Here is the news in the Cryptocurrency space for the  3rd week of March, 2022.

Adoption

The latest news on the adoption of cryptocurrencies by institutions and users

Bored Ape Yacht Club (BAYC) creators Yuga Labs Roll Out their own token APE coin and Teases Their Own Metaverse

• • BAYC creators Yuga Labs launch ApeCoin DAO, a decentralized autonomous organization
  • Apecoin DAO launched a new Ethereum-based token called Ape Coin, of which BAYC owners can claim like staking rewards. Token will have yet-to-be announced utility benefits and will also serve as a governance token as well, giving holders the right to vote on proposals to change the token’s ecosystem
  • Businesses in Florida, US have also stated that they would accept the APE token as a method of payment
  • Yuga Labs also teased the concept of a 3d BAYC gaming experience powered by Animoca Brands, the blockchain metaverse developer which developed The Sandbox

https://decrypt.co/95513/yuga-labs-teases-bored-ape-yacht-club-metaverse-with-cryptopunks-cool-cats-nouns-nfts

https://decrypt.co/95414/bored-ape-yacht-club-ape-coin-nft-haters

https://decrypt.co/95398/apecoin-what-is-bored-ape-ethereum-token-who-gets-it

Binance and FTX Crypto Exchanges Win Licenses to Establish Offices in Bahrain and UAE

• • Binance and FTX have both received a Virtual Asset Exchange (VAX) license as a result of a new law approved last week by the new Dubai Virtual Asset Regulatory Authority(VARA) which operates in compliance with the global banking regulatory organization, the Financial Action Task Force

  • FTX will establish a regional headquarters in Dubai and will offer crypto derivatives products

  • Binance was also granted a crypto-asset service provider license in Bahrain and Dubai, allowing it to offer trading and other crypto services in the country

  • The UAE has emerged as one of the most crypto-friendly countries and have already enabled crypto trading in several free economic zones in Dubai, UAE last year

https://cointelegraph.com/news/binance-awarded-bahrain-crypto-service-provider-license

https://cointelegraph.com/news/it-s-official-binance-secures-a-license-to-operate-in-dubai

Diesel, Swappable, Universal Music Group, and Gamestop Join the NFT Bandwagon

• • Italian clothing company Diesel recently launched D:VERSE, a bridge between the virtual and real life, with phygital products, unique runway garments and metaverse wearables, featuring a token with a unique physical and digital showpiece
  • Swappable launched its own NFT sneaker collection on the Polygon blockchain, NTR1-Meta, partnering with digital fashion brand Another-1 (AN1). The virtual sneakers can be worn in the Decentraland metaverse
  • Inspired by the popular virtual band Gorillaz, Record label Universal Music Group has purchased a Bored Ape Yacht Club NFT to create a character for its virtual band initiative, Kingship.
  • After a $150 million loss in 2021 Q4, videogame retailer GameStop puts its hopes in the opening of its NFT marketplace, opening a new NFT/Web 3 division and partnering with Ethereum layer 2 scaling solution, Immutable X

https://www.fibre2fashion.com/news/fashion-news/new-nft-collections-launched-by-italy-diesel-an1-swappable-279571-newsdetails.htm

https://decrypt.co/95463/universal-metaverse-band-new-bored-ape-ethereum-nft

Regulation

The latest news on regulation that may affect the world of cryptocurrency

Future South Korean President Pledges to Embrace Crypto

• • President-elect Yoon Suk-yeol of South Korea has vowed to legalize initial coin offerings, or ICOs

  • He has also promised to not levy taxes on cryptocurrency trading earnings of up to $40,000, treating them on the same level as capital gains from stocks

https://siqka.com/blog/future-president-of-south-korea-has-promised-a-major-crypto-push/

Ukraine’s President Signs Law to Establish Regulation For Cryptocurrency

European Parliament Votes Against Proof of Work Ban

• • This past monday, members of the European Parliament’s Committee on Economic and Monetary Affairs voted against the MiCA (Markets in Crypto Assets) bill that would have outlawed proof-of-work-based cryptocurrencies (i.e. Bitcoin) in the EU.

  • Crypto mining could still be categorized asn an “unsustainable” activity before 2025, which could block support/investments from European governments and companies

https://cointelegraph.com/news/european-parliament-votes-against-pow-ban-providing-huge-relief-to-the-crypto-industry

Pro-cryptocurrency policymakers in the United States express their support for crypto

“The project of radically decentralizing the internet and finance strikes me as a profoundly progressive cause. You should never define any technology by its worst uses. [..] There’s more to crypto than ransomware, just like there’s more to money than money laundering.”
Rep. Ritchie Torres (D-N.Y.)

Macroeconomy

The U.S Federal Reserve decides to raise interest rates by 0.25%

• • The hike was the first interest rate increase since 2018
  • Projections released by the policy-setting Federal Open Market Committee states that it is likely that the Fed will raise rates up to six more times this year
  • Investors remain on edge regarding the impact of the increase with the S&P 500 down by 10.6% on Thursday, 03/17/2022
  • Prices up 7.9% year over year, according to the consumer price index, which measures a wide-ranging basket of goods and services
  • Energy has risen the highest, with gasoline prices having risen by 38% in the 12-month period while other prices have also increased – clothing prices (+6.6%), motor vehicle repair costs (+6.3%), Airline fares (+12.7%)
  • Inflation is anticipated to continue for the next few years or so

https://finance.yahoo.com/news/the-federal-reserve-just-hiked-interest-rates-heres-the-next-shoe-to-drop-163308621.html

https://www.cnbc.com/2022/03/16/federal-reserve-meeting.html

Crypto Market Sentiment

On-chain Data

Total Market Capitalization and Volume, USD

Current market capitalization of the cryptocurrency world stands at $1.7 trillion down by 41% since the peak of the bull market in November of last year ($2.9 trillion)

Bitcoin Dominance

Bitcoin market share of the whole crypto market (referred to as ‘bitcoin dominance’) is more of less constant around 42% up from the Mid-January figure of around 39.7%, indicating investor sentiment preferring the safety of bitcoin over investments into altcoins, including Ethereum.

Balance/volume in/out flow on Exchanges

• • Nearly $1.61 billion worth of Ethereum has left exchanges so far in 2022 alone, indicating that investors are looking to hold on to Ethereum long term rather than sell it on the exchange
  • At the same time, a huge inflow of Ethereum made its way to staking services like Lido in preparation for the Ethereum proof of stake transition scheduled for this summer, decreasing the supply of Ethereum on exchanges, adding to the potential of a continual price rebound

https://cointelegraph.com/news/ethereum-balance-on-crypto-exchanges-falls-to-lowest-levels-since-2018

Coin Market Prices

Coins for the most part have been recovering from the sharp drop (Bitcoin (+7.77%, Etherum +13.76%, Solana +12.38%) that happened as a result of a myriad of geopolitical, economic, regulatory uncertainties stemming from the likes of the Russia-Ukraine War, the EU’s recent vote on the crypto proof-of-work ban, and the recent rises in Covid-19 cases. 

NFT Market

The global NFT marketplace is worth $10 billion with a 24 hour sales volume of $64 billion.

In terms of market capitalization and average price, the NFT market shows a clear dominance by Yuga Labs, the creators of NFT collections Bored Ape Yacht Club, The Mutant Ape Yacht Club, and The Bored Ape Kennel Club. Just 2 weeks ago, Yuga Labs acquired the intellectual property rights of CryptoPunks as well as Meebits, increasing their dominance in the sector.

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