Ethereum succeeded one more time. Skeptic refractories are once again discredited. Shanghai update was successful and as we mentioned last week, this encourages new investors to participate in Ethereum staking. The downside pressure has decreased, at least for now.
The second round of withdrawals was more significant than the first one. It now shows a negative cumulative ratio between deposits and withdrawals since the weekend and these new conditions might lead to higher selling pressure for the week. Nevertheless, ETH being withdrawn does not necessarily mean that it will be sold. Despite concerns that many validators would withdraw and sell their ETH, the actual situation his still bullish, with over 25,000 validators lining up to withdraw. Kraken represents 46.5% of the queue due to the SEC's enforcement of the company's US staking operations. The concern was that over 1 million ETH would be rapidly sold, but the market has absorbed the first half million in stride. A large portion of the excess supply has been restaked to the network, increasing the number of validators and countering the withdrawal flows.
The US House Financial Services Committee has unveiled a preliminary stablecoin bill, which represents a significant development in cryptocurrency legislation in 2023. The bill proposes a halt to the issuance of stablecoins backed by cryptocurrency and calls for research on central bank digital currencies (CBDCs). The proposed legislation seeks to establish guidelines for payment stablecoin issuers in the wake of the US Treasury's withdrawal from UST and the disconnection of USDC from its peg. The moratorium will continue until a study is completed, analyzing the potential impact of a CBDC issued by the Federal Reserve. This bill, if enacted in its current form, could have far-reaching consequences for the stablecoin market, including making certain types of stablecoins unlawful and requiring licensing to operate within the United States.
The National Australia Bank (NAB) has conducted the first-ever cross-border transaction using a stablecoin. The transaction was made between NAB and a major counterpart in China and utilized a digital currency pegged to the Australian dollar, called "AUD-USD." This innovative transaction has the potential to significantly reduce the cost and time associated with traditional cross-border payments, which often require intermediaries and can take days to clear. The use of stablecoins for cross-border transactions is gaining momentum, with many financial institutions experimenting with this technology to improve the speed and efficiency of global payments. The successful completion of this transaction highlights the growing importance of stablecoins in the financial industry and demonstrates the potential for their widespread adoption in the near future.
Sources : Cointelegraph, Blockworks