Chart of the Day
We’ve talked about the impact of EIP 1559, which parallels Bitcoin halving in its effects of bringing down the inflation rate and providing tremendous tailwinds to the price movement. However, due to robust on-chain activities propelled by the NFT mania, gas fees on Ethereum have been soaring despite the completion of EIP 1559 upgrades, which are initially designed to solve network congestion. Meanwhile, alternative solutions such as Layer 2 rollups are being explored to circumvent transaction gridlocks. Elevated gas fees have resulted in the booming of Layer 2 scaling solutions, as more than $1 billion is locked up in scaling protocols other than Polygon. Crypto exchange dYdX clinches the top spot on the Layer 2 TVL leaderboard with a TVL of $279 million.
Talk of the Town
History is made with an initial purchase of 200 BTC as El Salvador approaches the formalization of Bitcoin as legal tender. The Central American country has become the first nation in history to adopt crypto as its official currency, alongside the U.S. dollar. Its bold foray into the nascent technology has also inspired a crypto fever among other Latin American countries and spurred broader adoption of Bitcoin.
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