NFT

Is NFT Ecosystem Making its Comeback?

During the previous three months, there was a growth of 32.24% in the number of holders of NFTs, contributing to the upward trend.

Due to the participation of well-known musicians and celebrities, nonfungible tokens (NFTs) have provided the cryptocurrency ecosystem with the push it required over the previous two years. 

As a result, widespread attention has been garnered. Nevertheless, despite the tremendous losses that NFT investors have sustained due to the prolonged bear market that has lasted for ten months, the ecosystem has shown significant signs of a rebound in the past two weeks.

Let’s talk about the latest growth numbers that the NFT ecosystem has recently seen:

  • Since September 12, the performance of blue-chip NFT collections has been steadily increasing, inching back towards the 10,000 Ether (ETH) that was lost in the middle of August 2022.
  • On September 20, the market capitalization, generated from the floor price and the trading price of NFTs, surged over 16.5% to around 11.25 million ETH. This increase was because the market capitalization was trading at a higher price.
  • The number of NFT holders increased by 32.24% within the same period, corresponding to the market cap breaking through the 11 million ETH barrier for the first time in three months.

The Takeaway:

The nonfungible token (NFT) ecosystem is undeniably back to its growing speed now that there has been a consistent rise in the number of investments in NFTs in recent times.

Binance has Received the MVP License from Dubai’s VARA – Here’s What You Should Know About It!

Because many users can access the Binance platform, its immense popularity is not surprising. Today, this cryptocurrency trading platform handles the most volume of transactions around the globe.

Following the issuance of its provisional license earlier in March, the global blockchain services provider Binance has earned a minimal viable product (MVP) license from Dubai’s Virtual Asset Regulatory Authority (VARA).

What Does This Permit Entail, Exactly?

Within Dubai’s internationally benchmarked legislative framework for virtual asset service providers, Binance is now authorized to deliver an approved range of virtual asset-related services to appropriately qualified retail and institutional investors, thanks to the MVP license.

Simply put, Binance is dedicated to upholding rigorous investor and market protection principles, and the exchange will only work with customers who have been pre-screened and approved by VARA. These customers will now be able to take advantage of the local banking channels made available due to the industry’s first regulatory license of its kind.

Here are some key takeaway points of this transition:

  • Trading on a regulated platform under the supervision of VARA in Dubai will result in higher consumer protection levels for the platform users.
  • The license will be a significant achievement after several registrations for Binance’s local organizations in the Middle East and North Africa region and throughout Europe in Italy, France, and Spain.
  • Lastly, this transition allows Binance to open a client money account with a domestic bank, which will provide various services to qualified customers. These services will include virtual asset exchange, transfer, virtual asset and fiat currency conversion, custody and management of virtual assets, virtual token and trading services, and payment through virtual assets and remittance services.

White House Releases a Detailed Framework for Regulating Digital Assets

In recent years, the market for digital assets has expanded rapidly. Digital assets have been purchased by millions of people worldwide, including 16% of adult Americans, and their market capitalization hit $3 trillion in November of last year.

Now where the widely purchased and opted digital assets play a vital role in benefiting the global financial system, the drawbacks as unfortunate events in the crypto market have also impacted how the investors see these digital assets. 

However, with the first government-wide strategy for mitigating the dangers and capitalizing on the opportunities presented by digital assets and the underlying technology being laid out in an Executive Order (EO) signed by Vice President Joe Biden on March 9 – there’s more to come for us to evaluate and benefit from the digital assets. 

Here’s everything you need to know about this framework:

  • Six months after US Vice President Joe Biden requested federal agencies to investigate the pros and cons of digital assets and submit their results, this framework was unveiled.
  • The potential advantages of a CBDC issued by a central bank were emphasized in this model. The CBDC is designed to be a digital currency; fully backed by the US government and governed by a centralized authority, like the Federal Reserve.
  • Getting rid of illicit practices is another topic covered in this framework. As per the fact sheet, the US President plans to ask for changes to be made to the Bank Secrecy Act (BSA), anti-tip-off statutes, and unlicensed money transmitting laws so that they apply explicitly to providers of digital assets like NFT and relevant exchange platforms.

Conclusion:

In the end, it is worth mentioning how the Director of the National Economic Council, Brian Deese, claims that the new mandates will position the United States as a global leader in the governance and management of digital assets. But will it work as advertised in the cryptosphere?

Growth in Ethereum’s Social Dominance Before the Merge: What Does It Mean?

In the realm of cryptocurrencies, the Ethereum Merge of 2022 was the most anticipated event of the year. Even though the merge has already occurred, it is still important to talk about because of the hype and changes in the cryptocurrency and Ethereum market since the merge. These modifications were announced on September 15. 

Although this merger was in and of itself a noteworthy event intended to usher in a new era for the second largest blockchain in the crypto world, thereby bolstering its foundations, the shifts and rise in Ethereum’s social dominance began much earlier in time. Hence, if we look back to when the merge was still awaited, it won’t be wrong to say that this merge was merely the catalyst for these developments.

The Monthly Forecast of Ethereum’s Social Dominance Growth:

As the Ethereum merge was coming close, as it was set to take place on September 15, the market capitalization started climbing.

One of the most prominent and attention-worthy aspects of Ethereum’s market capitalization was the rise in its social dominance. According to statistics, Ethereum increased by +23.79% in just one month by March 13, when it stood at 13%.19%.

On the other hand, September 14 showed that social mentions of Ethereum had increased by 9.7% over the previous week, while sociEthereum’sents had increased by 34% over the same period.

What is Ethereum Merge?

Ethereum, released in 2015, improved upon the fundamental ideas behind Bitcoin by introducing smart contracts, which are essentially computer programs that record data on Ethereum’s network by utilizing blockchain technology. This was an improvement over Bitcoin, which was released in 2009. Moreover, this upgrade served as the primary aspect involved in decentralized exchange-traded funds (DeFi) and non-fungible tokens (NFTs), primarily focused on Ethereum’s proof-of-work system.

Now, the Ethereum Merge that just took place was an event that everyone has been looking forward to since the beginning of 2022. Since it announced the change of the proof-of-work system with the proof-of-stake system, it was expected to extend the benefits to ETH businesses and holders. 

Simply put, this system, which has now been launched as of September 15, is intended to be a more effective consensus method concerning the logic of the network. Its scalability, security, and endurance within the Ethereum network promise this effectiveness, which has helped this potentially game-changing advancement garner the trust of the crypto community and businesses.

What to Expect Post the Ethereum Merge?

The Cryptocurrency industry has witnessed 2022 to be quite an eventful year. We are unquestionably in a bear market, with prices dropping by nearly a trillion dollars and fluctuating wildly.

But the year is far from over still. There is likely more in store for the Cryptocurrency industry. The Ethereum Merge, for example, is promising news that might be seen as a way out of the darkness.

What is the Ethereum Merge?

As the digital and blockchain worlds rapidly develop, thousands of firms and projects in the cutting-edge field of decentralized finance are moving to Ethereum for lending, borrowing, and other complex investment alternatives. In addition, Ethereum is also used as the foundation for a large number of digital valuables like nonfungible tokens, NFTs, etc.

Amongst all this, the Ethereum merge is an advanced approach to changing how Ethereum verifies its transactions. In this Eth Ethereum Merge, the Beacon Chain is Ethereum’s next proof-of-stake consensus layer and aims to integrate with Ethereum’s existing execution layer. With the help of this mage, staking ETH instead of mining for network security reduces energy consumption. As a result, this hugely promising development expects more scalability, security, and longevity in the Ethereum network.

How Will This Bring a Positive Change in the Cryptocurrency Industry?

According to Ethereum, the promising development that the Ethereum merge will introduce is a roadway to significant benefits for projects and investors involved in the cryptocurrency industry.

Some benefits that we can expect post the Ethereum merge are:

  • Adoption of Proof of Stake: Proof of Stake is a more efficient consensus technique regarding the network’s logic. It is obvious how Ethereum’s shift from Proof of Work to Proof of Stake will be a massive benefiting factor for everyone involved in the Ethereum ecosystem.
  • Reduced Energy Consumption: Another noteworthy benefit that can be expected post the Ethereum merge is the reduction of Ethereum’s energy consumption by 99.95%. This reduced energy consumption will also be achievable through the transition of Ethereum from Proof of Work to Proof of Stake – shaping into one of the most revolutionary changes in the cryptocurrency industry.
  • Future Scaling Upgrades: With sharding and other future scaling upgrades laying the groundwork for improvements, the Ethereum ecosystem will be better able to prepare and advance itself for the future. Besides, with the cryptocurrency market expanding and evolving, efficient changes and improvements will be the need of the hour for the Ethereum ecosystem.
  • Functioning Transformation: Another positive trait that Ethereum merge will bring along is the fundamental transformation of the functioning of Ethereum’s system. As a result, this transformation will serve as a gateway for extensive potential use cases and successful cryptocurrency investment stories. 

 Conclusion:

While the Ethereum Merge is much-awaited news in 2022, it’s still unclear if its applications will extend beyond the cryptocurrency industry. So let’s wait and see!