Kategorie: Crypto News

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Unisat-backed Bitcoin scaling solution Fractal Bitcoin launches mainnet

  • Fractal Bitcoin launches mainnet, leverages Bitcoin Core code for enhanced scaling.
  • The network offers sub-30-second block confirmations and a 20x capacity increase.
  • The network’s native token, FB, supports proof-of-work mining, with half pre-mined for allocations.

Fractal Bitcoin, a groundbreaking Bitcoin scaling solution, has officially launched its mainnet, ushering in a new era for Bitcoin scalability.

This innovative project, spearheaded by Unisat and Block Space Force, represents a significant advancement in the realm of Bitcoin (BTC) technology by leveraging the core Bitcoin Core codebase.

Fractal Bitcoin uses recursive layering and integrates OP_CAT opcode

The Fractal Bitcoin mainnet debut follows extensive testing on its testnet, which began in July 2024. The network claims impressive performance metrics, including block confirmation times of under 30 seconds and a 20-fold increase in capacity per layer.

Unlike many other scaling solutions that rely on Ethereum Virtual Machine (EVM) compatibility, Fractal Bitcoin distinguishes itself by utilizing Bitcoin-native constructs. Its approach focuses on enhancing Bitcoin’s inherent functionality through recursive layering and the integration of the OP_CAT opcode.

This unique strategy promises to overcome many of the limitations faced by traditional Bitcoin sidechains and purported Layer 2 solutions.

In addition to its core features, Fractal Bitcoin supports a variety of Bitcoin protocols such as BRC-20, Runes, and Ordinals.

A notable highlight of the mainnet launch is the introduction of PizzaSwap, a decentralized exchange built into the network, aimed at facilitating seamless trading and transactions within the ecosystem.

The network also brings a novel mining structure called “Cadence Mining.” This system combines permissionless mining with merged mining with Bitcoin, enhancing network security and ensuring robust protection against potential threats.

Fractal Bitcoin’s native token FB

The launch of the Fractal Bitcoin mainnet is accompanied by the release of its native token, FB.

With a total supply of 210 million FB tokens, half are allocated for proof-of-work mining, while the remaining half is pre-mined for core contributors, investors, the ecosystem treasury, and community grants. This distribution strategy underscores the project’s commitment to fostering a supportive and thriving ecosystem.

Overall, Fractal Bitcoin’s mainnet launch marks a significant milestone in Bitcoin scaling solutions, promising enhanced performance, security, and functionality for the Bitcoin community.

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VanEck to close its Ethereum futures ETF in September, a year after launch

  • VanEck is closing its Ethereum Futures ETF (EFUT) by September 16, 2024.
  • The EFUT saw low asset accumulation as compared to VanEck’s spot Ethereum ETF.
  • Generally, Ethereum is facing challenges from competition and reduced network revenue and fees.

VanEck is set to close its Ethereum Strategy ETF (EFUT) by September 16, 2024, with liquidation expected by September 23.

EFUT, launched in October 2023, has struggled with low asset accumulation and performance compared to VanEck’s more successful spot Ethereum ETF (ETHV).

Strategic realignment

VanEck’s move to close the EFUT ETF comes as part of a strategic review of its ETF offerings. Launched in October 2023, EFUT was designed to provide exposure to Ethereum futures, but it amassed only $21 million in assets, contrasting sharply with the $63 million net inflows seen by the spot Ethereum ETF (ETHV).

The decision to liquidate EFUT aligns with VanEck’s ongoing assessment of factors such as performance, liquidity, and investor interest.

Shareholders of EFUT will receive cash distributions based on the net asset value of their holdings following the ETF’s closure and liquidation.

This shift reflects VanEck’s broader strategy of focusing on more successful crypto-related products.

Challenges facing Ethereum and Ether Futures ETF

VanEck’s August 2024 Crypto Monthly Recap highlights several challenges contributing to the recent Ethereum price struggles.

According to VanEck’s report, Ethereum’s share of decentralized exchange trading volume has dropped significantly from 42% in 2022 to 29% in 2024.

The report attributes this decline to several factors, including a general decrease in network revenue, deliberate policy decisions, and competition from higher-throughput blockchains such as Solana, Sui, and Aptos. These competitors are drawing speculative demand away from Ethereum, exacerbating its price issues.

Additionally, Ethereum’s layer-1 revenues have been impacted by competing layer-2 networks, which have led to a 99% drop in network fees since the Dencun upgrade in March 2024. This has intensified the competition within Ethereum’s ecosystem and driven the proliferation of layer-2 solutions, with some critics suggesting that the current number of Ethereum scaling solutions exceeds the necessary demand.

VanEck’s decision to close EFUT while continuing to offer other crypto-related products, such as the Digital Assets Mining ETF (DAM) and Bitcoin Strategy ETF (XBTF), underscores the firm’s ongoing engagement with digital assets despite the challenges facing Ethereum.

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BitMEX co-founder Arthur Hayes believes Bitcoin (BTC) will tap $50K

  • Arthur Hayes predicts Bitcoin (BTC) could fall below $50K amid market turmoil.
  • Bitcoin’s price drop has led to $36.71M in liquidations.
  • The Crypto Fear & Greed Index shows “extreme fear,” reflecting growing market anxiety.

In recent days, the cryptocurrency market has been awash with uncertainty, with Bitcoin’s price taking a significant tumble.

After slipping below $57,000 on September 5, Bitcoin has fallen to $55,711.26, leading to a sharp decline in market sentiment. This downturn has thrust the Crypto Fear & Greed Index back into the “extreme fear” zone, with a score of 22, a notable drop from the previous day’s “fear” score of 29.

Arthur Hayes, co-founder of the cryptocurrency exchange BitMEX, has weighed in on the current market conditions and in a post on X, predicted a further decline in Bitcoin’s price, suggesting that it could fall below $50,000 over the weekend.

Hayes’s prediction comes amidst a broader market slump and growing concerns about the US economy.

Over 36 million Bitcoin long positions liquidated

The recent plunge has seen Bitcoin wipe out approximately $29.7 billion from its market capitalization. According to CoinGlass data, the price dip has also resulted in over $36.71 million worth of long positions being liquidated, accounting for about 40% of today’s crypto liquidations.

The drop in Bitcoin’s value has had a ripple effect across the cryptocurrency market. Other major cryptocurrencies have also experienced declines, with Ethereum (ETH) falling by 2.23%, Solana (SOL) dropping by 2.82%, and Ripple (XRP) seeing a 2.19% slump.

This broad-based downturn has led to over $94.26 million in liquidations over the past 24 hours, with Bitcoin and Ether long positions accounting for over half of these liquidations.

The current crypto market volatility is attributed to a confluent of broader macroeconomic factors. Notably, the recent US jobs data fell short of expectations, raising concerns about a potential Federal Reserve interest rate cut and adding to the market’s apprehensions.

As Bitcoin navigates these turbulent waters, all eyes will be on whether Hayes’s prediction comes to fruition and how the broader market sentiment evolves in response to ongoing economic signals.

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Bitcoin (BTC) drops below $57K again amid strong selling pressure

  • Bitcoin drops below $57K due to major institutional sell-offs and market pressure.
  • Short-term holders face unrealized losses, could trigger market volatility if they decide to cut their losses.
  • $51K is a crucial support level and long-term investors might see this as a buying opportunity.

Bitcoin (BTC) has once again slipped below $57,000 as its turbulent journey continues. At press time, BTC was trading at $56,749.40, down 5.32% in a week.

This latest dip is driven by a confluence of factors, including significant institutional sell-offs, the pressure from short-term holders facing unrealized losses, and ongoing spot market selling.

Institutional sell-offs impact Bitcoin price

A major factor behind Bitcoin’s price decline is the heavy selling activity by institutional investors. Prominent players such as Fidelity, Grayscale, Ark Invest, and Ceffu have significantly contributed to the downward pressure.

Fidelity leads the charge, having sold 16,000 BTC, valued at approximately $915 million. Grayscale follows with the offloading of 15,000 BTC, amounting to roughly $858 million. Ark Invest has divested 7,000 BTC worth about $400.4 million, while Ceffu has sold nearly 3,124 BTC, totalling around $178 million.

This institutional sell-off has been a crucial factor in Bitcoin’s drop. The substantial transfers of Bitcoin to exchanges suggest that these major players are either taking profits or rebalancing their portfolios.

Interestingly, while these institutions are actively selling, BlackRock has maintained a neutral stance, avoiding both buying and selling Bitcoin amid the current market fluctuations.

Risk of short-term holders exiting positions en mass

The selling pressure is further exacerbated by the situation of short-term Bitcoin holders, who are currently facing significant unrealized losses.

According to data from Glassnode, short-term holders who acquired Bitcoin in the last six months are experiencing financial stress, with their average cost basis ranging from $59,000 to $65,200, substantially above the current market price.

This cohort’s financial strain is evident in key metrics, and their potential to exit positions en masse poses a considerable risk for increased market volatility.

Despite the average Bitcoin investor remaining profitable, the substantial unrealized losses among short-term holders could potentially trigger broader market weakness if they decide to cut their losses.

The $51,000 price level is highlighted as a critical support that must be maintained to preserve the current market structure.

Potential for market stabilization

As Bitcoin continues to experience strong selling pressure, its market behaviour reflects a complex interplay of institutional actions, short-term holder dynamics, and broader market conditions. While immediate prospects appear uncertain, particularly with the potential for further short-term declines, long-term investors may find value in this period of adjustment.

Analysts have observed some absorption at lower price levels, which might suggest that Bitcoin could be poised for a period of sideways movement before making a decisive move.

The current dip might present a buying opportunity for long-term investors who can weather short-term volatility.

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Siemens’ €300 million digital bond on SWIAT blockchain settled in minutes

  • Siemens issued a €300 million digital bond on SWIAT’s blockchain platform.
  • The bond settled in minutes, a significant improvement from Siemens’ previous bond.
  • Major German banks participated, showcasing growing interest in blockchain assets.

Germany’s tech giant Siemens has issued a €300 million digital bond, its second blockchain-based bond.

The bond, issued under Germany’s Electronic Securities Act (eWpG), is part of the European Central Bank’s (ECB) trials exploring blockchain’s potential in capital markets.

Siemens makes a breakthrough in bond tokenization

Siemens’ digital bond issuance marks a notable advancement in bond tokenization.

The €300 million bond, with a one-year maturity, was issued on the SWIAT private blockchain platform and settled in minutes. This rapid transaction time highlights a significant improvement in speed and efficiency compared to traditional methods.

In 2023, Siemens issued a €60 million blockchain-based bond on the Polygon (MATIC) blockchain that took two days to settle, making the new bond’s settlement within minutes a considerable leap forward.

The bond’s issuance process leveraged Bundesbank’s automated Trigger Solution, demonstrating how blockchain technology can streamline financial transactions.

Major German financial institutions, including BayernLB, DekaBank, DZ BANK, and Landesbank Baden-Württemberg, participated in this issuance, signalling a growing interest in blockchain-based assets among traditional financial players.

Siemens’ initiative not only supports the ECB’s trials of distributed ledger technology (DLT) but also sets a precedent for future digital securities.

Future prospects and industry impact

Siemens’ move aligns with the European Central Bank’s broader efforts to assess blockchain technology’s integration into traditional financial systems.

By issuing the bond according to the eWpG, Siemens is pioneering the use of electronic securities and reinforcing the feasibility of blockchain for capital markets. The bond’s swift settlement time, achieved through the private blockchain platform, suggests potential benefits in terms of lower costs, enhanced transparency, and greater security.

In the recent past, blockchain-based bond issuances have seen incremental adoption, with notable examples including the World Bank’s 2018 issuance and Japan’s Nomura Research Institute’s 2020 issuance.

Siemens’ latest digital bond reflects an ongoing trend toward bond tokenization, driven by blockchain technology’s promise of faster, more secure transactions.

As the industry continues to evolve, the integration of smart contracts and blockchain technology is expected to accelerate, transforming how securities are issued and traded.

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