Bitcoin has reached a new high this 2022 with a dominance rate of over 44%. This and more news in this practical daily summary so that you are always informed with the most recent events that occur within the crypto world.
Cryptocurrencies and stablecoins
📍 Bitcoin dominance rate rises to 44,5%Data from cryptocurrency price monitoring platform CoinMarketCap shows that Bitcoin’s dominance rate has hit a 7-month high recently. The extreme volatility that the market is currently experiencing has allowed Bitcoin, the most capitalized cryptocurrency in the industry, to regain some of its market dominance.
Last April, Bitcoin's dominance rate was around 40% on average, while Ethereum, the leading altcoin and the second-largest cryptocurrency by market cap, dominated at around 19%.
Source: CoinMarketCap
📍 The supply of Terra (LUNA) on the market has increased by 20x in the last 24 hours. Terraform Labs' plan to save the UST stablecoin has seen the circulating supply of the LUNA cryptocurrency skyrocket on Thursday.
The decoupling of the UST stablecoin from the US dollar has caused a rollercoaster ride in the cryptocurrency market, primarily affecting the value of LUNA. As a result of the decoupling from UST, LUNA has fallen by more than 99% in the past few days, going from trading at $63 on Monday to less than a cent ($0,0012) at press time.
In an attempt to save the stablecoin, Terraform Labs, developer of the Terra blockchain ecosystem, has initiated a series of emergency actions, which are being implemented with immediate effect.
The first of these emergency measures is the burning of UST. Terra developers are sending large amounts of UST to various community pools, in order to reduce the circulating supply. The developers also reported that 371 million UST are available on a bridge cross chain Ethereum tokens will also be burned. The third action implemented by Terraform Labs has to do with security. Terra has reported that it will be staking 240 million LUNA. The measure seeks to increase the participation of developers in the network to defend it from possible malicious attacks.
At the time of writing, Terra developers have also reported a complete blockchain shutdown by validators. The shutdown occurred at block height 7.603.700, the developers reported on Twitter.
Bitcoin and Blockchain Adoption
📍Over 1,3 million move Bitcoin and Ethereum ETFs in Australia amid crypto storm As the cryptocurrency market faces one of its worst moments, Australian investors have begun trading BTC and ETH through two exchange-traded funds (ETFs), which began trading on the Cboe Australia stock exchange on Thursday.
Australian investors traded the market's leading cryptocurrencies from the ETFS21Shares Bitcoin, ETFS 21Shares Ethereum and Cosmos Purpose Bitcoin Access funds, although these did not have the reception that many had hoped for.
Rules and Regulations
📍South Korea kicks off efforts to legislate cryptocurrencies in 2024The government of Yoon Seok-yeol, elected president of South Korea last March, has revealed its plan to regulate the cryptocurrency industry and turn the nation into a true center of technological innovation.
The Asian nation has begun working on creating a regulatory framework for cryptocurrencies, with the aim of incorporating them into the country’s institutional system. South Korea also has plans to create its own central bank digital currency, called CBDC.
Next year, the Korean government will enact the Digital Assets Basic Law, which will come into effect in 2024.
📍Shanghai High Court declares cryptocurrencies protected property. On Thursday, the Shanghai High Court in China said that cryptocurrencies will become protected property in the territory. The statement contrasts with the ban imposed by the country's government last year on activities related to crypto assets.
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Continue reading: Can other stablecoins follow UST into the death spiral?
