Read in the Digest:
- Bitcoin and Ethereum struggle at $24k and $2k, ETH staking hits all-time high
- Chiliz outperforms the crypto market, gaining 16% in 24 hours
- Circulation of DAI hits all-time high as Ethereum touches $2,000
- Federal Reserve releases final guidelines for crypto bank master account
- Brazil’s brokerage giants XP and BTG Pactual launch new crypto platforms
Bitcoin and Ethereum Struggle at $24k and $2k, ETH Staking Hit All-Time High
After a blistering rally, the world’s largest cryptocurrency, Bitcoin, was rejected at $25k. The rejection sent the price of Bitcoin falling in the last 48 hours, ultimately dropping as low as $23,839.
The 72-hour price chart for Bitcoin (BTC). Source: CoinMarketCap
Bitcoin’s biggest competitor, Ethereum, saw a different outcome. However, Ethereum’s massive rally since the start of August finally helped ETH break above the $2,000 resistance for the first time since April 25.
The 72-hour price chart for Ethereum (ETH). Source: CoinMarketCap
However, Ethereum was rejected after two days of trading above $2k. Bitcoin now trades at $23k, while Ethereum trades around $1,900, with the risk of retesting lows at $1,800.
The broader crypto market remains evenly distributed between the bulls and bears. However, a big surprise is Dogecoin’s 14% rally, which has seen the memecoin reclaim the position of the 10th biggest crypto by market cap.
The top 10 cryptos ranked by market cap. Source: CoinMarketCap
- While the price of Ethereum was rejected at $2,000, the amount of staked ETH has surged to a new ATH.
- The number of tokens staked surged past 14 million ETH as Ethereum developers hinted the mainnet merge could happen in September.
Chiliz Outperforms the Crypto Market, Gaining 16% in 24 Hours
Chiliz (CHZ), popularly known as the world’s leading blockchain fintech provider for sports & entertainment, has emerged as the best-performing crypto as the crypto market remains split between bulls and bears.
In the last 24 hours, the price of Chiliz has risen by 16% to trade above $0.213 for the first time since April. Chiliz has now gained 48% in the last week and over 92% in the last 30 days.
The 24-hour price chart for Chiliz (CHZ). Source: CoinMarketCap
The full return of European football for the 2022/2023 season appears to be the reason behind Chiliz’s recent gains.
The 30-day price chart for Chiliz (CHZ). Source: CoinMarketCap
With the footballing season fully back, fans have increased their demands for the exclusive fan tokens of their clubs. The demand for fan tokens launched on the Chiliz Chain contributes to the rise in the price of CHZ.
- Chiliz has announced that it is entering the fifth phase of its Scoville testnet launch, with the mainnet CHZ cross-chain bridge scheduled to launch before the end of the year.
Why You Should Care
The niche Chiliz has built has enabled the sentiment of CHZ to remain positive as long as football clubs and sporting disciplines continue to target fan engagement.
Circulation of DAI Hit All-Time High as Ethereum Touches $2,000
DAI, the native decentralized stablecoin of the MakerDAO ecosystem, has recorded significant on-chain movements as the broader crypto market continues to stage minor rallies.
The on-chain data tracker, Santiment, has reported that the circulating supply of DAI has surged to an all-time high (ATH).
The peak of the circulating supply of DAI was recorded as Ethereum (ETH) touched $2,000 for the first time since May. In addition, the exchange supply of stablecoins fell to its lowest point since February.
DAI is now ranked as the 4th largest stablecoin crypto and the 15th largest overall asset by market capitalization. According to CoinMarktCap, DAI has a market cap of $7.259 billion.
- Following the sanction of Tornado Cash, MakerDAO’s founder, Rune Christensen, has announced that the company is considering dropping the dollar peg of DAI.
Why You Should Care
MakerDAO is built on the Ethereum blockchain, and ETH is used as collateral to mint DAI. The price of DAI rises along with the price of Ethereum because the minimum collateralization rate of a “vault” of ETH on DAI is 170%.
Federal Reserve Releases Final Guidelines for Crypto Bank Master Account
The United States Federal Reserve Board in Washington has released its final guidelines for its 12 regional branches and the central bank to determine if financial institutions qualify to be granted Federal Reserve or master accounts.
The Fed’s 49-page final guidance will create a multi-tiered framework that allows the Fed to evaluate applications from financial institutions. The evaluations are based on their apparent risk level, similar to the May 2021 proposed guideline.
Each tier corresponds to a respectively more stringent review process. Under the guidance, Tier 1 institutions are federally insured, while Tier 2 institutions are “subject to federal prudential supervision by a federal banking agency.”
Tier 3 consists of financial institutions that are neither federally insured nor subject to prudential supervision but instead are subject to a regulatory framework. Crypto banks like Kraken, Wyoming, and Custodia fall under this category.
- Despite creating a master account application framework that appears to incorporate crypto companies, the Fed said novel financial institutions would undergo a more extensive review.
Why You Should Care
The Federal Reserve or Master accounts allow crypto banks to perform crypto and traditional banking involving trillions daily.
Brazil’s Brokerage Giants XP and BTG Pactual Launch New Crypto Platforms
The biggest brokerage firm in Brazil, XP, officially launched its crypto trading platform, XTAGE on Monday. The platform will enable XP Inc’s 3.6 million users to buy, sell, and hold Bitcoin (BTC) and Ether (ETH) for now.
XTAGE was developed in partnership with American stock exchange Nasdaq and crypto custody firm BitGo, which will store XTAGE’s assets in cold wallets. Also, Xtage has integration with MetaTrader 5.
The largest investment bank in Latin America, BTG Pactual, with over $200 billion in assets under custody, also launched a Bitcoin and cryptocurrency exchange in Brazil on the same day as competitor XP Inc.
The trading platform dubbed Mynt will give users direct access to BTC. BTG Pactual plans to integrate stablecoin into Mynt, but for now, the platform will support Bitcoin (BTC), Ether (ETH), Cardano (ADA), Polkadot (DOT), and Solana (SOL).
- Unlike Xtage, Mynt won’t offer deposits or withdrawals of cryptocurrencies for now. However, users with an established account will enjoy educational content relating to Bitcoin.
Why You Should Care
Amid uncertain economic conditions, banks in Latin America and Brazil are thriving in crypto.