Crypto Today: Tether Rises, Kraken Invests, Bitcoin Miners Under Pressure, Ether ETF Declines, and Ethereum Capital Fragmentation Issues
In the context of the cryptocurrency market continuing to experience significant volatility, today's notable news highlights the trends and pressures weighing on the industry:
Tether rises to 7th place on the list of buyers of U.S. Treasury bonds:
The issuer of USDT, Tether, announced that it will become the seventh largest net foreign currency buyer of U.S. Treasury bonds in 2024, surpassing countries like Canada, Mexico, and Germany. Over the past year, Tether has net purchased bonds worth $33.1 billion, demonstrating the increasing influence of the USD stablecoin in the U.S. government debt market.Kraken invests $1.5 billion to expand futures segment:
Cryptocurrency exchange Kraken has decided to acquire the U.S. futures platform NinjaTrader for $1.5 billion. This deal allows Kraken to offer additional futures trading services and derivative products in the U.S. market, while also expanding its scale through licenses in the UK, EU, and Australia.Pressure on Bitcoin miners:
Revenue from Bitcoin mining has dropped to $45/PH/s, erasing the growth recorded during the U.S. election cycle. Transaction fees account for the lowest percentage of block rewards since October 2022, and the total market capitalization of the 15 largest mining stocks has decreased by up to $14 billion in February.Ether ETFs face continuous outflows:
ETFs investing in Ether have experienced continuous outflows for 11 days, losing $358.1 million, causing the price of Ether to drop nearly 7% during this period and down 40% from the beginning of the year. However, these ETFs still hold about $7 billion in Ether and have accumulated a total net inflow of $2.45 billion since their inception.Perspective: Fragmentation of Ethereum's capital and the RetroPGF model
According to an article by Meg Lister from Gitcoin Grant Labs, Ethereum has undergone a significant transformation over the past four years, from a network that processed only 15 transactions per second to a 'giant' capable of handling thousands of transactions at low costs. However, this development has led to fragmentation, as Ethereum currently has over 50 independently operating Layer 2 solutions, making it difficult for users to switch and manage assets. Lister calls for the adoption of blockchain-based funding models, such as RetroPGF, to sustainably support infrastructure projects and development tools, thereby creating a more efficient financial ecosystem.
These developments indicate that the crypto market is at a critical juncture, as macroeconomic factors, capital flows, and strategic decisions from large corporations could reshape the global financial landscape. Investors are advised to closely monitor news and trends to make informed decisions during this volatile period.
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