Nethermind's Crypto Chronicle April 2023

Nethermind's Crypto Chronicle April 2023

In this edition!

  • Rollup as a Service is hastening the adoption of layer 2 solutions
  • USDC's depeg and the impact on the DeFi ecosystem
  • Increasing regulatory scrutiny of crypto enterprises
  • OpenAI's ChatGPT4 for smart contracts, decentralized applications, and content generation
  • 10 things to watch post Shapella
  • Account Abstraction: Innovative projects and use cases



Market Commentary

  • At the beginning of March, the primary focus was on the testimony of Jerome Powell, the Federal Reserve Chair, before the Senate Banking Committee and the House Financial Services panel. Powell's statement hinted at a potential increase in the pace of interest rate hikes. JPMorgan announced the termination of its relationship with Gemini, while Silvergate declared the cessation of its operations. Consequently, Bitcoin dropped by approximately 10.9% and traded around the $20,000 level.
  • However, the market rebounded considerably during the following weeks, with BTC trading at $26,194, representing a 31.5% increase on a weekly basis. This rally was driven by Federal regulators' determination to restore all deposits at the failed Silicon Valley Bank and Circle's announcement to cover its stablecoin reserves. Furthermore, the February Consumer Price Index (CPI) reported a decrease of 6% from the previous month's 6.4%, which positively impacted the market.
  • The US Federal Reserve decided to increase interest rates by 25 basis points, disappointing investors expecting a more accommodating approach in response to the ongoing banking crisis. Nevertheless, risk assets continued their rally due to low confidence in the global financial system.
  • Towards the end of the month, the US Commodity Futures Trading Commission (CFTC) initiated legal action against Binance and Changpeng Zhao, claiming that they offered unregistered crypto derivatives to individuals in the US. Overall, BTC rallied 18.9%, and ETH rallied 9.0% throughout the month.


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You can find our previous edition here .

idarrha adam

Security Researcher | Cybersecurity Engineer | Web3 Security & Development Expert

1 年

insightful as always ??

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