Read in the Digest
- Bitcoin Loses November Gains, Crypto Market Slumps in Response.
- President Biden Signs Infrastructure Bill, Senators Move to Protect Crypto.
- VeChain’s MainNet Upgrade is Live. What Should We Expect?
- Paradigm Completes Biggest VC Crypto Fund, VanECK ETF to Launch, Valkyrie’s $100 Million DeFi Fund.
- Cardano Transactions Soar, Displaces Ethereum as the Second Most Active Chain.
Bitcoin Loses November Gains, Crypto Market Slumps in Response
Bitcoin has enjoyed a spectacular rally so far in November, setting an all-time high of $68,789 on November 10th. However, a sharp price drop has seen Bitcoin’s (BTC) accumulated November gains wiped out.
The 24 hour price chart for Bitcoin (BTC). Source: Tradingview
Over the last 24 hours, BTC has dropped in value by over 8%, seeing the price drop from $66,281 to $60,425, at the time of writing. This marks the lowest level the cryptocurrency has experienced since November 1st.
All of the cryptocurrencies in the top 10 are now trading in the red zone. Cardano (ADA), Polkadot (DOT), and Dogecoin (DOGE) are the top losers, dropping by 12.3%, 14.5%, and 12.3% respectively in the last 24 hours.
As a result, the crypto market, which peaked at over $3 trillion in November, is now valued at $2.56 trillion. The price drop came after China announced that it would continue to clean up virtual currency mining operations in the country.
- Despite its current performance, crypto analyst PlanB believes that BTC will hit $135,000 before the end of 2021.
President Biden Signs Infrastructure Bill, Senators Move to Protect Crypto
The $1.2 trillion infrastructure bill, which raised a great deal of concern among crypto investors, has been signed by President Joe Biden and is almost ready for implementation. The new law will require crypto exchanges to report to, and notify the IRS directly of crypto transactions.
Businesses and exchanges will also be required to report to the IRS every time they receive a transaction worth over $10,000 in cryptocurrency. This law will apply to digital assets and non-fungible tokens.
- While there are concerns about the bill, Senator Cynthia Lummis and Senator Ron Wyden have moved to protect the country’s cryptocurrency industry.
- By updating the definition of “broker” in the bill, they hope to exclude cryptocurrency miners, stakers, developers, wallets, and custodials from the law.
- Should it pass, it will be a great win for the crypto industry
Why You Should Care
The infrastructure bill will mean crypto investors must become more open about their crypto gains. An experienced tax professional could be even more helpful in accurately reporting crypto investments.
VeChain’s Mainnet Upgrade is Live. What Should We Expect?
After months of waiting, the VeChainThor v1.6.0 upgrade has finally been deployed on the mainnet. The Mainnet upgrade was released at the Block height of 10,653,500 on Tuesday, November 16th.
The Mainnet upgrade means that POA2.0 Phase 1 activation is now active on the VeChain network. The POA2.0 network upgrade has been hailed by VeChain as being the first protocol of its kind in the world.
POA2.0 combines Byzantine fault tolerance and Nakamoto consensus mechanisms to eliminate their weaknesses while simultaneously benefitting from their strengths. In the future, POA 2.0 will guarantee that data is immediately finalized. As such, no accidental forks will be able to happen within the network.
VeChain’s aim is to make its network the strongest blockchain in the world, while still being eco-friendly. To further pursue the goal of being eco-friendly, the VeChain Foundation has also partnered with several global companies. VeChain’s focus lies in achieving Sustainable Development Goals.
- Despite releasing a network upgrade, strong bearish pressure has seen VeChain (VET) shed 13% of its value in 24 hours.
Why You Should Care
VeChain is leading a new generation of blockchains that will be both scalable and carbon-neutral. This will in turn solve the question: is blockchain bad for the environment?
Paradigm Completes Biggest VC Crypto Fund, VanECK ETF to Launch, Valkyrie’s $100 Million DeFi Fund
Growing interest from investors in the crypto space has increasingly seen projects complete multi-million dollar funding rounds. Paradigm, a crypto VC firm founded by one of Coinbase’s co-founders, has announced a $2.5 billion venture fund, the largest such cryptocurrency venture fund ever proposed.
According to Paradigm, the fund will be used, alongside the firm’s flagship fund, to invest in cryptocurrency companies across all stages of development and geographical locations. In addition, the fund will see the VC firm become more involved in the cryptoverse.
While celebrating the arrival of the biggest crypto VC fund, VanEck has announced that the VanEck Bitcoin Strategy ETF (XBTF) will launch on Cboe on November 16th, 2021. The VanEck ETF will bring about the lowest costing Bitcoin ETF, with a 30 basis points (bps) net expense ratio.
In the DeFi sector, crypto asset manager, Valkyrie Investments, has announced a $100 million DeFi fund. In October, Valkyrie, which launched a Bitcoin ETF, announced that its fund would give investors safe and easy exposure to the fast-growing DeFi industry.
- Despite approving three ETFs, the SEC has rejected the application for a Bitcoin Spot ETF.
Why You Should Care
These different funds will see the development of a multitude of new projects, a step in the right direction towards achieving mainstream adoption.
Cardano Transactions Soar, Displaces Ethereum as Second Most Active Chain
The ongoing development of the Cardano network has made it one of the most talked-about projects of recent times. The developments have also led to a significant rise in the activity of Cardano.
According to data provided by Cardano Daily, the network was revealed to be the second most active chain in the cryptoverse on November 15th, with the transactions conducted over 24 hours on the Cardano network reaching $18.24 billion.
During the aforementioned period, Cardano displaced Ethereum, which recorded a trading volume of $9.3 billion, as the second most active chain. However, Bitcoin still topped the chart, with a $21.67 billion trading volume.
- While things have been looking good for Cardano, ADA has struggled, but if the price can retest the $1.72 demand barrier, this trajectory might be weakened.
Why You Should Care
Cardano’s development has led to significant growth in the network. Total year-to-date investment in Cardano has reached $108 million.