Finalized regulations for digital assets within the EU!

Digital Asset News

The big stumbling block for Ethereum (ETH) on its way to mass adoption is known to be the extremely high transaction fees or “gas fees” of the blockchain network. However, with average transaction costs now down to a low of just 0.0015 ETH, this narrative is currently difficult to sustain.

With the average transaction fee on the Ethereum blockchain plummeting to just 0.0015 ETH, or $1.57, it is currently at its lowest level since December 2020. Gas fees have been on a steady upswing since January 2021, driven primarily by the ongoing hype around Non-Fungible Tokens (NFT) and Decentralized Finance (DeFi).
From January 2021 to May 2022, the average “gas fee” to settle a transaction on the smart contract platform was accordingly close to $40.

Several factors have contributed to making the current crypto bear market the worst ever. Most Bitcoin (BTC) traders are in the red and continue to sell at a loss, according to data from Glassnode.
Blockchain analytics firm Glassnode released a report on Saturday titled “A Bear of Historic Proportions.” In it, it revealed that Bitcoin’s current slump below its 200-day moving average, negative divergence from its realized price and net realized losses have resulted in 2022 becoming the worst in Bitcoin’s history:
“Amidst this, Bitcoin and Ethereum were below their all-time highs from the previous cycle. This has never happened before.”
Glassnode also showed that a drop below half of the Mayer Multiple (MM) is an extremely rare event that has not occurred since 2015. The MM takes into account price changes above and below the 200-day MA to indicate an overbought or oversold level. The report states, “Only on 84 of 4160 trading days (2 percent) did price fall below half of the MM.”
Evidence of how difficult the current market conditions are is the drop in the spot price below the realized price. This is forcing more and more traders to sell their coins at a loss. Glassnode noted that such a cascading effect is “typical of bear markets and market capitulations.”

The European Union (EU) has now reached final agreement on a “landmark” crypto regulatory framework that brings together both crypto issuers and crypto service providers in a comprehensive set of rules.
Dubbed Markets in Crypto-Assets (MiCA), the legislative framework includes a plethora of specifications ranging from unsecured cryptocurrencies and stablecoins to crypto exchanges and crypto wallets, according to the official press release.
French Economy and Finance Minister Bruno Le Maire believes that “the landmark regulation will put an end to the Wild West that is cryptocurrencies and consolidate the EU’s role as a standard setter on digital issues.”
Consumer protection is a top priority in the MiCA, so it is hardly surprising that against the backdrop of the high-profile collapse of the blockchain project Terra and its stablecoin TerraUSD (UST), (value)stable cryptocurrencies have come all the more into focus. Accordingly, stablecoin issuers will be required in the future to have “sufficient liquid reserve in a ratio of 1:1” up their sleeve.
In this context, EU Parliamentarian Ernest Urtasun states on Twitter that these reserves “must be legally and commercially separate” and should also provide “full protection in the event of insolvency.”