The last seven days of digital asset market capitalization confidently held the psychologically important milestone of $1 trillion, a correspondent for the Kapital.kz business information center reports.
One of the important events of the outgoing week concerns the US Securities and Markets Commission (SEC). Regulator accepted a strategy to declare all digital assets “securities”, and this is an extremely tough position. Circle CEO Jeremy Allaire opined that the SEC is not the appropriate regulator for stablecoins. He noted that the authorities in the world, including the United States, directly say that payment stablecoins are the domain of the banking regulator, not the SEC.
It should be noted that in mid-February the commission intended to file lawsuit against the crypto company Paxos for participating in the issuance of Binance USD (BUSD), which was classified as a security. Prior to this, the Department of Financial Services New York State launched an investigation into the issuer of the stablecoin, and Circle filed a complaint about the alleged under-backing of BUSD back in 2022. In 2021, the SEC requested information from Circle as an issuer of USD Coin (USDC) about certain assets, client programs and transactions, but in the past week, the company confirmed that the commission had no complaints against it, in contrast to Paxos. Not all stablecoins are created the same way, Jeremy Allaire commented on the actions of the SEC, and there is a consensus in the world that stablecoins are the payment system and space for the corresponding regulator, and they are not the domain of the Securities Commission. He also supported the SEC proposal to strengthen the role of qualified custodians for digital assets, because their presence is an important and highly valuable market structure.
Attacks SEC limited not only stablecoins, but also touched on the staking of cryptocurrencies on exchanges. In connection with the SEC charges filed against Kraken in mid-February, Coinbase CEO Brian Armstrong said that staking services are not is an offering of securities and the company is prepared to defend this claim in a court. Apparently, investors thought that Coinbase had every chance to beat the SEC. ARK Invest Funds: Ark Innovation ETF (ARKF) and ARK Next Generation Internet ETF (ARKW), purchased 53,783 and 9,802 shares of Coinbase, respectively, for a total amount of about $3.9 million. Previously, the same funds bought 18,1972 and 31,547 securities for approximately $13 million. This decision was made after the publication of Coinbase financial statements for fourth quarter, which was broadly in line with market expectations.
In the report the implementation of adjusted forecasts for all indicators for 2022 was reported year, including the average monthly number of active users, which amounted to 8.8 million in January-March the company expects an increase in revenue from subscriptions and services, including the service staking, from $282.8 million to $300-350 million. Over the past year, the company received this income in the amount of $275.5 million. So far SEC by all tried to prove by force that almost all crypto-currencies are securities, the Bernstein researchers stated, that the relationship between cryptocurrencies and US stocks, as well as macroeconomic events in the world has become weaker due to the fact that the price bitcoin has become much less volatile. Experts noted that the market, in a state of uncertainty, “waiting for new stimuli” and “less responds to what is happening in the traditional financial sector.”
The Correlation "the first cryptocurrency" with the Nasdaq index Composite at the beginning of February 2023 decreased from 0.94 to 0.58. Analysts also added that regulation is a negative factor for the market, as well as a small amount institutional investors in cryptocurrencies. On the other hand, a decrease ties with stocks are a positive signal. “Fortunately for market participants, most of the issued stablecoins (>50%) and global trade in digital money takes place outside the United States and is still somewhat protected from the storm that the SEC is starting,” the researchers added.
About the strengthening of the position of "digital gold" last week also testified main on-chain metric. In the last recalculation, the mining difficulty of the first Cryptocurrency rose by 9.95%, to an all-time high of 43.05 T. According to Glassnode, the network hashrate at the end of the seven-day period was around 303 EH/s. However, a hashprice of $0.068 per TH/s per day dropped to minimum level for the last month. In January, the difficulty of mining bitcoin rose by 4.68% to an all-time high of 39.35 T, and the cumulative Bitcoin miners' income in January amounted to $604.6 million, exceeding December indicator by 27%.
Based on the results of the past seven days period, the total capitalization of the cryptocurrency market managed to stay above the $1 trillion mark. As of Wednesday evening, March 1, 2023, it amounted to $1.06 trillion, which is 4.39% lower than the values recorded at the end of the last reporting period.
1. Bitcoin (BTC). On the evening of Wednesday, March 1, 2023, the cost of the “first cryptocurrency” dropped to $23,313, approaching the line $23,000 support. The market capitalization of bitcoin during this period lost $ 26 billion and amounted to $450 billion. The share of the "first cryptocurrency" in the total market capitalization at the same time decreased by 0.32 percentage points and at the end of the reporting period amounted to 42.25%.
2. Ethereum (ETH). On Wednesday evening, March 1, 2023, the cost of "ether" decreased to $1630. "Digital Oil" lost 2.92% in price. Share of Ethereum (ETH) in total capitalization the cryptocurrency market during this time increased by 0.36 percentage points and amounted to 18.73%.
3. Binance Coin (BNB). On the evening of Wednesday, March 1, 2023, BNB value amounted to $302. According to the results of the past seven-day period, the price of the cryptocurrency fell by 3.51%. Share of Binance Coin (BNB) in total capitalization cryptocurrency market rose 0.05 percentage points, accounting for 4.48%.
4. Ripple (XRP). On the evening of Wednesday, March 1, 2023, Ripple cost (XRP) amounted to $0.385. "Bank Cryptocurrency" compared to the values at the end last reporting period decreased in price by 2.28%. share "banking cryptocurrency" in the total capitalization of the cryptocurrency market, while increased by 0.03 percentage points and amounted to 1.82%.
5. Cardano (ADA). On the evening of Wednesday, March 1, 2023, Cardano cost (ADA) amounted to $0.356. The price of a digital asset following the results of the past reporting period fell by 9.87%. The share of ADA in the total capitalization of the cryptocurrency market at the end of the week decreased by 0.07 percentage points and amounted to 1.16%.
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