Crypto Week in Review: CME Sees Record Trading Volume Following the Bitcoin Halving
Bitcoin (BTC) Halved for the third time on Monday, reducing the reward for miners from 12.5 to 6.25. Despite a steep sell-off leading up to the event, Bitcoin rallied this week, adding over $1,000 to its value. At the time of writing, Bitcoin was trading at $9,509, a 44% increase over the last 30 days. The daily options trading volume on the CME also saw exponential gains, increasing to new all-time highs.
On Monday, the CME’s options trading volume hit a record of $17 million only to nearly double to $30 million the following day. Wednesday, it made history again, hitting $40 million.
The sentiment in the crypto community also remains positive. Joshua Frank, the CEO of data analytics firm The Tie, told DeCrypt, “The Halving continues to be the most used word in Twitter conversations around Bitcoin, and 65% of the 4,119 tweets over the last 24 hours mentioning the Halving are positive. This is in addition to the more than one and a half thousand tweets using the hashtags #BitcoinHalving and #BitcoinHalving2020, which are both over 70% positive.”
Historically, Bitcoin has rallied in the 12 to 15 months following the Halving event. For example, BTC hit an all-time high of $20,000 in 2017 after the second Halving.
MOONS & BRICKS
Reddit is officially getting into the crypto game. The social news site is launching a new feature called Community Points, which are earned by submitting quality content. Community Points will be issued on the Ethereum network and will be transferable to any ERC-20 compatible wallet or platform.
Reddit will trial the Community Points feature with two subreddits with a combined 2.3 million members, r/Cryptocurrency and r/FortNiteBR. The tokens, which are aptly named MOON and BRICKS, will offer the subreddit members voting rights and special privileges.
With more than 430 million monthly active users, Reddit’s new tokens could be a big boost for the Ethereum Network if it moves past the trial phase to the entire user base.
Visa’s Digital First
The U.S. Patent and Trademark Office (USPTO) published today that Visa (V) has filed a patent application for a decentralized system to create fiat-backed cryptocurrencies. The patent originally filed in November 2019 applies to a digital dollar and other central bank digital currencies.
Titled “Digital fiat currency,” the patent details a central entity computer that receives requests that include a serial number and the denomination of a physical currency. The technology replaces the need for fiat currency by recording its circulation and transactions on a blockchain.
A Visa spokesperson told Forbes that the patent comes from their team of inventors and innovators working on cutting edge payment technologies. While the company submits hundreds of new ideas each year, not all patents result in products or features.
If Visa decides to move forward, they will join a growing list of competitors in the stablecoin space.
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