Between groundbreaking announcements, technological developments, and regulatory turbulence, the crypto ecosystem continues to prove itself to be a land of limitless innovation and a field of regulatory and economic battlegrounds. Here’s a roundup of the most notable news from the past week on Bitcoin, Ethereum, Binance and Solana, and Ripple.
1 million addresses now contain at least 1 bitcoin
According to IntoTheBlock, bitcoin has reached a major milestone with over a million addresses holding at least one BTC. This trend shows growing adoption and increased confidence in Bitcoin as a store of value. The number of addresses holding all of Bitcoin, called “wholecoiners,” has reached 1,010,777.
This accumulation reflects continued confidence despite market volatility. Bitcoin’s scarcity, limited to 21 million units, increases its attractiveness as an investment asset. Institutional adoption, where businesses and financial institutions hoard BTC, strengthens Bitcoin’s stability and credibility. Bitcoin is currently trading around $61,640 with expectations of continued growth in the long term.
VanEck files for Solana ETF
VanEck, an investment manager, has filed with the SEC to launch a Solana-based ETF called the “VanEck Solana Trust.” The move follows the successful launch of VanEck’s Bitcoin ETF in Australia. If approved, the Solana ETF will track the spot price of Solana and be listed on the Cboe BZX exchange.
The announcement of this requirement had an immediate positive impact on the market, boosting the price of Solana (SOL) by 6% to $148. The move could signal a growing trend toward diversifying crypto investment products offered to traditional investors, allowing them to gain exposure to cryptocurrencies without directly holding assets.
VanEck’s application for the Solana ETF therefore represents a step forward not only for Solana as a cryptocurrency, but also for the industry as a whole, as it promotes greater institutional acceptance and greater recognition of cryptocurrencies as a legitimate asset class.
Ripple released 1 billion XRP in July
Ripple plans to unlock 1 billion XRP on July 1, representing a market value of $470 million. This monthly unlocking process, which has been in place since 2017, risks downward pressure on the price of XRP.
Using two wallets, Ripple is releasing 500 million XRP each, divided into several contracts scheduled until January 2025. In June, Ripple sold 200 million XRP, the largest monthly sale in its history. This selloff led to a 9.25% drop in the price of XRP, currently at $0.467. Investors should remain vigilant as past unlocks have often negatively impacted the price of XRP.
The specter of Mount Gox looms over Bitcoin: JPMorgan predicts a stormy summer
Lenders of the former Mt.Gox exchange will begin receiving their bitcoin repayments as early as July, with around 142,000 bitcoins expected to be distributed between July and October (an estimated value of $9 billion).
JPMorgan expects the majority of these buybacks to occur in July, potentially causing a massive selloff of Bitcoin in the market. Lenders who have waited nearly 10 years could be tempted to sell their holdings quickly, which could put significant selling pressure on the price of BTC and other cryptocurrencies.
Despite potential near-term volatility, JPMorgan expects a rebound in August after an initial wave of selling. At the same time, other replacements in the crypto ecosystem, such as those of Gemini Earn and FTX, increase the complexity of the market, so the coming months are especially rich for cryptocurrencies.
Ethereum fees are falling
Yesterday, June 30, 2024, Ethereum recorded the lowest gas fees since 2016, averaging 3 Gwei (around $0.14), an all-time low despite high transaction activity. This decline is attributed to technology improvements such as increased Layer 1 efficiency, Layer 2 volume integration, and the introduction of BLOB transactions via EIP-4844. This fee reduction could attract new developers and users to Ethereum and revive its appeal as a platform for dApps and daily transactions.
However, this drop raises questions about network security, as high fees have historically protected against DDoS attacks. Additionally, the reduction in burned fees makes Ethereum less deflationary, which affects supply and demand dynamics. While this news is positive for users from a cost perspective, it requires constant vigilance in terms of safety and economic sustainability.
That’s the main thing to remember this week. However, if you want a more detailed recap and in-depth analysis delivered straight to your inbox, be sure to subscribe to our weekly newsletter.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.