Last Week in Review: Ethereum douses investor fears around dunking after Shanghai
The highlights from last week’s headline grabbers. All the important news, numbers and events from the world of crypto in one place.
News from the block
👆 Ethereum price climbs after the Shanghai upgrade
- The Ethereum Shanghai upgrade was successfully completed last week, enabling investors to unstake ETH staked on the network.
- Many were worried the event would drive down the price of ETH, fearing that investors would flood the market with newly unstaked coins.
- The price of ETH has climbed by more than 4% in the last week.
🐦 Crypto trading on Twitter?
- Elon Musk reportedly set into motion his plans to transform Twitter into an “everything-app” by merging the company with a shell company called X Corp.
- It’s still unclear what exactly this means for the social media company, but earlier this year Musk intimated at taking cues from WeChat, a super-app that includes video chatting, video games, photo sharing, ride services, food delivery, banking and shopping.
- Twitter last week announced a partnership with trading platform eToro, which will enable Twitter users in selected regions to trade stocks and crypto through the app.
🐢 Is US inflation showing signs of slowing?
- The latest US Consumer Price Index (CPI) numbers came in lower than expected.
- The CPI rose 0.1% after climbing 0.4% in February. Year to date, CPI numbers increased 5%, the smallest 12-month gain since May 2021, Reuters reported.
- Experts suggest the latest inflation figures indicate that inflation trends are moving forward, but slower than predicted. There is disagreement on whether the Federal Reserve will cut rates this year, some saying the Fed will capitulate if economic growth deteriorates quickly, while others see another 25 basis points (0.25%) hike in May.
- Crypto, along with stocks, has historically performed well in low-rate environments.
🥁 Total crypto market cap reached a 10-month high
- The total crypto market reached a 10-month high last week, revisiting levels last seen before the so-called crypto contagion suppressed crypto prices.
- Total market capitalisation reached $1.26 trillion.
- “The uplift in digital assets has also attracted larger allocations of capital to bitcoin, as its dominance — or total share of the crypto market — is now at its highest point since June of last year at 47%, but at a level which has been rejected on five prior occasions over the past 2 years,” Bockworks noted.
What is staking?
Staking is a way of earning extra cryptocurrency by helping to verify cryptocurrency transactions. You can stake cryptocurrency in projects that use a proof of stake consensus mechanism to process transactions, such as Ethereum or Cardano.
Everything else you need to know about staking, right over 👉 HERE.
Crunching the numbers
📈 70% – Bitcoin’s first quarter returns for 2023.
👝 14.161 million – The amount of bitcoin held by long-term investors. Long term, in this case, includes investors that bought BTC before the collapse of crypto exchange FTX, according to Glassnode.
👀 2.914 million – The amount of bitcoin owned by investors that bought BTC after the FTX saga.
💎 17.972 million – The amount of ETH currently staked on the Ethereum network.
💪 17.648 million – The amount of ETH staked one month ago, before the Shanghai upgrade.
The crypto time capsule
Some warnings don’t age well 😬
Why invest in a digital asset?
Some find crypto useful for transactions or they believe its value might increase, but cryptocurrency can transform the digital apps and services we use in all areas of our lives.
READ HERE for the big picture.