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Traders take ETH from exchanges and invest it in staking Ethereum

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According to Glassnode, about 1.1 million ETH were withdrawn from centralized exchanges in the last week. And most users did so for staking Ethereum. This is the largest 30-day drop in Ethereum balances in more than two years.

The last time users took this amount of Ethereum from platforms was in September 2020. At the time, the market was in the heyday of DeFi, and ETH was needed to feed smart contracts.

Centralized exchanges such as Coinbase, Binance and Kraken tried to appease customers. To stem the cryptocurrency exodus, they published reports with proof of reserves. They list the assets the exchanges use as collateral. 

Lido-stacking yields soared – benefits of staking Ethereum

Most major exchanges offer Ethereum sterling services, but the industry leader in this regard is the platform Lido. The yield on coins deposited into stacking through Lido has renewed its all-time high and reached 11.33%.

However, there is a nuance. Stacking rewards fall into two categories:

  • Execution-level rewards – 7.3%,
  • consensus-level rewards – 4%.

Regular Ethereum stackers only receive payouts in the second category (or even less, depending on how much the platform takes over).

The company said that over the past two weeks, the amount of ETH placed on Lido has increased by 95,648 ETH. The platform now holds 32% of all ETH placed on the stack, and its market value for those coins is $5.9 billion.

The Lido stETH token, which is issued in exchange for ETH deposited on the stacking platform, in theory equates to the value of ether. However, the stETH/ETH exchange rate dropped slightly to 0.9859 amid the turbulent events of the previous week. This meant that ETH was worth more than its stacking equivalent.

Also, over the past two weeks, the volume of sterling coins increased in networks such as Ethereum, Polkadot, and Kusama, but decreased in Solana and Polygon. 

beaconcha.in currently reports 14.95 ETH in stacking. This amount is estimated to be about $18.6 billion and represents 12.4% of the total coins in circulation.

Earlier, we reported that Bitget had allocated $5 million to help affected FTX users.

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Apple forced Coinbase to remove NFT transfers

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Apple NFT news: Coinbase said Apple is demanding a 30% tax on the gas fee used for NFT transfers. NFT coinbase wallet users can no longer send NFTs due to Apple’s interference. 

Coinbase said it could not meet the requirement even if it tried because the iPhone maker’s own in-app purchasing system does not support cryptocurrency. Note that the current stock price of Apple was not affected by the situation. 

Users affected by this decision, i.e. iPhone owners, will find it “much harder to transfer this NFT to other wallets. Coinbase added that the blockage may have been an oversight, and urged Apple to contact the company with any questions.

Coinbase first announced the NFT coinbase wallet in December 2021, giving users access through the app to trading platforms such as OpenSea. The NFT token issuance and trading platform was conceived as a peer-to-peer marketplace equipped with social platform functionality. This feature should help community members find new NFT tokens and collections.

In November, Apple updated the App Store’s NFT rules, so developers can now sell tokens they have placed on the App Store. However, the new rules prohibit using cryptocurrencies, cryptocurrencies, and QR codes to unlock features in the app. Also, development companies must have a license to operate in the country where the app is sold.

Earlier, we reported that crypto investors intended to achieve the arrest of FTX through protests.



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Tether says its USDT loans are “over-secured”

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Tether, the issuer of the USDT stablecoin, claimed that the USDT loans it issues are characterized by overcollateralization. This was the project’s response to a recent Wall Street Journal study. In it, WSJ analysts expressed fears that Tether’s current lending practices could trigger a new crisis in the crypto industry.

According to WSJ, Tether lends its own USDT Coins to customers without exchanging them for hard currency. As a consequence, in the event of a crisis, the company may not have enough long-term liquid assets to repay the money you borrow USDT and redeem these coins. So it makes sense to apply for USDT loans to companies that offer the opportunity to pledge various stocks of large companies. For example, at the current stock price of Amazon or another corporation.

Such fears are understandable amid a steady stream of news about the collapse of the FTX crypto exchange and its implications for the crypto market. In particular, the ensuing market collapse may have also contributed to the “erosion” of Tether’s collateral.

In response to these accusations, the project published a post on Twitter with the eloquent title “The hypocrisy of the mainstream media falling asleep at the information wheel.”

The project’s management believes that the WSJ analysts are completely mistaking the USDT kinoin itself for the collateral backing it. Meanwhile, “Tether’s secured loans are characterized by over-collateralization and are even backed by additional equity if necessary.”

According to the company, 82.45% of its reserves are currently held in U.S. Treasuries and other cash equivalents. Meanwhile, the decline in the USDT token is irrelevant to the value of loan collateral. Such fluctuations in quotations are only relevant to the exchange value of the coin itself.

Recall that the project boasts the longest list of accusations against it about insufficient collateralization of its stablecoins and/or lack of transparency of information on this topic.

We previously reported that hackers have stolen $3.37 billion worth of cryptocurrencies since the beginning of the year.

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The market of a metaverse company has reached almost 150 virtual worlds

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The virtual reality industry has grown to nearly 150 digital worlds in the fourth quarter of 2022, researchers found. The volume of a metaverse company at the end of IV quarter of 2022 was 148 pieces. This was reported by analysts from the consulting firm Metaversed. However, so far, the current stock prices of Meta do not react.

According to the researchers’ calculations, most of the users remain on the projects of Web2. For example, the largest virtual world is fixed in the game-meta universe Roblox, which accounts for about 202 million monthly active players. The price of cryptocurrency for metaverse against this background is growing.

The video game Minecraft is in second place with 174 million active players. Fortnite, with 81 million players, was the third one. Projects with a focus on the Web3 model have a much smaller user audience, but the number of these worlds is much higher than the video games of the Web2 model.

For example, the blockchain game Axie Infinity attracts only 700,000 players per month. In second place is Upland with 600,000 users, and NFTWorlds, a virtual world with 500,000 users, takes third place.

Game metaverse is not a toy

The game industry, for the most part, is skeptical of metaverses and does not see them as different from traditional video games. As BeInCrypto editorial staff wrote earlier, Xbox CEO Phil Spencer thinks that the current implementations of meta-villages are more like “a cheaply made video game”.

Herman Narula, CEO of Improbable, the developer of the metaverse, partially agreed with Spencer. He acknowledged that video games are already inherently mini-metagons. However, according to Narula, meta-villages posit the idea of combining experiences. That said, he agrees that metaverses are many times more attractive to sports leagues and fashion brands than they are to video game developers.

We previously reported that the largest bitcoin miners owned banks $4 billion.

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