- Vote on the infrastructure bill postponed to Tuesday. It may come into effect without friendlier crypto amendments.
- The price of gold crashes, Bitcoin tests $45K resistance.
- Tether replenishes its supply on the TRON network with 1 billion USDT.
- Cardano’s Testnet for the Alonzo update is onboarding users
- NFT records: $1 billion in Axie Infinity. All time high for OpenSea’s daily transaction volume.
Vote on the Infrastructure Bill Postponed to Tuesday, and May Come into Effect Without Friendlier Crypto Amendments.
The US Senate has moved the final vote for the original $1 trillion Infrastructure bill, that aims to collect $28 billion from crypto taxes, to Tuesday. The majority of senators agreed to finalize discussions on Tuesday, as voting on Saturday ended without a consensus on amendments. Some of the amendments offer to exclude BTC miners from tax requirements.
The crypto space has been highly critical on the concept of different taxation rules applying to Proof-of-Work (PoW) and Proof-of-Stake (PoS) businesses:
- Coinbase’s CEO, Brian Armstrong, says “the government is trying to pick winners and losers”.
- Elon Musk supports him adding that: “there is no crisis that compels hasty legislation.”
- Cardano’s founder, Charles Hoskinson, has urged Americans to put pressure on congressmen and senators, and offers to support those politicians who are against such crypto taxation in the long-term.
- China’s Bitcoin mining crackdown strengthened the positions of Bitcoin miners in the USA. Does that also mean that Bitcoin gained more powerful lobbyists than the rest of the crypto industry? We shall see.
The Price of Gold Crashes. Bitcoin Tests $45K Resistance
The price of gold dropped sharply to below $1,700 per ounce on Monday morning, recording the largest drop in a single day since the start of its decline in June. The main reasons are that the US unemployment rate shrank to 5.4%, while wage growth intensified.
In the meantime, the digital gold, Bitcoin, rallied to test the $45K resistance line on Sunday.
This is the biggest price peak BTC has experienced since May. Bitcoin is now up by 18% since June 28th, the same period in which gold began to drop.
- Bitcoin has a negative correlation with gold. If gold prices continue to drop, it might be the catalyst for a Bitcoin price surge. Despite this. Bitcoin is still down nearly 30% from its ATH.
- A lowering unemployment rate increases the chance that the US Federal Reserve lowers stimulus packages.
Tether Replenishes its Supply on the TRON Network with 1 Billion USDT
The largest portion of Tether, more than half of the total, is now being traded on the TRON network. Currently, 53.5% of the total USDT supply (62 billion) is based on the TRON network, while the Ethereum network takes second place.
Today, Whale Alert noticed one billion more being minted and sent to the TRON network. As we reported in the August 6th digest, the stablecoin is losing its positions to main competitors: Circle’s USDC, and Binance USD (BUSD). Moreover, Tether’s supply has increased by 2x since the beginning of this year, while the two main competitors increased by 6x and 12x respectively.
- Although the discussions on whether or not Tether is fully backed by real money are still being held, it’s ironic that a Hong Kong based company is minting U.S dollar stablecoins and sending them to a Singaporean network, with a CEO who is aiding the research project of the Communist Party School. It’s probably just a coincidence.
Cardano’s Testnet for the Alonzo Update is Onboarding Users
Alonzo’s Purple update was probably the second anticipated event in the crypto world, after Ethereum’s London hard fork. As the latter happened a handful of days ago, the focus of the community has shifted to the major update of the fifth largest crypto.
According to the Input Output Twitter account (IOHK being the driving force behind Cardano), the upgrade has begun onboarding users for the testnet. Previously, the environment was only available to a closed group of 500 users. Once the onboarding process is finished, the hard fork will happen. NFT minting is already available on the network, while the full support of smart contracts is expected to arrive at the end of this month.
- Contrary to Ethereum, Cardano’s price has experienced moderate improvements. On the other hand, the hard fork hasn’t happened in its entirety yet. So, we shall have to wait to see the final results.
NFT Records: $1 Billion in Axie Infinity. All Time High for OpenSea’s Daily Transaction Volume
- Axie Infinity’s trading volume has reached the $1 billion threshold. Moreover, the creators announced that the total number of active players has exceeded 1 million. It’s important to note that the game is only in the alpha stage. The mainstream release on iOS and Android is expected to be in late 2021 / early 2022.
- OpenSea, the largest NFT marketplace, reached a new record daily transaction volume of $78,810,100. This comes after it was previously announced that OpenSea has managed to claim 90% of the entire NFT market, and had also reached a weekly all-time-high of $100M.
- The NFT surge has been fast and furious. However, the higher you are, the further there is to fall. On the other hand, there is always the possibility that NFTs will play with completely different rules than the rest of crypto at large.