Between revolutionary announcements, technological developments and regulatory turbulence, the crypto ecosystem continues to prove that it is both a territory of limitless innovation and a field of regulatory and economic battles. Here is a summary of the most notable news from the past week around Bitcoin, Ethereum, Binance and Solana, and Ripple.
BRICS interested in Bitcoin mining to challenge dollar hegemony
The BRICS countries (Brazil, Russia, India, China, South Africa) are actively exploring Bitcoin mining, in particular to free themselves from the American dollar in international trade. Three new members of the group — Argentina, the United Arab Emirates and Ethiopia — are exploiting energy resources to mine natural gas, sovereign wealth funds and hydro surpluses, respectively, to produce bitcoins. Russia, for example, controls 17% of global hashrate and legislates to structure this industry, with a recent crypto payments platform to circumvent economic sanctions. In the United States, Donald Trump promises a strategic reserve of bitcoins in the event of victory, indicating a potential paradigm shift for bitcoin as a global safe haven. Gold, while difficult to transact, has historically served this role, but bitcoin, with low fees and instant transfers, could become the neutral, universal currency for BRICS and beyond.
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Liquid staking: towards a risky concentration for Ethereum?
With more than 14.14 million ETH committed to liquid staking, representing 11.74% of the total ETH circulation, the liquid staking model is experiencing meteoric growth on Ethereum. Supported by platforms like Lido, which holds 68.97% of this share, as well as Binance, Rocket Pool and Coinbase, this staking model raises concerns for the decentralization of the network. The concentration of these assets in the hands of a few platforms poses risks of centralization, potentially compromising the security and autonomy of Ethereum, values dear to the network. Vitalik Buterin, co-founder of Ethereum, warned of the dangers of this model in his “Scourge” project, emphasizing the need to preserve a balance to prevent these large players from gaining excessive power over the network. This model, however, allows users to stake while remaining free of their funds, accentuating the attractiveness of liquid staking despite governance and security issues.
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21Shares challenges with its XRP ETF application in the US market
On November 1, 2024, 21Shares filed an application with the SEC for a spot XRP ETF, named “21Shares Core XRP Trust,” which would be listed on the Cboe BZX Exchange and have Coinbase Custody Trust Company for custody of the assets. This filing makes 21Shares the third player, after Canary Capital and Bitwise, to target an XRP ETF, illustrating intensifying competition in this area. This ETF would allow investors to access XRP without owning it directly, an approach that mitigates regulatory risks while opening the market to traditional investors. The legal context is, however, tense: after Judge Analisa Torres' decision that sales of XRP do not constitute financial securities, the SEC, although already favorable to Bitcoin and Ethereum spot ETFs, remains cautious and could postpone its decision.
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Reddit sells off its bitcoins and ethers: a strategic decision in times of volatility?
Reddit surprised the market by liquidating a large portion of its Bitcoin and Ethereum holdings, generating nearly $6.87 million in sales in the third quarter of 2024, according to its SEC filing. This sale comes against a backdrop of slight recovery in the crypto market, where Bitcoin is reaching recent highs. The reasons given by Reddit include cash management, asset diversification, and reducing risks associated with crypto market volatility. This initiative could also be a preventive response to potential increased regulation of the sector. Some see this as a strategic prudence to limit potential losses, while others believe it is a missed opportunity as cryptocurrency prices are on the rise.
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Solana challenges Ethereum with record progress in decentralized exchanges
Solana marks a major turning point in the competition against Ethereum, posting a weekly decentralized exchange (DEX) volume that represents 168% of that of Ethereum. This meteoric rise, driven by the rise of Raydium – DEX which jumped from 7.6% to 18.4% market share – illustrates the growing popularity of Solana, especially for the new “pump.fun” tokens. While Ethereum remains dominant with Uniswap, Solana is capturing the attention of traders and establishing itself in high-frequency transactions, attracting a more dynamic and innovation-oriented ecosystem. In October, Solana even generated more daily fees than Ethereum, reaching $2.54 million. This exceptional performance could influence the distribution of users between Solana, which appeals to intensive trading enthusiasts, and Ethereum, more anchored in stability and robust applications. The coming months promise to be decisive for both blockchains.
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This is the main thing to remember for this week. But if you want a more detailed recap and in-depth analysis straight to your inbox, feel free to subscribe to our weekly newsletter.
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