Last Week in Review: Ethereum flipped deflationary for the first time, and Google now accepts crypto
The highlights from last week’s headline grabbers. All the important news, numbers and events from the crypto industry in easy-to-read, digestible bites.
News from the block
Ethereum’s supply turns deflationary thanks to the Merge
- Ether, Ethereum’s cryptocurrency, became deflationary for the first time since the Ethereum network switched from a proof-of-work consensus model to one that uses proof-of-stake.
- The new proof-of-stake model used by Ethereum has decreased new coin creation by almost 90%.
- This gives Ether a deflationary appeal, meaning that investors may soon begin to view it as a scarce asset, similar to gold or Bitcoin, as it becomes increasingly scarce over time.
Google Cloud is now accepting crypto
- Google announced last week it will start accepting crypto payments for its cloud services.
- Among the cryptocurrencies that will be accepted as payment are Bitcoin, Bitcoin Cash, DAI, Ethereum, Litecoin, Dogecoin, and USD Coin.
- The crypto payments channel will initially be limited to select companies from cryptocurrency and Web 3.
Uniswap notches one of largest DeFi funding rounds, ever
- Uniswap’s total valuation is now at $1.66 billion, following a record-setting funding round in which the decentralised exchange managed to secure $165 million, one of the largest ever by a DeFi company.
- “It has grown and evolved in ways I never imagined, said Hayden Adams, Uniswap founder, adding that the protocol has “become critical public infrastructure for exchanging digital value.”
- $1.2 trillion worth of assets has been traded on Uniswap since its launch three years ago.
The oldest bank in the US announced big crypto plans
- BNY Mellon, the oldest bank in the US, announced last week it would provide custodian services for their clients’ Bitcoin and Ethereum.
- The bank will offer a custody-only service to its clients.
- BNY Mellon will initially be offering this service for a few select investment firms.
How inflation and interest rates affect cryptocurrency markets
Inflation has become a very real part of our daily lives. There it is, staring you in the face at the gas pump, at the price tags in the grocery aisles, and at your local restaurant. But how does it affect crypto investments? An economist explains.
Crunching the numbers
27.5% – By how much the SP500 index is down from its all-time high. For context, it was down by more than 40% during the Dot-com bubble in the 1990s and almost 60% during the Great Recession in 2008 before correcting.
4,000 – Ethereum’s supply of Ether decreased by 4,000 coins last week as the supply turned deflationary for the first time since the Merge.
0.4% – The Consumer Price Index (CPI), a key indicator of inflation in the US, rose by 0.4% in September, spelling continued interest rate hikes by the Fed.
$837.9 billion – Trading volumes on crypto exchanges surged Thursday last week following the release of the latest CPI numbers, peaking at $837.9 billion, compared to the 30-day average of $491.6 billion.
The crypto time capsule
Around October 2015, when Ethereum gained 40% in one day 👀
Who invented proof-of-work?
Long before Bitcoin started using proof-of-work (POW) as a way to confirm transactions on the Bitcoin blockchain, Moni Naor and Cynthia Dwork invented proof-of-work to protect networks from spam e-mail and other denial-of-service attacks.
Worth a watch
A fascinating look at the British pound’s key moments and movements over the last century.