Bitcoin now uses more than 56 % of sustainable energy – Crypto weekly update

Published: 08. 07. 2021 · Author: Daniel Mitrovsky

This week, the total market capitalization exceeded 1.165 trillion EUR. Increase at the 7-day interval is 0.4 %. Bitcoin decreased by 2.4 % during the week to a current value of over than 27,500 EUR. Bitcoin dominance is 44.3 %.

Source: Coinmarketcap

Bitcoin mining takes on green contours

The Bitcoin Mining Council (BMC) published the results of its first survey on the use of renewable energy sources in bitcoin mining.

According to the published report, 32% of all bitcoin miners participated in the survey, which was tasked with answering three simple questions about bitcoin mining.

On average, 67% of green energy is currently used for mining, based on the results of a survey of companies that participated in the survey. From this figure, the Bitcoin Mining Council subsequently inferred the assumption that about 56% of renewable energy is currently used globally to mine bitcoin. In addition, a survey has shown that bitcoin mining currently consumes only about 0.1% of world's energy production.

The results of this survey should be taken with a pinch of salt, because only one third of all miners participated in the survey. On the other hand, the survey suggests a positive trend and shows an increasing appetite of miners to use renewable energy sources to mine bitcoin. Source

Shiden secures third parachain slot on Kusama

Shiden, the sister-project of leading Polkadot-native layer-two decentralized app hub, Astar Network (formerly Plasm Network), has won the third parachain auction on Kusama network.

According to the official announcement, Shiden secured his slot on the network by locking up to 137,020 Kusama tokens worth nearly $29 million (€24.5 million)

Shiden used the Kusama crowdloan mechanism to secure the parachain slot. Kusama crowdloan allow $KSM token holders to lock their tokens for 11 months in favour of the Shiden network. After 11 months, Shiden will reward the holders of these tokens with its own, native SDN token in a ratio of 1 KSM = 25 SDN.

Shiden is a smart contract platform for decentralized applications operating on the Kusama network, which provides interoperable blockchain bridges, offering multi-chain support for Ethereum Virtual Machine, WebAssembly-based contracts and Cosmos Hub. Source

First bank in the world offers ETH 2.0 staking

Swiss bank Sygnum bank will become the first bank in the world to offer ETH 2.0 staking to its clients.

Sygnum will allow clients to safely stake their ethereum through the bank. The new staking service with the world’s first digital asset bank will offer a fully integrated and user-friendly setup for clients who want to stake their ethereum directly from their existing wallets. The staked ethereum will remain in clients own wallets, ensuring complete segregation and security for individuals.

The introduction of ETH 2.0 staking to Sygnum is not the first crypto to be staked with the bank. Currently, Sygnum offers staking for Tezos (XTZ). The digital asset bank also currently offers a yield-generating fixed term deposit on its Digital Swiss Franc stablecoin (DCHF).

The amount of ethereum being staked on the ETH 2.0 platform continues to climb. Most recently the number hit 6.1 million Ethereum being staked, with over 185,000 validators. The amount of ETH being staked equates to over $14 billion (€ 11,8 billion) in ethereum. Source

Similar service will be available for Crowdamerica clients within the next few months.

Crypto funds again accumulating cryptocurrencies

CoinShares' latest report shows that large crypto funds are once again accumulating cryptocurrencies.

Inflows into digital asset funds devoted to Bitcoin (BTC), Ether (ETH) and others totaled $63 million (€53.26 million) in the last week. For the first time in nearly three months, all products of the largest crypto fund registered positive inflows. Accumulation of cryptocurrencies by institutions may imply cautious optimism and a possible reverse of the trend in the cryptocurrency market.

Funds devoted to Bitcoin saw $38.9 million in weekly inflows. Ether funds registered $17.7 million in weekly inflows. In addition, Funds investing in Polkadot and XRP saw inflows of $2.1 million and $1.2 million, respectively.

While multi-asset funds saw positive weekly inflows, the total was much smaller than in previous weeks, a sign that investors were cycling back into Bitcoin.

Grayscale, the world’s largest digital asset manager, reported last week that its total assets under management reached $29.8 billion (€25.19 billion). Source

EIP-1559 has a provisional launch date

An update on the Ethereum network called EIP-1559 already knows its provisional launch date.

The EIP-1559 update, one of the most anticipated updates on the Ethereum network, is likely to ship on August 4. This update is likely to be activated on block 12 965 000 due to land between 15:00 CET and 19:00 CET on Aug. 4.

EIP-1559 was initially expected to land around Jul. 14, though some members of the Ethereum community had suggested that it may be slightly delayed over the last few weeks.

EIP-1559 will introduce a gas fee burn on every transaction on Ethereum. It’s expected to make it easier to determine the price of a transaction. The fee burn will also act as a buyback that reduces the supply of ETH, in turn adding to the asset’s scarcity. If the network sees enough activity, the burn rate could surpass issuance, making ETH a deflationary asset. Source

Twitter enters NFT space

The social network Twitter, which is the most popular social network overseas, has decided to “dropping NFTs” to its users every day as part of an ongoing giveaway campaign.

Twitter has decided to give away up to 140 new NFTs tokens via a shared series of tweets featuring a number of different images with the Twitter logo and a Tamagotchi virtual pet.

It posted seven different NFTs on Rarible, a third-party platform for buying and selling digital assets, and said it will give away 20 versions of each to interested users.

NFTs are digital assets that represent a wide range of unique tangible and intangible items, from collectible sports cards to virtual real estate or digital music albums. Source

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