Digital assets traded in a tight range this week, declining slightly from Sunday onwards.
Bitcoin traded predominantly between $42,000 and $43,400, with weekly highs and lows outside the range of $44,240 and $41,250 respectively
Bitcoin is currently priced at $41,950, down around 4.2% from last week
Ether performed in a similar fashion, with additional downside movement; dropping from a weekly high of $3,389 to a low of $3,056
Ether is currently priced at $3,129; a 6.6% weekly decline
Total market capitalisation declined slightly from last week’s snapshot to $2.09tn, dropping just below $2tn to a current value of $1.98tn
Total value locked in DeFi dropped to $92.4bn, according to industry analytics platform DeFi Pulse
Digital asset markets experienced a fallow week in terms of performance, but another bumper crop of news and adoption. Some of the biggest brands in the world—Walmart, Microsoft, and Mastercard—all featured, whilst elsewhere there were acquisitions of banks and derivatives exchanges, new venture funds worth billions, and even the creation of new energy-efficient hardware that could mitigate one of the key complaints about Bitcoin.
Walmart, one of the largest retailers in the world, appears to be developing its own digital assets and NFTs in recognition of forecast metaverse growth, according to US Patent Office filings that emerged this week
Trademark attorney Josh Gerben told CNBC that the filings appeared to have much consideration behind them surrounding all aspects of digital assets; “There’s a lot of language in these, which shows that there’s a lot of planning going on behind the scenes about how they’re going to address cryptocurrency, how they’re going to address the metaverse and the virtual world that appears to be coming or that’s already here”
Several of the trademarks relate specifically to virtual goods and shopping inside a virtual space within the metaverse
When asked for comment, a Walmart representative stated “Walmart is continuously exploring how emerging technologies may shape future shopping experiences”
One of the world’s largest tech companies bought one of the world’s largest video game developers this week, as Microsoft agreed a deal to acquire Activision Blizzard for $68.7bn with a stated goal of metaverse development
The video games industry is widely regarded as being at the vanguard of metaverse development, due to existing capabilities of gathering groups in virtual spaces and transacting in digital goods
Microsoft Chairman and CEO Satya Nadella said that “Gaming is the most dynamic and exciting category in entertainment across all platforms today, and will play a key role in the development of metaverse platforms” and described the acquisition as providing them with “the building blocks of the metaverse”
The move follows another major gaming industry acquisition last week, when Grand Theft Auto parent company Take-Two Interactive bought mobile games specialists Zynga for $12.7bn, with Take-Two CEO Strauss Zelnick citing “Web3 opportunities” as a benefit of the companies combining expertise
The Take-Two acquisition had the short-lived title of largest gaming industry acquisition ever, before Microsoft’s deal this week more than quintupled the record
In an interview this week BNY Mellon’s Chief Financial Officer Emily Portney believes digital assets could begin providing “meaningful” revenue to America’s oldest bank by next year
Recognising a collaboration with fintech unicorn Fireblocks as “foundational to everything we’re going to do” in the realms of digital assets, she sees BNY Mellon “leading the charge” on bringing crypto assets into traditional banking infrastructure
Portney forecasts more regulatory clarity in the United States within the first half of this year, which would allow banking institutions to become more proactive with crypto
A key aspect of future growth, according to Portney, is overcoming the SEC’s reluctance to approve any spot-based ETFs; “There are proposals in front of the Securities and Exchange Commission that haven’t yet been approved on whether ETFs can actually hold digital assets directly versus futures”
Paradigm, creators of the world’s largest digital asset VC fund, co-led a $110m funding round for Bahrain-based digital asset exchange Rain Financial
The round successfully concluded on Tuesday, and was co-led by established Silicon Valley VC Kleiner Perkins
Other backers included Global Founders Capital, Cadenza Ventures, and JIMCO
Rain Financial was the first officially licensed digital asset exchange in the Gulf region, and aims to use the funding to double its workforce this year, and increase its presence in the wider MENA region, alongside subsidiaries in Turkey and Pakistan
Despite much wealth, the region has lagged behind others in digital asset adoption, but backers hope the funding will help increase investment interest in the region; Paradigm’s Casey Caruso said in a press release that “We believe Rain [Financial] is a crucial piece of the puzzle for bringing the Middle East deeper into the new crypto economy”
Computer hardware manufacturers Intel is reportedly about to launch an energy-efficient upgrade to current Bitcoin mining options, according to industry press reports this week
Dubbed the “Bonanza Mine” chip, it’s described as “ultra-low-voltage energy-efficient Bitcoin mining ASIC”—characteristics which directly address one of the key public concerns about Bitcoin; the carbon footprint of its mining process
Intel General Manager Raja Koduri described blockchain as “something we are working on” in a December interview, building on previous decisions not to limit mining-specific performance of hardware like rivals Nvidia have done
BXM Operations, the parent company of digital asset exchange BitMex, released a press statement this week confirming an agreement to acquire Munich-based Bankhaus von der Heydt
BXM CEO Alexander Höptner sees the regulated entity as a gateway into wider trading opportunities across the German-speaking region; a “goal of establishing a one-stop shop for regulated crypto products in Germany, Austria, and Switzerland, and thus becoming a strong player in Europe”
Terms of the deal were not publicly disclosed, and remains subject to approval by German regulators
In a blog post this week, Rob Nichols, president of the American Bankers Association (ABA), confirmed that an increasing number of American banks are seeking to provide Bitcoin and digital asset access amidst growing consumer interest
The ABA invested in NYDIG last month in order to improve their digital asset capabilities, having recognised 2021 as “the year that cryptocurrency went mainstream”
Nichols believes that digital assets present an opportunity too important for the industry to ignore, writing “even with mixed opinions on the value of cryptocurrency as an asset class or as a basis for a product set, ABA believes strongly that banks should have access to the tools, partners and regulatory frameworks that allow them to meet their customers’ needs. NYDIG offers a solution that accomplishes just that, and ABA is proud and excited to support their efforts and take this sensible step into the crypto business on behalf of our member banks across the country”
Mastercard announced this week that they have partnered with Coinbase for their upcoming NFT marketplace—a move which includes several aspects designed to make NFTs easier to transact and more accessible
Unlike existing NFT marketplaces, users will be able to buy the tokens without having to use digital assets as payment; Mastercard’s existing payment infrastructure will be integrated, allowing people to purchase directly with cash
Eliminating the need to not only pay with crypto assets, but hold them in your wallet (for example to pay the network gas fees required to mint them initially) simplifies the process for potential first-time NFT buyers
Furthermore, NFTs will be classified as “digital goods” by the two companies, opening up a broader audience to purchase them, in comparison to a more investment-aligned “digital asset” classification
Mastercard noted that the “collaboration is part of Mastercard’s broader work to support the crypto ecosystem with new tools for crypto wallets and cybersecurity protections”
Coinbase also featured in the news outside of the NFT space this week, acquiring regulated futures exchange FairX, signalling the first step in creating their own derivatives marketplace
Christopher Giancarlo, former chair of the US Commodity Futures Trading Commission, joined crypto asset investment firm Coinfund this week as their new policy advisor
Giancarlo headed the CFTC for five years, and was known for maintaining a generally positive stance towards digital assets throughout his tenure
Commenting on his appointment, Giancarlo said he wants to “help this new asset class achieve mainstream adoption”
According to the release, the fund will operate in the emerging blockchain-driven Web3 world, with “a broad investment mandate across social, gaming, fintech, software, and healthcare”
Speaking after her appointment, Wu commented “I am super excited about the future of the open internet, crypto, and I think we’re still early right now in terms of blockchain adoption… I’m excited about how this industry will shape up in the future and FTX’s role in that”