Cryptocurrency News – Coinbase endorses USDC; pay off the nomads launch shanghai; market capitalization fell below $840 billion; OCC encryption note

Coinbase encourages customers to switch from USDT to trusted USDC

The second stablecoin war appears to be heating up as America’s largest cryptocurrency exchange is advising users to switch from Tether (USDT) to the “trusted and reputable digital dollar, USDC”.

in blog postExplaining that events over the past few weeks have put some stablecoins to the test, Coinbase believes that “USD Coin (USDC) is a reliable and reputable stablecoin.”

Coinbase says USDC is “unique” because it is 100% backed by cash and short-term US Treasury notes. To encourage users to switch from Tether’s USDT to Circle’s USDC, Coinbase has also launched no-fee trades.

Coinbase notes that “USDC delivers via monthly certificates from Grant Thornton LLP, one of America’s largest audit, tax, and advisory firms.” In addition, Coinbase users can earn up to 1.5 APY for holding USDC on the exchange.

Coinbase endorses USDC because it believes that stablecoins provide the transparency users are calling for in the crypto industry.

Nomad Bridge to relaunch and offer “partial” recovery months after the hack

Four months after $190 million was stolen from the Nomad Bridge in a frenzied free-for-all attack, the cross-chain bridge protocol is preparing to restart and offer partial refunds to affected users.

Bedouin team explained Since August, he has “been working hard to recover funds and make the necessary updates to safely relaunch the Nomad Token Bridge.”

According to an announcement on Nomad posted on Medium, users affected by the hack can go through the KYC verification process and get compensated through a private NFT.

After the verification process, users must link their wallet address(es) to their Coinlist account. Nomad says this will ensure that “refunds are accessed in a compliant manner.”

The amount of refunds users will receive is determined “on a pro-rata basis of the refunds.”

Ethereum developers agree launch date and updates for shipment with Shanghai

In another Ethereum All Core Dev Meeting In the year, developers agreed to ship the long-awaited Shanghai upgrade in March 2023 to allow users to off-chain use of ETH.

Tim Beiko, who oversees developers for Ethereum, noted that the ability to mine ETH is a top priority for the Shanghai Update. EVM Object Format (EOF) and proto-danksharding are other updates in Shanghai.

However, according to Beko, if the Ethereum development team does not meet the EOF milestones by January, the developers will remove the EIP “so withdrawals happen as quickly as possible” via the Shanghai Update.

After the Shanghai launch, Beiko says there will be hard work to deliver the EIP-4844 – proto-danksharding. According to crypto data tracker Duna Analytics, this will consist of 15.57 million ether, or roughly 13% of all tokens.

The ability to mine the Ether stack is expected to encourage more users to participate and improve network security.

Crypto Derivatives Data Shows Neutral Trading as Market Cap Drops Below $850 Billion

The aftermath of the FTX crash saw cryptocurrency prices drop to multi-year lows. This has brought the global market capitalization down below US$850 million for the first time in more than two years.

Despite the bearish outlook for the cryptocurrency market, the data from the derivatives sector has something different to say. Data from CoinGlass shows that the seven-day funding rate has been close to zero for Bitcoin and altcoins.

This data shows that there was a balanced demand between leveraged buys (buyers) and shorts (sellers) in this period. Data from Glassnode Offers There was no significant decline in derivatives trading.

In addition, over the past two months, nearly $3 billion worth of bitcoin derivatives positions have been closed. This shows that there is no significant drop in crypto products from investors despite the crypto market crash.

Derivative neutrals show that investors take on less risk in trading Bitcoin and cryptocurrencies.

The US Banking Supervisory Authority advises investors to be cautious about cryptocurrencies

Citing “Emerging Risks” for Cryptocurrency, US Office of the Comptroller of the Currency (OCC) Investors beware Use caution when approaching cryptocurrencies.

The banking regulator warned that investors take a “cautious approach” and sometimes seek permission when dealing with cryptocurrency or cryptocurrency companies.

The regulator’s main concerns are that “stablecoins may be unstable,” the lack of mature risk management practices, and the higher risk of contagion due to the “high degree of interdependence.”

According to the OCC, “the crypto industry lacks consistent or comprehensive regulation.” The regulator also raised concerns about the volatility of cryptocurrencies and the growing range of companies offering “bank-like products and services.”

Comments from the OCC dovetail with calls for stricter regulations from governments amid the crypto market crash.

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