Crypto Market Update: Treasury Secretary Yellen Warns of Countries’ Efforts to Reduce Dominance of US Dollar
Written by Van - Perfected by ChatGPT
US Treasury Secretary Janet Yellen has stated that China, Russia, and Iran are seeking to reduce the dominance of the US dollar in international trade, following the usage of the currency to impose financial sanctions. She notes that while such sanctions are effective, they could lead to unintended consequences, and the countries involved may try to circumvent them. Yellen argues that the properties of the US dollar that make it the world’s reserve currency are hard to replicate, including deep capital markets, rule of law, and a safe asset.
Changshu Civil Servants to Receive Full Salaries in Digital RMB from May 2023
Civil servants in the Chinese city of Changshu will receive their full salaries in digital RMB or digital yuan starting from May 2023, according to a notice from local authorities. This move is part of a wider push by the Chinese government to promote the adoption of its central bank digital currency. The province where Changshu resides previously initiated a pilot program for digital RMB in Q1 2023, with the aim to establish an efficient and convenient digital RMB operation and management system by 2025. The promotion of CBDC adoption, however, has not been well-received by Hong Kong residents.
China-Singapore Launch Joint Venture to Develop Green Finance Standards and Bond Market Connectivity
The Monetary Authority of Singapore (MAS) has joined forces with the People’s Bank of China (PBC) to form the China-Singapore Green Finance Taskforce. The team will aim to collaborate on several initiatives, including co-developing a set of financial standards, products, technologies, and definitions to lower carbon footprints. The GFTF will also allow MAS and PBC to strengthen the sustainability bond market connectivity and pilot digital green bonds with carbon credits.
Bitcoin Braces for Further Drop as Analysts Eye $26,600 as New Bottom
Bitcoin gained around 2.5% from the previous day’s low, hovering around \(27,800 as of April 23. However, the [cryptocurrency](https://coin360.com/) still targets \)26,600, the new bottom for Bitcoin, which lost 10% over the week. Analysts and traders anticipate further bearish moves in the short-term but still consider Bitcoin’s uptrend intact overall. They suggest a potential higher low around \(26,500-27,000, while some traders see \)29,000 as a possible strong upwards reaction to breaking back above $27,800.
Ethereum Core Developers Plan Modifications for Consensus Layer in Next Upgrade
Ethereum core developers have convened to plan modifications for the blockchain’s consensus layer for the next upgrade, Cancun-Deneb, which is expected to occur later this year. The upgrade will aim to make Ethereum cheaper for users by implementing changes across its two mainnet layers. The most significant change anticipated is EIP-4844, which seeks to augment Ethereum’s scalability beyond the current capabilities of Layer 2 solutions. The upgrade is expected to lower the cost of transactions on Layer 2 rollup solutions. A fifth multi-client devnet to test EIP-4844 is set to be launched in the following week. The number of depositors outweighed the number of stakers on Ethereum, showing people still believed in its future. The number of validators on the network also continued to rise.
BNB Reaches Highest Transaction Volume Since February
The transaction volume of Binance Coin (BNB) has reached its highest level since February, showing an increase in buying activity while the broader crypto-market experiences a decline in volume. The rising volume has led to a decoupling of the coin’s price from Bitcoin and Ethereum’s dump. This has resulted in sustained profits for holders, as the Market Value to Realized Value (MVRV) ratio remains in the positive zone.
AnetaBTC Testnet Launches Allowing Minting of cBTC on Cardano
AnetaBTC, a project aiming to bring Bitcoin liquidity into Cardano and Ergo for DeFi purposes, has launched its testnet for Cardano, allowing the minting of cBTC, a BTC asset on Cardano. The mainnet protocol is expected to follow. AnetaBTC’s protocol will have three phases, with the later versions becoming more decentralized. Additionally, a Cardano-focused Twitter account, ADA whale, believes that DeFi, governance, and scaling will drive ADA’s next bull market.
Lido stETH Market Cap Reaches Over $12 Billion, Becoming 8th Largest Digital Asset
The market cap for Lido stETH (stETH) reached an all-time high of over $12 billion, making it the eighth-largest digital asset by market cap. Since Ethereum enabled withdrawals for its users through the Shapella upgrade, liquid staking derivatives (LSD) protocols have seen growth in total value of assets locked (TVL) on their platforms, with Lido being the dominant player in the sector. There has been an unexpected staking share increase for institutional staking providers and Asian exchanges. Meanwhile, staked ETH deposits outpaced withdrawals, indicating a reshuffling of Ethereum staking pools.
Dogecoin’s Future Uncertain Despite Board Member’s Optimistic Views on SEC Regulations and Market Cap Potential
DOGE’s price is currently trading at \(0.08, down over 17% from its weekly high of \)0.094, which may be linked to events surrounding Elon Musk, a high-profile supporter of the top memecoin, such as the SpaceX test rocket launch. Additionally, about 54% of Dogecoin holders are sitting on unrealized gains, compared to 42% who are underwater.
In an interview with Fox Business, Marshall Hyner, a board member of the Dogecoin Foundation, stated that Dogecoin could not be targeted by the US Securities and Exchange Commission (SEC) as it is similar to Bitcoin and community-driven, making it difficult to classify as a security. Hyner also stated that he believed Dogecoin could break into the top three cryptocurrencies by market capitalization. However, Dogecoin has been seeing losses, and it is uncertain how regulatory agencies will respond to Dogecoin in the future.
Controversy Erupts Over OPNX’s Funding Rounds: Team Fires Back
Crypto platform Open Exchange (OPNX) has been caught up in controversy after claiming that several venture capitalists and trading firms were part of its funding round. However, the majority of the listed investors denied any association with the platform, prompting OPNX to accuse them of seeking financial gain while distancing themselves due to fears of social media backlash. The dispute has drawn attention to the potentially risky nature of cryptocurrency investments and the importance of conducting thorough due diligence before investing.
DeFi Project FilDA Finance Halts Operations After $700K Exploit
Cross-chain lending DeFi project FilDA Finance has halted operations on the Elastos Smart Chain and REI Network following an exploit that resulted in a loss of approximately \(700,000. The vulnerability has been identified and the attack vector isolated, but the investigation is ongoing. FilDA postponed its launch on [BitTorrent](https://coin360.com/coin/bittorrent-new-btt) Chain to an undisclosed date because of its hack. Although the project has total deposits and loans of \)21.3 million and 145,574 current addresses on the network, it has already experienced similar attacks in the past. The FILDA token has risen by more than 2% in the last 24 hours, despite the hack.
Summary of Market Events and Price Action
As a summary of today’s events and price action in the market, it is crucial to note the following key points:
- US Treasury Secretary warns of dollar decline as other currencies rise
- Civil servants in Changshu to receive digital RMB salaries
- China-Singapore joint venture for green finance and bond market
- Bitcoin braces for drop, analysts eye $26,600 bottom
- Ethereum developers plan consensus layer changes in next upgrade
- BNB hits highest transaction volume since February
- AnetaBTC testnet launches for cBTC minting on Cardano
- Lido StETH market cap reaches $12 billion, 8th largest asset
- Dogecoin future uncertain despite optimistic board member views
- OPNX funding controversy leads to team retaliation
- FilDA Finance stops operations after $700K exploit
Top Altcoin Gainers and Losers
WOO Network WOO (+11.44%)
Radix XRD (+10.07%)
Casper CSPR (+9.72%)
Render Token RNDR (-2.17%)
Bitcoin SV BSV (-1.38%)
Gemini Dollar GUSD (-0.97%)
NFT Market Map
The floor prices for popular NFT collections, Cryptopunks and Bored Ape Yacht Club, have fallen below $100,000 worth of ETH as the broader NFT market experiences a slump. The decrease in activity has been consistent across all platforms, with daily trades across all NFT markets dropping by 71% since mid-April. One potential reason for the drop could be the rise of Blur, an NFT trading platform that incentivized traders to make meaningless trades for financial rewards. Other factors that may have played a role include high gas fees and liquidity issues around the US tax deadline.
Meanwhile, OpenSea Pro has surpassed Blur as the most popular NFT marketplace, according to Delphi Digital’s analysis. The launch of OpenSea Pro appears to have been successful in attracting pro traders looking to benefit from new NFT rewards. Blur’s incentives have become saturated, making it difficult to earn points. As a result, transaction activity on OpenSea Pro may continue to increase. In Q1 2023, a majority of NFT trading volume originated from Blur, which dethroned former market leader OpenSea within six months. However, there has been a rapid shift in the NFT landscape thanks to OpenSea Pro’s release, with Blur’s market share shrinking from 49.3% to 27.9% this month.