Ethereum developers have moved the network one step closer to enabling withdrawals of the $26 billion of staked Ethereum currently helping validate transactions, after successfully deploying the first mainnet shadow fork for the Shanghai upgrade.

Popular decentralized finance (DeFi) protocol MakerDAO has seen its community approve a proposal to deploy up to $100 million in USDC from its reserve to Yearn Finance, where the stablecoin will be used to earn yield.

The CEO of Grayscale Investments, Michael Sonnenshein, has said that he believes the approach to regulatory enforcement by the United States Securities and Exchange Commission (SEC) has been slowing down Bitcoin’s progress.

 Top stories in the Crypto Roundup today:

• Ethereum Developers Staked ETH Withdrawals Closer to Reality
• MakerDAO to Deploy $100M USDC on Yearn Finance
• SEC’s ‘One-Dimensional Approach’ is Slowing Bitcoin’s Progress, Says Grayscale CEO
• Percentage of Long-Term BTC Holders Hits New High

Ethereum Developers Staked ETH Withdrawals Closer to Reality

Ethereum developers have moved the network one step closer to enabling withdrawals of the $26 billion of staked Ethereum currently helping validate transactions, after successfully deploying the first mainnet shadow fork for the Shanghai upgrade.

The upgrade, which is expected to be launched in March, will allow Ethereum stakers to withdraw their funds on the network. Mainnet shadow forks are final practice runs of system improvements, allowing developers to test for design flaws and tweak any outstanding issues.

Shanghai is set to be the first significant update since Ethereum's Merge in September, which shifted the network to a Proof-of-Stake mechanism.

The merge also enabled users to deposit ETH with the network to become validators and aid in verifying on-chain transactions, in return for accumulating rewards in the form of newly minted ETH.

According to analysts at JP Morgan, the flexibility for stakers of ETH to withdraw their funds at any time "could mark a new chapter of staking" for leading cryptocurrency exchange Coinbase, as staked ETH being locked has been a “big dis-incentive to stake ETH historically.”

MakerDAO to Deploy $100M USDC on Yearn Finance

Popular decentralized finance (DeFi) protocol MakerDAO has seen its community approve a proposal to deploy up to $100 million in USDC from its reserve to Yearn Finance, where the stablecoin will be used to earn yield.

Maker is now set to pen an individual non-custodial vault on Yearn with a ceiling set at $100 million to deposit USDC from its “peg stability module,” which backs its decentralized stablecoin DAI.

The strategy is set to allow the protocol to earn a 2% annual yield on deployed funds. For the final implementation and the transfer of funds a further “executive vote” is necessary. The move is part of Maker’s strategy to diversify its revenue stream by allocating part of its $47 billion in reserve assets to yield-generating strategies.

Maker has partnered with Coinbase’s custody platform and invested in U.S. government bonds to earn interest on its reserves, and DAI holders can receive a 1% annual reward as a result of this increased income.

SEC’s ‘One-Dimensional Approach’ is Slowing Bitcoin’s Progress, Says Grayscale CEO

The CEO of Grayscale Investments, Michael Sonnenshein, has said that he believes the approach to regulatory enforcement by the United States Securities and Exchange Commission (SEC) has been slowing down Bitcoin’s progress.

In a letter published in the Wall Street Journal, Sonnenshein said he agreed with an assertion that the SEC was “late to the game” when it came to cryptocurrency regulation and preventing the collapse of FTX. He added:

“‘Late’ doesn’t capture what transpired here. The problem is the Securities and Exchange Commission’s one-dimensional approach of regulation by enforcement.”

Grayscale Investments has filed a lawsuit against the SEC for the regulator’s denial to convert its Bitcoin trust into a spot-based exchange-traded fund (ETF). Per Sonneshein, the SEC’s inaction has “prevented Bitcoin’s advancement into the U.S. regulatory perimeter,”  and forced American investors to offshore businesses “with less protection and oversight.”

Percentage of Long-Term BTC Holders Hits New High

Data on the distribution of ownership indicates that the proportion of long-term holders of BTC is at a record high. This is typically seen after periods of consolidation, during which long-term holders can acquire BTC at lower prices.

Conversely, the percentage of short-term holders of BTC was at a multi-year low in October 2022, indicating that a reversal is likely and short-term traders may start to take on more BTC positions in the short to medium term.

Read more on CryptoCompare’s latest Market Spotlight.

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.