This week, we’ve seen a flurry of exciting developments that may shape the future of crypto industry. From the fluctuating cryptomarket trends to the innovative steps taken by blockchain platforms, the dynamics of the WEB3 space continue to unfold. As these events transpire, Chainspot remains your reliable partner, providing seamless interaction across multiple networks.
Chainspot team
📉 Crypto Market Experiences a Downturn
The past week saw Bitcoin fell below $27,000, losing 6% of its value, erasing $45 billion from its market cap, currently at $530 billion. Ethereum has followed suit. This downtrend reflects a broader crypto market selloff, with major and minor altcoins witnessing losses.
Notably, Cardano (ADA), Dogecoin (DOGE), and Polygon (MATIC) have experienced losses within the 2-5% range. However, Litecoin (LTC) and Monero (XMR) have defied this trend, maintaining their prices. Although most losses for $BTC, $ETH, and major altcoins are below 5%, the past week saw bigger drops, with some cryptocurrencies hitting double-digit losses.
🏦 Unstoppable Finance Aims to Establish Europe’s First DeFi Bank
Unstoppable Finance, a German fintech start-up, intends to launch Europe’s first fully regulated decentralized finance (DeFi) bank. The firm plans to issue a fiat-backed Euro stablecoin and extend a full range of banking and financial services across both traditional and DeFi platforms. The stablecoin will comply with the European Union’s new Markets in Crypto Assets (MiCA) regulations, acting as a bridge between conventional finance and the decentralized economy.
📂 MakerDAO Introduces Spark Protocol
MakerDAO, the decentralized organization operating on Ethereum and issuing DAI stablecoin, has unveiled Spark Protocol, a new lending solution for DAI users. Initially, Spark Protocol will operate as a lending marketplace, offering supply and borrowing services for cryptocurrencies like Ether, staked Ether ($stETH), DAI, and staked DAI ($sDAI). Connected to Maker’s Direct Deposit Dai Module (D3M), it aims to provide competitive interest rates, starting at an annual rate of 1.11%. The integration will facilitate the injection and automatic balancing of fresh DAI liquidity into Spark Lend.
🇪🇺 EU Crypto Tax Plans
The European Union is planning to implement a law requiring cryptocurrency companies, including those dealing with non-fungible tokens and those located outside the bloc, to register with tax authorities and disclose their clients’ holdings, according to a draft bill. The legislation, influenced by an Organization for Economic Cooperation and Development (OECD) model, is expected to be finalized by finance ministers next week. It facilitates intra-bloc data sharing among tax authorities.
🐍 Cardano’s Hydra Head Scaling Node Launches on Mainnet
Hydra Head, a scaling solution designed to boost transaction speeds on the Cardano blockchain, has gone live on the mainnet. As the first of a planned series of tools, Hydra Head functions as an off-chain “mini ledger” shared among a select group of participants, significantly reducing transaction fees and increasing speed. Developers can utilize Hydra Heads to implement specialized, complex DeFi protocols on top of Cardano.
As we navigate through market volatility, regulatory adjustments, and technological advancements, it’s essential to have tools that keep us adaptable and resilient. Stay tuned for more updates as we continue to track the pulse of the crypto and DeFi world!
Chainspot team
