Weekly Recap: Bitcoin, Solana, Ethereum, NFT… The Crypto News You Shouldn't Miss!

Week after week, the crypto sector continues to innovate and boldly redefine the boundaries of finance and technology with creativity. In this weekly roundup, we’ll dive into the most notable news from the past week, from El Salvador’s pioneering initiative with the world’s first Bitcoin bonds to Donald Trump’s controversial new NFT collection, and onto the promising prospects of the SEC approving Bitcoin Spot ETFs. We’ll also examine the security incident at Ledger, the implications of BlackRock’s entry into Bitcoin mining, and the current trends around Ethereum and Solana.

El Salvador launches the world’s first Bitcoin bonds

El Salvador, having already adopted Bitcoin (BTC) as legal tender, is taking a significant new step. The country’s National Digital Assets Commission (CNAD) has approved the issuance of the world’s first Bitcoin bonds. This initiative, announced by President Nayib Bukele on X (formerly Twitter), is scheduled for the first quarter of 2024. These bonds, dubbed “Volcano Bonds”, will be issued in collaboration with Bitfinex Securities, a regulated branch of the crypto exchange Bitfinex. This regulatory breakthrough marks a turning point in El Salvador’s financial policy toward Bitcoin.

The idea of Volcano Bonds dates back to 2021, shortly after Bitcoin’s legalization as a common currency in the country. The initial goal was to raise $1 billion to support El Salvador’s Bitcoin mining ecosystem, partly powered by renewable energies. Although the project was delayed from its initial launch date scheduled for March 2022, it gained momentum with the introduction of a Bitcoin and digital assets bill in November 2022. After overwhelming support and its adoption in January 2023, this law paved the way for the realization of this innovative financial vision for El Salvador.

Donald Trump and his “Mugshot” NFT collection: Capitalizing on controversy

Donald Trump, the former President of the United States, has launched his third NFT collection titled “Mugshot”. This series of digital collectible cards is inspired by his arrest in August 2023 on election fraud charges. Trump, who has pleaded not guilty, is using this collection to reference his legal troubles. The “Mugshot” collection is seen as an attempt by Trump to profit from his controversial situation, while displaying a defiant attitude toward his legal problems. This launch follows the success of his two previous NFT collections, which sold out quickly.

The “Mugshot” collection offers NFT cards at a unit price of $99. A unique incentive accompanies this collection: those who manage to collect 47 cards from the series will receive a piece of the suit Trump wore during his arrest, as well as an invitation to dine with him at Mar-a-Lago. This strategy aims to make the collection both unique and valuable, generating significant buzz around it. Trump’s NFT projects website also mentions the possibility of cards hand-signed by the former president. While it’s too early to judge the commercial success of this collection, it is already a notable phenomenon in the realms of crypto and politics.

SEC consider approving Spot Bitcoin ETFs in January

Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), revealed in an interview with CNBC that the agency is considering approving Bitcoin Spot Exchange-Traded Funds (ETFs) as early as January 2023. Gensler indicated that recent District of Columbia court decisions have pushed the SEC to reconsider its position. Currently, the SEC is reviewing between 8 and 12 Bitcoin Spot ETF applications, including those from leading asset managers such as BlackRock, Fidelity, and Grayscale.

The SEC’s approval of Bitcoin Spot ETFs could pave the way for a massive influx of institutional investment into Bitcoin. So far, many institutions have hesitated to enter the crypto space due to a lack of regulatory clarity and the challenges related to the direct holding of Bitcoin. Regulated and easily accessible Bitcoin Spot ETFs could radically transform the landscape, attracting significant capital from pension funds, insurance companies, and traditional wealth managers.

Hack at Ledger

Ledger recently suffered a major security incident. A former employee, trapped by a phishing attack, inadvertently compromised their NPMJS account, which allowed the publication of a malicious version of the Ledger Connect Kit. Versions 1.1.5 to 1.1.7 of this kit were infected, turning a trusted tool into a trap for users. Fortunately, Ledger’s teams, with the help of WalletConnect, responded quickly and effectively. In less than 40 minutes, a solution was deployed to stop the exploit.

In addition, Ledger has taken steps to improve its security controls, including connecting its development pipeline to its NPM distribution channel. The company also encourages the use of clear signing, a method that offers total transparency and enables users to verify their signatures on a secure screen, thus reducing the risk of fraudulent transactions. Ledger has also updated the Ledger Connect Kit to the secure version 1.1.8 and calls on developers and users to remain vigilant by always using the latest secure versions.

Ethereum: Growing institutional interest and whale accumulation

Ethereum, while its price has remained stable lately, is attracting increasing attention from institutional investors. According to an analysis by CryptoQuant, institutional holdings in Ether have experienced a significant increase in November, reflecting growing investor confidence in Ethereum’s long-term value. This accumulation coincides with several positive developments around Ethereum, including an increasing likelihood of the approval of an Ether spot ETF in the United States and ongoing advances towards Ethereum 2.0, which promise to enhance the scalability, speed, and smart contract capabilities of the network. Additionally, there has been a massive influx of capital into Layer 2 solutions like Blast, an Ethereum network offering attractive staking returns, with over $30 million in Ether and stablecoins migrated to this platform in November.

Ethereum “whales,” holding over 10,000 ETH, have also been active, quietly accumulating tokens for nine consecutive days, according to Glassnode. Moreover, 1.67 million wallets have recently acquired an impressive total of 38.7 million Ether. This combination of price stability, technological advancements, and growing interest from institutions and whales indicates a promising future for Ethereum, with potential for sustained appreciation in prices.

Solana: Spectacular rise

Solana (SOL), a leading competitor of Ethereum in the field of first-layer cryptocurrencies, has recently achieved a remarkable breakthrough. Following the announcement of the sell-out of Solana Mobile’s Saga phone in the United States, the price of SOL surged by 6%, surpassing the $75 threshold. This rise reflects the strong market demand for innovative cryptocurrency solutions.

In parallel, Bonk (BONK), a memecoin based on Solana, has seen a meteoric rise of over 1100% in a month. The free airdrop of 30 million BONK to Saga phone owners created an unexpected and lucrative arbitrage opportunity. The value of the tokens distributed via the airdrop even exceeded the price of the phone.

BlackRock dives into Bitcoin mining: A signal of a bull run?

BlackRock, the asset management giant with over $9 trillion under management, has recently made a bold foray into Bitcoin mining. This strategic move has raised questions about its motivations and the potential implications for the Bitcoin market. BlackRock has acquired majority stakes in several large U.S.-based Bitcoin mining companies, signaling a marked interest and belief in the long-term potential of Bitcoin. However, this move comes at a time when some mining companies are showing negative profits, raising questions about the logic behind this seemingly risky investment. Bitcoin mining is a competitive and costly sector that heavily depends on the fluctuating value of Bitcoin. By investing in companies like Marathon Digital Holdings, Riot Blockchain, and CleanSpark, BlackRock isn’t just participating in the market but also influencing the future of Bitcoin mining.

Is BlackRock’s massive investment an indicator of a future bull run for Bitcoin? Historically, movements by big financial players like BlackRock are often seen as positive signals by the market. This could indicate that they foresee opportunities or trends that others may not see, or that they have deeper data. However, predicting the cryptocurrency market remains a complex and unpredictable challenge. BlackRock’s investment could be interpreted as a vote of confidence in Bitcoin, but in the volatile world of crypto, nothing is ever certain.