Most of the top cryptocurrencies experience value appreciation
Over the past seven days, the majority of the top thirty cryptocurrencies by market capitalization have seen an increase in value. Notably, Bitcoin (BTC), Solana (SOL), and the Internet Computer Project (ICP) have emerged as the leaders of this rally.
Bitcoin’s price surge
Bitcoin’s current price is approximately 7.5% higher compared to last weekend, trading at $29,295 at the time of writing.
On Monday, Bitcoin briefly dipped to $27,500. However, it rebounded on Wednesday, reaching $29,000 following news of another potential insolvency in the traditional finance sector. First Republic Bank’s shares plummeted by 50% after their latest quarterly report revealed a significant decline in deposits.
Crypto has long been presented as an alternative to the banking system since the release of Bitcoin’s whitepaper. Therefore, when traditional financial institutions encounter difficulties, investors often turn to cryptocurrencies, as observed last month when news of Credit Suisse’s insolvency positively impacted Bitcoin’s price.
Ethereum’s modest growth
The second-largest cryptocurrency, Ethereum, has only experienced a 2.7% increase in value this week, currently trading at $1,906.
Rallies in Solana and ICP
The most significant rallies among the leading cryptocurrencies occurred in Solana, which grew by 11% and is now valued at $23.35, and ICP, which surged by 16.6% to reach a price of $6.58.
Cosmos Hub (ATOM) holders benefit from price increase
Holders of Cosmos Hub (ATOM) witnessed an 8.5% increase in value over the week, with the token trading at $11.68 on Saturday.
Regulatory developments
Regulatory scrutiny on the cryptocurrency industry has been growing in recent times, with U.S. agencies like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) focusing on enforcement actions rather than issuing new guidelines.
On Monday, Democrat and California lower house lawmaker Matt Haney introduced Assembly Bill 1229. This bill proposes a legal framework for Decentralized Autonomous Organizations (DAOs) that would modify state legislation to allow DAOs to incorporate and pay taxes in California while offering better protections for Californians participating in the Web3 economy. The bill has garnered support from crypto investment firm Andreessen Horowitz and the Crypto Council for Innovation.
On Tuesday, it was reported on Twitter that Binance US had abandoned its deal to acquire the assets of crypto lender Voyager. This decision was attributed to the “hostile and uncertain regulatory climate in the United States” in a statement given to Decrypt by the exchange. The collapse of Terra last May resulted in Voyager being one of the prominent casualties.
Furthermore, on Wednesday, reports emerged that Binance CEO Changpeng Zhao had retained legal counsel to defend himself against multiple legal threats filed by the SEC, the CFTC, and the Department of Justice against him and his exchange.
