Ethereum’s oldest testnet, Ropsten, is ready to run through The Merge, a major upgrade that will turn Ethereum into a proof-of-stake (PoS) network.
As per a recent blog post from Ethereum.org, Ropsten will have its own Merge, which will give developers the first insights into how the real Merge will look on the Ethereum mainnet.
The Ropsten testnet launched its beacon chain on May 31, according to a tweet from Ethereum core developer Tim Beiko:
📣 Ropsten Merge Announcement 📣
Ethereum's longest lived PoW testnet is moving to Proof of Stake! A new beacon chain has been launched today, and The Merge is expected around June 8th on the network.
— Tim Beiko | timbeiko.eth 🐼 (@TimBeiko) May 30, 2022
Progress Slow But Steady
The Ropsten testnet will use valueless ETH to run transactions, smart contracts and applications during its time on the PoS ecosystem. This will allow developers to have a broader notion of the possible results and assess potential problems for Ethereum’s mainnet:
However, Beiko said that developers and nodes will need to wait for two things: for Ropsten’s beacon chain to activate the Bellatrix upgrade, and that the Terminal Total Difficulty (TTD) is chosen to trigger the transition.
If you run a node, are a validator, or an infra/tooling provider, this is the time to familiarise yourself with the transition and (better late than never!) what a post-merge node is like.
Tim Beiko, core developer, Ethereum
Ethereum’s Merge Getting Closer
Ethereum’s transition from PoW (Proof-of-Work) to PoS has been slow but steady, and developers are now getting closer to making the dream a reality. A month ago, developers created a shadow fork to test the effects of the transition under Ethereum’s current mainnet conditions.
While many in the ETH community consider this a step closer to reaching a PoS ecosystem, a lot of people remain demotivated due to the constant delays in Ethereum’s transition, which was supposed to have been ready years ago.
This comes as National Australia Bank (NAB) and Australia and New Zealand Banking Group (ANZ) declare they won’t permit their customers to trade crypto, and the Commonwealth Bank (CBA) admits to facing challenges with its crypto project.
AFR: ANZ and National Australia Bank have ruled out allowing customers to trade cryptocurrencies, while Commonwealth Bank has confirmed its controversial crypto project faces hurdles amid a sharp downturn in digital asset markets. ( Something is not right here )
This week’s AFR banking summit has left three of Australia’s ‘Big Four’ banks with some food for thought. Simon Cant, co-founder of venture capital firm Reinventure Group, suggested during the summit that the biggest threat to Aussie banks will be the arrival of ‘super apps’. Customers could potentially find an app for all their financial needs, from everyday banking and taking out loans to getting paid, trading crypto, and investing.
One such example of super-app providers is US-based tech giant Square, which has recently acquired Afterpay and has plans to go global with its Cash App. Dom Pym, co-founder of Up – an Aussie neobank – has also encouraged the big banks to investigate human resources software, social media giants, and gaming apps.
This is where people are using technology, and so they’re going to use finance and banking through that … that’s where the next generation of banking customers are.
Dom Pym, co-founder, Up
Traditional financial institutions delaying or denying progress in the crypto sector could be shooting themselves in the foot. NAB’s spokesperson has stated the company is taking a “wait and see” approach to the retail use of crypto, instead focusing on underlying blockchain technology. CBA also seems to be monitoring the market with its CEO, Matt Comyn, stating that “crypto, clearly, is a polarising topic”, despite believing that the industry will be a continuing source of innovation over the coming decade:
The Commonwealth Bank has been working on bringing crypto to its customers for several months now. In late 2021, CBA began developing methods for customers to earn interest on crypto. To do so the bank entered a partnership with Gemini, a crypto custodian and exchange.
However, last month CBA halted its trading pilot due to impending regulation and market turmoil. There has been no mention of when the pilot might restart, with the trading of those trialling it at the time put on hold.
This is the second major exploit of Mirror Protocol to be revealed in the past week:
Mirror Protocol is being exploited again as we speak, and the devs are completely MIA. So far, the attacker has drained over $2m and counting – the attack will get worse when markets open tomorrow unless the dev team steps in and fixes the price oracle. @mirror_protocol (1/4)
During the attack, the pools for mBTC, mETH, mDOT and mGLXY were virtually completely drained – and initially there were fears all asset pools could be drained, before developers belatedly patched the exploit.
What is Mirror Protocol?
Mirror Protocol is a DeFi app that allows for the creation of digital ‘mirrors’ of real-world assets, such as stocks and other cryptocurrencies, which closely track the price of the assets on which they’re based.
Mirror is built on the Terra Classic blockchain, but its assets are also available on other chains such as Ethereum and Binance Smart Chain.
Attacker Exploited Confusion Caused by New Terra Chain
FatManTerra explained the exploit was possible because many Terra Classic validators were running outdated software and reporting the price of the new Terra (LUNA), which at the time was valued at about US$9.80, rather than the price of the original Terra Classic (LUNC), valued at around US$0.0001. This discrepancy allowed the attacker(s) to acquire US$1.3 million of collateral, such as mBTC, for every US$1000 in LUNC they spent:
A bug in the pricing oracle is telling the system that LUNC is worth around 5 UST when it’s actually under a microcent. For $1k in LUNC, an attacker can now load up on $1.3m in collateral but can pull out real assets by borrowing. Example tx: https://t.co/QBxgAq8ovb (2/4)
There were initially fears that the exploit wouldn’t be fixed before US stock markets opened, allowing the attacker to drain stock-based asset pools such as mAAPL and mAMZN:
So far, the mBTC, mETH, mDOT and mGLXY pools have been drained. In around 12 hours, the market feed will kick in, and the attacker will be able to drain all of the mAsset pools (such as mSPY and mAAPL, mAMZN, etc.) – most of the pools can still be saved. (3/4)
However, this was narrowly avoided as the developers were able to fix the incorrect pricing information just before US markets opened. The devs also disabled the usage of mBTC, mETH, mDOT and mGLXY, meaning the attackers couldn’t use their ill-gotten assets to drain any other pools.
This was the second major exploit of Mirror Protocol revealed this week. Just days ago, FatManTerra reported an attack that occurred on October 8, 2021 and went unnoticed for an astonishing seven months, resulting in the loss of more than US$88 million in assets.
Amid a crypto market generally showing signs of recovery following last month’s meltdown, the token underpinning the Cardano blockchain is up 25 percent in the space of a day.
Cardano Outranks Ripple
Cardano (ADA) is now the sixth-ranked cryptocurrency with a market capitalisation of US$22.6 billion, overtaking Ripple’s XRP and trading at $0.67 at time of writing, as per data from CoinMarketCap.
Despite this bullish performance, attributed to increased DeFi activity on the layer-1 blockchain and the launch of Lagon’s cross-chain bridge to facilitate token transfers between Ethereum and Cardano, ADA is still 78 percent below its all-time high of US$3.10, recorded in September last year.
Trading Volume Pumps 272%
Across major crypto exchanges, ADA’s trading volume averaged US$2.4 billion over 24 hours, representing a 272 percent increase on the previous day.
According to Defi Llama, the Total Value Locked (TVL) on Cardano rose by 30.56 percent over the same period and is currently at US$194.87 million, up from $149.25 million:
As a further reflection of an overall crypto market recovery, Bitcoin was up 2.95 percent over the same 24-hour period, trading at around US$31,478 at time of writing, while Ethereum was up 3.26 percent and fetching US$1,933.
Let’s take a closer look at today’s altcoins showing breakout signals. We’ll explain what the coin is, then dive into the trading charts and provide some analysis to help you decide.
1. Aave (AAVE)
AAVE is a decentralised finance protocol that allows people to lend and borrow crypto. Lenders earn interest by depositing digital assets into specially created liquidity pools. Borrowers can then use their crypto as collateral to take out a flash loan using this liquidity. AAVE provides holders with discounted fees on the platform, and it also serves as a governance token, giving owners a say in the future development of the protocol.
AAVE Price Analysis
At the time of writing, AAVE is ranked the 42nd cryptocurrency globally and the current price is US$111.09. Let’s take a look at the chart below for price analysis:
AAVE‘s strong downtrend that began during early April has retraced most of its Q2 move, recently sweeping lows near $80.25.
A sweep of the relatively equal lows near $104 into possible support around $95.12, combined with bullish market conditions, could be the catalyst that begins to form a bottom. If this level fails, bulls might buy the monthly gap’s low near $88.45.
The swing high near $130 may form resistance to any sudden pumps as holders unload some of their position. A more substantial move might sweep relatively swing highs into probable resistance near $142, potentially reaching up to the new monthly highs near $155 and $160.
2. WOO Network (WOO)
WOO Network is a deep liquidity network connecting traders, exchanges, institutions and DeFi platforms with democratised access to best-in-class liquidity and trading execution at lower or zero cost. WOO Token is used in the network’s CeFi and DeFi products for staking and fee discounts. Presently, a diverse set of products and services interfacing retail, institutions, CeFi and DeFi have been built. WOO X is a zero-fee trading platform providing professional and institutional traders with best-in-class liquidity and execution. It features fully customisable modules for workspace customisation.
WOO Price Analysis
At the time of writing, WOO is ranked the 152nd cryptocurrency globally and the current price is US$0.1656. Let’s take a look at the chart below for price analysis:
WOO has retraced 80% from its Q1 highs and is currently challenging possible support near $0.1520, between the 71.8% and 78.6% retracement levels.
If this level fails to provide support, the 78.6% retracement, near $0.1451, offers a strong draw for shorts with multiple daily swing lows and an inefficient area.
Continued bearish conditions may cause this level to break, running all swing lows since Q1 2021 into the upper portion of an inefficient region starting near $0.1320. Near the midpoint and bottom of this region, lower timeframes show that $0.1280 and $0.1240 could also provide some sensitivity.
The low of early December’s consolidation, near $0.2517, and the 9 EMA may provide some resistance on any retracements. A continued rally – unlikely unless the overall market’s catalysts drastically shift – could reach over the 2021 open to $0.2927 and possibly $0.3400, where the daily chart shows a head-and-shoulders formation.
3. Dusk Network (DUSK)
Dusk Network describes itself as a blockchain for programmable and confidential securities, powered by Zero-Knowledge proofs and a novel Private PoS leader extraction-based consensus protocol. Dusk Network is a privacy blockchain for financial applications. It is a layer-1 blockchain that powers the Confidential Security Contract (XSC) standard and supports native confidential smart contracts.
DUSK Price Analysis
At the time of writing, DUSK is ranked the 394th cryptocurrency globally and the current price is US$0.1375. Let’s take a look at the chart below for price analysis:
DUSK shows signs of a more significant bearish reversal after a failed rally in March. An area near $0.2246, which has confluence with the 9 EMA and the most recent consolidation, is likely to provide resistance.
Possible support under a significant recent swing low and the 61.8% retracement, near $0.1285, may be the next bearish target. If this area fails to provide support, an area near $0.1165 may offer the next support and potentially a longer-term bottom. This area has confluence with the 78.6% retracement and the consolidation preceding the sharpest leg of H2’s rally.
If market conditions become more bullish and resistance near $0.1946 breaks, an area near the last down move’s midpoint, around $0.2357, could provide the next resistance.
A more sustained move upward may retest the 2022 open near $0.2856. However, current market conditions reduce the probability of a significant rally.
These coins have high liquidity on Binance Exchange, so that could help with trading on AUD/USDT/BTC pairs. And if you’re looking at buying and HODLing cryptos, then Swyftx Exchange is an easy-to-use popular choice in Australia.
Australian-born Dogecoin co-creator Jackson Palmer has renewed his trenchant criticism of the cryptocurrency industry in an interview to promote his new podcast.
“Increasingly people are doing nothing but making money off doing nothing, it’s kind of f..ked us all up,” Palmer told Cameron Wilsson of Australian online publication Crikey this week. “I wish it was the end of crypto, but it’s not.”
NEW: @ummjackson is the Aussie co-creator of Dogecoin, a meme coin which became one of the most valuable cryptocurrencies, who denounced cryptocurrency as a "hyper-capitalistic technology"
Spruiking his new podcast, Griftonomics – its very title an oblique reference to Palmer’s stance on digital assets – the former crypto evangelist said he thought the industry would have imploded by now and that “people would learn their lesson”.
But increasingly, in the past six months, I’ve seen a continued perseverance. You see these big people with big money getting involved and that means it’s not slowing down.
Jackson Palmer, Dogecoin co-creator, former crypto YouTuber, now podcaster
Send in the Clowns
Palmer wrote off ICOs, DAOs and NFTs as “scams” and denigrated Initial Game Offerings (IGOs) as the industry’s “latest swindle”. Yet he also played down the idea of an imminent crypto winter, saying: “I still see heaps of money being funnelled in by crypto promoters. They’re waiting for a fresh batch of fools to come in. This happens in cycles.”
Publicist Deserves a Raise
Whoever is acting as Palmer’s publicist is clearly not being paid enough, as the newly minted podcaster also popped up on ABC-TV’s Four Corners current affairs show this week, joining a chorus of critics on an episode focusing on cryptocurrency.
“The future crypto offers is more dystopian than utopian,” Palmer was quoted as saying, as past tweets of his were offered as supporting evidence, including this old chestnut: “Despite claims of decentralisation, the cryptocurrency industry is controlled by a powerful cartel of wealthy figures.”
Palmer’s bitter Twitter tirade against his former crypto project began soon after he walked away from Dogecoin in 2015, reaching a vitriolic peak in his personal crypto winter last year:
After years of studying it, I believe that cryptocurrency is an inherently right-wing, hyper-capitalistic technology built primarily to amplify the wealth of its proponents through a combination of tax avoidance, diminished regulatory oversight and artificially enforced scarcity.
Let’s take a closer look at today’s altcoins showing breakout signals. We’ll explain what the coin is, then dive into the trading charts and provide some analysis to help you decide.
1. Near Protocol (NEAR)
NEAR Protocol is a decentralised application platform designed to make apps usable on the web. The network runs on a Proof-of-Stake (PoS) consensus mechanism called Nightshade, which aims to offer scalability and stable fees. NEAR uses human-readable account names, unlike the cryptographic wallet addresses common to Ethereum. NEAR also introduces unique solutions to scaling problems and has its own consensus mechanism, called “Doomslug”.
NEAR Price Analysis
At the time of writing, NEAR is ranked the 20th cryptocurrency globally and the current price is US$6.08. Let’s take a look at the chart below for price analysis:
After its uptrend during Q1, NEAR has retraced 70% from its highs to support at the retracement of around $5.80.
The price shifted market structure to run to the consolidation lows near $6.40, just under the monthly open. A continued bearish trend in the market may create support just below, between $6.00 and $5.20.
On the other hand, if the current resistance breaks, the price might find resistance near $8.33, whereas mid-Q1 buyers may still be trapped in longs.
2. VeChain (VET)
VeChain VET is a blockchain-powered supply chain platform. VeChain aims to use distributed governance and Internet of Things (IoT) technology to create an ecosystem that solves some of the major problems with supply chain management. The platform uses two in-house tokens, VET and VTHO, to manage and create value based on its VeChainThor public blockchain. The idea is to boost the efficiency, traceability, and transparency of supply chains while reducing costs and placing more control in the hands of individual users.
VET Price Analysis
At the time of writing, VET is ranked the 32nd cryptocurrency globally and the current price is US$0.03286. Let’s take a look at the chart below for price analysis:
VET‘s 68% move during late March ran into resistance near $0.08420, at the 30% extension of the Q1 swing.
An old high and the 18 EMA have provided support near $0.03083 and may give support again on a retest. This area also has confluence with the 51% and 63.8% retracements of November’s swing.
Just below, near $0.02943, the 56.8% retracement of the current Q1 swing might also mark an area of support.
If the market turns bearish, $0.02572 is unlikely to be revisited but could see interest from bulls during any deeper retracement.
An area near $0.03948, at the 50% extension of the last week swing, could see some profit-taking if bulls break the current resistance near $0.04478. Above, old consolidations near $0.04825 and $0.05072 may also provide some resistance before another round of price discovery.
3. Waves (WAVES)
WAVES is a multi-purpose blockchain platform that supports various use cases, including decentralised applications (DApps) and smart contracts. The platform has undergone various changes and added new spin-off features to build on its original design. Waves’ native token is WAVES, an uncapped supply token used for standard payments such as block rewards. Waves initially set out to improve on the first blockchain platforms by increasing speed, utility, and user-friendliness.
WAVES Price Analysis
At the time of writing, WAVES is ranked the 60th cryptocurrency globally and the current price is US$8.67. Let’s take a look at the chart below for price analysis:
During April’s high, WAVES‘ slight drop marks the current range as a reasonable area to expect accumulation.
The recent bearish flip of the 9, 18 and 40 EMAs might cause bulls to be less aggressive in bidding. However, possible support near $7.12 and $6.35 – between the 41.8% and 50.6% retracements – could see at least a short-term bounce.
Long-term consolidation suggests that the areas near $11.45 and $13.61 may be more likely to cause a longer-term trend reversal.
Bears are likely to add to their shorts at probable resistance beginning near $12.77, which has confluence with the 18 EMA. A fast break of this resistance could trigger more selling near $15.42, the start of the bearish move.
These coins have high liquidity on Binance Exchange, so that could help with trading on AUD/USDT/BTC pairs. And if you’re looking at buying and HODLing cryptos, then Swyftx Exchange is an easy-to-use popular choice in Australia.
Tether recently announced that USDT has been integrated into Polygon, one of the largest Ethereum sidechains. This means that more than 19,000 decentralised applications (DApps) on the Polygon ecosystem will be able to use USDT.
According to a May 27 announcement by Tether, the addition of USDT to the Polygon ecosystem is a “milestone moment” for the company, as it will allow investors to use the stablecoin for transfers and generate yield.
We’re excited to launch USD₮ on Polygon, offering its community access to the most liquid, stable, and trusted stablecoin in the digital token space. The Polygon ecosystem has witnessed historical growth this year and we believe Tether will be essential in helping it continue to thrive.
Paolo Ardoino, CTO, Tether
The news comes shortly after Terra relaunched its blockchain and ditched its old UST token, which this month experienced one of the worst meltdowns in crypto history, raising concerns about the legitimacy of stablecoins worldwide.
Tether Also Launches Mexico Stablecoin MXNT
In other news, Tether has also pivoted into the Latin American market after launching a Mexican peso-pegged stablecoin, which will be initially available on Ethereum, Tron and Polygon.
The new stablecoin, dubbed MXNT, becomes the fourth stablecoin rolled out by Tether. Besides USDT, they are the Euro-pegged EURT and the Chinese Yuan-pegged CNHT.
So far, Tether has maintained its status as the leading stablecoin in the market. However, the company has not always been keen to open its reserves books. Tether periodically releases assurance opinions instead of full audits to disclose its reserves to the public, something that has raised suspicions within the crypto community.
STEPN was forced to begin blocking mainland Chinese users in order to comply with Chinese crypto regulations, which regard foreign cryptocurrency exchanges that provide services to mainland Chinese citizens as being engaged in illegal financial activities.
Chinese Users Can Move, But Not Earn
STEPN’s decision to act now was likely triggered by the Chinese central bank’s recent warnings about crypto exchanges operating in China, which may lead to legal problems for members of their teams based there.
During a Twitter Spaces discussion on May 27, a STEPN representative said that its technical team is based in China and that it is “targeted” by the regulations, despite the business itself not operating in China.
While users in mainland China will still technically be able to access STEPN, the GPS functionality will be deactivated, meaning those users will still be able to move, they just won’t be able to earn – essentially rendering the service useless.
In a recent tweet, STEPN affirmed its commitment to adhering to local regulations, saying the company “has always attached great importance to compliance obligations and strictly abides by the relevant requirements of local regulatory agencies”.
Australian-Based Startup Leads Move-To-Earn Boom
STEPN was founded in December 2021 by Jerry Huang and Yawn Rong and is based in Australia. The game allows users to earn crypto by exercising, which can then be traded for other cryptocurrencies or converted to fiat.
STEPN has led the recent move-to-earn craze in crypto, with more than 580,000 registered users, about 39,000 active daily users and enormous growth in the value of its various tokens in the early part of 2022.
As is often the case in crypto, STEPN has increasingly become a target for scams as it has gained popularity – in April, blockchain security watchdog PeckShield warned about the growth in phishing scams targeting STEPN users.
Bitcoin mining could reduce global carbon emissions by 5.32 percent over the next 23 years by aggressively targeting leaked methane, according to a report by New Zealand-based entrepreneur and ESG (environmental, social and governance) analyst Daniel Batten:
Batten claims that bitcoin mining is the only “technologically feasible” method of reducing methane emissions, and says the practice could potentially reduce global warming by up to 0.15 percent by 2045.
Another report released in April showed that power consumption levels associated with bitcoin mining had decreased by 25 percent in the first quarter of 2022, yet Batten’s report maintains that mining remains more effective than leveraging carbon credits.
“Bitcoin mining is the only way to combust leaking methane that is both economically and logistically feasible without carbon credits or the governments of major industrialised nations needing to issue tax incentives and funding in unison,” Batten’s report says.
Bitcoin mining has shown early evidence of being able to scale with an exponential growth rate.
Report by ESG analyst Daniel Batten
“It’s easy to make a premature and superficial assessment based only on energy consumption that bitcoin has a net negative environmental impact,” Batten’s report adds. “Such reasoning is flawed, since net impact can only be established by considering both environmental cost and benefit.”
Chief among these was that “bitcoin mining facilities across the US are polluting communities and are making an outsized contribution to greenhouse gas emissions”.
