Ethereum price in recovery mode while other altcoins surge
Even with Ethereum struggling over the past month, many alt tokens have logged double-digit gains.
- The world’s first purely NFT-backed loan was issued by Genesis Global Capital recently.
- 16 Bored Apes and Mutant collectibles that were stolen recently were frozen by NFT marketplace OpenSea, sparking debates around the platform’s centralized nature.
- Ethereum’s market dominance index (DI) currently stands at 19%.
Ethereum has struggled over the last couple of weeks, staying range-bound between $3,700 and $4,100. As a result of the volatility, the altcoin has registered losses of nearly 20% through December 2021. At press time, ETH is trading at $3,774.
Despite this erratic price action, a number of alts, including Frax Share, Swipe and Gnosis, have posted double-digit gains, accruing profits of 35%, 25% and 20% over the past 72 odd-hours, respectively. These alts have recently undergone major protocol developments and acquisitions, something that many experts believe may be the reason for their surges.
Notably, institutional capital continues to flow into the NFT market. Genesis Global Capital announced it had concluded the issuance of its first-ever non-fungible token (NFT)-backed loan for $6 million to Miami-based Web 3.0 investment management firm Meta4 Capital.
This is the first time a loan has been issued using only NFTs as collateral instead of traditional, more liquid avenues. Meta4 is an NFT-centric venture capital firm that has mainstream financial entities, such as Andreessen Horowitz, as one of its backers.
Stolen Bored Apes frozen by marketplace
Cybersecurity experts working for prominent NFT trading ecosystem OpenSea revealed recently that they had frozen all available transaction avenues associated with 16 Bored Ape and Mutant Ape collectibles that were reportedly stolen from a New York art gallery operator on December 30.
Touted to be worth nearly 615 ETH — approximately $2.3 million — the offerings are no longer available on OpenSea. Many prominent analysts claimed that the fact the platform could freeze the buying or selling of its NFTs at will suggests a clear lack of decentralization, something that the industry has prided itself upon over the years.
Pseudonymous independent market commentator kw.sol said: “Who was able to freeze the NFTs? Feels pretty anti-crypto to be asking third parties to do this, and ideally they shouldn’t be able to.”
Mexico set to roll out state-backed cryptocurrency by 2024
According to a recent tweet issued by the Mexican government, the country is set to introduce a central bank digital currency (CBDC) by 2024. By introducing the asset, the government is looking to explore newer, more futuristic technologies that can help pave the way for a “next-generation payment infrastructure” that will allow the country to finally become highly “financially inclusive.”
Two prominent Mexican legislators have already vocalized their support for digital assets as they believe a shift towards crypto tech is imminent in the near- to mid-term. Even Ricardo Pliego, one of Mexico’s wealthiest individuals, has repeatedly showcased his support for crypto, adding that Banco Azteca — of which he is the founder — may start accepting digital assets in the near future.
In a recent message to his near one million followers on Twitter, Pliego urged his Mexican brothers and sisters to start investing in cryptocurrencies and leave fiat money behind.
Interested in cryptocurrency? Learn more about the basics with our beginner’s guide to Bitcoin, dive deeper by learning about Ethereum and see what blockchain can do with our simple guide to DeFi.
Disclosure: The author owns a range of cryptocurrencies at the time of writing.
