Layer 2 networks on Ethereum are gaining popularity in the industry, to the point where the number of transactions occurring within them exceeds those on the main Bitcoin network. This and more news in this handy daily summary so that you are always informed with the latest events occurring within the crypto world.
Cryptocurrencies and altcoins
📍Bitcoin recovers 10% after falling to $42.500 on Tuesday. The surprise correction of the crypto market on September 7 collapsed the price of Bitcoin (BTC) up to $42.500 per unit on various platforms. However, at the time of this writing, the cryptocurrency has recovered about 10% of its value, trading above $XNUMX per unit. $46.800 by BTC. Others cryptocurrencies, Market participants such as ETH, ADA and SOL have also recovered slightly, although the crypto market continues, for the moment, to show bearish signs, several analysts explain.
On the other hand, despite the sharp correction, financial analysts and strategists at Standard Chartered Bank do not rule out the possibility that bitcoin will surpass $100.000 per unit this year and that other cryptocurrencies will reach new and surprising historical highs.
📍DeFi tokens continue to fall, with a correction of up to 26% in the last few hours. The value of various decentralized finance tokens (DeFi), such as UNI, LUNA, LINK, AVAX, AAVE, CAKE, MKR and others, show a drop in value between 6% and 26% in the last 24 hours. DeFi tokens are being affected by the crypto market correction on Tuesday, even more than BTC and ETH.
Bitcoin and Blockchain Adoption
📍There are more transactions on Ethereum's Layer 2 than on the Bitcoin network, says crypto analyst Evan Van Ness. The founder of Week In Ethereum News, noted on his Twitter account that last Monday, Ethereum's layer 2 had more transactions than the Bitcoin mainnet. According to his data, there were a total of 250.000 transactions on layer 2 networks such as Polygon, Arbitrum and others on Ethereum that day, while only 210.000 transactions were made on Bitcoin. The difference was 40.000 transactions.
Van Ness highlighted the speed and accessibility offered by layer 2 networks, which allow transactions to be executed almost instantly and at very low cost, as the reason behind their adoption. For the crypto analyst, this is a milestone, as layer 2 networks on Ethereum are just beginning to take off. The success of Ethereum, such as the blockchain most used par excellence for the development of dapps, smart contracts, DeFi protocols and NFTs, has cost users quite high gas fees, due to the low scalability of the network; which in its current state processes about 15 transactions per second on average.
Miners and Validators
📍Blockstream and Macquarie Group partner to explore new environmentally friendly Bitcoin mining alternatives. According to reported The companies are currently working on developing a carbon-neutral Bitcoin mining pilot, which will be launched at a crypto mining farm located in North America.
Macquarie Group, a financial services group based in Sydney, Australia, will be Blockstream's mining partner, using its expertise in hosting mining hardware to provide a highly secure, enterprise-grade mining facility for the Bitcoin network, where the green, emissions-free mining pilot will be implemented. In recent months, companies and miners in the industry have been scrambling to find a viable solution to the conflicts surrounding Bitcoin's energy consumption. While various studies Having proven that BTC does not consume even 0,1% of the world's energy, industry participants want to ensure a completely green future for the most important cryptocurrency on the market.
Development and Technology
📍Data infrastructure protocol SubQuery Network raises $9M to continue building on Polkadot and Kusama. Via Twitter, the protocol reported that it had closed a funding round for $9 million. SubQuery had the participation of several important investors in the crypto industry, such as Arrington Capital, DCG, Stratos Technologies, Hypersphere Ventures, among others.
The funds raised will be used by the protocol to continue building the data indexing infrastructure on the Polkadot network and its Kusama testnet, in order to expand and provide indexing data for applications developed within these blockchains.
Rules and Regulations
📍SEC warns Coinbase over interest-bearing savings accounts. According to the statement sent by the United States Securities and Exchange Commission (SEC) to Coinbase, the 4% interest savings accounts that the exchange offers its customers through the Lend program may be subject to federal laws, so Coinbase may face a lawsuit from the regulator. The exchange's executives are pronounced in the face of legal threat, arguing that the SEC lacks uniform policies to enforce regulation in the crypto space.
The Commission has let several crypto companies launch and offer high-yield products, even more exaggerated than 4% interest savings accounts that apply only to USD Coin (USDC), for several months, and then use intimidation tactics behind closed doors, said Brian Armstrong, CEO of Coinbase. Armstrong also reported which notified the SEC prior to launching its product and sought guidance from the regulator in an effort to work proactively.
📍Protests continue in El Salvador over the official arrival of bitcoin as legal tender. To date, many companies and businesses, such as McDonald's, Pizza Hut, Movistar, among others, have opened their doors to accept payments in bitcoins since Tuesday, while others still seem to refuse to do so. In this regard, Javier Argueta, legal advisor to the Presidency of El Salvador, said that businesses and merchants must accept payments with the cryptocurrency whenever a person wants to use it to acquire goods and services. However, to protect themselves from volatility, companies and merchants have the option of receiving payment in bitcoin or in dollars directly from the wallet Billy goat.
“If I buy 1.000 shirts from you that cost $200 and I pay you in Bitcoin, you have the wallet, but in the transaction, when you make it, you have the will to receive Bitcoin or dollars, that is why it is voluntary.”, Argueta explained during a interview the program Facing.
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