Another week, and another stream of interesting and controversial news! Yes, this week is certainly “all eyes on Ethereum“, but not all the hot take insights are dedicated to this blockchain. Let’s go through some of the most impressive news that have definitely had an impact on the rapidly developing cryptocurrency industry.
Main Takeaways From the Crypto Summit
As we mentioned in the previous crypto digest, on March 7th, the White House hosted the first Cryptocurrency Summit dedicated to discussing how the US government can better approach the digital asset industry.
This event marked a major shift in U.S. crypto policy, with President D. Trump announcing plans for a strategic Bitcoin reserve and an asset stockpile to boost financial innovation. The Administration also expressed strong support for the crypto industry, signaling the end of previous regulatory crackdowns. These moves position the U.S. as a potential leader in the global digital asset space. The main highlights of the Summit:
- Establishment of a Strategic Bitcoin reserve
- Formation of a Digital Assets Stockpile
- Commitment to support the crypto industry
As we see, the industry has seen some recent victories in Washington. While challenges remain, the Summit marks a crucial step toward integrating crypto into national financial strategies.
Starknet Bridges Ecosystems Of The Two Largest Blockchains
On Tuesday, Starknet announced plans to integrate Bitcoin with the Ethereum ecosystem, increasing interoperability between the 2 largest blockchain networks. This initiative could revolutionize cross-chain transactions, bringing more liquidity and DeFi opportunities to Bitcoin holders.
According to the Starknet developers, it’s assumed that the integration of ecosystems:
- Will increase the liquidity in both networks
- Will strengthen the DeFi sector due to the availability of Bitcoin as collateral
- Will open opportunities for extracting additional income for the owners of the first cryptocurrency and miners
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“Hoodi” Testnet for Pectra Upgrade
In short, the Ethereum’s Pectra is a development upgrade to the blockchain, which was originally scheduled for March and will introduce significant technical improvements to the network. More about Pectra upgrade, you can read here.
For this week’s announcements, Ethereum’s core developers are rolling out the “Hoodi” testnet to evaluate the highly anticipated Pectra upgrade. This new test environment will allow developers to experiment with upcoming Ethereum enhancements before they go live, ensuring smoother adoption and stability. Development team claimed that “Hoodi” net will be launched on the 17th of March, and will activate Pectra on the 26th of March.
If the update is successfully activated on the testnet, the hard fork will be deployed to the mainnet no earlier than 30 days later, that is, after April 25.
Ethereum Hit Lowest Value Against Bitcoin Since 2020
This week, ETH/BTC trading pairs have dropped to 0.0224 – the lowest ratio since May 2020, raising concerns about Ethereum’s market strength.
Analysts have attributed this decline to several factors, including Bitcoin’s increasing dominance, institutional investors’ shift towards BTC over ETH, and concerns about Ethereum’s evolving roadmap and delays in scalability upgrades, which we mentioned earlier in this digest. These developments have reignited discussions about Ethereum’s position as the leading smart contract platform.
Nevertheless, market experts emphasized that the gap in supply between the two markets remains small, making a short-term move towards resistance likely.
Stablecoin Market Cap Surpasses Ethereum for the First Time
The last big update about Ethereum, and the last news for our digest, is related to the stablecoin market capitalisation. So, the total market capitalization of stablecoins reached $236 billion, surpassing the corresponding indicator for ETH.
As before, Tether’s USDT continues to hold a leading position among stablecoins, accounting for $143.3 billion, or 60.6%, of the total stablecoin market. This shift reflects a growing demand for stability amid market volatility, as well as the rising use of stablecoins in DeFi, payments, and remittances. And, same with previous insides of this digest, the milestone raises questions about ETH’s role in the ecosystem and whether it can reclaim its previous market position.
The final thought
This week brought a lot of highlights about new trends and showed some shifts on the crypto market. No doubts, after the results of Crypto Summit in the White House, the most discussed topic was ETH and the Ethereum network as a whole. But, as the crypto market continues to develop, these changes could shape the future of blockchain technology, redefining the dominance of major players and opening new opportunities for innovation.
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