Top Stories of The Week
Ethereum co-founder Vitalik Buterin has responded to growing concerns regarding the extended exit queue for Ethereum staking, which has now reached a duration of 45 days. His remarks were prompted by comments from Michael Marcantonio, head of DeFi at Galaxy Digital, who labeled the lengthy wait time as “troubling.” In his posts on X, Marcantonio drew comparisons to Solana, which allows for a much quicker unstaking process of just two days. He later removed these posts, questioning how an asset with such a long withdrawal period could be considered a viable option for the future of global financial markets.
40% of Americans would use DeFi with laws in place: Crypto lobby poll
A recent survey indicates that over 40% of Americans would be inclined to engage with decentralized finance (DeFi) platforms if there were supportive laws enacted. The DeFi Education Fund, a crypto advocacy group, released the results on Thursday, revealing a growing curiosity among Americans towards DeFi, particularly due to a lack of trust in traditional financial institutions. Conducted by Ipsos between August 18 and 21, the survey included responses from 1,321 adults in the U.S. Ipsos Public Affairs senior vice president, Alec Tyson, noted that many respondents expressed frustrations with current financial systems, highlighting a desire for improved security, personalized control, and flexibility. The poll found that 42% of participants would likely explore DeFi options if legislation were passed, with 9% stating they were “extremely or very likely” to do so, while another 33% indicated they were “somewhat likely” to engage.
Grayscale prepares to stake Ether holdings amid shifting SEC stance: Arkham
Grayscale, a prominent cryptocurrency asset management firm, is gearing up to stake a portion of its significant Ether holdings. This move could indicate a belief that U.S. regulators may soon allow staking for exchange-traded products. Arkham Intelligence’s on-chain data revealed that Grayscale transferred over 40,000 Ether recently, suggesting preparation for staking rewards. If this development is confirmed, Grayscale would become the first U.S.-based Ethereum ETF sponsor to stake its assets. Grayscale’s Ethereum Trust (ETHE) currently manages more than 1.06 million ETH, equating to over $4.8 billion in value. Initially launched in 2017 as a private investment vehicle, Grayscale expanded its offerings in 2024 by introducing a lower-cost Ethereum Mini Trust through a partial spin-off of ETHE’s assets.
US lawmakers challenge SEC on Tron IPO, press for probe into Justin Sun
Two U.S. lawmakers have urged the Securities and Exchange Commission (SEC) to clarify its handling of crypto companies aiming to go public. In a letter addressed to SEC Chair Paul Atkins and acting director Cicely LaMothe, Senator Jeff Merkley and Representative Sean Casten raised concerns regarding the SEC’s decision to halt enforcement actions against Justin Sun, the founder and CEO of Tron. Sun was previously facing a lawsuit from the SEC in 2023 over allegations of offering unregistered securities. However, the SEC requested a stay in the case shortly after the resignation of former Chair Gary Gensler.
Gary Gensler doubles down on crypto approach amid SEC sea change
In one of his few interviews since departing from the SEC in January, Gary Gensler reaffirmed his stance on crypto enforcement during his tenure. When questioned about the agency’s recent shifts under Paul Atkins—reversing many of his policies—Gensler expressed no regrets about his regulatory decisions regarding digital assets. He stated he was proud of his work at the SEC, emphasizing the need for investor protection amid prevalent fraud cases in the industry. Gensler referenced high-profile cases such as that of Sam Bankman-Fried to illustrate the risks associated with crypto.
Winners and Losers
As the week concludes, Bitcoin (BTC) is trading at $115,973, while Ether (ETH) stands at $4,421 and XRP at $2.98. The total market capitalization of cryptocurrencies has reached $4.04 trillion, according to CoinMarketCap. Among the top 100 cryptocurrencies, the most significant gainers this week include Aster (ASTER) with a remarkable increase of 1,286.19%, followed by Immutable (IMX) at 23.54% and Story (IP) at 9.71%. Conversely, the week’s biggest losers include MYX Finance (MYX) and Fartcoin (FARTCOIN), both down by 18.20%, and SPDX6900 (SPX) at a decline of 17.79%. For further insights regarding cryptocurrency prices, readers can refer to Cointelegraph’s market analysis.
Most Memorable Quotations
“We should migrate Bitcoin to a quantum-resistant signature scheme.” — Anatoly Yakovenko, co-founder of Solana
“I would say maybe a 70% drawdown from whatever the all-time high ends up.” — Benjamin Cowen, founder of Into the Cryptoverse
“Poor people are poor because they have no idea what real money is. And so our academic system, you know, my poor dad, professors, they indoctrinate and they train kids, young people even today to work for fake money.” — Robert Kiyosaki, author of Rich Dad, Poor Dad
“Deleting tweets doesn’t change the fact that the guy is their ‘Head of DeFi’ and doesn’t understand the very basics of this industry and cares more about fudding Ethereum than the actual truth.” — Anthony Sassano, independent Ethereum educator
“The recent collapse in DAT mNAVs will likely drive differentiation and market consolidation.” — Standard Chartered
“You can’t just suddenly come and bash down their door and say uh-uh, we caught you, you’re doing something and it’s a technical violation.” — Paul Atkins, chair of the US Securities and Exchange Commission
Top Prediction of The Week
Arthur Hayes, co-founder of the BitMEX crypto exchange, has predicted that crypto markets will shift into an “up only” phase once the U.S. Treasury reaches its target of filling the General Account (TGA) with $850 billion. Hayes stated on Friday that when this liquidity drawdown is finalized, the market could resume its upward trajectory. He noted that the TGA’s balance recently surpassed $807 billion, indicating that funds in this account typically do not circulate into private markets. Nevertheless, not all analysts share Hayes’ optimism regarding the flow of liquidity into financial markets upon reaching the Treasury’s goal.
Top FUD of The Week
NBA superstar Kevin Durant has successfully regained access to his Coinbase account nearly a decade after initially purchasing Bitcoin on the platform. Coinbase CEO Brian Armstrong announced the development via a post on X, stating, “We got this fixed. Account recovery complete!” Durant, a 15-time NBA All-Star joining the Houston Rockets this season, recounted his experience of losing access to his Bitcoin holdings during the annual Game Plan summit in Santa Monica. He shared that he had first learned about Bitcoin around 2014 or 2015 by watching videos on YouTube and had encouraged his agent to explore it as well.
Bitcoin may go ‘boring’ as institutional interest ramps up: Michael Saylor
According to Michael Saylor, executive chairman of Strategy, Bitcoin’s increasing appeal to institutional investors might lead to a decline in the excitement that often attracts retail investors. In a recent discussion on the Coin Stories podcast, Saylor explained that reduced volatility may make Bitcoin more attractive to large institutions, but it could also result in a more subdued market for retail investors, who thrive on the asset’s price fluctuations. He cautioned that this could diminish the thrill factor that has characterized Bitcoin trading.
FTX Recovery Trust to unlock $1.6B for creditors in September disbursement
The FTX Recovery Trust, responsible for managing the distribution of funds from the bankrupt cryptocurrency exchange, has announced a third round of distributions totaling approximately $1.6 billion for creditors. This distribution is set for September 30, with creditors expected to see the funds in their accounts within three business days following the payment date. This tranche will include a 6% payout for Dotcom Customer claims, a 40% distribution for U.S. Customer Entitlement Claims, and a 24% distribution for General Unsecured Claims and Digital Asset Loan Claims. Additionally, convenience claims will be reimbursed at 120% as part of the upcoming payout.
Top Magazine Stories of The Week
Bitcoin mining is increasingly viewed as a challenging business venture, according to Sam Tabar of Bit Digital and analyst General Kenobi, who outline the difficulties faced in the industry.
In Thailand, XRP has emerged as the top-performing asset, while an offshore stablecoin in Chinese yuan has launched in Kazakhstan, showcasing the evolving landscape of cryptocurrency in Asia.
The CEO of Bit Digital has made a bold claim that the Bitcoin mining industry could face extinction within the next two years, a sentiment reportedly echoed by Michael Saylor, who also criticizes Bitcoin mining as a poor business model given the upcoming halving challenges.
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