Ethereum Successfully Completed The Merge

The Merge, which took place early Thursday morning ET, will cut Ethereum’s energy consumption by an even bigger margin than previously expected, a new analysis finds. It’s also expected to slash the cryptocurrency network’s greenhouse gas emissions dramatically. Ethereum’s electricity use is expected to drop by a whopping 99.988 percent post-Merge, according to the analysis published today by research company Crypto Carbon Ratings Institute (CCRI). The network was previously using about 23 million megawatt-hours per year, CCRI estimates. Moving forward, it’s expected to use just over 2,600 megawatt-hours per year. To help visualize just how massive this is, the report compares this reduction to the Eiffel Tower shrinking to the size of a Lego toy person. That dramatic change, CCRI estimates, should reduce Ethereum’s total carbon dioxide emissions by 99.992 percent. The network’s climate pollution drops from roughly 11 million tons of CO2 emissions a year to around 870 tons, which CCRI says is slightly less than the amount of energy 100 homes in the US would use in a year.

The new report was commissioned by ConsenSys, an Ethereum software company. Ethereum co-founder Joseph Lubin also founded ConsenSys, which was also involved in the research and development of The Merge. The report is in line with other estimates. Alex de Vries, a researcher who runs the website Digiconomist that tracks Bitcoin and Ethereum energy use, similarly estimates that Ethereum’s electricity demand has fallen “99.98%, which comes down to possibly as much as a country like Austria requires.” Before The Merge, the Ethereum Foundation had estimated that the software update would reduce energy use by 99.95 percent. The enormous pollution reduction comes from a change in how Ethereum users earn new tokens. (For more details, check out our in-depth explainer on how that happened.) With The Merge, Ethereum is getting rid of a mechanism called proof of work that uses vast amounts of computing power to validate blocks of new transactions. Proof of work required crypto miners to solve computational puzzles, an extremely energy-intensive process, in order to validate new blocks on the chain and earn new tokens in return. Now, Ethereum uses a new mechanism called proof of stake that gets rid of puzzles and mining. Instead, validators need to stake some of their tokens for a chance to validate new blocks of transactions and be rewarded with tokens in return. You still need computers to store data and verify transactions. And validators will probably still run their hardware around the clock. But their hardware won’t be nearly as energy-hungry as crypto miners’ data farms. The small discrepancies in estimates for energy consumption post-Merge have to do with how many validators there are, what kind of equipment they’re using, and whether it runs on clean or dirty energy. The successful launch of The Merge places greater pressure on other cryptocurrencies still using proof of work. The elephant in the room is Bitcoin, which is currently estimated to gobble up more electricity per year as the country of Kazakhstan. “[The Merge] is hopefully a step into a more sustainable future for cryptocurrencies,” says Uli Gallersdörfer, co-founder and CEO of the CCRI. Some miners are resisting the change, hell-bent on keeping the existing proof-of-work Ethereum blockchain alive, which could limit the total energy savings. “It does mean that the total amount of energy that’s going to be saved here [with The Merge] could be less than 99.99% if there is a proof of work Ethereum surviving and it continues to support some amount of mining activities,” says de Vries. How much pollution that rogue chain is responsible for will depend on how valuable its new token is, which is expected to officially launch within a day. The value has to be high enough to sustain miners’ energy costs, after all. The price of that forked Ethereum token briefly surged in the hours immediately after The Merge before quickly falling.

Coinbase Stock Crashes As Value of Cryptocurrencies Hit New Lows

Coinbase stock is plummeting amid the ongoing Bitcoin crash. What was once known as one of the highest-value cryptocurrencies has decreased in price by almost 20% over the past ten days. Having fallen below $30,000 USD, the cost of Bitcoin is now 50% lower than its record high of nearly $69,000 USD, per CNN. The price of Ethereum has similarly fallen, down more than 35% since the start of the year. As a result, shares in Coinbase, the United States’ largest crypto exchange, are down by more than 75%, currently priced at about $54 USD per share, and are trading at 85% below their all-time high price from November, per CNN.

In its first-quarter earnings report, published on Tuesday, Coinbase reported a quarterly loss of $430 million USD and a sharp decline in overall users and trading volume. What’s even more alarming is that in the event that Coinbase declares bankruptcy, users may lose access to their assets. In the report, Coinbase noted that in the event it declares bankruptcy, “the crypto assets we hold in custody on behalf of our customers could be subject to bankruptcy proceedings.” Per these proceedings, Coinbase users would be treated as “general unsecured creditors” and unable to lay claim to specific properties. In other words, users would be blocked from their accounts and funds. Coinbase CEO Brian Armstrong attempted to reassure the platform’s users in a series of tweets posted Tuesday evening. “Your funds are safe at Coinbase, just as they’ve always been,” he wrote. Armstrong went on to assert that Coinbase poses “no risk of bankruptcy” but included its bankruptcy risk factor message due to a disclosure required by the SEC (U.S. Securities and Exchange Commission) for public companies that hold crypto-assets for third parties.

Rare Azuki Nft Sells For A Record $1.4 Million

A rare Azuki NFT recently sold for over 420.7 ETH, equivalent to approximately $1.4 million USD, on OpenSea. The sale marked the highest price recorded for the collection. The NFT in question is Azuki #9605 and is considered the second-rarest member of the Azuki NFT collection. According to OpenSea, the piece was bought by user “jdizzles” and the seller, “trevault,” is a member of RedBeanDAO and frequently purchases Azuki NFTs. The collection was first launched this January by a Los Angeles-based startup called Chiru Labs.

It features 10,000 unique anime avatars that give owners access to The Garden, described as “a corner of the internet where art, community and culture fuse to create magic.” Azuki quickly became one of the most sought-after NFT collections on the metaverse and recently surpassed the $500 million USD sales volume on OpenSea, becoming one of the first anime-themed projects to go mainstream.

The previous record for the highest-selling Azuki was 204 ETH, approximately $560,000 USD, which sold two months ago. The rarity of Azuki #9605 is determined by the cool gray background, eyes and mouth. The same buyer of the Azuki is also the same who paid a record-breaking price for Invisible Friends #1125. Azuki NFT’s top-selling pieces range between $353,000 USD and $1.4 million USD.

LBJ Foundation Partners With Crypto.com

Basketball legend LeBron James‘ Ohio charity LeBron James Family Foundation has partnered with cryptocurrency platform Crypto.com to educate underserved communities on blockchain-related topics. Students and families in Akron, Ohio, that are a part of the I PROMISE School, a public school founded by the LJFF, will receive access to the educational resources necessary to successfully build in Web3.

 “Blockchain technology is revolutionizing our economy, sports and entertainment, the art world, and how we engage with one another. I want to ensure that communities like the one I come from are not left behind,” said James. “Crypto.com and I are aligned on the need to educate and support my community with the information and tools they need for inclusion. I’m looking forward to working with them to bring these opportunities to my community.” “LeBron James and his foundation have been pioneers in truly transforming the lives of those in his community through education and our partnership is based on a true alignment of values,” said Kris Marszalek, Co-Founder and CEO of Crypto.com. “We couldn’t be more proud to join LJFF in providing opportunities to increase educational and workforce development while delivering the tools and access that will empower the next generation to build a better and more inclusive future.” The full details of the partnership were not disclosed, though the deal will remain intact for multiple years.

Ethereum Hits Record High

Ethereum price gained momentum above the USD 4,000 resistance level. ETH broke the USD 4,200 resistance and extended its increase above USD 4,300. The price tested the USD 4,375 zone, hitting its new all-time high before correcting lower. It is now consolidating gains and trading above USD 4,200. On the downside, an initial support is near the USD 4,180 level. The first key support is now forming near the USD 4,120 level. Bitcoin price is stable above the USD 65,000 pivot level. BTC started a fresh increase and traded above USD 66,000. It is currently (12:00 PM UTC) correcting gains near USD 65,000, but it could continue higher above the USD 66,000 level. Besides, most major altcoins are gaining strength. ETH gained 10% and it broke the USD 4,200 resistance, reaching its new all-time high.

XRP surpassed USD 1.15 before correcting lower again. ADA rallied above USD 2.20 and USD 2.25. After forming a base above USD 65,000, bitcoin price started a fresh increase. BTC was able to clear the USD 66,000 resistance zone. It is now facing hurdles near the USD 67,000 level. The next major resistance is near USD 68,000, above which the price may possibly rise towards the USD 70,000 level. On the downside, an initial support is near USD 65,000. The first major support is near USD 64,500, below which the price could decline towards the USD 63,500 support. Cardano (ADA) was able to clear the key USD 2.18 and USD 2.20 resistance levels. It tested the USD 2.30 zone and is now trading below the USD 2.32 resistance. A fresh increase above USD 2.32 could set the pace for a larger increase towards the USD 2.50 level. On the downside, the previous resistance at USD 2.20 is now a support zone. Litecoin (LTC) settled above the USD 200 level. An immediate resistance is near the USD 212 level. The next key hurdle is near USD 225. A close above USD 225 may possibly clear the path for a move towards the USD 250 level. The main support is near the USD 192 level. Dogecoin (DOGE) settled above the USD 0.250 pivot level. The price is now consolidating above USD 0.250 and it could rise further above USD 0.265. The next major stop for the bulls is near the USD 0.280 level. If there is a downside correction, the price might find support near USD 0.232. XRP price is lacking momentum above the USD 1.15 level. The main barrier is still near USD 1.20. A close above USD 1.20 is needed for upside continuation. In this case, the price might rise towards the USD 1.32 level. If not, it could revisit the USD 1.00 support zone in the coming sessions. Many altcoins are up over 10%, including NEXO, SOL, RUNE, FLOW, ENJ, OMG, REN, VET, QTUM, AAVE, HT, and TEL. Out of these, SOL gained 18% and surpassed the USD 190 level, before correcting lower. It’s now the 6th largest cryptoasset by market capitalization, just above XRP. To sum up, bitcoin price is correcting gains from USD 67,000. However, BTC might support near USD 63,500 or USD 62,000, and it could start a fresh increase in the near term.

Bitcoin’s Rebound Bulls Eyeing $50,000 Again

Bitcoin reached a 24-hour high of $49,494 USD before dipping slightly on Sunday. As of Sunday afternoon EDT, Bitcoin was hovering around $48,000 USD. Other cryptocurrencies, including the Ethereum-linked Ether, also saw gains on Saturday.

Since reaching a record high of nearly $65,000 USD in April, Bitcoin has been averaging around $30,000 USD to $40,000 USD per coin over the last few months, though it saw a steady rise in August. Earlier this week, popular no-fee trading app Robinhood released its second-quarter 2021 results, noting that over 60 percent of its net cumulative funded accounts were trading in crypto. According to the release, Robinhood said its customers engaged with crypto at “record levels” and “demonstrated significant interest in cryptocurrencies.” In addition, Bitcoin has recently been touted by celebrities including Megan Thee Stallion and Jack Dorsey, who announced this week that he was trying his hand at Bitcoin mining.

Axie Infinity Dominates Non Fungible Token

There is always a bull market somewhere. While the crypto market might seem boring now with its rangebound bitcoin (BTC, +1.56%) trading, the non-fungible tokens (NFT) space continues to buzz. One lesser-known coin coming out of the NFT industry has charted a triple-digit price rally in two weeks. Axie infinity shards (AXS) isn’t an NFT per se but the governance token of the Axie Infinity platform, an Ethereum-based digital marketplace for the game Axie Infinity. AXS has nearly quadrupled in price to $11 since June 22, according to data source Messari.

 

Such gains have given the AXS token a market value of $638 million. While bitcoin’s dip to $28,800 observed on June 22 was short-lived, buyers largely remain on the sidelines, leaving the cryptocurrency locked in the range of $30,000 to $40,000. But in the search for yield, buyers are turning elsewhere. “AXS has been on a tear,” Denis Vinokourov, head of research at Synergia Capital, said. “With all the yield compression in bitcoin futures and decentralized finance, the hot money is now flowing into NFTs.” Axie Infinity is a blockchain-based trading and battling game that allows players to collect, breed, raise, battle and trade token-based creatures known as “axies,” which are digitized as their own NFTs. Per Startups Zone, new players need to buy at least three axies, while existing players are rewarded for breeding new axies. Players can trade axies with their AXS tokens, stake their coins for weekly rewards and participate in governance voting. AXS tokens can be purchased, traded, or earned through playing the game, and their maximum supply is capped at 270 million. These tokens can be exchanged for other cryptocurrencies. The gaming-NFT economy has boomed in recent weeks. With a 30-day trading volume of $185 million, Axie Infinity has surpassed NFT heavyweights including NBA Top Shots, OpenSea and CryptoPunks to become the world’s biggest digital marketplace, as ranked by their average daily volume over the past seven days, according to DappRadar. What’s more impressive is that Axie Infinity has generated more revenue than Aave, Compound, Uniswap, and other decentralized finance (DeFi) protocols over the past 30 days, data tracked by Token Terminal shows. Axie Infinity generates revenue from axie sales, land sales, axie breeding fees and marketplace fees. With a cumulative volume of $30 million, Axie Infinity leads PancakeSwap, ranked number two, by a margin of 48%. Curve, Ethereum’s biggest DeFi protocol by total value locked, has generated only one-tenth of Axie’s 30-day revenue. The boom in the play-to-earn economy comes amid falling yields in the bitcoin and DeFi markets. For example, borrowing rates for tether (USDT, -0.03%), the largest stablecoin by market value, have declined to 2.84% on Compound and 1.43% on Aave, from over 10% three months ago, according to LoanScan. Lending rates have also seen a similar decline, converging with the current 1.41% yield offered by the U.S. 10-year Treasury note. “With the speed at which money appears to be entering the space, the increased stablecoin supply may make it so DeFi never quite sees the consistent 10% plus yields of the last year, a trader told The Defiant. Therefore, the search for yield could continue to drive demand for Axie Infinity and other play-and-earn setups. “All things NFT will likely be the main beneficiaries of the said hot money flow,” Vinokourov said, adding Rarible, also an NFT marketplace, as a likely contender for upside along with Axie Infinity. According to Dapp Radar, NFT sales rose to $2.47 billion in the first half of 2021 – a staggering 17,900% year-on-year growth from the first half 2020.

Bitcoin Drops After Elon Musk Triggered Tumble

The price of bitcoin plunged Wednesday after Tesla Inc. founder and Chief Executive Officer Elon Musk said the electric car maker will no longer accept the cryptocurrency as a payment option. The backflip was two months in the making after Telsa announced it had invested $1.5 billion in bitcoin in February and that it would start accepting bitcoin as a payment option. The announcement, made by Musk (pictured) today on Twitter, cited environmental concerns for the decision to drop bitcoin support. “We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel,” Musk wrote. “Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at great cost to the environment.” Musk noted that Tesla would not be selling its bitcoin holdings and that the company intends to use it for transactions as soon as mining transitions to more suitable energy.

He also added that Telsa would be looking at other cryptocurrencies “that use 1% of Bitcoin’s energy/transaction.” Musk didn’t detail any specific reason why he has made the decision now, but there has been significant media coverage of a power plant in New York that has been purchased to mine bitcoin. The Greenridge Power Plant, a former coal-fired power plant in Torrey, New York, is currently in the process of expanding and switching to gas to power an extensive bitcoin mining operation. The company that owns the plant plans to have 18,000 dedicated bitcoin miners onsite by the end of the year with plans to add 10,500 more, according to Ars Technica. The plans have also caught the attention of legislators. A bill in the New York state legislature seeks to place a three-year moratorium on all cryptocurrency mining in the state pending an environmental review. After single-handedly causing a massive drop in the price of dogecoin after appearing on Saturday Night Live last week, Musk’s decision has had a similar albeit not as large effect on the price of bitcoin as well. Bitcoin was down about 12% a little before 9 p.m. EDT, to $50,432, after trading as low as $47,720 earlier in the day. The cryptocurrency had traded in a band between $55,000 and $60,000 over the previous week.

Price Of Bitcoin Down 5.4% To $43,000

Cryptocurrency investors have been bearish recently as prices of bitcoin sank 5.4% to around $43,000 per unit, the lowest in three weeks, according to Coindesk on Monday. The cryptocurrency has also already declined by nearly a quarter so far this week. The entire market capitalization of all the digital assets fell more than 8% Sunday to $1.25 trillion. The bitcoin and cryptocurrency market in general has shed roughly $400 billion since registering new highs last week as unease spread among traders.

Cryptocurrency asset markets were in the red across the board. Ether reached a low of $1,305, falling around 8%, while the native Cardano blockchain ADA - a surprise winner in recent days - lost 17% from a peak of $1.48 and is now trading around $1.21, CoinDesk 20 figures show. ADA is currently the third-biggest cryptocurrency in terms of market cap. Tether, on the other hand, now holds the fourth spot and next to it is binance coin trading for $197 per unit. Bitcoin's crash may be largely related to increasing bond yields and losses in the world's stock markets. The U.S. 10-year Treasury yield soared to 1.60% in a one-year high Friday, Coindesk said. Bitcoin is volatile. In late 2017, the cryptocurrency 's price rallied to around $20,000 before diving to $3,000 one year later. Last year, its price fell below $4,000 in March before rising again through the summer. Bitcoin began its latest bull run in October, breaking past its 2017 high in December as institutional investors showed renewed enthusiasm in virtual assets. "Many companies have cozied up to bitcoin in order to associate themselves with its technological mystique...as ESG funds start to flee Bitcoin, its price will begin a downward spiral. Stay away," Bloomberg quoted BCA Research Inc.'s Chief Global Strategist Peter Berezin as saying.