[Digital Today Reporter Hyunwoo Choo] The virtual asset (cryptocurrency) market is growing rapidly. The total market capitalization of the market, centering on Bitcoin, exceeded 2 trillion dollars.
The virtual asset market reached $2 trillion in just three months following the market cap of $1 trillion in January. It has grown to a scale equivalent to Apple’s market capitalization. The DeFi market also increased its total transaction volume to $11.3 billion. It accounts for 6.77% of the total virtual asset market.
Along with the increased market cap, the value of virtual assets is also recording an all-time high. On the 10th, Bitcoin broke the $60,000 resistance for the first time ever. Altcoins such as Ethereum are also on the rise again after a temporary adjustment.
As the value of virtual assets rises, concerns about the’kimchi premium’ are growing. Kimchi premium refers to a phenomenon in which domestic asset prices are traded at a higher price than overseas asset prices. In particular, the overheating pattern of the Korean virtual asset market is a common view of many experts. In particular, he pointed out that he is concerned about damage caused by investing in a new coin with high volatility.
Among these, the cryptocurrency exchange Gopax has released a report that introduces indicators that can be used for valuation of Bitcoin and Ethereum. This will be useful information for individual investors.
On the 14th (local time), the first quarter report card of Coinbase, the largest virtual asset exchange in the U.S. ahead of direct listing on NASDAQ, was released. As cryptocurrency prices surged, sales and net profit jumped year-on-year. Along with this, it is news that Kraken, the two largest virtual asset (cryptocurrency) exchange in the US, is preparing for an IPO next year along with Coinbase.
The Bank of Japan announced on the 5th (local time) that it will start a pilot project for digital currency (CBDC) issued by the central bank. The Bank of Japan’s CBDC pilot project will start from the 5th to March 2022 for one year. China, led by the People’s Bank, has conducted a pilot project of digital yuan from April 2020, and is currently taking a step ahead of CBDC issuance by completing regional retail distribution testing services.
Peter Thiel, the founder of PayPal and a famous Silicon Valley investor, sharply criticized the US virtual asset policy. “Bitcoin is in part China’s financial weapon against the United States,” he argued. “Bitcoin is threatening fiat currencies, especially the US dollar.” In addition, he stressed that “in order for the United States to continue to lead the world in the future, virtual assets must be more actively embraced.”
The mainstream capital markets are entering the virtual assets sector one after another. BNY Mellon, one of the top 10 banks in the United States and the oldest bank in the United States, is seeking to enter the virtual asset (cryptocurrency) market.
Credit Suisse, a global investment bank, recently traded some U.S. stocks using Blockchain with Instinet, a securities brokerage under Nomura. Although the transaction was conducted on an experimental level, the results may sway the monopoly structure of the US Securities Depository and Settlement, so future moves are drawing attention.
Playboy, renowned as a male entertainment medium, enters the non-replaceable token (NFT) market. The plan is to convert Playboy’s vast amount of photos, artwork, and works into NFT works of art. Considering the fact that Playboy made a significant contribution to raising the initial penetration rate of the Internet in the mid-90s, entering the NFT market does not seem to be wasteful.
On the other hand, Qasu (Crypto Anarchist’s direct-ball hangout), which airs every Thursday at 8 pm, covered the theme of DeFi, following the second episode of the last four. While Episode 2 focused on the overall trend of DeFi, in Episode 4, we took time to assess what a sustainable DeFi model would be, focusing on how DeFi works.
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.