What has been happening around Blockchain Technology and Cryptocurrencies this week? The most relevant local and international developments as well as appealing background reports in a pointed and compact weekly review.
Selected articles of the week:
The Terra blockchain, with its dollar-pegged stablecoin UST and connected DeFi applications, has established itself as one of the fastest-growing ecosystems in the cryptocurrency space. However, Terra’s rapid growth also carries risks. Terra’s bitcoin purchases in the billions may provide a hedge for the algorithmic stablecoin, but a potential liquidation of these reserves creates a systemic risk.
To counteract the fears of a de-pegging, the Terra Protocol is diversifying its treasury with Bitcoin. A risk for the industry?
Tencent, China’s leading technology company, has released first information about the planned digital Yuan wallet, which will be introduced as part of the WeChat ecosystem. The developments underscore China’s leading role in the introduction of a digital fiat currency.
China’s leading tech company, Tencent, is nearing a full-scale launch of their digital Yuan wallet to integrate the CBDC into their services.
Digital assets are steadily finding their way into the traditional financial world. The adoption of these assets by institutional investors is highly dependent on the existing infrastructure and service offerings, in addition to regulation. Prime brokers serve as a one-stop shop for professional market participants in the traditional financial world and are consequently establishing themselves in the cryptocurrency services sector. A conversation with Covario CEO Mark Banner and CFO Patrik Gilli.
Covario CEO Mark Banner and CFO Patrik Gilli share their thoughts on institutional crypto services, regulation and adoption of the space.
The International Monetary Fund (IMF) has flagged the DeFi space as posing potential financial stability risks in its latest “Global Financial Stability Report”. The organisation believes that the sector, particularly in the area of stablecoins and centralised exchanges, requires regulation.
The International Monetary Fund (IMF) marks in its latest Global Financial Stability report that DeFi is a concern for global markets.
In addition: Since the crypto bear market in the summer of 2021, there has been a steady decline in weekly Bitcoin and Ethereum trading volume on major central exchanges.Uniswap V3, introduced in May 2021, has dominated the volume of decentralized exchanges (DEX) on the Ethereum network this year.
A summarizing review of what has been happening at the crypto markets of the past week. A look at trending sectors, liquidity, volatility, spreads and more. The weekly report in cooperation with market data provider Kaiko.