Bitcoin suffers a sharp setback

Bitcoin suffered a sharp decline on Friday on news of the impending collapse of the Silvergate crypto bank. Other cryptocurrencies shared the fate of BTC. Bitcoin started above $23 last week, reaching above $200 on Wednesday on the eToro platform. But when the Silvergate news broke on Friday, the market crashed significantly, with the BTC price dropping below $23. Ethereum started the week at around $600 before reaching just over $22. However, on Friday, the cryptocurrency fell below $250 and remains in that range.

Ethereum introduces network updates

Ethereum launched the EIP-4337 network update over the weekend, a new token standard first proposed in September 2021. This upgrade enabled Ethereum wallets to become "smart" wallets and to provide a range of features using smart contracts, such as recovering a lost key. Additional benefits include automated payments and time-based spending limits. Ethereum as a network has repeatedly proven to be one of the most future-proof solutions in the crypto space in terms of adapting to demand and flexibility. The web increasingly looks like a sophisticated payments and finance ecosystem to users and makes a compelling case for its use. The next update, the so-called Shanghai update, which will allow users to withdraw the ETH staked, could also be a game changer. This is expected to come out this month and has some interesting implications for the market.

TBD brings improvements to the Bitcoin Lightning network

Jack Dorsey's TBD has launched a new project called c=, which aims to improve the services and tools of the bitcoin lightning network. The improvements aim to improve the coverage of the Lightning network by improving liquidity and routing services. The bitcoin lightning network was created as a layer XNUMX solution for blockchaina bitcoin to improve the ease of use of bitcoin as a payment network and other features. While networks like Ethereum have teams of developers working in a coordinated manner, Bitcoin is completely decentralized in the sense that there is no clear creator or group behind it. But developers like Dorsey have a big hand in improving the use cases and functionality of the token, hence the additions second layer. Both bitcoin and ethereum are really beginning to agree when it comes to offering complete digital financial ecosystems. While work is still ongoing, we may see changes in the reasons for adoption as features improve and ease of use increases

Brazil is seeing a tax rebound on the cryptocurrency market

The Brazilian tax authorities provide an interesting early insight into the movements of the crypto market as they collect tax information on a regular basis. In January, tax collectors in the country witnessed a rebound in crypto transactions by more than 10%. compared to December 2022. However, total transaction volume has yet to reach its 2022 highs nationally, but offers some insight into regional investors returning to the market after a volatile second half of 2022. In terms of most traded cryptocurrencies, Tether's USDT stablecoin ranked #XNUMX as a key connecting token for investors in the region. Stablecoin also benefits Brazilians locally as it protects purchasing power against the US dollar and allows them to avoid costly fees.