Last week, we discussed bearish sentiment emerging in the marketplace. However, this week we’ll see that several major developments have taken place to indicate that Ethereum adoption is still well underway.
Ethereum Used for Israeli CBDC Program
The Bank of Israel began testing the Ethereum network for use in a new CBDC program last week.
The central bank released a report in May stating that a digital shekel could simplify economic processes while providing more transaction security, adding that smart applications could also be developed by the state.
Israel joins Sweden and China in developing its own central bank digital currency, with several other countries also considering the prospect. While CBDCs may increase awareness and public acceptance of cryptocurrencies, they may also threaten their use.
China has ramped up efforts to ban and restrict Bitcoin trading and mining as its CBDC program evolves, leading to a major drop in the price of Bitcoin, Ethereum, and other altcoins. China is technically the world’s leading Bitcoin mining hub, although following this month’s crackdown on mining activities, operations have already begun relocating to Kazakhstan and even further overseas.
However, while Bitcoin is vulnerable to competition from state currencies, it’s interesting to note that Ethereum may have a place alongside them, being integrated as an application layer to Israel’s new CBDC.
NFT Market Boom Continues
China’s largest payment provider, Alipay, launched a limited edition series of NFTs last week. 8,000 NFTs based on images from the ancient artwork of Dunhuang caves were sold through the platform last week.
The NFTs were sold on Alipay’s AntChain network, a private permissioned blockchain, rather than on the Ethereum network.
World-famous NFT artist Beeple launched his new Iconic Moments NFT project on June 24, commemorating moments from popular culture such as sporting events, movies, and more.
Each moment will be stored on the Ethereum network and visually represented as being stored in a glass case. The project will fund climate change initiatives to offset the negative impact NFTs currently have on the environment
This impact is expected to change in the coming year as Ethereum transitions from Proof of Work consensus to Proof of Stake, drastically reducing the network’s carbon footprint.
Commenting on the launch, Mike Winklemann AKA Beeple stated “This is another use case for NFTs completely separate from digital art. as i mentioned many times in interviews, this technology is EXTREMELY broad and flexible and we are at the absolute beginning.”
Rapper Jay Z is selling his Reasonable Doubt album cover as an NFT at the renowned Sotheby’s auction house on July 2.
A portion of the sales will go towards the Shawn Carter foundation to fund scholarship for low-income students.
Ethereum dipped below $2,000 over the weekend before inching back above the $2k mark this morning. $2,000 is a key psychological level of both support and resistance, and it’s crucial that ETH be allowed some time to consolidate above this level in order to build up towards a sustainable price rally.
If ETH spends a prolonged time below this level, on the other hand, it will become increasingly difficult to break out.
ETH market dominance is above 16% and price is finally above the 50-day DMA, perhaps giving the bulls some cause for hope, although the currency is of course well below the all-time high of $4,646, dipping as low as $1,651 on June 22. Strong levels of support have formed at $1,700.
Today marks the start of the inaugural Africa Blockchain Week Virtual Summit from June 28 – July 01.
Africa is a huge potential market for cryptocurrencies and blockchain technology, with overseas remittances playing an important role in many national economies throughout the continent.
10,000 attendees are expected at the conference with over 100 speakers. Cardano foudner Charles Hoskinson will be speaking at the event along with controversial blockchain figure Brock Pierce, Hedera Hashgraph CEO Mance Harmon, Chief Zwelivelile Mandela, grandson of Neslon Mandela, and many more.
Next week, the Blockchain and Internet of Things Conference takes place in Ho Chi Minh city in Vietnam on July 08. Representatives from the University of Southampton Malaysia, Nanyang Technological University, Feng Chia University, the University of Salamanca, and Japan’s Waseda University will be in attendance.