DeFi DeBrief #5 | Merged 💥

TL;DR:

• Ethereum merge complete
• Fidelity considers Bitcoin trading
• Coinbase sues U.S. treasury

Onwards 👇

Ethereum is now proof-of-stake ⚡️

The Merge is complete. 

Ethereum has moved from proof-of-work (PoW) to proof-of-stake (PoS), meaning it now requires just 0.05% of its prior energy consumption, and total new ETH issuance has dropped by roughly 90%.

At a gas price of just 16 gwei, at least 1,600 ETH is burned every day, so net ETH issuance could well hit zero, even turning deflationary during periods of high network usage. This is a watershed moment in Ethereum’s history.

This is game-changing for anyone interested in the blockchain.

Why should you care?

Since Ethereum’s inception, it has set its sights on shifting to proof-of-stake. Rumours of The Merge have circled for some five years, but constant delays led many to question if, not when, it would happen.

But Ethereum has merged. And even if the immediate effect is nominal, the new supply dynamics could well have an impact in the coming months.

BTC trading coming to 34.4m Fidelity clients ₿

One of the most prominent institutions on Wall Street, Fidelity, might let individual brokerage accounts trade bitcoin. The financial services giant has more than 34.4 million such accounts, showing the scale of the decision.

The move would follow in the footsteps of BlackRock, which now offers crypto trading to its institutional customers. And it would be on top of Fidelity allowing corporate clients to add bitcoin to the 401(k) plans it manages.

IN THE HEADLINES

Coinbase funds lawsuits against U.S. Treasury ⚖️

Coinbase, one of the world’s biggest cryptocurrency exchanges, is paying the costs of a lawsuit against the U.S. Treasury Department over its recent sanctions of coin mixer Tornado Cash.

Tornado Cash lets users move crypto anonymously, but the Treasury recently banned Americans from interacting with the protocol. In response, six individuals have claimed the department ‘overstepped its authority.’ 

The lawsuit alleges the move ensnares law-abiding citizens, and Coinbase is fighting for the cause.

Five short reads catching our eye this week:

1. Binance will issue soulbound tokens to KYC’ed clients
2. Starbucks unveils new Polygon-powered loyalty program
3. Google to validate transactions of popular blockchain game
4. Crypto lender Voyager auctions off all remaining assets
5. Celsius to repay less than 25% of frozen client assets

TEMPERATURE CHECK 🔥

• BTC: $20,255.70 (7.64%, 7 days)
• ETH: $1,608.86 (5.76%, 7 days)
• TVL in DeFi: $56.75bn
• Fear & Greed: 27 (fear)

*Data last updated at 08:00 on 14th September.

TWEET CHECK 🐦

The first post-merge block has been mined.

Ethereum is now officially Proof of Stake.

— eric.eth (@econoar) September 15, 2022

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