CoinLoan Weekly: bull market, Crypto.com sponsors FIFA, 2 million ETH burned
Last week, Bitcoin’s growth was spurred by the Luna Foundation Guard — the nonprofit bought over 27,000 BTC to support UST’s security. From $40,842.45 at the beginning of the week, the pioneering coin rocketed to over $47,600. Its rise throughout the week was relatively stable.
On Monday, March 28, The Fear & Greed Index soared to 60, entering the Greed territory for the first time since November 2021. This change indicated the synergy between Bitcoin and TerraUSD and the benefits of backing a stable medium of exchange.
As of now, BTC is trading at $47,392.36, with a 24-hour gain of +5.7% and a 7-day surge of +14.7%.
Ethereum moved in line with Bitcoin, from a low of $2,895.68 on Tuesday, March 22, to $3,381.52 on Monday, March 28. Volatility was limited apart from the jumps on these days. Eventually, ETH outpaced BTC, gaining over 17% in total.
As of this writing, ETH is trading at $3,348.54, with a 24-hour uptick of +5.7% and a 7-day rise of +17.1%.
After the initial surge from $0.811452 on Monday, March 21, XRP stayed within a tight range. It traded between $0.82 and $0.85 before peaking out on Monday, March 28, at $0.893966. Ultimately, the token gained only half as much as Ethereum.
As of now, XRP is trading at $0.875875, with a 24-hour change of +4.0% and 7-day growth of +8.6%.
Crypto.com to sponsor FIFA World Cup
Crypto.com, a Singapore-based exchange, is going all-in on sports advertising with its sponsorship of The 2022 FIFA World Cup in Qatar. As the exclusive crypto trading platform for the event, it will place ads inside and outside the stadiums. The tournament is scheduled to run from November to December.
According to FIFA, 3.6 billion people watched the World Cup of 2018, with the final match attracting 1.12 billion viewers. Crypto.com apparently aims to double down on a key demographic — males between 18 and 29. According to Pew Research Center, this category has the most experience with digital assets.
In recent months, Crypto.com has pursued sponsorship quite aggressively. Teams and leagues in hockey, soccer, basketball, martial arts, and eSports have received support from the exchange. In November 2021, it even struck a deal to rename the Staples Center — home of the Los Angeles Lakers — to Crypto.com Arena.
Ethereum burns 2 million ETH
Since the activation of the London hardfork in August 2021, the Ethereum network has burned over 2 million ETH worth over $7 billion dollars. The largest amount of burned assets — 230,044 ETH — was burned in The Open Sea marketplace for NFTs.
The EIP-1559 proposal included in the hardfork requires destruction of a portion of gas fees depending on network load. On average, the protocol takes 6 ETH out of circulation per minute. 35% of all assets affected so far belonged to the NFT segment. DeFi services came second with 33%.
Crypto burning is Ethereum’s deflationary mechanism. Previously, transaction costs were unpredictable due to the auction system for gas fees. Now, users pay a base fee and an optional tip to miners to speed up transactions when congestion is high. In theory, the minting of the ETH coin may go negative. The situation when the protocol withdraws more coins than it mints is nothing new.
Meanwhile, the amount staked in the Ethereum 2.0 deposit contract has surpassed 10 million ETH or $26 billion. In February, Vitalik Buterin suggested two ways to reduce transaction costs on ZK-Rollups, both involving blobs — a new transaction type carrying large amounts of data. According to the founder, these changes could make commissions on the rollups 400-100 times smaller.