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Summary of Past Week Articles May 06, 2022

Moonbirds and Solana NFTs help the NFT market get back on track:

The non-fungible token (NFT) market saw an activity increase throughout April. The primary drivers were the popular NFT collection Moonbirds and increased demand for Solana (SOL)-based NFTs

According to a report shared with Cryptonews.com by data aggregator DappRadar, the NFT market recorded USD 6.3 billion in monthly trading volume. Historically, for the third time, a 23% increase from March to April.

According to DappRadar, the trading volume of Solana NFTs increased by 91% month over month (MoM), generating nearly USD 300 million in sales.

Solana NFTs were expected to gain traction after central NFT marketplace OpenSea added support for the Solana blockchain. Furthermore, one of the largest and most anticipated NFT drops was Yuga Labs.

Otherdeed NFTs would serve as deeds for land plots in the company’s upcoming metaverse Otherside (US time). However, the Otherdeeds’ mint leaves the NFT market with a bittersweet experience, according to DappRadar. 

While the collection brought in over USD 340 million in APE generated from the mint, the drop also became known for the massive gas war it created, which resulted in a loss of USD 4.5 million in failed transaction fees and over ETH 55,000 burnt.

Coinbase, a major cryptocurrency exchange, announced late yesterday that it had opened its NFT marketplace to all users.

However, Coinbase’s NFT marketplace has had a sluggish start.

Short-Term Relief Bitcoin Rally Likely Following ‘Optimistic’ Powell, Major Bottom Could Be Forming According to Analysts:

Bitcoin (BTC) and the vast crypto market have rallied in response to a projected 0.5% point rate hike in the US. Earlier this week, US Federal Reserve (Fed) spiked interest rates by 0.5 percentage points. The rates seem to be an optimistic outlook from US Fed Chair Jerome Powell. 

One analyst believes a huge bottom in crypto markets is currently formed, while others believe that a relief rally will be short-lived.

Despite being more significant than past rate hikes, the Fed’s choice to boost rates by 50 basis points on Wednesday was largely anticipated by the market.

Furthermore, McGlone, a crypto bull, stated that not investing in bitcoin is a risk for investors and that this risk may outweigh the probable failure of the technology/asset. He also pointed out that it was the worst April in recorded history.

Meanwhile, according to a new analysis from crypto exchange Kraken, April was the worst month in Bitcoin history, with a -18% return.

It went on to say that, except for March, BTC has underperformed its historical monthly returns so far in 2022.

Finally, in its most recent weekly market analysis, crypto researcher Babel Finance stated that BTC reserves on exchanges are continuing to fall, reaching a four-year low last week.

The coin is up 1.5% on the last day, 0.8% in the previous week, and 15.1% last month.

Binance backs a takeover of Twitter with $500 million, and Musk might serve as Interim CEO:

According to a public filing, the primary cryptocurrency exchange Binance supports Elon Musk’s takeover of Twitter with a USD 500 million investment.

Meanwhile, Musk may serve as Twitter’s interim CEO after the takeover.

Binance’s investment is one of the largest on a list of commitments from numerous large investors for the deal.

The announcement of the investments comes as CNBC reported, citing anonymous sources, that Musk is anticipated to serve as a transient CEO of Twitter after the takeover is completed.

Saudi prices have returned to the table. In addition to the above-mentioned significant investors, the filing discloses that Musk has persuaded Saudi prince Alwaleed Bin Talal, chairman of the Saudi Arabian investment firm Kingdom Holding Company, to roll over his present investment.

The Saudi prince earlier rejected Musk’s offer, claiming that it does not reflect the intrinsic value of Twitter given its development prospects.

Today’s filing follows Musk’s agreement with Twitter’s board to take the company private for about USD 44 billion, or USD 54.20 per share.

Twitter shares were up 4% to USD 51.02 on Thursday at 13:40 UTC.

Gucci, a well-known luxury brand, will accept Bitcoin and Ethereum payments in the United States:

Gucci, the Italian luxury brand, will accept cryptocurrency payments in five flagship stores in the United States by the end of the month. This summer, the brand plans to expand the pilot project to include all of its directly-operated stores in North America.

According to Vogue Business, Gucci will accept payments in more than ten different coins, including popular crypto-assets such as bitcoin (BTC), ethereum (ETH), bitcoin cash (BCH), wrapped bitcoin (wBTC), litecoin (LTC), popular meme coins Shiba Inu (SHIB) and dogecoin (DOGE), and several US dollar-pegged stablecoins.

According to the article, Gucci will email clients a link for in-store crypto payments. These will have a QR code that will allow them to execute the payment from their crypto wallet. Gucci will transfer the cryptocurrency into fiat currency after processing the payment.

According to the source, the first five Gucci boutiques to accept cryptocurrency payments are Wooster Street in New York, Rodeo Drive in Los Angeles, Miami Design District, Phipps Plaza in Atlanta, and The Shops at Crystals in Las Vegas.

Gucci is a rare brand that has established itself as an early adopter of Web 3 technologies.

So far, in 2022, the luxury brand has released two non-fungible tokens (NFT) collections.

In February, the company also purchased an undisclosed quantity of virtual land in The Sandbox (SAND) metaverse to build its headquarters as a personal virtual world.

According to Ethereum’s Buterin, this level of transaction fees would be “really acceptable”:

Layer 2 (L2) transaction fees must be less than USD 0.05,” stated the Ethereum (ETH) co-founder Vitalik Buterin. According to him, the broader public must deem it genuinely acceptable.

Buterin commented as a reaction to a tweet from Ryan Sean Adams, co-founder, and host of the Bankless podcast and co-founder of Web3 firm Bankless. Adams tweeted a screenshot of the typical transaction fees for some prominent Ethereum L2 solutions.

Layer 2 blockchains are alternative blockchains that extend and grow Ethereum by processing transactions outside of the Ethereum Mainnet (layer 1) while attempting to retain the Mainnet’s security and decentralization.

While some layer 2s meet Buterin’s recommended transaction fee, some are pricey. For example, on the Aztec Network, transaction fees were roughly USD 1.98.

“I think it ought to be around [USD] 0.05 to be truly acceptable,” Buterin added. 

Ethereum gas fees have resurfaced as a popular subject. That was particularly evident after the network witnessed a significant spike in gas prices during the mint of Yuga Lab’s much-anticipated “Otherside” metaverse land, known as Otherdeed non-fungible tokens (NFTs). 

Fans and investors spent over USD 150 million in gas fees. In addition, users attempted to ensure a place in the future block by participating in a priority gas auction, a procedure often known as mining.

Furthermore, by optimizing the minting smart contract, the company could have saved millions of dollars in transaction fees.

According to a Bitstamp survey, 7 out of 10 retail and institutional investors intend to buy more cryptocurrency:

According to a new poll, most investors intend to spend more on cryptocurrency over the next five years. Retail and institutional investors want to increase their exposure to the sector.

The cryptocurrency exchange Bitstamp conducted a poll, which discovered that 73% of regular investors and 72% of institutional investors intend to buy more tokens over the next five years.

According to the research, it may result from 68% of institutions actively supporting crypto investment.

Following the survey results, at least among investors, crypto-related emotions are primarily favorable. More than 80% of retail respondents and 73% of institutional respondents believe that crypto will become mainstream within the next ten years.

Fewer than one in ten people in both categories think that the mainstream would never accept cryptocurrency.

Only a third of retail investors in France said they trusted crypto. However, the belief in cryptocurrency is spreading to other parts of the world, such as Nigeria, India, and Brazil. More than 75% of retail and institutional investors said they trusted crypto in these countries.

More than six in ten North Americans said they believe in tokens. However, in Japan, where many high-profile crypto exchange thefts have rocked public trust in crypto, coins were trusted by less than half of retail investors.

Almost one-third of investors said they used their crypto holdings to participate in gaming activities, which could indicate that play-to-earn (P2E) blockchain games are also making their way into the investment space.

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