Crypto Market: Top News of the Week!

tl;drTop News this week was that the markets took a bit of dive with investors seeing red almost everywhere! However there were some notable exceptions. MANA hit an all-time high after it's virtual real estate sales. News came out this week that looked to impact the crypto market for the long term. One such high note is that El Salvador's president officially announced his plans for establishing 'Bitcoin City.' In addition to Meta's (Facebook) centralized metaverse project attracted much attention with progress apparently threatening the very decentralized nature of the metaverse ecosystem. All much to the dismay of the crypto community.
Crypto Market: Top News of the Week!
Crypto Market: Top News of the Week!
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Over the last week ending November 28, the cryptocurrency market was slightly in the red. Bitcoin and most of the cryptocurrencies had a downward trend. The global cryptocurrency market capitalization is currently $2.44 trillion down by %1.22 in the past 24 hours as of writing. The total cryptocurrency market volume over the last 24 hours was $104.59 billion a decrease by %35.67. Amid the price dip across exchanges around the world due to news and mainly fear of a potential COVID-19 Omicron variant from South Africa. Investors may have speculated that the cryptocurrency asset was a riskier store of value compared to bonds, yen and the greenback. But wait there's more! Let's take a closer look at the 4 main Headlines within this space over the last week!

1. El Salvador president plans 'Bitcoin City' financed by crypto bonds

On November 22 well-known news organizations such as CNN and Reuters reported El Salvador's intends to build a "Bitcoin City" near a volcano which will be funded by cryptocurrency. President Nayib Bukele made the announcement on Saturday. Residential and commercial spaces, services, entertainment, restaurants and an airport will all be available in the city. El Salvador also intends to fund $1 billion through a "Bitcoin Bond" in collaboration with Blockstream a digital assets infrastructure firm. Construction will start in 2022 and the city will have no taxes except value-added tax (VAT).

El Salvador became the first country in the world to accept bitcoin as legal cash when it passed laws in June 2021. However, not everyone in the country supports the move. A bitcoin wallet has also been opened in the country allowing citizens to utilize the cryptocurrency. According to their government, half of the $1 billion raised will be used to buy bitcoin with the remaining $500 million going toward energy and bitcoin mining equipment. El Salvador has stated that geothermal energy from the volcano will be used to power this.

2. Is Facebook's Centralized Metaverse Is A Threat To The Decentralized Ecosystem?

Hot off the press and causing a sensation is news about Facebook's centralized Metaverse plans. Flying in the face of decentralisation and the democratisation blockchain was designed for. In contrast, it seems there is every reason to expect that future potentially other metaverses will have a decentralized design. Facebook has been plotting its debut into the metaverse for quite some time, perhaps several years. However, it is only recently that the company's ambitious development plans have rocketed the concept into the forefront of global news. The parent company's renaming to Meta was likely the firm's greatest and clearest statement of intent.

It's unclear whether (the company formerly known as Facebook's) plans is positive for the nonfungible token (NFT) scene and other metaverse projects.

One of the most important advantages of a decentralized open architecture is that users can join and move freely between different metaverses. Interoperability protocols eliminate friction between blockchains by transferring assets across chains including stablecoins, cryptocurrencies, utility tokens, NFTs, loyalty points, and other assets. The most important concern about Facebook's ambitions revolves around how interoperable its metaverse will be and how fungible metaverse assets will interact with other, non-Facebook-issued assets.

It is undeniable that regulators will impose restrictions on Facebook's ability to involve money and finance. The Facebook company is unlikely to develop sudden open-source, decentralized solutions. Ntertsas feels that this is enough to give the decentralized NFT sector a boost. In this regard, there are numerous chances for decentralized metaverse projects to push their own unique selling points into the spotlight in competition over Facebook's offer.

3. Decentraland's MANA Token Hit All-Time High After Sale of Virtual Real Estate

After the sale of virtual real estate Decentraland's MANA token reaches its all-time high. In just seven days the token has risen about 40%. According to data provided by Messari MANA built on the Ethereum blockchain now has a market capitalization of $9.2 billion. The increase puts it ahead of Axie Infinity's AXS a metaverse-related play-to-earn game with a market valuation of $8.6 billion. Reuters reported that the Metaverse Group bought a patch of virtual real estate in the Decentraland metaverse for 618,000 MANA – equivalent to around $3.2 million at the time of writing.

Since October when Facebook said it was changing its company name to Meta to reflect a greater focus on the sector tokens tied to the so-called metaverse has soared. Also, recent virtual real estate plot sales had re-ignited interest in Decentraland which could be helping to drive up its price.

4. Ethereum in full deflation mode as Eth2 merge gets closer

As the deadline for the next stage of the transition to Eth2 approaches. Ethereum community manager says the focus is now "exclusively on The Merge." Over the last few years the Ethereum community has been hard at work preparing the groundwork for the blockchain's transition away from its existing proof-of-work (PoW) algorithm,which has served as the backbone of its functioning until now. With recent modifications to its blockchain Ethereum's migration to its proof-of-stake (PoS) driven Ethereum 2.0 chain is edging closer to reality. This in turn is causing the supply of Ether (ETH) to become seemingly even more deflationary.

The burning of a portion of transaction fees has now exceeded the issuance of new ETH through mining resulting in deflationary issuance of ETH. Some in the industry had not expected this to happen before the Ethereum 2 network update (Eth2). It's a significant factor that's expected to boost the underlying cryptocurrency's value in the months and years ahead. Look out for the date 2/2/2022.

The impact of this earlier-than-expected change to deflationary ETH issuance on the value of the cryptocurrency cannot be overstated. Furthermore, industry players predict that after the network fully converts to Eth2. The network's current supply of 2 ETH per block mined will be reduced by more than ten times. While the exact date of 'The Merge' has yet to be determined Beiko and Edgington both stated that Ethereum developers are now completely focused on the final steps toward Eth2.

Final Remarks

The cryptocurrency market is decentralised which means it is not issued or backed by a central authority such as a government or bank. Instead, it runs across a network of computers. In order to survive in this volatile market, we need to keep pace with what is going on within the cryptocurrency space. Knowledge is power. Cryptologi.st is here to offer insights toward all your desired cryptocurrency info (with key metrics) to make your own smart decisions and invest with confidence. Join us there in the future!

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