This Week in Crypto: April 5, 2024
Welcome to This Week in Crypto, your go-to source for the latest developments and insights in the world of cryptocurrency and blockchain technology. In this edition, we are looking into the following topics:
- Mining Profitability for Bitcoin Miners
- BlackRock with major funding launch
- Ripple (XRP) to join the stablecoin market
Mining Profitability for Bitcoin Miners
With the upcoming Bitcoin halving reducing mining rewards, concerns over profitability arise, yet experts anticipate a potential offset through rising network fees driven by activities like NFTs and DeFi projects. Current average Bitcoin transaction fees sit at around $4.88 per transaction, with Bitcoin’s price above $70,000, most miners are expected to remain profitable. The quality and efficiency of mining equipment play a role, favoring newer, energy-efficient machines. Consequently, despite reduced block rewards, the combination of Bitcoin’s price surge and higher network fees suggests a promising outlook for miners, with fewer expected to go out of business compared to previous halving cycles.
BlackRock with major funding launch
BlackRock and Securitize partnering to create a digital assets fund, the USD Institutional Digital Liquidity Fund (BUIDL), signals a major shift in regulated tokenization markets in the US. BUIDL, backed by BlackRock’s $100 million seed funding, will invest in safe assets like cash and US Treasury bills, making it the largest asset on Securitize’s platform. Initially available to certain investors, BUIDL’s eventual entry into secondary markets is expected to boost trading and attract more investors. This move reflects a growing trend of turning low-risk assets into digital tokens, likely spurring increased activity on platforms like Securitize Markets and influencing other regulated tokenization venues.
Ripple (XRP) to Join the Stablecoin Market
Ripple (XRP) has recently announced its plan to join the stablecoin race with the introduction of its native stablecoin that would be backed by the US Dollar, treasury bonds, and other low-risk investments. In the midst of the debate over the introduction of USDe and sUSDe from Ethena Labs and its potential security risk especially towards the DAI ecosystem, the bold plan from Ripple to launch its own stablecoin is unexpected. However, the observers are noting that Ripple is looking for a new pivoting angle after its native token XRP failed to gain major utility, or Ripple is potentially looking for a new source of revenue to pay its hefty $2 billion USD fine to the SEC.
Whatever the motivational driver, Ripple is entering a heavily congested stablecoin market and the entry is worth taking note to see what Ripple’s native stablecoin may potentially pose for the overall Web3 industry.
That wraps up another insightful edition of This Week in Crypto. Keep an eye on our newsletter for upcoming news, analysis, and exclusive insights into the ever-evolving crypto landscape. Don’t forget to subscribe to stay ahead of the curve. Until next time, happy HODLing!
