Ethereum users can once again transact on the network with an average gas fee, which ranges between $1,5 and $6, currently. This and more news in this handy daily digest so you're always up to date with the latest events happening within the crypto world.
Cryptocurrencies and stablecoins
📍Terra's recovery plan and the temporary rebound of the crypto market make LUNA gain 2.000% over the weekend. LUNA, the native cryptocurrency of the Terra blockchain, is trading at around $0,00021 per unit, showing a recovery of 2.500% in the last two days. Terra's cryptocurrency hit its all-time low so far last Friday, May 13, when it traded at $0,0000099, according to data from the CoinGecko platform.
However, on a one-week basis, Terra's cryptocurrency remains at a loss of almost 100% of its value. On Monday, May 9, the value of LUNA exceeded $60 per unit, while at the beginning of April it had reached an all-time high of $120.
Source: CoinGecko
Over the past week, the supply of LUNA has increased significantly, currently exceeding 6.531 billion tokens.
📍Ethereum gas fees normalize as network demand decreases. Trading activity on the Ethereum blockchain has returned to its average levels, with the network's gas fee hovering around 14 Gwei. At press time, an average USDT transaction on Ethereum can cost around $1,5, while an ether transaction on the Opensea marketplace or DeFi protocol Uniswap is $5 to $6, according to the report. Etherscan.
Ethereum gas fees skyrocketed in early May, surpassing $190 per transaction amid massive demand for the Otherside metaverse’s virtual land NFTs. Last week, the network’s gas fee was costing users a minimum of $31 per transaction.
Source: bitinfocharts
Bitcoin and Blockchain Adoption
📍Nomura Holdings clients and investors can now access Bitcoin. Nomura Holdings, one of the largest and most important banks in Japan, has launched new products to allow its clients and investors to trade Bitcoin derivatives. The brokerage bank shared a statement informing that the move will bring cryptocurrencies even closer to the traditional financial system. Furthermore, it will help it meet the demand of its clients and investors, who are increasingly interested in getting exposure to cryptocurrencies as a new investment asset class.
NFT and DeFi Markets
📍Disc jockey duo The Chainsmokers will give away NFTs to their fans. The Chainsmokers have launched a new strategy to get closer to their fans and integrate with new technologies towards Web3. The group of disc jockeys reported that their new album “So Far So Good” was released along with a collection of 5.000 NFTs, which will be given away as gifts starting this Tuesday, May 17, to their fans.
The music group's NFTs will give their holders a share of the album's royalties, making this the first group in the music industry to share their rights and royalties with their audience. These NFTs are based on the second layer blockchain Polygon Network, dedicated to Ethereum scalability and interoperability.
Cybersecurity
📍Venus Protocol and Blizz Finance report hacks in Terra chaos. Venus Protocol and Blizz Finance, two decentralized finance protocols related to Terra's native cryptocurrency LUNA, have reported that their platforms have been compromised due to the massive loss of value that LUNA suffered this week.
LUNA’s Chainlink oracle was reportedly crippled due to extreme volatility and panic in the market, leading to a discrepancy in the cryptocurrency’s actual price and that reflected in the protocols. On Twitter, Blizz Finance explained that an attacker took advantage of this price discrepancy to deposit large amounts of LUNA and borrow against the cryptocurrency. The protocol claims that the attacker managed to take all the collateral, emptying the protocol’s vaults.
However, in light of the facts, several experts from the crypto community have spoken out on the matter, indicating that the attack was not Chainlink's fault. Blizz Finance developers noted that they are preparing a post-mortem report to explain in more detail what happened.
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Rules and Regulations
📍Popularity of cryptocurrencies forces Nigeria to issue new rules for digital assets. After calling on its banks and financial institutions to shut down cryptocurrency trading activities last February, Nigeria’s Securities and Exchange Commission (SEC) has released a set of rules applicable to the industry; specifically to the issuance and custody of digital assets.
At the 54 pages document, Nigeria's SEC explains that cryptoassets will be classified as securities, so the government agency will be responsible for their regulation and supervision. Likewise, companies and financial service providers that want to operate with this type of assets will have to comply with a series of registration and regulatory requirements in the country.
📍SEC Commissioner Hester Peirce speaks out on the events involving UST and LUNA last week. One of the things Hester Peirce highlighted during her participation at the Official Monetary and Financial Institutions Forum (OMFIF) is that regulation of cryptocurrencies and stablecoins must leave room for failure. Peirce noted that it is all about “trial and error” and that experimentation must be included in crypto regulation.
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