β€‹β€‹πŸ—“Β  Weekly recap: UST and LUNA aftermath, ETH transition to PoS, and accelerated crypto regulation β€‹β€‹πŸ—“

Here is the compilation of the essential crypto events of the week.

βœ… BTC ranges from $29k to $30kΒ 

Bitcoin is currently experiencing high volatility: the asset fell below the $29,000 mark twice last week but returned to $30,000 within a few days. The monthly chart shows that BTC’s price has ranged from $29,000 to $30,500 since mid-May.Β 

Although the weekly parameters ​​indicate a downtrend continuation, the market has moved into the green zone based on the daily indicators:

πŸ“Š DASH/USDT +9% in 24h

πŸ“Š BTC/USDT +4% in 24h

πŸ“Š ETH/USDT +3% in 24h

βœ… Tether reduces reserves in commercial paper

Stablecoins have become the hottest and most controversial topic since the Terra and Luna projects collapse. Similar projects go out of their way to reassure investors and prevent panic selling. The USDT issuer Tether announced the reduction of reserves in commercial papers by 17% (from $24b to $20b), shooting for 20% in the second quarter. In addition, Tether increased its holdings in US Treasury bonds from $34.5b to $39.2b. Naturally, the company again stated that all USDT tokens are fully backed.

βœ… Terra and Luna investors lost billions of dollars

Details about the Terra and Luna institutional investors’ losses begin to unravel. According to on-chain data, blockchain company Hashed lost $3.5 billion of funds locked in LUNA staking.

In a blog post, research firm Delphi Digital said that it had concerns about the UST and LUNA structure but believed that the Luna Foundation Guard (LFG) reserves would prevent the “unthinkable”. The company admitted miscalculating the risk of a “death spiral” and disclosed its investment in the project. In 2021, Delphi Ventures acquired LUNA for 0.5% of its NAV and then invested $10 million in LFG.

The Avalanche Foundation, a non-profit organization, also reported a loss of $60 million. Avalanche founder Emin Gun Sirer said his company worked closely with Terraform Labs to improve the interoperability of projects’ blockchain.

βœ… G7 calls for accelerated crypto regulationΒ 

Not only investors but also regulators voice concerns regarding the current market situation. The G7 summit (G7) took place last week, where finance ministers advocated for accelerated crypto regulation due to the UST stablecoin crash:

“What happened in the recent past is a wake-up call for the urgent need for global regulation,” said Francois Villeroy de Galo, the Bank of France chairman.

βœ… Ethereum PoS transition will take place in August

Preston Van Loon, the top Ethereum developer, announced that the transition to the Proof-of-Stake algorithm should take place in August this year. The team plans to complete “the Merge” stage before activating the “Difficulty Bomb”, which aims to increase the ETH mining difficulty.

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