In the world of cryptocurrencies, it seems that Bitcoin and Ethereum have taken a backseat this week, as other digital assets made headlines. The stability of Bitcoin and Ethereum suggests that the crypto market has become less reactive to the news cycle compared to the volatile period of the 2021 bull run and subsequent 2022 crash.
Bitcoin, the leader in the crypto market, experienced a modest growth of 2.7% over the past week, reaching a value of $27,952. It briefly crossed the $28,000 threshold, hitting a two-month high on Sunday night. On the other hand, Ethereum had a tougher week, losing 2.1% and trading at $1,636. Despite several positive announcements, such as UBS’ asset tokenization trial supported by the Monetary Authority of Singapore and the launch of nine Ethereum Futures ETFs in the US, Ethereum’s performance remained weak.
One notable announcement came from Grayscale, a crypto asset manager, which revealed its plans to convert its Ethereum trust into a spot ETF. This move follows Grayscale’s victory in August against the Securities and Exchange Commission’s rejection of its application to convert its Bitcoin trust into a spot ETF. The SEC also faced disappointment this week when its appeal against Ripple, the XRP progenitor, was rejected by the court. The SEC had hoped to prove that selling XRP to retail consumers breached American securities laws.
In terms of price movements, only two cryptocurrencies stood out this week. Avalanche (AVAX) and Solana (SOL) both saw significant rallies, with AVAX trading at $10.39 and SOL at $23.31. Solana also hit a new 2023 high in terms of total value locked on its network, reaching $338.82 million.
Moving on to news highlights, Coinbase, a major cryptocurrency exchange, obtained a Major Payment Institution (MPI) license from the Monetary Authority of Singapore. This development follows Coinbase’s In-Principle Approval last year, as the exchange aims to expand globally due to regulatory uncertainties in the US.
In the UK, the Financial Conduct Authority (FCA) is planning to launch a Digital Securities Sandbox (DSS) by the end of the first quarter of next year. The DSS will provide a controlled test environment for innovative products before they enter the market.
Hong Kong’s police force and Securities and Futures Commission (SFC) joined forces to create a joint task force aimed at monitoring illegal activities on crypto exchanges. This comes after the suspension of trading on the JPEX exchange, which was involved in one of the largest cases of financial fraud in Hong Kong’s history.
Despite hosting only 0.5% of mainland China’s population, Hong Kong has seen a significant inflow of cryptocurrencies over the past year, according to a report by Chainalysis. This demonstrates the region’s growing interest in digital assets.
Lastly, even mainstream brands and institutions have entered the NFT space. Starbucks and the Museum of Modern Art (MoMA) have both launched their own NFTs, indicating the increasing acceptance and adoption of this digital asset class.
Overall, it has been an eventful week in the world of cryptocurrencies, with new developments and announcements shaping the market. While Bitcoin and Ethereum remained relatively stable, other digital assets grabbed attention with their price movements and innovative projects. As the crypto market continues to evolve, it will be interesting to see what the future holds for these digital assets and the impact they have on the global economy.