Ethereum’s Sepolia testnet has successfully undergone an upgrade simulating the upcoming Shanghai hard fork, which is expected to take place on its mainnet next month. The upgrade will enable withdrawals of staked Ether.

Cryptocurrency conglomerate Digital Currency Group (DCG) disclosed a loss of $1.1 billion in the previous year owing to the drop in crypto prices and the restructuring of its lending platform Genesis.

Cryptocurrency crime hit a record $20.6 billion last year. This surge was fueled in part by increased activity of North Korean hacking groups, which successfully hacked $1.6 billion in crypto last year.

 Top stories in the Crypto Roundup today:

• Ethereum Testnet Successfully Simulates Shanghai Hard Fork
• Digital Currency Group Reports $1.1 Billion Loss in 2022
• Crypto Crime Hit $20.6 Billion All-Time High Last Year
• Chart of the Week: Average Transaction Size on Binance

Ethereum Testnet Successfully Simulates Shanghai Hard Fork

Ethereum’s Sepolia testnet has successfully undergone an upgrade simulating the upcoming Shanghai hard fork, which is expected to take place on its mainnet next month. The upgrade will enable withdrawals of staked Ether.

The upgrade, called Shapella, combines the names of the upcoming Shanghai and Capella hard forks. The upgrade involves changes to both the execution layer and the consensus layer of Ethereum. Shanghai will focus on enhancing the execution layer, while Capella will improve the consensus layer of the blockchain.

Ethereum network validators need to stake at least 32 ETH to start working on the network’s Proof-of-Stake consensus algorithm, however,so far withdrawals aren’t enabled. Rewards earned by validators are, as a result, stuck on the network until the Shapella upgrade goes live.

The forthcoming Shanghai fork's mainnet launch is contingent on its successful implementation on the Ethereum Goerli testnet, which is set for March.

Digital Currency Group Reports $1.1 Billion Loss in 2022

Cryptocurrency conglomerate Digital Currency Group (DCG) disclosed a loss of $1.1 billion in the previous year owing to the drop in crypto prices and the restructuring of its lending platform Genesis.

DCG attributed the results to Bitcoin and crypto asset price drops and the default of Three Arrows Capital on Genesis, according to the investor report for the fourth quarter. According to the report, DCG had a total of $5.3 billion in assets as of December 31, 2022, based on a consolidated balance sheet view.

Cash and cash equivalents amounted to $262 million. Investment assets, such as tokens, Grayscale Trust shares, venture and fund investments, were valued at $670 million. DCG stated that the bulk of the remaining assets were held by Grayscale and Foundry, its subsidiary divisions.

According to a spokesperson for DCG, the valuation of investment assets and the venture portfolio have been marked to market. DCG reported revenues of $143 million in Q4, with losses totaling $24 million. The company's consolidated revenues for the entire year amounted to $719 million.

Crypto Crime Hit $20.6 Billion All-Time High Last Year

Cryptocurrency crime hit a record $20.6 billion last year. This surge was fueled in part by increased activity of North Korean hacking groups, which successfully hacked $1.6 billion in crypto last year.

Additionally, bad actors have been exploiting weaknesses in decentralized finance protocols, leading to a rise in cyber attacks. In 2022, there was a significant increase in the amount of crypto stolen from DeFi protocols, with $3.8 billion taken compared to $3.3 billion in the previous year.

Kim Grauer, Head of Research at blockchain analysis firm Chainalysis, stated that since the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) began its crackdown on cryptocurrency platforms in 2021, all transactions carried out by platforms suspected of facilitating illicit activities are being scrutinized instead of just targeting the specific crypto addresses of the wrongdoers.

The majority of sanctioned activities in 2022 were identified by Chainalysis as funds being directed toward Garantex or similar services following the imposition of the designations. Grantex is a Russian-based cryptocurrency exchange that had $1.3 billion in inflows through October, after being sanctioned in April.

Chart of the Week: Average Transaction Size on Binance

This week’s Chart of the Week looks at a notable decline in the Average Transaction Size (ATS) for leading assets such as BTC and ETH on Binance. The figures show a drop from $1,690 and $1,768 in March 2022 to $865 and $1,021 in February 2023. This trend suggests a decrease in confidence among market participants.

On the other hand, while the decline in ATS for major assets is concerning, it's worth noting that ATS for other assets, such as LDO and STX, is showing signs of increased conviction.

LDO's ATS has climbed from $141 to $385, indicating a growing interest in liquid staking derivatives. Similarly, STX's ATS has reached $240 as it works to bring smart contracts to BTC.

State of the Crypto by Top Tier Exchange Volume

Build your project with CoinDesk Data

Terms | Privacy

13 Charles II St, SW1Y 4QU

London, UK

This email may include advertisements by third parties. None of the advertised or promoted products and services have been verified or approved by us and this email is not any endorsement by us of the third party or of their products or services.