Hello, welcome to Distributed Ledger, our weekly crypto newsletter that hits your inbox every Thursday. I’m Frances Yue, a crypto reporter at CNET. I’m going to introduce you to the newest and greatest in the world of digital assets this week.
Find me on Twitter at @FrancesYue_ to send feedback, or tell us what you think we should cover. You can also reach me via email to share your personal stories with crypto.
Crypto at a Glance
was up around 1.3% in the past seven days and was trading at around $19,087 on Thursday, according to data from CoinDesk. Ether ETHUSD,
gained 3% over the seven-day period to reach around $1,289. Dogecoin DOGEUSD Meme Token,
gained 2.6% while another dog-themed token, Shiba Inu SHIBUSD,
increased by 3.5% compared to seven days ago.
|The biggest winners||Price||%return in 7 days|
|Source: CoinGecko as of October 20|
|The biggest declines||Price||%return in 7 days|
Classic Terra Luna
|Source: CoinGecko as of October 20|
Should You Stake Your ETH?
Last month, Ethereum completed its historic transition to proof-of-stake from proof-of-work, meaning the network is now secured by stakers or ether holders who lock their crypto, instead of miners. .
Lily: The Ethereum merger is complete. And after? Here are three things you should watch
Through staking, ether holders could help secure the network while receiving rewards, currently yielding 4% per year, according to the Ethereum Foundation. The amount of ether staked increased, reaching more than 14 million on Wednesday from 8 million at the start of the year, according to data from Ethscan. Ether’s staking rate, or the amount of ether staked relative to total ether supply, has increased to around 11.5% from 7.4% at the start of this year, according to CryptoQuant.com.
However, with the 10-year Treasury TMUBMUSD10Y,
Notes earning over 4% per year, more than Ether’s current staking rewards, why are some investors still staking their coins?
As the crypto bear market continues, most ether holders are investing in the potential of blockchain technology, instead of being drawn to short-term returns, analysts said. Ether has lost more than 65% of its value since the start of the year, according to data from CoinDesk.
“Ether holders have long been the ‘platform’ and view investing as a bet or business-like thesis and want to capture the return along the way,” said Brian Mosoff, CEO of Ether. Capital. “They have a low default time preference,” Mosoff noted. Stakeholders will not be able to withdraw their Ether until the Shanghai upgrade is complete, which is expected to take place sometime in 2023.
“A 10-year US Treasury is best suited for investors who prefer minimum risk,” said Konstantin Boyko-Romanovsky, CEO and founder of validating node hosting platform Allnodes.
“But for investors investing in crypto for blockchain technology, nothing can compare to hosting their own node, supporting the Ethereum network, and being decentralized while receiving staking rewards for their contribution,” Boyko-Romanovsky said.
Yet, ether holders face several challenges and risks when staking their coins.
They can lose a large amount of ether and be forced out of the network due to slashing, when a stakingr’s activity is recognized as malicious. “Slashing happens when you accidentally run two instances of your own node in two different places,” Boyko-Romanovsky noted.
Stakeholders should also be alert to any scams, especially when asked for private keys, Boyko-Romanovsky said.
Regulators are also paying increasing attention to crypto-staking. In September, Gary Gensler, chairman of the United States Securities and Exchange Commission, said that cryptocurrencies or intermediaries that allow holders to stake their coins can pass the Howey test, which is used by courts to determine whether an asset is a security. Gensler said he was not referring to any specific cryptocurrency, but the comments raised concerns about whether the ether classification would be changed.
Is Bitcoin’s bottom?
Bitcoin may have bottomed out already, based on comparison to previous bear markets and on-chain data, analysts at Arcane Research say.
In June, the crypto hit a yearly low of $17,601, according to data from CoinDesk. Bitcoin is trading at around $19,087 on Thursday, down 0.6% in the past 24 hours.
It has been more than 340 days since bitcoin hit its all-time high of $68,990 in November, as the crypto is down more than 70% from its peak, according to data from CoinDesk.
Going back to previous bear markets, bitcoin saw a decline in 2018 of up to 84%, and it took 364 days for the crypto to go from cyclical high to low. In 2014, the downturn lasted 407 days, with a maximum drawdown of 85%.
Meanwhile, multiple on-chain metrics also showed the worst for bitcoin may be over, analysts say.
I wrote more about it here.
Mastercard’s new crypto offer
Mastercard Inc. on Monday announced the launch of Crypto Source, a program to help financial institutions provide their customers with secure crypto trading capabilities and services. Mastercard’s partner financial institutions will be able to engage in buy, hold and sell services for certain crypto assets, according to a statement.
The payment processor is expanding its partnership with Paxos Trust, which will provide crypto-asset trading and custody services on behalf of banks, according to the statement.
Crypto companies, funds
Shares of Coinbase Global Inc.. PIECE OF MONEY,
was flat Thursday at around $63.21 Thursday and was down 8.8% over the past five trading sessions. by Michael Saylor MicroStrategy Inc.
shares were down 2.2% on Thursday at $221.09, as they rose 0.3% in the past five days.
mining company Blockchain Riot Inc. RIOT,
shares were down 1% at $5.62 on Thursday, and they are down 12.1% over the past five days. Shares of Marathon Digital Holdings Inc.
fell 0.5% to $11.03, while it was down 1.8% in the past five days. Another miner Ebang International Holdings Inc.. EBON,
fell 5.5% to $0.30 on Thursday, after being down 16% in the past five days.
shares were virtually unchanged at $23.58. The shares traded down 0.3% in the five-session period.
Shares of Block Inc.
formerly known as Square, added 2% to $55 and was down 2.2% for the week. Tesla Inc.. TSLA,
shares fell 7% to 206.55%, down 6.9% in the past five days.
PayPal Holdings Inc.
edged up 0.1% to $84.53, up 0.6% over the five-session period. Nvidia Corp.
shares rose 1.2% to $121.92, a 1.9% gain over the past week.
Advanced Micro Devices Inc.
shares rose 0.7% to $57.61 on Thursday, down 2.1% from five trading days ago.
Among crypto funds, ProShares Bitcoin Strategy ETF
slipped 1% to $11.74 on Thursday, while its Bitcoin Short Strategy ETF
rose 1% to $38.91. Valkyrie Bitcoin Strategy ETF
fell 0.8% to $7.3, while VanEck Bitcoin Strategy ETF
edged up 0.4% to $18.84.
Grayscale Bitcoin Trust
added 0.2% to $11.27.
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Government bonds are eroding the appeal of crypto for investors looking for high yields. But some remain. – CBS
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