What happened in the crypto world in the last week? Let’s see some interesting news together!
Crypto Investment Products See Record $78M Inflows: CoinShares
Investments in crypto products surged for the second consecutive week, reaching a total of $78 million – the highest level since July 2023, according to a report by CoinShares. This increase was driven by a notable 37% rise in the volumes of crypto exchange-traded products (ETPs), which reached $1.1 billion in value.
Bitcoin products accounted for the majority of these investments, totaling $44.2 million, accompanied by a 16% increase in BTC trading volume. Notably, Solana’s native token SOL attracted even more investor interest than Ethereum (ETH) or Cardano (ADA), with weekly inflows of $24 million, marking its highest level since March 2022.
CoinShares attributed most of these investments to Europe, where inflows reached $71 million, accounting for 90% of the total. In contrast, Ethereum futures exchange-traded funds (ETFs) in the United States received only $9 million during their first week of trading, starting on October 2, indicating limited demand in that region.
Germany and Switzerland were the top contributors to the increased inflows, with $37.3 million and $31.3 million, respectively. These two countries combined to represent 88% of all crypto asset product inflows recorded last week.
Zimbabwe Utilizes Gold-Backed Digital Token as a Payment Solution
On October 5th, Zimbabwe officially launched a gold-backed digital token known as Zimbabwe Gold (ZiG) as a payment method. This announcement came from the Reserve Bank of Zimbabwe (RBZ).
The RBZ initiated the ZiG project in April 2023, emphasizing that each digital token issued would be backed by a physical quantity of gold held in the bank’s reserves. The RBZ had initially introduced physical gold-backed tokens in 2022, claiming their successful adoption.
The primary goal of both physical coins and the newly introduced ZiG is to encourage local investors to invest in national assets rather than the United States dollar. This is a challenging task in a country experiencing triple-digit inflation. RBZ Governor John Mangudya explained:
“The issuance of gold-backed digital tokens aims to expand the range of value-preserving instruments available in the economy, enhance the divisibility of investment instruments, and broaden their accessibility and usage by the public.”
These digital tokens can be stored in e-gold wallets or e-gold cards and are tradable for peer-to-peer and business transactions.
Bitcoin Lightning Network Surges 1,200% in 2 Years
In the past two years, Bitcoin’s Lightning Network has skyrocketed with a staggering 1,212% growth, handling around 6.6 million transactions in August 2023, a remarkable increase from the 503,000 transactions in August 2021, as reported by River, an exchange dedicated exclusively to Bitcoin.
This surge comes despite a 44% dip in Bitcoin’s price and declining online interest. River’s analyst, Sam Wouters, playfully noted that claims of “Nobody is using Lightning” are no longer valid.
Moreover, Lightning Network’s transaction volume hit $78.2 million in August 2023, a substantial 546% surge compared to the $12.1 million in August 2021, as per data by K33, a Web3 solutions provider.
Impressively, Lightning now accounts for at least 47% of Bitcoin’s on-chain transactions, signifying its increasing role as a medium of exchange. This upward trend is a compelling indicator of Bitcoin’s evolving use.
He concluded by stating, “This will be an interesting metric to monitor. It is an indicator of Bitcoin evolving into a more prominent medium of exchange.”
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Always stay informed and exercise caution when dealing with cryptocurrencies and related technologies.