Blockchain Spending Rose by 50 Percent Globally
According to the research data analyzed and published by Stock Apps, global blockchain spending is set to hit $4.1 billion in 2020. From $2.7 billion in 2019, it is estimated to grow by nearly 50%. Over the five-year period between 2020 and 2024, it is expected to maintain a 46.4% CAGR.
The International Data Corporation (IDC) also states that the total spending on blockchain solutions will be nearly $18 billion by 2024.
Finance Sector Accounts for Nearly 30% of All Blockchain Spending
Another report from Markets and Markets indicates that the global blockchain market is estimated to be worth $3.0 billion in 2020. It is projected to grow at a 67.3% CAGR between 2020 and 2025, to reach a $39.7 billion valuation by the end of the period.
The total spending in the blockchain space amounted to $1.5 billion in 2018. At the time, the financial sector was most dominant, accounting for 60% of all spending. Though it still leads in 2020, its market share is now about half of that, at 29.7%.
Between 2020 and 2024, the IDC predicts that the blockchain industry will maintain a healthy pace of investment at 45.3% CAGR. Process and discrete manufacturing will together account for 22.3% of all blockchain spending in 2020. While process manufacturing will grow at a 50.3% CAGR, discrete manufacturing will grow at 46.5%.
With $1.6 billion, the US will top the list globally in terms of spending while Western Europe will be second with $1.0 billion. China will take the third spot with $457 million, but it will be the leading country in terms of growth, with a 51.7% CAGR.
China’s blockchain spending was $87 million in 2017. It could rise as high as $1.420 billion by 2022. Prior to the pandemic, it was growing at a 65.7% CAGR against APAC’s 50.3% and the global’s 60.2%.
Meme Coin War: Shiba Inu Overtakes Dogecoin As Market Value Hits $42.7 Billion
One of the most popular meme coins, Shiba Inu (SHIB) has overtaken Dogecoin (DOGE) to hit a $42.7 billion market capitalisation, taking the 8th spot on the list of top digital assets by market capitalization.
However, its rival, Dogecoin is currently in the 10th spot with a total market capitalisation of $39.8 billion.
In the last seven days, Shiba Inu tagged “dogecoin killer” has surged by over 170 percent amid wild speculation of it being listed on Robinhood a popular U.S. trading app.
However, an intense dog fight between the two most popular meme coins, Shiba Inu and Dogecoin has seen traders rotating profits within the two meme coins. Some traders are profiting from the renewed interest in the two by taking spread trades.
On Wednesday, Shiba surged to $0.00008700 or 64.80 percent from $0.00004798 it opened before dropping to $0.00004689 to close the day’s trade at $0.00007907. The same day Dogecoin opened trade at $0.25585 surged to $0.26362 to close at $0.23790.
The price action observed in the past several hours is perhaps reflective of the rotation of money out of SHIB and into Doge the rival meme coin, and vice versa. Doge is still down by over 60% from its all-time high of $0.74 in May.
“It’s hard to deny that money could be moving to DOGE,” pseudonymous trader and self-proclaimed JPEG collector Kano The Giga Chad said while revealing his position to CoinDesk.
“Being short SHIB and long DOGE feels nice, I took the position about two hours,” the trader said.
It was revealed that retail investors account for almost the entire volume in meme coins. A surge in trading activities of meme coins is observed to represent excess greed as often seen at market tops.
Dogecoin has surged to $0.33807, however, at press time the meme coin is trading at $0.30619. Shiba Inu is currently trading at $0.00007298 after dropping low to $0.00005648.
Dogecoin co-creator Billy Markus in a tweet warned that the crypto market is “all about risk.”
“There are no promises in crypto, except from scammers,” said Markus. “The people telling the truth will tell you that it’s just all about risk. Your profits only come from other people taking their own risk. If you lose money, you paid for someone else’s risk. Ultimately, that is your choice.”
However, some do think there are legitimate reasons for investors to buy both the dogecoin and Shiba Inu cryptocurrencies. Dogecoin, a fork of bitcoin that dates back to 2014, is currently less sophisticated in its smart contract capabilities than Shiba Inu—launched just this year.
“Bitcoin is designed to be scarce whereas SHIB is intentionally made in a way that is abundant in nature,” Nirmal Ranga, chief revenue officer at bitcoin and crypto platform ZebPay, said in emailed comments.
“The Shiba Inu token system supports innovative and artistic projects like non-fungible token (NFT) art incubators. The development of its own decentralized exchange called the ShibaSwap is also in the pipeline, all factors which have been driving the tokens value and interest among traders.”
Blockchain Hackers Have Stolen Over $1 Billion in Q3 2021
Blockchain technology and cryptocurrency hype have gotten a lot of attention in the past years.
According to the data presented by the Atlas VPN team, blockchain hackers have stolen over $1 billion worth of cryptocurrencies in the third quarter of 2021. While blockchain-related hacks and scams continue to rise, the Ethereum ecosystem suffered from the most significant number of hack events and lost the most money during attacks.
The Ethereum ecosystem suffered 20 hack events and lost over $800 million in the third quarter of 2021. One of the most significant hacks was the Poly Network heist, in which the hacker stole $610 million from the cryptocurrency platform.
Next up, cryptocurrency exchanges had 5 hack events in which they lost $114 million. A noteworthy hack happened to a Japanese cryptocurrency exchange, Liquid, as cybercriminals took away about $90 million worth of digital coins.
Other types of hacks and scams have accumulated 28 events, throughout them losing $193 million. Such events include attacks against smaller ecosystems or rug pull scams.
The success of blockchain-related hacks and scams is bringing more and more cybercriminals looking for a quick buck.
A significant increase in blockchain-related hacks happened in 2019 when 133 events were seen. It indicates a 58% percent growth since 2018 when 84 hack events took place.
Through three quarters of 2021, there were more hack events than over the past three years — 146. It signifies a 20% percent increase since last year when 122 hack events and scams were seen.
While comparing more statistics from now and 2020, the Ethereum ecosystem and cryptocurrency exchanges remain the primary targets for hackers.
U.S. Regulators Plan To Provide Roadmap for Banks on Crypto Assets Holdings – FDIC Chair
In pursuit of Cryptocurrency adoption, Reuters reported that the Federal Deposit Insurance Corporation (FDIC) Chair, Jelena McWilliams affirmed that U.S. regulators are looking into possible ways to provide a clear roadmap for banks and clients that are looking to deal in bitcoin and other crypto assets.
This will avail the U.S. regulatory the legal avenue to ensure that crypto holders will hold their assets in line with the country’s regulations – at the same time maintain a certain level of control in the crypto space.
The roadmap is expected to provide clear rules for banks on crypto assets holdings, client’s trading, using crypto as collateral for loans and other crypto-related activities.
The FDIC Chair said, “I think that we need to allow banks in this space, while appropriately managing and mitigating risk.
“If we don’t bring this activity inside the banks, it is going to develop outside of the banks. … The federal regulators won’t be able to regulate it.”
This development will certainly usher in a new wave of adoption in the crypto space and also give millions of people access to the industry through the traditional gateway.
However, in absence of regulatory clarity, some banks such as US Bank launched their cryptocurrency custody services earlier this month following strong demands from institutional clients.
According to McWilliams, the end means in providing regulatory clarity is to protect the bank and its clients from unregulated and inefficient crypto assets in their bid to gain exposure in the crypto industry.
The Chair announcement gives a concise and clear picture of the company’s goal. The goal of the team was to ensure cryptocurrency policy coordination among the three main U.S. bank regulators – FDIC, Federal Reserve and Office of the Comptroller.
She said: “My goal in this interagency group is to basically provide a path for banks to be able to act as a custodian of these assets, use crypto assets, digital assets as some form of collateral.
“At some point in time, we’re going to tackle how and under what circumstances banks can hold them on their balance sheet. The issue there is … valuation of these assets and the fluctuation in their value that can be almost on a daily basis.”
“You have to decide what kind of capital and liquidity treatment to allocate to such balance sheet holdings,” McWilliams added.
At the time of writing data from Coinmarketcap sees Bitcoin trading at $59,021.33 down by 6.29 percent in the last 24 hours.
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