Weekly Recap: Bitcoin, Binance, Ethereum, Solana... The crypto news you shouldn't miss!

Week after week, the world of cryptocurrencies continues to surprise and reshape the paradigms of digital finance and technology with ever-renewed boldness and innovation. In our weekly recap, we’re going to explore the most captivating and significant events of the past week. From the enigmatic transfer of Bitcoin to Satoshi Nakamoto’s wallet, to Solana’s controversial strategy against layer 2 solutions, through the turbulence on the stablecoin market and the heated debates around the upcoming upgrade to Ethereum.

$1.2 Million in Bitcoin Transferred to Satoshi’s Wallet!

An unidentified individual recently sent $1.2 million in Bitcoin to the Genesis wallet of Satoshi Nakamoto, the very first wallet created on the Bitcoin network. Though Nakamoto has long since vanished and it’s highly unlikely that they will recover these funds, this mysterious transfer has captivated the crypto community’s attention. The Genesis wallet originally had only the 50 bitcoins mined upon its creation, but over time, other funds have been sent there, and its balance increased to 72 Bitcoins by the end of 2023. With this latest transaction, the current balance is 99.67 bitcoins, valued at approximately $4.3 million.

The Genesis wallet is the very first wallet created on the Bitcoin network by Satoshi Nakamoto, and although it could theoretically still hold the private keys to access these wallets, it’s very unlikely to do so since no funds from wallets associated with Nakamoto, including those from the Genesis block, have moved since his disappearance in December 2010. While some crypto-enthusiasts see this transfer as a mindless waste of money, others consider it a fitting tribute to the anonymous genius behind the Bitcoin revolution.

Solana: A Strategic Rejection of Layer-2s!

Anatoly Yakovenko, co-founder of Solana Labs, has recently made a bold claim that has shaken the crypto ecosystem: Solana does not require layer 2 solutions. This claim goes against the current trend where many blockchains are adopting layer 2 solutions to enhance scalability and performance. According to Yakovenko, Solana is focusing on expanding its global atomic state machine, an approach that would render layer 2s redundant.

Solana isn’t just another blockchain, it aspires to be the architect of a parallel universe. By focusing on global atomic synchronization, Solana seeks to surpass the limitations of current blockchain technologies. Yakovenko envisions a world where Solana’s unique virtual machine is self-sufficient without the need for external solutions. With hardware upgrades on the horizon, the platform is preparing for a future where it might, possibly, reign supreme. But the real question remains: will this isolated strategy bear fruit in the constantly evolving crypto ecosystem?

USDC: A Not-So-Stable Stablecoin?

The USDC, the stablecoin issued by Circle, recently lost its peg to the US dollar, plunging the crypto community into panic. Instead of maintaining its usual value of 1 dollar, USDC saw its value drop alarmingly, hitting a low of as much as $0.74 on the Binance exchange platform. This sudden drop has sparked concerns and speculation among investors and market observers.

The USDC de-peg phenomenon is not isolated in the world of stablecoins. Previously, Tether’s USDT had also experienced periods where it could not maintain its 1:1 parity with the US dollar, resulting in massive liquidations on major crypto exchange platforms. The details of the USDC incident reveal that during a period of widespread market selling, fueled by dubious reports about the approval of a Bitcoin Spot ETF, USDC even lost its parity with the dollar three times.

Could the USD Soon Be Pegged to Bitcoin?

The financial world might be on the brink of a revolution with the idea that the US dollar (USD) could soon be pegged to Bitcoin. This bold proposal has sparked a spirited debate among economists and policymakers. Proponents of this project view Bitcoin as a credible alternative to gold, traditionally used to back the value of currencies. They argue that Bitcoin, with its blockchain technology and decentralized network, offers increased security, limits counterfeiting, and thus reduces the risk of inflation. Furthermore, a USD indexed to Bitcoin would benefit from a limited and pre-programmed supply of new bitcoins, unlike traditional currencies that rely on central bank decisions. This could reinforce the dollar’s status as a safe haven for investors.

However, this idea is not without pitfalls. The volatility of Bitcoin is a significant concern, as pegging the world’s primary reserve currency to such a volatile asset could destabilize the American economy and the international monetary balance. Additionally, China’s dominance in Bitcoin mining poses a risk to US sovereignty and a systemic risk in the event of conflict between the two powers.

Binance Tightens Policy on Monero and Zcash!

Binance has recently announced a tightening of its trading rules for ten cryptocurrencies, including Monero (XMR) and Zcash (ZEC), which will now be placed under “enhanced surveillance” due to the increased risks they pose. This move follows Binance’s recent regulatory hurdles, as it faced allegations of money laundering and violations of KYC rules set by the US SEC. Monero and Zcash, known for their anonymizing properties, have often attracted regulatory attention for their potential to facilitate large-scale money laundering. Binance will also more closely monitor other tokens, while loosening rules for some like GMX and SushiSwap.

To trade these high-risk cryptocurrencies, Binance users will now have to take a quiz every 90 days and accept strengthened terms of use aimed at raising awareness of the risks involved. Tokens branded with Binance’s “Seed Tag” are considered promising but highly volatile projects, and warning banners will be visible on their trading pages. Binance will conduct periodic reviews of crypto projects, taking into account various factors to add or remove tokens from surveillance lists. By tightening its compliance policy, Binance hopes to regain trust with authorities shaken in 2023, reflecting the difficult balancing act undertaken by the crypto giant.

UNHCR Adopts Blockchain with Cardano for Humanitarian Aid

The United Nations High Commissioner for Refugees (UNHCR) has adopted blockchain as a powerful tool for refugee aid. With Cardano by its side, UNHCR is opening a new era of digital solidarity. Blockchain brings transparency and efficiency in the distribution of aid, and thanks to Cardano, the organization simplifies the management of donations, ensuring quick and direct help to refugees while securing their personal data. UNHCR is also innovating with crypto digital wallets that facilitate donations and receiving aid, even remotely, while educating refugees in digital literacy.

Cardano and UNHCR have launched a unique staking pool, “Blockchain for Refugees,” where each ADA crypto contribution directly supports the operations of UNHCR. This revolutionary crowdfunding model allows donors to maintain control of their assets while contributing to a noble cause. Cardano, with its committed community and unique staking system, has won over UNHCR, and their collaboration has already borne fruit with several innovative projects underway. The use of zero-knowledge proofs by Cardano further strengthens the security of refugee data.

The Pectra Update Causes a Split Among Ethereum Developers

The Ethereum community is actively preparing for Pectra, the next network upgrade scheduled for 2024, but a significant disagreement remains among developers on how best to integrate Verkle, a promising validity proof technology. The deployment of the Pectra upgrade will begin in 2024 with a series of tests on Ethereum development networks, allowing for the validation of the code in various environments and the identification of any potential bugs or performance issues.

Regarding Verkle, two approaches oppose each other among Ethereum developers. Pro-mandatory Verkle advocates for total and immediate adoption, considering its advantages in terms of performance and scalability too important to provide a choice. On the other hand, anti-mandatory Verkle developers are more cautious, fearing security or stability issues if Verkle is deployed too quickly. They suggest that Verkle should first be offered as an option, alongside the current validation mechanism. The upcoming Pectra upgrade of Ethereum promises to be decisive for the network’s future, but the integration of Verkle divides developers on the best strategy to adopt.

Bitcoin in 2023: A Whirlwind of $6 Trillion

In 2023, the Bitcoin market witnessed frenetic activity, with over $6 trillion exchanged, although this represents a 38% decrease from the previous year. This colossal sum equals more than 2.3 times the value of the French GDP and underscores the massive scale of transactions carried out with the flagship crypto.

The year was also marked by a relative stability of the average price of Bitcoin, with a slight increase from 2022. The number of active addresses remained steady, while Bitcoin’s dominance climbed to 50%. More than 75% of Bitcoin holders are now considered long-term investors, a historic high that indicates a growing maturity of the market. Meanwhile, the amount of Bitcoin in circulation has increased by 1.75%, continuing its long-term downward trend.