal, by 2045 Arthur Inc. wants to transform 80% of the world’s idle energy into productive High Performance Computing (HPC) operations.

By Leonardo Perez

1...313314315...1,654Page 314 of 1,654