In recent times, there has been no lack of media coverage and discussion about crypto assets, which has created both negative and positive price momentum for the industry. Since both Mt.Gox and the German state liquidation pushed on in an apparent orderly way, these events have caused significant pressure on Bitcoin’s price, which briefly fell below $58,000. However, as the liquidations continue to take place, price support in these levels is still in place, indicating that despite the initial fear-based flurry due to this massive selling, investors are optimistic about the medium and long-term forecasts for price. J.P. Morgan J.P. Morgan, for instance, expects price pressure and liquidation to be over at the end of July and then a boost in market prices in August. Crypto predictions tend to be difficult to predict correctly. However, they serve as an illustration of the market’s mood.
In addition, crypto continues to play a growing part in discussions about policy and discussions, with the Biden Administration hosting high-level gatherings with crypto industry experts and advocates to try to boost support for what has been seen as a potential opportunity to influence the right of swing voters. On the other end of the spectrum, Former President Trump has scheduled a 30-minute speech during the Bitcoin conference in 2024, which is one of the largest and most important crypto-related events in the United States. In light of all this, it is appropriate for both advocates and investors to concentrate on these issues; however, this could overlook some important aspects.
Let’s look at some news stories and headlines that crypto investors might have missed.
The SEC Continues To Falter
While Binance, as well as CZ individually, have pleaded guilty to committing criminal acts and have paid fines totaling billions, and face serious legal challenges going forward, The SEC has suffered a recent legal setback in its initiatives relating to Binance. Recently, the SEC completed its investigation on Paxos, which is the company that issued Binance USD stablecoin, but it did not recommend any enforcement measures. The absence of enforcement actions can absolutely be viewed as positive news for Paxos. However, it could be a bigger issue regarding crypto-related regulation.
While the SEC is facing ever-growing legal challenges and pushback regarding its efforts to classify the whole crypto industry as a security, the stablecoins could be well placed to benefit. Particularly because these crypto assets – nearly all of them supported at a 1:1 level by the USD were created specifically and were designed to function to exchange value rather than as a vehicle for investment. This setback could bring the needed space for more rational discussions about the subject.
PayPal’s Stablecoin Continues To Grow
After a somewhat minimally public launch, it quickly slowed with an SEC investigation into the stablecoin’s own, and the efforts of stablecoins at PayPal have been ongoing. The recent collaboration with Solana’s Solana Solana +2.4 percentage blockchain has resulted in an increase in the value of its market coin, which has recently exceeded the $500 million mark. The data from DeFillama indicates that the total supply of the current Ethereum +0.1 percent blockchain is around $399 million, which is 77% of the total supply. The remaining quantity is in Solana. In addition, supply has increased rapidly by 58% in the initial week following integration on Solana and a drop of 6 percent on Ethereum.
Furthermore, the integration of Solana has also resulted in a boost in the number of DeFi platforms as well as in the overall DeFi ecosystem and is available on both orca and Jupiter, as well as the Jupiter Jupiter +0.4 0.4% in addition to the Orca DEX as well as integration into the liquidity and lending protocol Kamino Finance. Due to the popularity of the PYUSD PayPal 0.0%, as well as the renowned name recognition that PYUSD PayPal 0.0 0.1% enjoys, in conjunction with the increase in usage resulting from Solana integration and the Solana integration, it is evident the two platforms PayPal and PYUSD are in a good position for continuing expansion and usage.
State-backed Stablecoins Are Coming Fast
As the Federal government continues to move between two stools with regard to cryptocurrency regulation and standard-setting, states are leading in that direction. Based on earlier efforts, the State of Wyoming has announced its intention to create a stablecoin that is state-backed in 2022. The token, secured on a 1:1 basis with the U.S. dollar, is expected to be released using the ticker “WYST.
The commission was given the authority through the passage of Senate Enrolled Act 85: Wyoming Stable Token Act, which authorized an authorization to the Stablecoin Commission to issue the first stablecoin backed by the state of Wyoming within the U.S. WYST is scheduled to launch in 2024, with some uncertainty as to which blockchain will house the token. Although it’s still too early to know the extent to which WYST’s success or popularity will be however, the fact that a particular state has managed to get there so quickly demonstrates the significance of stablecoins continues to be.
Stablecoins will be around for the long haul and play an essential role in TradFi, centralized trading platforms, DEX, and investors in all shapes and sizes looking to invest capital into cryptocurrency. Despite several stories in the news, both people who invest and advocate for them should never lose sight of the crucial crypto asset class.
