This Week in Coins: ‘Ethereum Killers’ Lose Big and More Unbanked Americans are Turning to Crypto

This week in coins. Illustration by Mitchell Preffer for Decrypt

Bitcoin suffered minimal losses this week, close to 0.87%, while Ethereum sank 9% to $ 1,792.

Several calls Ethereum Assassinsalso known as smart contract-enabled layer 1 blockchains, were among the biggest losers: Cardano fell 12% to $ 0.46, Avalanche fell 19% to $ 23.53, Algorand fell 14% to $ 0.36 , NEAR fell 17% to $ 4.87 and Solana sank 111% to $ 42 at the time of writing.

Cosmos, that is structurally different from Ethereum in that it is a network of many smaller blockchains, but also offers high-performance smart contracts, has also fallen 12% to $ 9.55.

Other notable losses among the top 40 cryptocurrencies this week include a 13% drop in flow to $ 2.39, ApeCoin down 19% to $ 6.31, Decentraland down 12% to $ 0.95, Internet Computer falling 10% to $ 7.11 and Elrond falling 25% to $ 68.88.

News of the week

On Monday, the U.S. Federal Reserve’s annual survey of the economic well-being of U.S. households reported that non-banked citizens are returning to crypto at a higher rate than ever. The results show that about 12% of the 11,000 Americans surveyed had or used cryptocurrencies in 2021.

About 13% of Americans who used crypto last year did not have a bank account, compared to 6% of Americans who neither have a bank account nor use crypto. About 27% of U.S. cryptocurrency users did not have a credit card, which is again higher than the national average of 17% who do not use either.

E-commerce giant eBay announced on Monday its first foray into the NFT with Wayne Gretzky-inspired digital hockey collectibles. The NFTs are in the side chain of Ethereum Polygon and broadcast through a partnership with Sports Illustrated and the NFT OneOf platform.

The dishonest Republican representative of North Carolina, Madison Cawthorn, is being investigated by the House Ethics Committee after being involved in a alleged pumping and discharge scheme through the short-lived “Let’s Go Brandon” coin.

The committee issued a statement on Monday, saying Cawthorn “may have improperly promoted a cryptocurrency in which he may have had an undisclosed financial interest and had an improper relationship with an individual employed on his Congressional staff.”

At the annual meeting of the World Economic Forum in Davos that day, Kristalina Georgievaf, managing director of the International Monetary Fund, implored the crowd, referring to cryptography, “not to withdraw from the importance of this world,” and added, “Give us. faster service, much lower costs and more inclusion, but only if we separate apples from oranges and bananas. “

Georgieva pointed to the recent collapse of Earth as a harsh lesson, highlighting the fact that, unlike Tether and Circle, UST was not backed by underlying fiduciary assets: It’s a pyramid. What happens to the pyramids? … In the end they fall to pieces. “

On Tuesday, the European Central Bank published a report entitled “Deciphering the risks of financial stability in the cryptocurrency markets” as part of a biannual review. The report warns that cryptocurrency could pose a threat to financial stability if left unregulated.

The report also compared current market conditions with the subprime mortgage market responsible for the collapse of the global economy in 2008: “Despite recent declines, [cryptocurrencies] they remain similar in size, for example, to the securitized subprime mortgage markets that led to the 2007-08 global financial crisis. “

Crypto’s growing popularity may also be a catalyst for disaster, the report warns. If too many institutions adopt it as a form of payment, such integration “would increase the potential for spillover to the economy as a whole.”

That same day, FTX CEO Sam Bankman-Fried revealed that he could donate up to $ 1 billion to help influence the 2024 U.S. presidential election campaign.

“It would be up to $ 100 million,” he said. “As for how much more than that, I don’t know. It really depends on what happens. It really depends on who runs where for what, and these things are super contingent.”

He said that if former President Donald Trump ran again, he could be ready to donate $ 1 billion as a “soft ceiling,” which would quadruple the largest individual donation made during the 2020 campaign by Sheldon and Miriam Adelson, who supported it. Republicans with $ 218 million.

Bankman-Fried, 30, was among the top 20 donors in Joe Biden’s 2020 campaign. contributing $ 5.2 million to help Biden get a win over Trump.

In Europe, the Portuguese parliament rejected a proposal to encrypt cryptography. The proposal of the left-wing parties Bloc de Esquerda and Livre asked the government to consider taxing cryptographic profits in excess of 5,000 euros ($ 5,340), but the idea was ruled out during Wednesday’s budget session.

Portugal has been a long time considered a tax haven for cryptocurrencies since crypto transactions have been tax-free since 2016. But that may be coming to an end, after earlier this month Finance Minister Fernando Medina announced digital assets could soon be subject to capital gains taxes.

On Thursday, Tether announced that it will hit the Mexican market with a digital weight. The weight-backed stablecoin will be available on Ethereum, Tron and Polygon.

And finally, on Friday, Tesla / SpaceX CEO Elon Musk tweeted that SpaceX will soon begin accepting Dogecoin for payment of goods. The announcement briefly raised the price of DOGE.

At the time of writing, DOGE was trading at $ 0.0816.

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