Welcome to the coin bureau. Weekly crypto review here are this week’s top headlines in the crypto news the new road for doge. The dogecoin foundation, reveals a trail map for the original meme coin. What does it say? First testnet merge next ethereum inches closer to its transition to proof of stake with the kintsugi test net.
When could we see the merge terra’s towering tvl terra becomes the second largest cryptocurrency by total value locked as ust overtakes dye as the largest decentralized stable coin. How much higher can luna go? Bnb autoburn, binance coins, tweaked tokonomas, could take bnb on a tear. Everything bnb holders need to know dubai’s crypto ambitions hit a new high. A new hub is created to attract crypto projects from around the world, which other countries are crypto holders heading to nft madness mounts pricewaterhousecoopers purchases, digital land kraken looks to make an nft marketplace and meta looks to integrate with cryptocurrency.
What comes next for this nft niche telegram to integrate toncoin the cryptocurrency originally created by telegram comes home. Will we see regulators push back this time? The sec’s anti-crypto spree the sec rejects two more spot: bitcoin etf applications as one of its pro crypto commissioners announces. He is stepping down. Does this mean a spot?
Bitcoin etf won’t be approved and a closer look at what comes next in this week’s crypto market forecast, all this and more in just a moment, good morning afternoon or evening. Thank you for tuning. In my name is guy, and what you’re about to see is educational content, not financial advice? You can find any topics you’re looking for using the timestamps in the video timeline and now for today’s top stories. Last week, the dogecoin foundation released the highly anticipated dogecoin roadmap, which is colloquially referred to as the trail map.
The trail map has been in the works ever since the dogecoin foundation re-established itself in august, and it consists of eight milestones. The first milestone is a makeover of the dogecoin website, including the addition of a dojpedia section, devs expect to deliver both by the end of january 2022. The second milestone is the establishment of a dogecoin code library called the lib dogecoin, which will allow developers to easily create dogecoin compatible protocols. This ties into the third milestone to establish a dogecoin standard which will simplify the dogecoin development process by introducing a handful of features, including a dogecoin improvement proposal process. The third milestone will facilitate the fourth milestone, which is the creation of the gigawallet, a quote: enterprise ready, dogecoin wallet that will make it easy for institutions to integrate doge payments.
The fifth milestone is the development of a dogecoin app and sdk, which will make it possible to customize gigawallet settings specifically in the realm of private key custody. According to the trail map, prologue, lib dogecoin and the gigawallet will be rolled out in the next few months. Now the sixth milestone has yet to be detailed, but sounds like an integration with elon musk’s, starlink satellite system and the use of radio nodes to secure the dogecoin blockchain. The seventh milestone is the introduction of a proof-of-stake version of dogecoin, whose development will be guided in part by ethereum, co-founder vitalik buterin. The eighth milestone likewise lacks details, but appears to foreshadow a future layer, 2 scaling solution for dogecoin.
Now, unfortunately, there are currently no timelines for the final three milestones, but the trail map prologue suggests development on all three will begin by the end of next year. The end game of the dogecoin roadmap is to create new use cases for doge because it will further incentivize adoption. This has basically been ethereum’s strategy since its inception and it’s safe to say that it’s been a successful one. So far as many of you will know, ethereum has many upcoming milestones of its own, and the most significant of these is the transition from proof-of-work to proof-of-stake in a process called the merge. Over the last few months, ethereum developers have been laying the groundwork required to ensure the merge goes as smoothly as possible, and the latest iteration of this initiative is the kinsugi test net.
As explained by ethereum developer, tim bako kimsugi makes it possible for developers to further stress test the proof-of-stake version of the ethereum blockchain. Once this has been done, ethereum developers will deploy the final round of test nets before officially beginning the merge. Although an exact date for the merge has yet to be revealed, ethereum developers have been regularly updating a mainnet readiness checklist on github. Now this checklist suggests that we are anywhere between half to three quarters of the way to the merge and i’ll leave a link to the checklist in the description, if you’re interested in keeping up, if you’ve been keeping up with the coin bureau, you might recall that The merge was originally scheduled for the end of 2021, as per the ethereum 2.0 website.
This was delayed to 2022 after a series of bugs were discovered, and many now believe that the merge is likely to occur at the end of q1 or sometime in q2. If you want my take on what the merge could mean for the price of eth, you can check out my video about that. Using the link in the description anyways, another smart contract, cryptocurrency, that’s been making the headlines. Lately is terra. Who’S lunacoin recently hit an all-time high of over 100.
This is due to the overwhelming demand for ust, a decentralized stablecoin pegged to the us dollar, which can be minted using luna. The demand for ust is coming primarily from terra’s next generation d5 protocols, whose total value locked recently surpassed 20 billion dollars, making terra the second largest chain by tvl. Nearly half of this tvl is locked in terra’s anchor protocol, which makes it possible to earn a stable annual interest rate of close to 20 on ust. This high apy is achieved through a combination of lending and staking on multiple cryptocurrency blockchains behind the scenes. The demand for ust is also coming partially from the increased risks associated with holding centralized stable coins such as usdt and usdc.
Aside from the regulatory pressure centralized stablecoins have faced as of late, centralized, stablecoin issuers such as tether and circle have a history of freezing wallets on the request of authorities. As i mentioned in my recent portfolio update video, i switched from usdc to ust for these and other reasons and hold the remainder of my dry powder in pax g as a hedge against inflation. Now, in any case, as a consequence of all this demand, ust managed to flip die by market cap to become the largest decentralized stable coin in cryptocurrency. What’S more is that ust now exists on more than half a dozen smart contract, cryptocurrency blockchains, the most recent being near protocol, whose near coin seems to have pumped on the news, despite repeatedly hitting its head on that 100 mark luna is still looking strong and could Continue to rise, this is mainly because of a recent upgrade which sees a portion of all the lunar used in ust conversions permanently destroyed. Put simply, the more ust is minted.
The more luna is temporarily and permanently destroyed, as basic economics dictates less supply, with the same or more demand equals an increase in price. This supply and demand dynamic is something that cryptocurrency exchanges are acutely aware of, which is why almost every single exchange token features a burning mechanism of some kind. The largest exchange, token is binance’s bnb coin, and at the end of every quarter, binance was buying back and burning bnb, using a portion of trading fees, which would tend to cause a price pump. From now on, however, bnb will be automatically burned according to an equation which factors in the price of bnb, as well as the number of blocks produced on the binance chain each quarter. Now, because i am useless at maths, i’ll just show you the graph, as you can see, it looks like around 1.
million bmb will be burned next quarter, assuming the price of bnb stays in the 500 to 700 range. Note that this auto burn is in addition to the partial fee burns introduced to the binance smart chain earlier this month, with the approval of bep 95, a protocol upgrade analogous to ethereum’s eip1559, as i mentioned in my video about exchange tokens. Bnb burning will continue until its total supply hits 100 million, with bnb’s total supply sitting at shy of 167 million. Currently, a 40 reduction in supply would correspond to a 40 increase in price, all else being equal. Now, as amazing as this sounds, it’s worth pointing out that it’s going to be a few years before we see bnb burn itself down to its 100 million supply and that’s an optimistic timeline.
How quickly we get. There ultimately depends on the demand for and utility of bnb, and that’s been one of the many areas of focus for binance over the last year. Besides bnb binance has been focused on forging new partnerships with public and private institutions, something that’s been partially driven by relentless regulations. This seems to be one of the primary motivations behind binance’s decision to join the recently established crypto hub in dubai. For those who don’t know, dubai has become a welcome home for crypto holders and crypto companies alike.
This is primarily due to the fact that dubai has next to no tax and the united arab emirates itself has been much friendlier to cryptocurrency than most other countries. Dubai’S latest pro crypto move comes from the dubai world trade center, a government-owned organization which will set comprehensive rules and regulations for cryptocurrencies in the emirate. The dubai world trade center stated that it will look to work with crypto companies to set these rules and regulations, which is likely another reason why binance became one of the first crypto companies to join now. Crypto companies cozying up to regulators to set regulations is nothing new and if you watch my recent video about the crypto ceo hearing, you’ll know that ftx and coinbase seem to be doing the same thing in the united states. While this method may be problematic, there’s no denying that this kind of influence is good for cryptocurrency and it has arguably facilitated the creation of crypto havens in other countries around the world.
One of these is, of course, el salvador, where btc is legal tender. Residence is easy to acquire and there are no taxes on crypto gains. Portugal has also emerged as a preferred destination for crypto enthusiasts, given that there are no taxes on crypto gains nor on income earned from foreign sources. Now, if neither of these two countries appeals to you, consider checking out my video about the top 10 countries for crypto holders, you should also watch my video about optimizing crypto tax since we’re approaching the end of the year. So links to both will be in the description now.
One thing that i forgot to mention in my video about crypto tax is that there is a high likelihood that you must pay capital gains on any nft sales. The same way, you would with regular cryptocurrencies so be sure to check this with an accountant before you get wrecked. Speaking of nfts, the hong kong arm of big4 accounting, firm, pricewaterhousecoopers, has purchased parcels of land within the sandbox metaverse pwc hong kong intends to build a virtual office space where it will provide its accounting services to metaverse users. Now the amount of land, the location of the land and the amount of money pwc paid for the land has not yet been revealed, but should be known in the coming weeks. The only thing crazier than pwc’s land purchase is kraken’s plans to create an nft marketplace which will accept nfts as collateral for loans.
The crossover between nfts and defy is one of the many things masari says we will see more of in 2022 and you can see what else massari predicted using the link in the description. What massari didn’t predict, however, is that facebook, aka meta, will make its metaverse interoperable with cryptocurrency something that meta’s incoming chief technology officer hinted at in an internal post. Interestingly, meta’s soon-to-be cto noted that quote. While most people are happy to use facebook and google, some are not, and those that opt out are disproportionately involved in creating a genuinely impressive wave of technology now. This is interesting because it seems to imply that meta’s main motivation for integrating with cryptocurrency is to attract cryptocurrency developers, something that its crypto project, libra and crypto wallet novi have had a hard time doing.
It’S not known which cryptocurrencies meta will look to interoperate with. If any, but history suggests it’s likely, that meta will receive a lot of backlash from regulators if it chooses to go down that route, believe it or not, but meta was not the first big tech company to face regulatory backlash after trying to issue its own cryptocurrency. One of meta’s many predecessors in this regard was none other than telegram which tried to issue its own cryptocurrency called gram which would live on a blockchain called the telegram open network created by one of telegram’s co-founders. The gram ico reportedly raised a staggering 1.7 billion dollars in 2018 before being shut down by the sec.
Had it been allowed to proceed, it would have been the biggest ico in cryptocurrency by a very wide margin. In the spring of 2020, the telegram open network was revived by a new community of developers as the open network and the ton coin. Cryptocurrency began trading on exchanges. Earlier this year. Now telegram has announced that a donation bot in its messenger app will accept toncoin opening the door to a full, app integration in the future.
Now, if you’re wondering why this is so significant, it’s because telegram has over half a billion monthly active users and is arguably the most popular messenger app among crypto holders due to its commitment to privacy and free speech. The signal messenger app is also popular among crypto holders for the same reasons and signal announced its own crypto payment integration with mobilecoin earlier this year under similar circumstances. In both cases, the crypto projects have shared histories with their respective messenger apps, yet are technically and legally independent from them. As such, it will be interesting to see how regulators around the world will react, especially the sec, which hasn’t been all that kind to cryptocurrency in the united states. The sec’s latest anti-crypto move was the rejection of two more spot.
Bitcoin etf applications this time from valkyrie and krypton. Earlier this month, the sec rejected wisdomtree’s spot bitcoin etf application, meaning there are only a handful of spoc bitcoin etf applications left in the tray. Two of these come from greyscale and bitwise, and the sec has postponed its decisions on both to early february, as i mentioned in my weekly newsletter. I take this as a sign that the sec may very well approve one or even both applications, because otherwise it probably would have just rejected them, like all the others it has over the last couple of months. The only problem with this prediction is that only two of the five commissioners at the sec are openly pro crypto, and one of them has just announced that he’ll be leaving at the end of january.
If you watch my video about the sec’s views on cryptocurrency you’ll know that ellad roisman has worked closely with hester pierce on many occasions to push for pro crypto regulations. Hester is, of course, the other pro crypto sec. Commissioner. Now the exact reasons for eliad’s departure are unknown at this time, but the biggest question is whether his replacement will share his pro crypto stance with some luck. Ellad will stick around for long enough to push for the approval of a spot, bitcoin etf, and you can learn more about what effect that could have on btc by using the link in the description now.
Turning to the charts, we can see that the bullish divergence. I spotted between btc’s price and rsi last week seems to have played out. We are now comfortably above the 200-day moving average, which is a significant zone of price support. More importantly, btc’s price is painting a small bull flag in the short term and an inverse head and shoulders in the medium term, which could mean that we’re on the cusp of a bigger breakout to the upside, with a target of around 55k in the short term. This week’s winners are near protocol, phantom rv, oasis network and cosmos.
A solid list, if you ask me, as i mentioned earlier near protocol’s neocoin, appears to be pumping on the news of its integration with terra’s ust stablecoin. If you watched my recent near protocol update, however, you’ll know that fundamentals for near protocol have been building up for quite some time and if you watch my aforementioned video about masari’s 2022 crypto predictions, you might also remember that nir is one of the most popular cryptocurrencies. Among institutional investors, don’t get too caught up in the fomo, though the charts suggest that nier is just about done pumping and we could see it drop as low as 12 to 13 dollars in the days ahead as it enters another consolidation phase. It’S a similar story with phantom, whose ftm coin pump is fundamentally due to the massive increase in total value. Locked its various d5 protocols have seen over the last few weeks.
One of phantom’s d5 protocols also completed a cross chain bridge between phantom and solana for the usdc stablecoin, potentially attracting liquidity from one of ethereum’s top competitors. Now it’s a win-win for me since i hold both ftm and sol. Ftm is looking strong on the charts, but the rsi suggests it’s starting to run out of steam. We’Re also approaching a significant zone of resistance around the 2.60 mark, so be on the lookout for that, if you hold ftm-2 rv’s pump, on the other hand, seems to be getting started.
It’S been caused by the news that a swiss bank called siva will be integrating the institutional version of the rv protocol to allow its clients to do defy in a compliant manner. If you’ve been keeping up with rv on twitter lately, you’ll know that rv has been pushing for the institutional adoption of its protocol and there have been multiple community proposals tabled to that end. The ceba bank was no exception in this regard. Now, even though arve is a bit overextended on the daily, the weekly chart reveals that it has the momentum it needs to break through the zone of resistance. At the 300 mark in the coming weeks, i suspect rv will start to stutter around the 400 mark, which is its next zone of price resistance.
As for oasis network, the closest thing that i could find to a cause for the rosecoin’s recent pump is the release of ai rose nfts, an apparent christmas gift to the oasis community. On the technical side, rose’s rise came from a cup-and-handle pattern. That’S been in the works since december, the 1st, and if my measurements are correct, we should see rose hit 40 cents in the not so distant future, which is on par with its next zone of price resistance and last but certainly not least, we have cosmos, which Is admittedly, one of my favorite cryptocurrencies? If you’re subscribed to my weekly newsletter you’ll know, i also hold atom as part of my crypto portfolio. That’S because cosmos’s mo is interoperability and the cosmos sdk was used to build billion-dollar blockchains, including the binance chain, and terror.
Atoms rise is therefore no surprise and the origin of its current price action has its roots in the continued development on cosmos’s inter-blockchain communication protocol and the release of a 2022 roadmap which i’ll leave a link to in the description. Atom’S price action looks eerily similar to rvs, in that its weekly price momentum is massive. If we see a repeat of what happened in may, it won’t be long before atom sees another all-time high. Now, if you want to learn more about cosmos, you already know that i have a video for you down below link in the description and that’s all for today’s coin – bureau weekly crypto review. If you enjoyed it folks, you know what to do hit that, like button subscribe button and bell icon too, if you want more of me head on over to twitter, tik, tiktok and instagram to get a sneak peek behind the scenes.
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