Things seemed to be looking up for the crypto market a few weeks back, but it seems that it wasn’t meant to last. Most cryptocurrencies moved in the opposite direction over the past seven days, with just a few exceptions. Here’s the latest crypto news from last week.
1) BTC Price Falls
BTC dropped by 8.8% and ETH by 8.9%, and similar results were mirrored by most of the market. Of the other major coins, BNB dropped by 6.9%, ADA by 13.5%, and SOL by a whopping 18.7%. However, it still didn’t make the top five of the biggest fallers, which says everything you need to know about the past week.
The title of the biggest decline of the week goes to WAVES, which fell by 50.3%, continuing the cryptocurrency’s volatile movements recently. Meanwhile, SNX decreased by 30.3%, AAVE by 27.8%, and AXS by 27.2%.
Mirroring the big price changes in the stock market, there have been some big swings down but there have also been a few cryptocurrencies that enjoyed positive movements, although they were few and far between. XMR jumped by 9.5%, USDN by 6.4%, MINA by 6%, and DOGE by 3%. And that’s pretty much it, unfortunately.
2) Oversight Role For NY’s Department of Financial Services
However, there have been some positive developments in the crypto world. The New York Senate has authorized its Department of Financial Services to oversee crypto firms. It means they’ll receive a similar treatment to traditional financial institutions, ensuring virtual currencies are properly regulated. The move was part of the new budget for the 2023 fiscal year, and it expands on the state’s BitLicense for regulating cryptocurrencies, which is already the most sophisticated of its kind in the US.
3) GOP Publishes Crypto Regulation Paper
The Republican Party has published a paper outlining the potential advantages and risks of cryptocurrencies to help it cement its approach to regulation. It mentions the benefits of crypto, like shorter transaction costs and improved privacy, but also outlines negatives like scams and links to criminal activities. Although none of this will be new to anyone familiar with the crypto world, it suggests the party is closer to a unified stance on crypto. It seems like there’s a creeping, inevitability to replicating the regulation of listed stocks.
4) Truflation Develops Crypto Inflation Index
It’s no secret that inflation is becoming a serious problem in the world of fiat currencies, and the Consumer Price Index (CPI) is one of the most established ways of measuring it. But what about the crypto sphere? The DeFi company Truflation has created a method for measuring inflation cryptocurrency inflation using Chainlink, partly as a reaction against the censored, centralized statistics from the government. And it’s bad news — it estimates that crypto inflation was around 13.3% in March 2022, compared to the 7.9% reported by the CPI.
5) UAE Approves Binance to Become Crypto Broker-Dealer
Over in the Middle East, Binance has received approval to become a fully regulated crypto broker-dealer, meaning it’s on its way to operating across the United Arab Emirates. Binance has also received approval from Bahrain and is close to this stage in Dubai.
Competitor Coinbase hasn’t had quite so much luck. It launched trading in India last week, which was possible due to the country’s UPI payments system — but now the UPI services have become unavailable on the exchange app, derailing its operations. This may be because the National Payments Corporation of India (NPCI) regulates UPI, and it tweeted that it was unaware of a crypto exchange using the platform on the day of Coinbase’s launch.
6) Ethereum Gas Rises in March
Use of Ethereum gas rose by 13% in March thanks to increased demand. This may have contributed to the rising price of ETH in the month, although it now seems that this trend is reversing. Generation of ERC-20 tokens has also increased by 25% compared to February thanks to the rise of blockchains compatible with Ethereum Virtual Machines (EVM), which likely had an impact on the need for gas.
7) New Competitor for Axie Infinity
Axie Infinity and other major play-to-earn games now have a major competitor, as the brand-new Blockchain Brawlers game made $357 million in its first week. The game is made by Wax Studios, and allows players to buy NFT brawlers and equipment that compete against others for rewards.
Disclosure: The author is not a licensed or registered investment adviser or broker/dealer. They are not providing you with individual investment advice. Please consult with a licensed investment professional before you invest your money.
Tim Thomas has no positions in the stocks, ETFs, mutual funds, forex, cryptocurrencies, or commodities mentioned.
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