Weekly Market Wrap – 1 August, 2022
Market Update
It has been a brutal bear market so far, and the whole crypto world struggles as numerous factors like the global macroeconomic picture and the fall of Terra took a turn for the worse. A number of companies in the space, including Celsius, filed for bankruptcy; NFT trades slumped; cryptocurrency prices dipped… and the ETH has not been spared.
However, Ethereum’s price is soaring this week. Is it the start of a recovery?
ETHEREUM MERGE FINALLY HAS A FIRM DATE
As Ethereum passes the latest critical test, the long-awaited merge draws even closer. For those who are not aware, the merge is basically about Ethereum moving away from proof-of-work consensus mechanism to proof-of-stake. This move will reduce Ethereum’s energy consumption by over 99% since proof-of-work method is extremely energy intensive. As part of this merger, the Ethereum Mainnet will converge with the Beacon Chain proof-of-stake network, allowing for future scaling upgrades.
The merge has been pushed back a number of times in the past, and this recent announcement sparked a renewed sense of optimism. It is the first time Ethereum devs have felt comfortable enough to confirm a specific date, the 19th of September this year. ETH’s price acted accordingly to the enthusiasm.
ETHEREUM’S PRICE SOARED BY 44%
ETH acted accordingly as the price rose by 15% in the last 24 hours and 44% compared to the previous month. The reason likely lies in the upcoming merge, a network upgrade that has been delayed for years. Traders are more bullish on the upcoming merge; however, the current upward trajectory of ETH may be short-lived if the larger macroeconomic conditions don’t improve.
MIAMI IS MAKING NFTS!
Speaking of the move to proof-of-stake, Miami Mayor Francis Suarez plans to launch 5,000 Ethereum NFTs at the end of this year. 56 artists from Miami “representing the city’s 56 square mile area” will design the NFTs. Companies like TIME USA, Mastercard, and Salesforce are participating in the planning and execution of the project. Apart from utilizing the new technology to support existing businesses, the city aims to support local artists and charities through the NFT project.
ZIPMEX FILES FOR BANKRUPTCY PROTECTION
So last week, we talked about Singapore-based Zimpex Exchange halting withdrawals which concerned many accounts. Unfortunately, the exchange filed for bankruptcy protection last week, seeking legal authorization to postpone payment to its lenders for up to six months. In Singapore, an application for
this type of relief automatically grants a moratorium of 30 days until a court decision is reached. With this move, Zipmex will be able to explore options to resolve its liquidity crisis and plan on how to continue its operations.
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