the market of cryptocurrencies had a strong week of price increases, led by ether (ETH), a second largest cryptocurrency in market capitalization table of Brave New Coin (BNC).
O bitcoin (BTC) ended the week with a high of 9% while Ethereum rose an impressive 16%. Other large cap assets that performed well weekly include dogecoin (DOGE) and Uniswap (UNI), which rose 16% and 19%, respectively.
The main driver for Ethereum’s positive week was the successful implementation of the drastic fork (or “hard fork”). London, which aired on last thursday (5) at 9:33 am (Brasilia time).
Although there were concerns about test network problems, the launch happened without incident.
The change that most excites Ethereum and the digital investment community is the new burn engine. This feature of the London bifurcation, also called EIP-1559, features a base rate for Ethereum transactions.
The base rate represents the minimum fee that will have to be paid for a transaction to be included in a block.
With the new rate model, investors can also add a tip, in addition to the base rate, as a separate rate that can be offered to encourage miners to give priority to a transaction.
Since the possibility existed for Ethereum miners to set the base rate in their favor, the entire base rate for each transaction will be burned.
Yet, more than 17 thousand ETH (or $51 million) in base fees were burned. This new burning mechanism represents a fundamental change to the network’s monetary policy.
He claims that this inflation could drop even further after the transition from Ethereum 2.0 and for a consensus mechanism proof-of-stake (PoS) — which values the participation of validators, and not the mining of cryptocurrencies.
This new tighter and scarcer token issue adds a new store-of-value narrative to the ether story.
As long as transaction demand on Ethereum continues — which seems likely given the popularity of industries such as decentralized finance (DeFi) and non-fungible tokens (NFTs) — the medium and long-term future of Ethereum looks bright.
So far, crypto markets have managed to ignore news of a tax proposal for cryptocurrencies, suddenly presented in a $1.2 trillion bipartisan infrastructure bill from United States.
The proposal will impose more federal regulations on cryptocurrencies and significantly expand the number of cryptocurrency users who need to declare their crypto investments to the Internal Revenue Service (IRS). However, cryptocurrency advocates publicly opposed the proposal.
the amendment restricts the scope of the bill and reduces the number of crypto users who are required to provide information to the IRS.
This Monday (9), the decrypt reported that the other amendment, by the senators Rob Portman, Kyrsten Sinema and Mark Warner, was approved in a vote of 68 votes in favor and 29 against this Sunday night (8) in the US Senate.
The bill, as a whole, has not yet been approved as current law.
Legislative decision on crypto tax declaration
in the US enters a vicious cycle
What’s next this week?
August 10: BAND, INJ, MIR and 1INCH tokens start trading
This Tuesday, four new assets will be listed on the platform Kraken: Band Protocol (BAND), Injective Protocol (INJ), Mirror Protocol (MIR) and 1inch Network (1INCH).
All four assets are part of the growing DeFi sector and will be available for trading via Dollar and Euro. BAND, INJ, MIR and 1INCH rose 7.3%, 220%, 8.8% and 5.3%, respectively.
August 11th: publication of data on the US Consumer Price Index
This Wednesday, attention will be on the american economy. In June, US inflation reached a 13 years old, driven by the increase in the price of products such as used vehicles.
The Consumer Price Index (CPI) rose 5.4% between June 2020 and June 2021, up 5% from May.
This is a much higher percentage than the 2% target price. with data performance positives being published, a slowdown in inflation may create some optimism for the US economy.
Top 10 cryptoactives of the week
It was a strong trading week for large cryptoactives in capitalization table of (BNC). Uniswap (UNI) was the top 10 performing asset, rising 19%.
O total amount blocked (TVL) on the platform has risen rapidly since the 19th of July. Now, the second and third versions of Uniswap total, together, 65% of traded volume in the sector of decentralized brokers (DEXs) of the Ethereum network.
Bitcoin price graph
Bitcoin price continues its trend in the medium term. Last week, the asset’s price reached a monthly high, reaching US$ 45,000 this Sunday (8).
glassnode reported that the supply of bitcoin maintained by long-term investors (“holders”) is rising in 2021, which historically is a sign of optimism.
Did you like this news? Download our app to read, in just one click, this and more than 150 articles daily.