The Ethereum blockchain has successfully implemented its highly-anticipated Dencun hard fork, considered the most significant since the Merge in September 2023. The upgrade aims to facilitate cheaper transactions on Ethereum's Layer-2 networks.

Nasdaq-listed firm MicroStrategy has filed plans to raise $500 million through a convertible debt offering. The firm intends to use the proceeds to bolster its Bitcoin holdings further.

A U.S. district judge has ruled against crypto exchange Gemini and crypto lender Genesis in their attempt to dismiss a lawsuit brought by the Securities and Exchange Commission (SEC) over the Gemini Earn program.

Top stories in the Crypto Roundup today:

• Ethereum’s Dencun Hard Fork Goes Live
• MicroStrategy Plans $500 Million Convertible Debt Offering to Buy More Bitcoin
• US Judge Rejects Gemini and Genesis’ Bid to Dismiss SEC Lawsuit
• Binance's Spot Volume Rises to Highest Level Since March 2023 Banking Crisis

Ethereum’s Dencun Hard Fork Goes Live

The Ethereum blockchain has successfully implemented its highly-anticipated Dencun hard fork, considered the most significant since the Merge in September 2023. The upgrade aims to faciliate cheaper transactions on Ethereum's Layer-2 networks.

Dencun comes nearly a year after the Shanghai upgrade – which started allowing ETH stakers to unstake - and incorporates a total of nine Ethereum Improvement Proposals (EIPs) designed to enhance both the execution layer, which processes transactions, and the consensus layer, which ensures network agreement.

The hard fork introduces proto-danksharding through EIP-4844, allowing data to be handled through a storage mechanism called “blobs,” which are large blocks of data that can be “much cheaper than similar amounts of calldata,” according to Ethereum co-founder Vitalik Buterin.

According to a Fidelity Investments report, however, users seeking lower fees are likely going to have to rely on Layer-2 scaling solutions, which may involve decentralization and security trade-offs.

Ethereum's mainnet gas fees, meanwhile, remain high with an average token swap on-chain costing over $86 in gas fees, while non-fungible token sales average over $145.

MicroStrategy Plans $500 Million Convertible Debt Offering to Buy More Bitcoin

Nasdaq-listed firm MicroStrategy has filed plans to raise $500 million through a convertible debt offering. The firm intends to use the proceeds to further bolster its Bitcoin holdings.

This latest capital raise comes on the heels of a similar $800 million convertible debt offering, which MicroStrategy recently closed after upsizing from an initial target of $600 million. Funds from both offerings, combined with existing cash reserves, were used to acquire an additional 12,000 BTC for a total of $821.7 million.

MicroStrategy, now openly identifying itself as a "Bitcoin Development Company," has become a prominent figure in the cryptocurrency space ever since it started acquiring Bitcoin. The firm, following its latest purchase, has 205,000 BTC, worth nearly $15 billion.

US Judge Rejects Gemini and Genesis’ Bid to Dismiss SEC Lawsuit

A U.S. district judge has ruled against crypto exchange Gemini and crypto lender Genesis in their attempt to dismiss a lawsuit brought by the Securities and Exchange Commission (SEC) over the Gemini Earn program.

In a decision issued by the U.S. District Court for the Southern District of New York, Judge Edgardo Ramos noted that the SEC's complaint "plausibly alleged" the companies offered and sold unregistered securities through the program.

The SEC alleges that the Gemini Earn program, which allowed users to earn interest on their deposited cryptocurrency, constituted an unregistered securities offering, arguing that the program met the criteria established by the Howey Test and Reves Test, legal frameworks used to determine if an investment qualifies as a security.

These tests consider factors such as the expectation of profits from the efforts of others and the investment of money in a common enterprise. Judge Ramos' decision allows the SEC's case to proceed, potentially paving the way for a significant ruling on the regulatory status of crypto lending programs.

Launched in 2021 by the company led by the Winklevoss twins, the Gemini Earn program allowed customers to lend their cryptocurrency to the now-insolvent Genesis Global Capital, with the promise of earning an annual percentage yield of up to 7.4% The SEC first charged both firms in connection with the program in January 2023.

Open Interest and Funding Rates Hit New Highs

In February, derivative exchanges saw their open interest soar to unprecedented levels, with a 54.9% increase to $49.3 billion, as traders increased their leverage while Bitcoin neared a record high.

The top three derivatives exchanges—Binance, OKX, and Bybit—experienced significant growth in open interest, rising to $17.4 billion, $5.90 billion, and $10.7 billion, marking increases of 51.1%, 47.5%, and 42.9%, respectively.

Funding rates on these exchanges also saw a considerable rise from January, reflecting positive market sentiment. The funding rates increased steadily throughout the month, underscoring the market’s leverage, with traders on OKX and Binance showing more bullish behavior.

Dig deeper into the world of cryptocurrency trading with CCData’s latest Exchange Review report.

State of the Crypto by Top Tier Exchange Volume

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