Crypto News Highlights (6th May to 10th May 2024)
Here are the top stories that happened in crypto this week.
- AI Tokens Fuel Crypto Market Recovery; Nvidia Stock Surges
- Robert Kiyosaki Advocates Crypto Amid Dollar Decline; Emphasizes Financial Literacy
- Ghana Introduces NFT Stamp Collection to Honor Tradition with Technology Integration
- Attacker Returns $153,000 worth of Eth After $68 Million Scam
- Bitcoin Faces Difficulty Drop Post-Halving; Hashrate Declines Below 600 EH/s
- Grayscale Withdraws Ethereum ETF Proposal Amid Regulatory Uncertainty
AI Tokens Fuel Crypto Market Recovery; Nvidia Stock Surges
Tokens linked to artificial intelligence (AI) projects have spearheaded the recent resurgence in the crypto market, paralleled by a notable uptick in Nvidia's stock prices, a leading AI chipmaker.
RNDR, the utility token for decentralized GPU-based rendering solutions provided by The Render Network, exhibited an impressive surge of nearly 40% over seven days, outpacing the performance of other leading cryptocurrencies.
Additionally, AI-focused tokens such as SingularityNET's AGIX, Bittensor's TAO, and Fetch.ai's FET demonstrated gains ranging from 17% to 23%, surpassing the broader market trends.
Meanwhile, Bitcoin, the largest cryptocurrency by market value, experienced a modest increase of 1.7%, with the CoinDesk 20 Index, a broader market gauge, rallying by 0.6%.
According to data from DYOR, a crypto analytics platform, decentralized AI tokens and DePIN tokens, associated with decentralized physical infrastructure, emerged as the top performers over the past week.
Josephine Inika
Investor anticipation surrounding Nvidia's forthcoming earnings report, scheduled for May 22, has contributed to the positive sentiment.
Analysts at Zacks Investment Research project a remarkable year-on-year increase of 403% in earnings per share, buoyed by favorable results from other AI companies as reported by Bloomberg.
Nvidia's stock price surged to $922 on Monday, reaching its highest level since April 1. The stock has rebounded by more than 20% from its recent low of $756 on April 19, as per data from TradingView.
The historical correlation between Nvidia and the crypto market, stemming from Nvidia's chips initially used in mining rigs before gaining traction in AI applications, has been reinforced. This correlation was particularly notable in late 2022, coinciding with the market debut of OpenAI's ChatGPT, which significantly heightened awareness of artificial intelligence.
Robert Kiyosaki Advocates For Crypto Amid Potential Dollar Decline
Renowned investor and author Robert Kiyosaki, known for his bestselling book "Rich Dad Poor Dad," has expressed concerns regarding the depreciation of the US dollar and has endorsed investments in cryptocurrencies as a hedge.
In a recent episode of "The Rich Dad Channel" podcast, Kiyosaki underscored the importance of diversifying investment portfolios, citing cryptocurrencies like Bitcoin and Ethereum as viable alternatives. He cautioned against the weakening purchasing power of traditional currencies, advocating for assets like gold, Bitcoin, and Ethereum as safeguards against financial instability.
Kiyosaki's decision to invest in Ethereum further reflects his confidence in the long-term viability of cryptocurrencies amid broader economic uncertainties. He emphasized the need for enhanced financial literacy, particularly in educational curricula, to empower individuals to navigate evolving financial landscapes effectively.
Ghana Introduces NFT Stamp Collection to Honor Tradition with Technology Integration
Ghana Post commemorated the 25th anniversary of King Otumfuo Osei Tutu II's reign by launching a collection of "Crypto stamps" linked to non-fungible tokens (NFTs) on May 9. This innovative initiative symbolizes the fusion of Ghanaian cultural heritage with cutting-edge blockchain technology, offering a novel approach to celebrate the King's Silver Jubilee.
Priced at $18 (equivalent to 250 Ghanaian cedi) each, the limited-edition Ghana Crypto Stamps are paired with unique NFTs, ensuring ownership verification and authenticity on the blockchain. With only 7,200 Crypto Stamps available, collectors and technology enthusiasts alike have the opportunity to acquire rare and valuable collectibles.
The integration of NFTs provides an additional layer of security and transparency, allowing collectors to verify the authenticity of their stamps through a simple smartphone scan. This innovative solution mitigates the risks associated with counterfeiting, preserving the integrity of each collectible.
Ghana's pioneering venture into NFT stamps marks a significant milestone in the adoption of cryptocurrency and blockchain technology across Africa.
Attacker Returns $153,000 worth of EthAfter $68 Million Scam
In a surprising development, an attacker involved in a $68 million address poisoning scam exhibited a gesture of goodwill by returning $153,000 worth of Ether to the victim. This unexpected act of restitution follows an elaborate address-poisoning attack, shedding light on the complex dynamics within the crypto ecosystem.
Josephine Inika
The attacker, operating under the pseudonym "FakePhishing327990" on Etherscan, transferred $153,000 worth of Ether to the victim's account, accompanied by a message expressing a willingness to negotiate and engage in further communication via Telegram.
Subsequent negotiations between the victim, identified by their account ending in 8fD5, and the attacker, facilitated by blockchain data, aimed to resolve the incident amicably. The victim proposed a resolution whereby the attacker would return 90% of the stolen funds in exchange for a 10% bounty and a commitment to refrain from legal action.
Bitcoin Faces Difficulty Drop Post-Halving; Hashrate Declines Below 600 EH/s
Bitcoin miners are experiencing a significant decline in difficulty levels following the halving event on April 19, 2024, marking the most substantial reduction in 2024. This adjustment offers temporary relief to miners amidst a backdrop of declining BTC prices and hashpower values.
The hashprice, representing the daily value of one petahash per second (PH/s) of hashpower, has plummeted below $47 per PH/s, signaling a notable decline compared to previous levels. This downward trend, unprecedented in over seven years, has prompted a substantial portion of the network's hashrate to exit the network.
Currently, the total hashrate stands at approximately 580 EH/s, representing a significant decrease from the peak of 655 EH/s reached on April 19. This latest drop in difficulty, the most considerable since December 5, 2022, underscores the evolving dynamics of Bitcoin mining and the challenges posed by market fluctuations.
Analysts anticipate further adjustments to the Bitcoin network's difficulty in the coming weeks, with implications for miners and the broader crypto ecosystem.
Grayscale Withdraws Ethereum ETF Proposal Amid Regulatory Uncertainty
Grayscale, a prominent digital asset management firm, has withdrawn its proposal for listing an Ethereum trust exchange-traded fund (ETF), known as ETHE, with the U.S. Securities and Exchange Commission (SEC). This decision reflects growing uncertainty surrounding the regulatory outlook for Ethereum-based ETFs, prompting a reassessment of expectations within the crypto community.
The withdrawal of the 19b-4 filing comes at a time when analysts and prediction markets assign minimal probabilities to the SEC's approval of an ETH-based ETF, underscoring the prevailing scepticism.
Some analysts speculate that the decision to withdraw the proposal may signal a strategic shift in response to regulatory feedback or evolving market conditions.
As the crypto community grapples with the implications of Grayscale's decision, the prospects for Ethereum-based, physically-settled ETFs remain uncertain, with regulatory considerations shaping the trajectory of future investment products.
Disclaimer: The information provided in this crypto news round-up is for informational purposes only and should not be considered financial or investment advice. Obiex will not be held liable for your investment decisions.
