In the world of crypto finance, quite a lot is happening. CryptoRank released insights that showed that over 1 million Ether has been burned since August of this year. This amounts to US$ 4.24 Billion. This is since the implementation of the Ethereum Improvement Proposal 1559.
This event indicated the transformation of Ethereum’s fee structure. Through this change, Ethereum’s free structure now includes a portion of the base fee when it burns. Opensea has been the biggest contributor to the burning of Ethereum to a tune of US$ 467 million. After Opensea’s burning, Ethereum transfers and Uniswap v2 have amounted to US$ 414 million and US$ 393 million respectively.
Token supply has been significantly impacted over the past couple of months. However, Ethereum is still an inflationary asset. This is according to UltraSound. Ultrasounds states that 3.3 million ETH has been burned yearly. This is compared to 5.4 million ETH that’s being issued. This has amounted to a growth of 1.8% per year. When only a 30 day period is analyzed, the data shows that ETH burning is 4.7 million annually. It also shows that supply growth is much less, at only 0.6%. All this indicates to advancement towards deflation in the near future.
Square’s Take on Decentralized Bitcoin Exchange’s for finance
Jack Dorsey, the CEO of both Twitter and Square published a white paper this week. The white paper proposes to make a centralized Bitcoin exchange called tbDEX. Users will still have to input their “Know Your Customer” information. That is as required by the traditional finance industry. This is how the the exchange is unique from other traditional decentralized exchanges. Users will be granted access to the services once they submit this information. The functionality they will then be granted access to includes the capability of connecting wallets and trading digital assets. The document states tough regulatory requirements as a significant reason why cryptocurrency ecosystem is booming. The publication added that it would not be policed or made permissible to any centralized entity. They also added that a utility token would not be considered.
The decentralized exchange would have a messaging feature. This would be used to incorporate trust into the exchange. The feature would use software like the public key infrastructure. For this reason, the publication is considered a good start. The team is encouraging the public to discuss the proposal openly with them.
The document stated that there goal would be to establish an exchange that is resistant to censorship, offers unpermissioned access and the maximization of competition for liquidity. The overall goal being to provide a commodity around the world. The document added that “…nothing in principle precludes anonymous transactions for financial privacy on the tbDEX network.”
A US$ 1 Trillion Dollar importunity in the metaverse
Grayscale released a report authored by David Grider and Matt Maximo. Grayscale is a crypto investment powerhouse. The report by Grayscale declared that the metaverse as one of the most promising opportunities for growth. It also cited Decentraland on multiple times. The enterprise believes that the metaverse is one of the biggest opportunities for growth following a ten times increase of active metaverse wallets between 2020 and June 2021.
The researchers also specified a number of factors that could encourage the sector’s growth. Factors include a growth in leisure time of the younger generations and changes in how users interact with technology from a cultural vantage point. Another proposed factor is progress with community based Web 3.0 play to earn models. The report further shares a sense of optimizm about the growth of the metaverse world. It concludes that this new market will expand to a valuation of US$ 1 trillion over the next number of years.