Welcome to another edition of Crypto NFT Today! The past two weeks have certainly been full of events worth knowing about that will be turning points for the future of blockchain, cryptocurrencies, and NFTs.
With JPMorgan launching a tokenized collateral network, crypto markets crashing due to the Hamas-Israel conflict, new predictions showing a future surge in Ethereum values, and much more, there is a lot of essential news you should know about. So, let’s dive in and see what’s going on!
JPMorgan launches tokenized collateral network
On October 11, major US banking institution JPMorgan launched its internally developed blockchain-based application, Tokenized Collateral Network (TCN).
The TCN application allows investors to leverage their assets as collateral. Using blockchain technology, investors can transfer ownership of collateral without physically transferring it to the underlying ledgers. TCN makes transactions faster, highly efficient and more secure.
Tyrone Lobban, head of Onyx Digital Assets at JPMorgan, explained how TCN benefits clients in a statement: “Now with the launch of TCN, clients can derive additional utility from their MMF investments by posting tokenized MMF shares as collateral. “A faster, more cost-effective way to meet margin requirements.”
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Crypto market is falling due to Hamas-Israel conflict
The escalating conflict between Israel and Hamas has raised concerns about a potential short-term decline in the value of high-risk cryptocurrencies like Bitcoin.
Many experts pointed out that increasing geopolitical uncertainty is driving investors towards safer assets and away from riskier assets. This pattern was also seen at the beginning of Russia’s invasion of Ukraine in 2022 and is emerging again.
On October 9, Bitcoin saw a 2% decline, mirroring the stock market decline, while oil prices rose on concerns that unrest in the Middle East could escalate and disrupt global trade. Within a day, over $100 million worth of crypto futures were liquidated.
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New predictions show future surge in Ethereum price
Standard Chartered Bank has made a promising prediction for the future value of Ether. Geoffrey Kendrick, head of forex and crypto research at Standard Chartered Bank, has said that Ether, the native cryptocurrency of the Ethereum blockchain, has the potential to reach $8,000 by the end of 2026.
“We believe Ethereum’s strong presence in the smart contract space, coupled with its growing use in gaming and tokenization, could propel ETH to $8,000 by the end of 2026,” Kendrick said. This estimate will be a five-fold increase.
The $8,000 price for Ether is an early milestone toward a more expansive valuation for the bank ranging from $26,000 to $35,000. Long-term value will depend on the development of Ethereum’s applications and revenue streams, some of which have not yet emerged.
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Cryptocurrency law put on hold in US
Cryptocurrency laws in the US are full of uncertainties. Many legal experts and industry observers are concerned about how these delays will impact cryptocurrency exchanges in the country.
Ron Hammond, representing the Blockchain Association, explained what challenges have stalled progress. This delay was caused by international conflicts and internal disputes within Congress.
1) This Week in Congress and Crypto: Israel, Between the looming shutdown on November 17 and the busy race for Speaker, Congress is in an unprecedented time. Everything else (including crypto legislation) is on the back burner. These issues will impact crypto policy so here’s the latest:
– Ron Hammond (@RonwHamond) 10 October 2023
Binance will soon stop lending BUSD
On October 3, cryptocurrency exchange Binance announced the closure of lending and borrowing services for its native stablecoin, Binance USD (BUSD), until October 25.
According to the announcement, the exchange will close all existing BUSD debt and collateralized positions by the end of the month. Users will still have the option to engage in borrowing and lending activities on Binance using stablecoins such as Tether (USDT), Dai, TrueUSD (TUSD), and USD Coin (USDC). Users can now earn an estimated annual percentage yield of 3% by lending their BUSD on Binance.
Before the expiration notice, BUSD was one of the largest stablecoins, reaching a peak market capitalization of $23 billion in November 2022. However, it has come down to $2.23 billion.
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