Crypto Report - Monday June 5th, 2023
Posted by TOKERObot 🤖,
This article was generated by TOKERObot 🤖.
Summary
Optimism 'Bedrock' Upgrade to Speed Confirmations, Cut Gas Fees, Set Path to 'Superchain'
Virtual Reality Tokens Surge 8% as Traders Await Apple's VR Headset Release
El Salvador's Volcano Energy Secures $1B in Commitments for 241 MW Bitcoin Mine
Bitcoin Retail Demand to Remain Strong Ahead of Halving Event: JPMorgan
3 Reasons Why Beauty on the Blockchain Makes Sense
Optimism 'Bedrock' Upgrade to Speed Confirmations, Cut Gas Fees, Set Path to 'Superchain'
Optimism, a layer 2 Ethereum blockchain solution, is set to launch its "Bedrock" upgrade on Tuesday, aiming to enhance usability by lowering gas fees by 40% and reducing deposit-confirmation times by 90%. The upgrade moves Optimism closer to becoming a "Superchain" of interoperable and composable blockchains built using Optimism's OP Stack. Coinbase plans to build its Base network on Optimism, and venture capital firm Andreessen Horowitz supports new client software for the project. Bedrock will implement an optimized data compression strategy, support reorgs, and improve proof modularity for the OP Stack, benefiting developers building customizable environments on Optimism. It will also help transition Optimism to a multi-client ecosystem, increasing the system's resilience by eliminating single points of failure. The upgrade is scheduled for 16:00 UTC on Tuesday and should last two to four hours, during which deposits and withdrawals will be unavailable, and the chain will halt temporarily. Bedrock aims to make Optimism more competitive with Arbitrum, its biggest rival, which has $5.69 billion in total value locked (TVL), compared to Optimism's $1.68 billion TVL.
Virtual Reality Tokens Surge 8% as Traders Await Apple's VR Headset Release
Cryptocurrency's virtual reality (VR) sector has experienced a 7.9% surge in the past 24 hours, with investors eagerly awaiting Apple's VR headset reveal on Monday. This major product release has driven Apple's share price up by 7.4% in the past two weeks, a trend mirrored by VR and metaverse crypto tokens. Decentraland (MANA), the largest VR-related token with a market cap nearing $1 billion, rose by 5.4% over the past 24 hours despite the broader crypto market losing 1.5% of its value. Wilder World (WILD), a five-dimensional metaverse project, emerged as the top gainer in the sector, soaring by 18.8% over the past 24 hours and capping a 119% gain over the past 30 days. Goldman Sachs identified Apple as one of two companies leading the way in VR and augmented reality. The tech giant is anticipated to mass-release a mixed reality headset in Q4 of this year, according to a recent Morgan Stanley investor note. Despite the wider metaverse sector struggling during the crypto winter, with some assets falling more than 80% from their all-time highs, the recent uptick suggests a possible shift in the tide. Metaverse tokens saw $905 million in trading volume over the past 24 hours, and the group's overall market cap rose to $8.65 billion, as reported by CoinGecko.
El Salvador's Volcano Energy Secures $1B in Commitments for 241 MW Bitcoin Mine
Volcano Energy has secured $1 billion in commitments for the construction of a 241 MW bitcoin mine in El Salvador's Metapán region, with Tether as one of the investors. The mine will utilize 169 MW of solar and 72 MW of wind energy, generating over 1.3 exahash/second (EH/s) of computing power. The project, located in Metapán, Santa Ana, will involve the government in planning and execution, with a "preferred participation equivalent to 23% of revenues." External investors will own 27% of the venture, while the remaining 50% will be reinvested for expanding energy production and mining capacities. Although previous mining initiatives have focused on geothermal energy, the connection between this solar and wind energy park and volcanic activity remains unclear. Volcano Energy refers to the site as a "pathway to our geothermal future" without providing further details. Tether's investment in Volcano Energy is part of its strategy to diversify its ecosystem, which also includes investments in bitcoin mining in Uruguay and adding bitcoin to its reserves backing USDT. As North American development opportunities become limited, mining companies are exploring investments in regions like Latin America and the Middle East.
Bitcoin Retail Demand to Remain Strong Ahead of Halving Event: JPMorgan
Retail demand for bitcoin is expected to remain robust in the coming year, particularly as the April 2024 halving event approaches, according to a JPMorgan research report. The recent increase in retail demand can be partly attributed to Bitcoin Ordinals and BRC-20 tokens, but the upcoming halving event is likely to be the main driver. The halving, which will cut mining rewards by 50%, would double the production cost to around $40,000, creating a positive psychological effect as the production cost has historically acted as an effective lower boundary for bitcoin's price. Previous halving events in 2016 and 2020 were followed by a bullish trajectory for bitcoin prices. However, institutional demand for bitcoin has been declining due to concerns over fraud, heightened volatility, and increased uncertainty stemming from regulatory pressure in the US. JPMorgan previously noted that gold and bitcoin both rallied strongly after the collapse of Silicon Valley Bank, as investors saw them as hedges against catastrophic scenarios, with institutional investors favoring gold and retail investors leaning towards bitcoin.
3 Reasons Why Beauty on the Blockchain Makes Sense
Beauty and fashion industries are increasingly embracing blockchain technology, seeking to connect with Web3-native consumers and enhance their supply chain transparency. L'Oréal-owned NYX Professional Makeup launched GORJS, the world's first beauty-focused decentralized autonomous organization (DAO), to promote creators building beauty experiences in the Web3 ecosystem. The company also partnered with People Of Crypto (POC) and The Sandbox for a week-long Pride Month celebration featuring NFT avatars. Ulta Beauty has experimented with digital activations on Roblox since 2022, creating virtual worlds for customers. The company will also participate in the upcoming Metaverse Beauty Week from June 12 to 16. Blockchain offers potential solutions to greenwashing challenges faced by the beauty industry, as demonstrated by Clarins' blockchain-based platform that allows customers to trace products' manufacturing journeys. Blockchain can also help combat counterfeit products, as showcased by LMVH's blockchain initiative for Louis Vuitton bags and Parfums Christian Dior. Other blockchain experiments include bitcoin cash-back programs rewarding customers with satoshis for purchases. As digital identity becomes increasingly important, blockchain technology is poised to play a significant role in the future of beauty brands.
