The Digest

• Crypto market hit with another brutal sell-off, could bottom at $38k – Mike Novogratz.

• Vitalik Buterin proposes “multidimensional” fee structure for .

• After climate change debate, Mozilla Foundation stops accepting crypto.

• Issues $139 million proposal to DeFi for new and exciting use cases

• GameStop shares increase 30% following the confirmation of its NFT marketplace.

Crypto Market Hit with Another Brutal Sell-Off, Bitcoin Could Bottom at $38k – Mike Novogratz

After suffering a massive decline after the publication of the Fed Report, crypto assets were again sold just hours later. A decline of 3% in crypto assets over 24 hours has led to more than $300 Billion losses for the global cryptocurrency market.

Over the last 48 hours, this is the chart of global crypto market caps. Source: Tradingview

Due to the ongoing bloodbath, the market cap for global crypto fell short of $2 trillion on January 7. This was its lowest point since Oct 2021. The market is now showing signs of improvement and has stabilised at $2.001 trillion.

While investors may have been caught unawares by this brutal sell-off and many others, popular crypto investor Mike Novogratz (NYSE:) believes that Bitcoin still faces more pain.

Novogratz says that Bitcoin might fall to below $40,000 again and reach a $38,000 bottom before any gains in momentum are possible. The current forecast is bearisher than the one he made a week earlier, where he said that Bitcoin might hold steady at $42,000.

Flipsider:

• No matter what your concerns may be, Eric Adams is the Mayor of New York CityAccording to BTC’s official website, the drop is the best time for buying it. He will receive his three first paychecks in Bitcoin.

Vitalik Buterin Proposes “Multidimensional” Fee Structure for Ethereum

There have been many developments in the Ethereum network as we work towards our proof-of-stake transition. After revealing that the transition is 50% complete, Ethereum Co-Founder Vitalik Buterin has proposed an improvement to the network’s current pricing structure.

In his “Multidimensional EIP-1559” proposal, Buterin lays out two options for the network. To make gas costs more predictable, EIP-1559 was implemented in August. It introduced a base ETH cost.

The EVM’s different resource demands mean that different EVM resources have different needs in gas usage. Therefore, different EVM limits are in place to limit short-term surges as well as sustained EVM capacity. It can lead to suboptimal gas prices when resources are not aligned.

Buterin suggested that the gas cost of resources should be determined individually using call data to solve the problem. The second option would include a base charge for resources. However, each resource would have its own burst limit.

Flipsider:

• Buterin stated that if this is implemented, block builders would be required to balance dimensions and solve mathematical problems for each resource.

What You Need to Care About

As Ethereum draws closer to its PoS transition, users expect that the upcoming upgrades will solve the network’s current issues, including gas fees.

Mozilla Foundation Bans Crypto Acceptance Following Climate Impact Debate

Mozilla is now among the companies that are feeling the heat from cryptocurrency involvement. The Firefox developers have stopped temporarily accepting cryptocurrency donations via BitPay.

Last week, Mozilla Foundation sought crypto donations to help it get funding. However, the community outcry led to conversations about cryptocurrency’s environmental impacts.

Following a backlash by the community, Mozilla Foundation declared that its crypto donations would be put on hold. Jamie Zawinski (Mozilla Co-Founder), who is not involved in the project’s development since 2000 wrote:

“Everyone involved in the project should be witheringly ashamed of this decision to partner with planet-incinerating Ponzi grifters.”

Flipsider:

• Mozilla’s decision to halt crypto donations should not be considered a declaration of intent to avoid decentralized technologies like cryptocurrency, as the company That is what it says “decentralized web technology continues to be an important area for us to explore.”

What You Need to Care About

In an attempt to reduce the industry’s reputation for extreme power, crypto projects such as Ethereum have begun moving away from consensus proof-of work models.

Terra issues $139 million proposal for great new use cases to DeFi

Terra is the biggest DeFi ecosystem announcement of 2021. It plans to continue its 2021 Q4 success with a new proposal. Terra plans to provide $139 million in UST and LUNA to several leading DeFi projects to catalyze “awesome UST use-cases.”

Terra’s January 6th research post revealed its plans to expand the inter-chain deployment of its UST stablecoin across five projects on Ethereum, Polygon, and . According to the proposal, this fund will be distributed at most for six months.

If the proposal passes, then the funs will be divided as follows

• Tokemak will receive a deposit of $50 million in UST for six months;
• Rari Fuse would be paid $20 million for six months.
• Convex Finance would be paid $18 million over six months.
• OlympusDAO, OHM would get $1.45million (three month).
• Terra will contribute $250,000 to Solana in UST for its expansion. This would enable Terra to issue IN/UST bonds.

Flipsider:

• Terra is now the second-largest DeFi ecosystem, after Binance Smart Chain.

What You Need to Care About

Terra may be in a position to compete with other DeFi platforms by improving its existing one.

GameStop shares gain 30% after it confirms its NFT marketplace

GameStop has finally confirmed its plans to launch a market for non-fungible tokens. This is despite weeks of speculation. Within hours, GameStop’s share price soared by 30% after it published the report.

According to the report, GameStop is creating partnerships with two crypto companies to “share technology and co-invest in the development of games that utilize blockchain and NFT technology, as well as other NFT-related projects.”

This confirmation follows months of preparation, including GameStop’s October hiring of a team consisting of NFT specialists and Web 3.0 experts. GameStop’s marketplace will focus on virtual video game assets such as character outfits and weapons.

Flipsider:

• GameStop’s January 2021 progress as a meme stock has been greatly hampered by immense pressure. The shares of GameStop have fallen 59% since its ATH.

What You Need to Care About

The building of an NFT marketplace is part of GameStop’s turnaround plan under Chairman Ryan Cohen.

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