Dear Teroxx Community,
This week we saw a digital asset market, which first experienced upswings and then larger downswings.
As usual, we are also providing detailed videos for those who want to delve deeper into the subject.
Digital Asset News
The hashrate makes a sudden jump of 31.69%, which at the same time could be a harbinger for the further price development. For example, the performance of the associated blockchain network climbed to a new peak of 248.11 million TH/s yesterday, February 12, 2022. This represents a 54.33% year-on-year increase in computing power.
The leader in this regard until the “ban” was China with over 34% market share. Meanwhile, the US hosts the bulk of the Bitcoin hashrate with a 35.4% market share.
A recent analysis by Cointelegraph concludes that the crypto industry is expecting a steady increase in the hashrate. Although the weakening Bitcoin price is currently causing bad sentiment, the market-leading cryptocurrency’s network is stronger than ever.
The average transaction fee for Ethereum has decreased by 73.3% in just one month. Accordingly, as Blockchair’s data shows, the average ETH transaction fee in January was $53.03. So, compared to the record high of $70.83 in May 2021, this is a whopping drop. Similarly, the central (median) value of transaction fees relative to January’s US$29.88 has also declined by a substantial 81.02%. In the process, the lowest median value of the last six months was recorded in September 2021 at 6.26 US dollars. nterestingly, the number of transactions on the Ethereum network has also declined noticeably, and is now back at the same level as at the beginning of 2019 for the first time. Thus, the amount of transactions has fallen from 14,574,808 to 36,851,128 by February 1, which corresponds to a drop of a whopping 60.44% within one month.
This either leads to the assumption that market participants are switching to other blockchains or that fewer transcations (sales and purchases) are being made due to the current market situation.
By making small changes to existing chips, Intel aims to create a processor optimized for crypto mining. Earlier, Intel announced that the next generation of mining devices based on ASIC chips will be unveiled at the upcoming International Solid-State Circuits Conference.
In this context, the major chipmaker also plans to create its own division under the aegis of Koduri, which will specialize in developing chips for blockchain mining and supercomputing.
The targeted mining chips are expected to bring up to 1,000 times the performance per watt compared to the chips used so far.
Crypto exchange Coinbase has partnered with One River Digital Asset Management to create an exclusive platform for institutional asset managers to invest in cryptocurrencies and crypto financial products. The new feature is reserved for Coinbase Prime customers, those users of the crypto exchange who have the extended subscription package and thus have access to custody services tailored specifically for institutional clients at the same time.
Regarding the new service offering, Coinbase explains:
“The ONE Digital SMA is a solution for asset managers who want to enable their clients to invest in cryptocurrencies without having to own them directly. This is in addition to complete transparency and the ability to generate profits through additional value creation processes such as staking.”
It is clear here that institutional adaptation is being driven, while at the same time the focus is on these same clients.
Technical term of the week
Staking: This means that crypto assets are kept (locked) in a proof-of-stake blockchain for a certain period of time. These locked assets are then used to build the consensus needed to secure the network and ensure the validity of each new transaction to be enrolled in the blockchain. Those who stake their coins in a PoS blockchain are called “validators” in most chains. For staking assets and providing services to the blockchain, validators are rewarded with new coins from the network.
Bullish Outlook: An easing in global financial markets could see Bitcoin rapidly approach $45,000, dragging the altcoin market along with it.
Bearish Outlook: If the global political turmoil becomes stronger and the markets continue to lose, it could also negatively impact the digital asset market. In this case, support in bitcoin at ~$40,000 would be important to avoid returning to negative structures.