The Crypto Industry during the week plummeted along the red zone with the world leading digital assets Bitcoin and Ethereum losing grasp on its $24,000 and $1,700 high over last weekend with the price of Bitcoin and ETHEREUM currently trading at $22,900 and $1535 respectively. The circulation of Institutional funds witnessed a decline owing to the Security and Exchange Commission overhang on Crypto Staking Services which spurred many CEXs to discontinue providing the services. The global crypto market capitalization is seated at $1.Trillion up 1.2% in the 24 hours zone but down 2.2% on the seven days global chart.
Ethereum Shanghai Fork
$25B in Ethereum is about to be unstaked as soon as the Shanghai upgrade goes live. A recent report by JPMorgan has revealed that the upcoming Shanghai upgrade, slated to be applied in March, might bring more capital to the network. The investment bank estimates that Shanghai will bring Ethereum’s stake percentage to the number of other popular proof of stake networks that have more than four times the ether currently staked.
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Assuming the staking rate converges over time to the 60% average of other large networks, the number of validators could increase from $0.5 million to$ 2.2 million and the annual yield in ETH would fall from 7.4% today to around 5%.
14% of the issuance of ether is currently staked, and cannot be withdrawn until the Shanghai update is finally applied. Other protocols, like Solana and Cardano, have approximately 70% of their issuance staked, according to data from Staking rewards.
Kraken is about to exit its Crypto Staking Service due to SEC Overhang
On Thursday, the SEC and Kraken, one of the largest crypto exchanges globally, announced a settlement under which Kraken agreed to discontinue its staking-as-a-service program in the U.S. and pay a $30 million fine. While Brian Armstrong’s umpire Coinbase Exchange does not seem to see an immediate threat to its Earn program as a result of Thursday’s settlement, our sense is that the market believes recent SEC action is not a one-off event. Accordingly, the bigger question for Coinbase and its peers moving forward will be around what other products and services the agency may seek to regulate next, with near-term headline uncertainty spooking investors,” the analysts stated.
ZK and AI Trends
How to make crazy return in crypto is by identifying trends. Just like the AI trend, here is another fresh trend coming up on crypto now. Name is “Zero Knowledge Proof Coins” (ZK) . In the coming days, coins on this section will see some pump.
During the week, AI and ZK— alike tokens did amazing run, among the Layer-2 and ZK coins this one coin $ROSE from Layer-1 caught my attention. It successfully formed Cup and Handle formation which indicates a bullish trend.
It will face a small local resistance and if the market condition is good we may soon reach the profit target. Searching for lowcap with great utility is the best way to maximum profits in since ZK trends is making wave.
Binance Upgraded Proof of Reserves
Binance recently upgraded its Proof of Reserves system with zk-SNARKS. Over the last few months, Binance’s dev team has been hard at work building advanced proof-of-solvency solutions. Such tools have become critical for centralized crypto exchanges amid the crisis of trust that engulfed the industry in the wake of the FTX collapse. User funds stored on Binance are backed at a 1:1 ratio, plus reserves, and finding a way to prove this to the public seamlessly has become a major part of Binance’s plan to restore industry trust.