SpaceX joins Tesla in accepting dogecoins

Despite the volatility in the cryptocurrency market again last week, Bitcoin kept its value steady at around $ 30. Over the course of the week, the coin's price dropped to a low of around $ 000, but rose again above $ 28 by the end of the week.

Ether experienced a harder week on eToro platform, starting at over $ 2 and dropping to $ 000 at times. ETH is now back to around $ 1.

Cryptocurrencies continue to face the problem of volatility, and investors, after many weeks of declines, choose more comfortable levels. As markets and cryptocurrencies are now much more closely correlated than before, thanks for example to institutional participation, the question of when investors re-immerse themselves in the subject looms over the asset class.

US markets saw a slight recovery last week and equities rose in all sectors. While cryptocurrencies have not seen the same recovery, the prices of major coins like bitcoin have remained steady, suggesting some sort of "peace of mind" before the big players return to the market.

Ethereum is connecting

Founder Vitalik Buterin announced an update to the Ethereum blockchain, called "the merge", for August. The potential impact on the entire ecosphere of cryptocurrencies cannot be underestimated.

As a result of the merger, also known as Ethereum 2.0, the blockchain on which much of the world's cryptocurrency infrastructure is based will make a fundamental change from the model Proof of work na proof of stake. In practice, this means that blockchain will no longer reward miners, but will instead reward ETH holders with token staking profit.

This will reward people who invest in blockchain and encourage further participation. The impact of this phenomenon on the token may be deflationary as the cryptocurrency will gain value thanks to new entrants to the network. This, in turn, could create a completely different type of investment than has been the case with Ethereum so far.

Ethereum is an extremely influential blockchain. Unlike bitcoin, which is primarily useful for storing value or financial transactions, Ethereum enables all kinds of innovation, and many projects are created from it. Such a major change will have a potentially significant impact on the price of basic tokens.

A16z launches a large DeFi fund

The company VC A16z launched a new, large fund focusing on DeFi and Web3 projects. The $ 4,5 billion fund is a significant support for the sector, which has not remained indifferent to market fluctuations over the past few months.

The fund will focus on investments in Web3 which is good for the sector, especially given the overall market situation. It is a big declaration on the part of the VC company, competitive against other declarations, significant in terms of size and scope of investment commitment, made by influential investment houses in recent weeks.

This suggests that while the markets are shaken by broader geopolitical and economic issues, the core activity of building blockchain projects is still ongoing, and there are still plenty of opportunities left in the innovation-driven sector. The long-term perspective, based on the actions of institutional players, looks very good.

SpaceX joins Tesla in accepting dogecoins

One of Elon Musk's main projects, SpaceX, will start adopting along with Tesla dogecoin as payment for goods.

Musk, like his previous speeches on dogecoin, made the news on Twitter, which is characteristic of an eccentric billionaire. His tweet spiked the price briefly to $ 0,08370. However, this news did not help in the plight of the token, the value of which has fallen by more than half since the beginning of the year.

While the announcement of SpaceX to accept dogecoin is unlikely, the broader impact of adopting cryptocurrencies such as dogecoin on the payment infrastructure should not be underestimated. We are still far from the "tipping point," but any company that announces such a move brings us closer to that point.