According to statistics from Token Terminal, monthly stablecoin transfer volumes have multiplied ten times over the past four years, increasing from 0 billion to trillion per month. Data Highlights Explosive Growth in Monthly Stablecoin Transfers In recent years, stablecoin assets have gained significant importance. On June 20, 2024, the market capitalization of all stablecoins […]
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Bitwise Forecasts $20 Trillion Boost To Global GDP From Crypto And AI By 2030
The intersection of artificial intelligence (AI) and crypto is poised to unleash a notable wave that could add a staggering trillion to the global gross domestic product (GDP) by 2030, according to a recent report by Bitcoin ETF issuer Bitwise.
The study by analyst Juan Leon highlights the potential magnitude of this synergy, which is expected to surpass current expectations. The annual Consensus conference in Austin further underscored the significance of this trend, with industry experts discussing its wide-ranging implications, from tokenization and regulation to monetary policy and Bitcoin ETFs.
Convergence Of AI And Crypto
According to Bitwise’s analyst, the AI boom led by companies like Nvidia has propelled the market cap of the world’s leading AI chip producer above trillion, making it the second-largest public company globally.
However, Leon contends that this boom has created “an unprecedented shortage” of data centers, AI chips, and electricity access as the race for AI supremacy intensifies.
AI companies are turning to Bitcoin miners, who possess the necessary resources—powerful chips, top cooling systems, and supporting infrastructure—to process and store vast amounts of data to address this issue.
The report further highlights recent developments, such as CoreWeave’s offer to acquire Core Scientific and their subsequent partnership, exemplify the growing collaboration between miners and AI providers.
For the analyst, the convergence of AI and cryptocurrency opens up longer-term prospects that warrant attention. One such area is information validation, where the accessibility, transparency, and immutability of public blockchains can counter potential AI abuses.
Startups like Attestiv leverage blockchain technology to create digital fingerprints for videos, enabling verification of their authenticity and combating the prevalence of “deep fakes.” This application can extend to validating research, government communications, and more, offering essential checks and balances on AI-generated content.
The Perfect Pair?
Another promising intersection, according to Bitwise, lies in the realm of virtual assistants. While AI-powered assistants like Siri and Alexa introduced in Apple devices have become “increasingly versatile,” Leon contends that their capabilities can be further enhanced by integrating them with smart contracts and cryptocurrencies like Bitcoin or stablecoins.
The analyst points out that this potential integration would enable secure and efficient execution of complex tasks, boosting productivity and expanding the potential of AI-driven virtual assistants.
PwC projects that AI and cryptocurrency could individually contribute .7 trillion and .8 trillion to the global economy by 2030. However, Leon states that their integration’s “synergistic effects” could result in a compounding effect, potentially driving the combined value to trillion or beyond.
Ultimately, the convergence of AI and crypto presents a notable opportunity for global economic growth. With the potential to add trillion to the global GDP by 2030, this “megatrend” promises to reshape industries, addressing challenges in data centers, information validation, and virtual assistant capabilities.
Featured image from Shutterstock, chart from TradingView.com
Bitwise Analysis: AI and Crypto Fusion Poised to Elevate Global Economy by $20 Trillion
Bitwise’s Senior Crypto Research Analyst, Juan Leon, predicts a transformative impact on the global economy as artificial intelligence (AI) and cryptocurrency converge, potentially adding trillion to the global Gross Domestic Product (GDP) by 2030. AI and Crypto — The Trillion-Dollar Synergy Leon’s bold forecast was emphasized at the recent Consensus conference in Austin, which […]
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VanEck Predicts Explosive Ethereum Growth: Could ETH Reach $2.2 Trillion?
Ethereum, the world’s second-largest cryptocurrency, is poised for a meteoric rise, according to a new analysis by VanEck, a leading asset management firm. The report predicts that Ethereum could reach a valuation of .2 trillion by 2030, translating to a price of around ,000 per coin. This ambitious prediction hinges on Ethereum’s dominance in the smart contracts arena and its potential to generate a staggering billion in free cash flow by the end of the decade.
Traditional Finance Embraces Ethereum With ETF Approval
A key driver behind VanEck’s bullish outlook is the recent approval of spot Ether ETFs on US stock exchanges. These ETFs allow traditional financial institutions and investors to gain exposure to Ethereum without the complexities of directly holding the cryptocurrency.
This increased accessibility has broadened Ethereum’s appeal, attracting financial advisors, institutional investors, and even Big Tech firms. The influx of these new players has bolstered Ethereum’s legitimacy and instilled confidence in its long-term potential.
A Network Powerhouse With Room For Growth
The Ethereum network boasts a robust user base, processing around trillion worth of transactions and facilitating .5 trillion in stablecoin transfers over the past year. This impressive activity highlights Ethereum’s position as a vital cog in the decentralized finance (DeFi) machine.
VanEck’s analysis factors in Ethereum’s ongoing evolution, including the rising adoption of applications built on its platform, the increasing scarcity of ETH tokens due to burning mechanisms, and its potential to capture a larger share of the burgeoning blockchain market. The report estimates the total addressable market (TAM) for blockchain applications to be a staggering trillion, indicating vast room for Ethereum’s growth.
Will Ethereum Become The Silicon Valley Of Blockchain?
VanEck’s analysis paints a picture of Ethereum as a potential “Silicon Valley of Blockchain,” a platform that fosters innovation and disrupts traditional industries. The ability to build and deploy smart contracts on Ethereum empowers developers to create new applications and financial instruments that could revolutionize sectors like supply chain management, identity verification, and even voting systems. As Ethereum’s ecosystem flourishes, the value proposition of holding ETH tokens strengthens, potentially fueling the predicted price surge.
Ether Price Prediction
Meanwhile, according to the latest forecast, Ether is expected to rise by 2.13%, reaching ,861 by July 6, 2024. This projection is supported by a set of technical indicators that currently signal a bullish sentiment. The overall market sentiment for Ethereum is optimistic, with a Fear & Greed Index reading of 78, indicating “Extreme Greed.” This index measures market emotions and sentiment from various sources, and a high level like this often signals that investors are becoming overly confident, which can sometimes precede a market correction.
In terms of recent performance, Ethereum has experienced 17 green days out of the last 30, translating to a 57% rate of positive daily performance. This indicates a generally upward trend with consistent gains. However, over the past 30 days, Ethereum has shown an 11.30% volatility rate. This level of volatility is relatively high, implying that while the price is expected to rise, it could experience significant fluctuations.
Featured image from InvestorsObserver, chart from TradingView
Trump Inquired if Bitcoin Could Aid in Solving the $35 Trillion US National Debt Problem
David Bailey, CEO of Bitcoin Magazine and a cryptocurrency aide of the Trump campaign, revealed that the former president asked if Bitcoin could be leveraged to solve the U.S. national debt problem. During an X space on Sunday night, Bailey revealed that the first time he met Trump, he asked if Bitcoin could do anything […]
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Bitcoin Difficulty Rises 1.48% Reaching 84.38 Trillion at Block 844,704
Bitcoin’s mining difficulty increased by 1.48% at block height 844,704, reaching 84.38 trillion. This adjustment aligns with Bitcoin’s overall hashrate exceeding the 600 exahash per second (EH/s) mark. Bitcoin Network Difficulty Increases by 1.48% On May 23, 2024, at block 844,704, the difficulty adjusted from 83.14 trillion to 84.38 trillion. This rise follows a 5.62% […]
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Industry Experts Foresee Massive Growth for Crypto Market, Predictions up to $100 Trillion
Raoul Pal, a well-known financial sector figure, predicts a significant expansion of the cryptocurrency market, forecasting its market capitalization could reach 0 trillion due to global liquidity trends and technology adoption. His analysis is underpinned by observations of the global liquidity cycle, which has been influencing asset growth since 2008, along with the rapid adoption […]
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EU Regulator Considers Crypto Inclusion in €12 Trillion UCITS Funds
The European Securities and Markets Authority (ESMA) has initiated a call for evidence to explore the potential inclusion of new assets, including cryptocurrencies, in UCITS funds, which represent a major share of EU retail investments. UCITS, an acronym for Undertakings for Collective Investment in Transferable Securities, is a regulatory framework of the European Union that […]
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EU Watchdog Considers Crypto Integration Into $12.88 Trillion Investment Market
Europe’s securities regulator is seeking input from stakeholders on the potential inclusion of crypto assets in a potentially massive market. The European Securities and Markets Authority (ESMA), the regulatory authority responsible for overseeing financial markets within the European Union, has recently initiated a comprehensive review of the regulations surrounding the Undertakings for Collective Investment in Transferable Securities (UCITS) Eligible Assets Directive (EAD).
This move could potentially enable the integration of cryptocurrencies into a vast investment market valued at approximately €12 trillion (roughly .88 trillion). On May 7, 2024, ESMA released a Call for Evidence seeking input from various stakeholders to assess the viability and implications of allowing UCITS to include a broader array of asset classes, notably cryptocurrencies.
The UCITS framework, central to EU retail investment, accounts for around 75% of all retail investment in collective funds within the region. With its global reputation for strict regulation and investor protection, the inclusion of cryptocurrencies could represent a transformative shift in the investment landscape.
The Next Big Catalyst For Crypto?
ESMA’s review aims to address the evolving financial landscape, where the number and variety of financial instruments have expanded significantly since the UCITS framework was established nearly two decades ago. This expansion has led to uncertainties in determining asset eligibility, causing divergent interpretations and applications of the directive across member states.
Sean Tuffy, a financial regulation expert, underscored the significance of this development to DL News, stating, “If ESMA is convinced, it would be the final step in mainstreaming crypto assets in Europe,” referring to it as a potential “game changer.” This sentiment is echoed by industry experts who believe that the inclusion of crypto assets could provide a robust alternative to traditional investment options, potentially enhancing portfolio diversification and returns.
The Call for Evidence targets a broad audience, including investors, consumer groups, UCITS management companies, self-managed UCITS investment companies, depositaries, and trade associations. These stakeholders are invited to share their insights on market practices, interpretative issues, and practical application concerns related to the eligibility criteria and other provisions of the UCITS EAD.
One of the critical areas of focus is the transversal consistency of key notions and definitions used in the UCITS EAD with other pieces of legislation in the EU Single Rulebook. This alignment is crucial to ensure that any new asset classes, such as cryptocurrencies, are integrated smoothly and consistently across all regulatory frameworks.
Andrea Pantaleo, a lawyer specializing in crypto regulation, highlighted several potential benefits and challenges. He told DL News, “UCITS funds have specific investment limitations depending on the type of assets. We won’t have a 100% crypto UCITS fund, but hopefully many investment funds could hold 1-2% of their liquidity in crypto.”
However, he also pointed out a significant obstacle: the coordination of custody regulations, which must align with the EU’s upcoming Markets in Crypto-Assets regulation (MiCA). MiCA is set to establish stringent rules for the segregation of assets and policies for their safekeeping, which will be pivotal in the custody of crypto assets.
The potential inclusion of cryptocurrencies in UCITS comes at a time when other major economies, such as the US and Hong Kong, have begun integrating crypto assets into their financial products, notably through the approval of Bitcoin ETFs. These developments have not only validated the financial viability of cryptocurrencies but have also spurred significant investment inflows into the sector.
The ESMA consultation process is set to conclude on August 7, 2024, after which the watchdog will compile the feedback and develop its technical advice to the European Commission. This advice will play a crucial role in determining whether cryptocurrencies will be included in the UCITS framework, potentially heralding a new era for crypto investment in Europe.
At press time, the total crypto market cap stood at .202 trillion.
Solana Memecoin Hits $320 Trillion Market Cap, But There’s A Catch
The Solana memecoin frenzy has made many investors score a home run or be out of the game this cycle. Traders are looking for new projects that could be the next hit while the market enters a new re-accumulation phase.
Solana Memecoins’ New Strike
Memecoins have been the narrative of this bull cycle. As a result, those who wanted to make big profits mainly invested in newly launched projects. While some have made millions by trading the week’s top gainers, others have lost significant amounts trying to climb the ladder.
Solana-based memecoins have been the most popular, with some, like dogwifhat (WIF) and cat in a dog’s world (MEW), leading the way. However, not all projects have achieved recognition and support for these tokens.
A considerable number of the Solana memecoins launched in the last two months have left investors empty-handed. The latest culprit is the recently launched Bonk Killer (BONKKILLER), which became the hottest topic on Monday for the wrong reasons.
The token surpassed the 0 trillion market capitalization only a few hours after launching. Nonetheless, the reason behind what could have been the most impressive feat in crypto history is no other than a honeypot scam.
As reported by SolanaFloor, the memecoin is a scam token that attracts investors with high-profit potential but prevents them from selling their holdings. Many realized they couldn’t move their tokens only after the project’s creator activated the “freeze authority.”
This action allowed the creator to avoid selling the token, which skyrocketed the market capitalization metric to 8 trillion. According to analytics platform Birdeye, the Solana-based memecoin registers a 8 trillion market cap at the time of writing.
It’s worth noting that the token isn’t backed by the amount reflected in the metric. As one X user pointed out, the token is worthless if you cannot sell it.
When you buy but can't sell. #bonkkiller pic.twitter.com/AjJokgptmw
— Bull.BnB (@bull_bnb) April 30, 2024
Half A Million Stolen By Memecoin Scammer
Unfortunately for investors, the creator didn’t use the freezing authority to boost the token’s market cap. The scammer took advantage of the function and stole nearly half a million dollars in BONKKILLER and SOL tokens.
The creator, who holds around 90.8% of the total supply, removed 30,500 BONKILLER and 1,561 SOL, worth around 0,000. According to Birdeye data, the token is valued at .81 as of This writing.
UPDATE: @solana memecoin BONKKILLER, a scam and honeypot token, has withdrawn liquidity worth over 3,000 $SOL after freezing token sales for users. pic.twitter.com/JO3E3RuXMW
— SolanaFloor | Powered by Step Finance (@SolanaFloor) April 30, 2024
Even after the community’s warning, some investors continued to buy the project. In the last 12 hours, investors have spent nearly ,000 on the token. As some X users pointed out, the false market cap might be misleading inexperienced investors into buying the memecoin.
Although it’s not the first scam of this type, the increasing rate of new launches turning fraudulent seems alarming. As reported by NewsBTC, million vanished over the last month after 12 projects were abandoned by their creators.
Ultimately, this incident highlights the importance of thoughtfully researching a project’s background and carefully deciding whether the possibility of massive gains outweighs the risks.