US-based cryptocurrency exchange Coinbase analyzes what awaits the cryptocurrency market in the second half of 2022. Here are the details…
Coinbase has released its research report: Here are the details
Starting with Bitcoin (BTC), Coinbase reported in a research report that Mt. Gox says that with the implementation of the compensation plan, the supply of cryptocurrencies could increase rapidly. As we have also reported as Kriptokoin.com, eight years ago, Mt. More than 140,000 Bitcoins recovered from Gox stock market hack. For this reason, it is said that a payment of approximately 7-8 billion dollars will enter the markets. Coinbase says Bitcoin purchases made by algorithmic stablecoin issuers are based on Mt. Gox says the compensation plan could potentially offset the supply it will release to the market.
Terra (LUNA) developer Terraform Labs announced in March its goal to acquire $10 billion worth of Bitcoin as a boost for its UST algorithmic stablecoin. Coinbase predicts similar plans by the layer-1 (L1) smart contract-enabled Blockchain Tron (TRX) could be bullish for Bitcoin. The report includes the following statements:
On April 21, Tron announced that it is targeting $10 billion in reserves for the USDD algorithmic stablecoin, which it plans to launch on May 5 and which we think could lead to similar acquisitions in the future. As more alt L1s follow in Terra’s footsteps, this is an evolving narrative that could provide a new avenue of technical support for the crypto market.
highlights developments in Ethereum
Returning to Ethereum (ETH), Coinbase says the PoW-PoS transition expected in the second half of 2022 is bullish for the second largest crypto asset in the market. “Ethereum’s PoS migration, which removes the risk of a major event for the network, reduces ETH issuance (making it a potentially deflationary asset) and possibly increases ETH staking returns,” the statements are used.
The US-based crypto exchange also points to the possibility of competition between dApps and protocols, saying that the continued growth and innovation in the cryptocurrency industry will attract attendees. Coinbase also says that Ethereum scaling solutions, also known as layer-2 networks, could lead to new categories of crypto investments.
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