What happened this week in the world of blockchain and cryptocurrencies? The most relevant local and international events as well as appealing background reports in a concise and compact weekly review.
Selected articles of the week:
This week, Bitcoin broke through its all-time high of USD 69’000. Although a correction has since set in, the trend remains intact. The industry has finally been able to put the failures of the centralized service providers FTX, Celsius & Co. behind it. Some of the world’s largest financial institutions filled the gap. However, the latest surge is not just a continuation of the upward trend, but a fundamental confirmation of the arguments for decentralized, inflation-resistant digital money.
Thanks to strong selling pressure from Wall Street, Bitcoin surpassed its all-time high of $70,000 USD. Is the next surge on the horizon?
More indicators break all-time highs
It was not only the price that recorded an all-time high this week. Market liquidity, interest in cryptocurrencies, volume and volatility are also returning. This trend is global. On the one hand, Bitcoin ETFs in the US are exceeding all expectations, while on the other, cryptocurrencies in countries with strict capital restrictions such as Korea are once again trading at premiums of over 6%. Memecoins are currently particularly popular; cryptocurrencies with no utility that are traded purely for speculation. Last week, memecoins worth USD 80 billion changed hands.
A summarizing review of what has been happening at the crypto markets of the past week. A weekly report in cooperation with Kaiko.
Dencun upgrade drastically reduces fees
Ethereum is a decentralized, open-source blockchain system that enables the creation of smart contracts and decentralized applications (dApps). Unfortunately, the network is subject to considerable overload when demand is high. As a solution, some applications are outsourced to a second layer (layer 2). The successful Dencun upgrade (EIP-4844) makes transactions on these scaling solutions affordable again.
The Ethereum Dencun upgrade (EIP-4844) introduces Proto-Danksharding, enhancing scalability by storing layer 2 transaction data in “blobs”.
Zug: home of the Crypto Valley
Thanks to the establishment of the first crypto companies in Central Switzerland from 2013, the term “Crypto Valley” was soon born in reference to “Silicon Valley”. Today, the region is known as one of the world’s leading crypto hubs. At its heart is a small town with 30,000 inhabitants: Zug. In addition to business-friendly conditions, policymakers paved the way by supporting the industry early on.
Thanks to the early establishment of crypto companies in the Zug area, the term “Crypto Valley” was soon born for the small Swiss town.
161 crypto ETPs at SIX
In addition: The SIX Swiss Exchange is the leading trading venue for securities such as shares, bonds and other financial instruments in Switzerland. Of the 185 listed exchange-traded products (ETPs), 161 are now based on a cryptocurrency. The remaining 24 products are divided into six products based on precious metals and 18 on equities or fixed-income underlyings. The march of crypto assets into the traditional financial world is continuing.
The Swiss stock exchange SIX offers 161 crypto-based ETPs through the latest inclusion of the issuer issuance.swiss AG.
