ETH inflation increases

Reading time: 5 minutes

News | Crypto Converter | Profit Calculator

EU issues new guidelines for crypto-asset classification

Key points:

• EU issues new guidelines for classifying cryptocurrencies under MiCA.

• Guidelines provide a structured approach for classification.

News - The European Union (EU) has introduced new guidelines to help classify cryptocurrencies and other digital assets under the Markets in Crypto-Assets Regulation (MiCA).

This move aims to standardize and clarify how these assets are categorized across the region.

Issued on 12 July by three European Supervisory Authorities (ESAs) – EBA, EIOPA, and ESMA – the guidelines provide a structured approach for classifying various crypto-assets.

More details - This includes a question-based system to determine if a token falls under MiCA. The questions consider factors such as the issuer, blockchain usage, and whether it functions as a financial instrument.

The guidelines also help differentiate between standard crypto-assets under MiCA and other asset types, such as electronic money tokens (EMTs) and asset-referenced tokens (ARTs).

Issuers of ARTs must include a legal opinion in their white papers, clearly explaining the classification and confirming it's not an EMT or another asset excluded from MiCA. White papers for non-ART or EMT crypto-assets will also require an explanation of their classification.

Market participants have until mid-October to submit comments on the consultation paper. A virtual hearing is scheduled for 23 September.

ETH's circulating supply hits eight-month high amid declining network activity

Key points:

• Ethereum's circulating supply reaches eight-month high of 120.22 million ETH.

• Increase comes despite a decline in network user activity.

News - The number of Ether coins in circulation has grown significantly in recent weeks, pushing the altcoin's supply to its highest level since December 2023.

Over the past month, 58,680 new ETH coins, valued at over $198 million at current prices, have entered circulation. This brings the total number of circulating ETH to 120.22 million.

This increase comes despite a decline in user activity on the Ethereum network. In April, ETH's circulating supply reached a 2024 low of 120.07 million. However, a decrease in network activity led to fewer coins being burned, resulting in a rise in circulating ETH.

The current circulating supply is indicative of a trend where ETH supply rises when user activity falls. On-chain data confirms this pattern for the proof-of-stake (PoS) network.

For instance, the number of unique addresses interacting with ETH on the network has dropped by 13% in the past week. This has led to a decrease in daily transactions processed on Ethereum.

The decline in user activity has impacted various sectors of the Ethereum ecosystem. Decentralized finance (DeFi) has seen its total value locked (TVL) drop by 7% to $58.96 billion in the last month, according to DefiLlama. Similarly, the NFT sector has witnessed a 43% plunge in sales volume over the same period, as per CryptoSlam data.

WazirX and Liminal Custody point fingers after a $230 Million crypto heist

Key points:

• $230 million stolen from WazirX crypto exchange.

• WazirX blames Liminal's wallet service for the exploit.

News - Following a massive $230 million crypto theft, Indian exchange WazirX and digital asset custodian Liminal Custody are engaged in a blame game, leaving users confused about the security of their funds.

WazirX claims the exploit targeted a multisig wallet utilizing Liminal's services. They allege a "discrepancy" between the data displayed on Liminal's interface and the actual transaction content facilitated the attack.

Liminal, however, maintains its infrastructure remains secure and all wallets, including WazirX's, are safe. A multisig wallet requires multiple approvals before a transaction can be executed.

Liminal claims the attack involved "malicious payloads" injected into transactions targeting "one specific Gnosis Smart Contract Multi-Sig wallet," indicating a well-planned and targeted assault.

WazirX has filed a police report and contacted India's cybercrime agency CERT-In. The stolen funds represent over 45% of their holdings based on a June transparency report. Crypto security firm Elliptic suggests North Korean hackers might be behind the heist.

Aptos price soars on transaction surge, but bearish signs emerge

Key points:

• Aptos (APT) token price increased by 17.32% in the last week.

• The surge is linked to a rise in blockchain transactions.

News - Aptos (APT), a blockchain platform utilizing the Move language, saw its token value jump 17.32% over the past week. At the time of writing, APT sits at $7.03, with little price movement in the last 24 hours.

The upsurge in APT's price is attributed to a significant rise in blockchain transactions. Data indicates over 2 million transactions occurred on the network by 16 July. Typically, a rise in transactions signifies increased buying and selling activity. However, in Aptos' case, the substantial price increase suggests buying pressure significantly outweighed selling volume.

What’s more? However, there's a potential shift. Transaction numbers have dropped to 1.13 million, indicating a decline in the token's popularity. This decline coincides with a change in traders' sentiment towards APT.

AMBCrypto examined the Funding Rate, which reflects the cost of holding a perpetual contract compared to the spot price, to gauge this sentiment shift. Currently, Aptos' Funding Rate is negative, signifying a bearish market sentiment towards the cryptocurrency.

If this bearish sentiment persists, demand for APT could decrease. Consequently, the token's value might stagnate or even decline in the short term.

More stories from the crypto ecosystem

• Will Solana rally to $192? Watch out for THIS key pattern

• TON’s Bitcoin bridge is coming soon! For Toncoin, that means…

• PEPE price prediction: Bitcoin to help memecoin across THIS level?

• BinaryX proposes 74% burn: Assessing possible impact on BNX

• XRP up by 20%, XRPL transactions peaking – What’s going on?

Did you know?

• With its eco-friendly Proof-of-Stake consensus, Solana can process up to 65,000 transactions per second and offers low transaction fees.

• In 2021, the Bitcoin community embraced the Bitcoin Zebra as its fresh mascot. The zebra embodies strength, speed, and agility, characteristics closely linked with Bitcoin.

• Polkadot was founded by Gavin Wood, one of the co-founders of Ethereum. It is a multi-chain platform that enables interoperability between different blockchains.

Top 3 coins of the day

Solana (SOL)

Key points:

• SOL has registered massive buying volume over the last few days.

• It increased by 21% in the last seven days.

What you should know - Solana (SOL) has been on a tear in 2024, surging over 500% year-to-date and reaching prices above $169. In the last day alone, SOL gained 8%. Looking ahead, resistance lies in the $182-$193 zone, while support sits at $123-$113. The RSI, currently at 64.91, indicates neither overbought nor oversold territory. Whether SOL can break through resistance or find support will likely determine its near-term direction.

Pepe (PEPE)

Key points:

• The uptrend wasn’t very evident on the daily chart.

• PEPE bulls came to the fore after BTC's recent rally to $64k.

What you should know - PEPE rode the Bitcoin wave from $61k to $64k, pushing its volume higher on 15 July and shifting momentum bullish. The OBV (On-Balance Volume) hasn't surpassed June's peaks yet. Resistance looms in the $0.0000132-$0.000014 zone, where PEPE previously formed lower highs in June. A move to this area seems likely based on the technical indicator and past price action. Further north, the $0.000014 region holds further interest. Whether PEPE can flip this resistance in the coming days will be crucial.

Near Protocol (NEAR)

Key points:

• NEAR has achieved a 35% bounce back in the last seven days.

• The press time price level indicated that sentiment was overwhelmingly in favor of the bears.

What you should know - NEAR Protocol (NEAR) is currently trading at $6.37, following a strong 30% gain last week. While the short-term trend appears bullish, there are mixed signals for the future. Resistance sits at $7.63, while support rests at $4.57. The Relative Strength Index (RSI) of 64 suggests neutrality, neither overbought nor oversold territory. Looking at the bigger picture, bears seem to hold more control in the long-term. However, bulls are in charge in the short-term. Breaching the resistance at $7.63 could signal a continuation of the rally. Conversely, a drop below $4.57 might lead to a price correction.