Kategorie: Ethereum News

• The US SEC has sued both Coinbase and Binance for allegedly violating securities laws.
• Most of the outflows are occurring through Ethereum Network.
• Between Monday and Thursday, there was a net outflow of $3.1B through the Ethereum network alone.

The US Securities and Exchange Commission (SEC) started by suing Binance, and its US affiliate that operates Binance.US before casting the net wider to include Coinbase. The SEC filed a lawsuit against accusing Binance, its American firm Binance.US, and CEO Changpeng “CZ” Zhao of breaking federal securities laws Monday. It then filed a lawsuit against Coinbase on Tuesday for allegedly selling unregistered securities to the general public.

The SEC lawsuit has spurred panic among investors especially since the SEC argues that several crypto assets listed on the exchanges are securities rather than digital assets. The tokens identified as securities have registered a significant price decline with Binance’s BNB, Polygon’s MATIC, and Cardano’s ADA experiencing the most drops.

$4 billion in outflows in four days

According to data from blockchain analytics companies Nansen and Glassnode, Binance, Binance.US, and Coinbase experienced a net outflow of $3.1 billion through the Ethereum network and $864 million in bitcoin (BTC) between Monday and Thursday.

Despite the regulatory difficulties, the exchanges processed the withdrawals promptly throughout the week and no delays have been reported so far.

According to Nansen data, Binance, the biggest cryptocurrency exchange in the world by trading volume, observed a net outflow of $2 billion on the Ethereum blockchain in just four days. This sum includes all Ethereum-based tokens including ETH. According to Glassnode’s data, BTC withdrawals were higher than deposits by about 31,868 BTC ($838 million).

Binance saw a sizeable net outflow on Wednesday of 13,953 BTC, the largest daily drawdown since December, when a faulty reserve report and the collapse of a rival exchange, FTX, undermined investor confidence.

Although the outflows seen this week were sizable, according to Binance’s crypto wallets, they only account for about 5% of all the assets held on the exchange.

According to Nansen, Binance.US saw net outflows of $75 million from the Ethereum network. The exchange is not tracked by Glassnode, so it is difficult to track the BTC outflows. It has however been met with the full wrath of the SEC, which has sought orders to freeze all .Binance.US assets.

For Coinbase, the Ethereum network saw a net outflow of $1 billion from Monday through Thursday according to Nansen. According to Glassnode’s data, Coinbase saw $25 million worth of Bitcoin outflows.Binance

The post Binance, Binance.US, and Coinbase collectively lose $4B in outflows appeared first on CoinJournal.

• Ethereum gas fee tanked all the way down to under $5 in May.
• BlackRock CEO Larry Fink reiterates dedollarisation as a real risk.
• Ethereum is currently down more than 10% versus its YTD high.

Ethereum gas fee declined by close to 70% in just under a month, data from Santiment – an on-chain data provider confirmed on Thursday.

Ethereum gas fee is back under $5

Interestingly, that said fee was seen at a year-to-date high of $14 per transaction in early May. By the end of the month, though, it tanked all the way down to under $5. The Santiment report reads:

More affordability encourages more utility. Additionally, crypto’s number 2 asset is at an all-time low 9.9% on exchanges as selfcustody reigns.

Earlier this week, strategists at JPMorgan warned that Ethereum could see a sell-off in the coming months following its recent Shanghai upgrade that shifted the Ethereum network to a more energy efficient proof-of-stake.

ETH is currently down over 10% versus its year-to-date high.

Could Ethereum surge in coming months?

On the flip side, though, there are catalysts that could push Ethereum up moving forward as well. For one, BlackRock CEO Larry Fink this week reiterated dedollarisation as a real risk.

The United States is jeopardising its reserve currency status with U.S. debt ceiling drama. There will be pockets of problems, like the commercial real estate.

The recent banking crisis has also shaken confidence in the fiat currencies. That has also pushed many to crypto assets like Bitcoin and Ethereum which are seen as safer alternatives.

In 2022, BlackRock itself launched a spot Bitcoin private trust for U.S. clients and also partnered with the crypto exchange Coinbase.

The post Ethereum gas fee sinks close to 70% in under a month appeared first on CoinJournal.

• Germany’s Deutsche Telekom is one of Europe’s largest telecommunications companies.
• Deutsche Telekom provides consulting and software development services.
• Polygon has about 100 validators providing staking and validation services for the network.

Germany’s Deutsche Telekom is set to leverage its infrastructure in Web3 to become a Polygon Network validator. The Ethereum scaling protocol Polygon has about 100 validators providing validation and staking services for the network and the Polygon Supernets solution.

Deutsche Telekom provides consulting and software development services while also using its infrastructure to boost network security and explore new revenue streams as a validator for several blockchain protocols. Besides Polygon, Deutsche Telekom is a validator for Celo, Q, Flow, Ethereum, and Chainlink blockchains.

Deutsche Telekom as a Polygon validator

Polygon has grown into an important layer 2 within the Ethereum ETH ecosystem, offering a wide range of scaling solutions including side chains, data availability, and the zero-knowledge rollups whose holy-grail beta recently hit the mainnet.

By operating as a Polygon validator, Deutsche Telekom MMS will help secure Polygon’s proof-of-stake sidechain and Sepernets chain resulting in improved security, decentralization, and governance of the protocol.

The company will run a full node, produce blocks, and validate transactions while also committing checkpoints to the Ethereum mainnet.

Speaking to one of the popular media outlets, Deutsche Telekom’s Blockchain Solutions Center head, Dirk Röde said:

“Deutsche Telekom is not only a renowned infrastructure provider for mobile and internet services but is also making significant commitments to expand its presence and reliability as an infrastructure provider in the web3 domain.”

The post Germany’s Deutsche Telekom set to become a Polygon validator appeared first on CoinJournal.