Now you are reading
Bored Apes are driving the Ethereum blockchain to a crash

Bored Apes are driving the Ethereum blockchain to a crash

created Simon peters4 May 2022

Both bitcoin and ethereum battled the fear of investors last week. This week investors around the world seem to be taking a deep breath ahead of the latest monetary policy announcement Federal Reserve USA.

Bitcoin started last week at just $ 40, but fell sharply below $ 000 on Tuesday. The cryptocurrency returned to $ 37 later in the week, but now stands at $ 500. In the meantime Ethereum started last week above $ 2 but fell below $ 950 over the weekend on eToro. It currently stands back above $ 2.

The crypto market turmoil appears to be following other assets as investors move away from riskier areas of the market such as tech stocks. Volatility is also currently high, as illustrated by the price volatility described above. Stock investors are said to be holding their breath ahead of the Fed's decision - and that would also apply to the cryptocurrency community. Markets are approaching price in a 50 basis point hike, which is likely to see crypto prices even lower than last time. However, in a situation where the US economy seems to be close to retreat, the Fed may hesitate on the current rate.

Bored Apes are driving the Ethereum blockchain to a crash

Yuga Labs, creator of the Bored Apes NFT, apologized after selling land in the metaverse led to the Ethereum blockchain crash. The company began selling items for its Metaverse game, Otherside, using plots sold with ApeCoin (which was recently introduced on eToro platform). Demand was such that approximately 55 plots were sold in the first few hours.

This incredible demand has overwhelmed the Ethereum blockchain that ApeCoin is based on - it's no small feat. Trading NFT plots grew so insane that transaction fees were at one point around $ 3300, with nearly $ 100 million in Ethereum gas fees generated.

Algorand sponsors the FIFA blockchain

The Proof-of-stake network Algorand has entered into an agreement with FIFA, thanks to which it will become a regional sponsor of the Men's World Championships in 2022 and the official sponsor of the Women's World Championships in Australia and New Zealand in 2023.

The transaction is notable for blockchain because it has some interesting potential implications for the transaction NFT. Algorand will be assisting FIFA with its digital asset strategy, and it seems it can help FIFA build the NFT - a potentially large market in its own right.

Football and sports in general are already a rapidly growing segment of the NFT market and loyal fans are keen to show their support in this area. FIFA is one of the largest and most influential sports organizations in the world, so linking Algorand is something of a coup for a burgeoning blockchain.

We see an increasingly competitive market not only for the NFT themselves but also for the providers of this infrastructure, so this is a real boon for Algorand at a time when broader cryptocurrencies are under pressure and NFT valuations are being tested.

Argentine banks offer cryptocurrencies

Two major Argentinean banks - Banco Galicia and BruBank SAU - have started offering their clients the ability to purchase cryptocurrencies including bitcoin, ether and USDC. Argentina is by no means a major player in international cryptocurrencies, but it is a much larger jurisdiction than El Salvador, which has become an example of bitcoin adoptions in recent months.

But there's a deeper trend in Argentina that can often herald changes elsewhere. The nation suffers from one of the worst inflation rates in the world, currently at around 55%. annually.

As a result, Argentines are very suspicious of their currency, the peso, and routinely turn to the US dollar as an alternative to protecting their savings. It is so common that the official exchange rate has an informal rival, the so-called "blue dollar".

Importantly, Argentinian institutions now offer an alternative for Argentines that does not involve the behind-the-scenes trading of paper currencies. Having access to alternative digital currencies can make a huge difference to a country and is a lesson for others who themselves may be slaved to rising inflation.

What do you think?
I like it
Heh ...
I do not like
About the Author
Simon peters
eToro analyst. A graduate of the Faculty of Mechanical Engineering at Brunel University in London. He is CFA UK Level 4 certified in Investment Management.

Leave a Response