The cryptocurrency market experienced quite a momentous August, with the ‘Onchain Summer’ event seeing over 700,000 non-fungible tokens (NFTs) minted by more than 268,000 users. Aimed at promoting Base, the Ethereum layer-2 launched by Coinbase on August 9, the event saw the network teaming up with over 50 companies, artists, and creators to release exclusive digital art NFTs.
This collaborative effort contributed to a substantial increase in activity on the network. Throughout the first two weeks, over $242 million worth of crypto assets were transferred to Base as 130,000 unique wallets were interacting daily. New NFT releases kept interest alive, encouraging users to return to the network continually to gather each piece.
Nonetheless, the event wasn’t all roses. While the Base network saw the total value locked (TVL) in its contracts steadily growing to reach a peak of over $402 million on Sept. 3, it also suffered from unpredictable situations. A network outage on Sept. 5 stalled the otherwise dynamic event, and it was also targeted by numerous scams, including the $6.5 million rug-pull Magnate Finance.
Moving on, the appointment of Philip Jefferson as the Federal Reserve vice chair was yet another significant development in the crypto space. Given that federal institutions like the Fed, the Securities and Exchange Commission, and the Commodity Futures Trading Commission influence policy formulation over cryptocurrencies and blockchain technology, Jefferson’s new role could impact the future of crypto regulations.
Even here, the future unfolds with a veil of uncertainty. Despite Jerome Powell, Fed’s chair, advocating for a “robust federal role” in the regulation of stablecoins, he has strongly supported numerous interest rate hikes for 2023, which could potentially send ripples throughout the markets.
Furthermore, although President Biden’s pick for the position, Jefferson, promises potential advancements to crypto-related policies, the possibility for future guidance remains vague. As Powell’s current term is set to end in 2028, the coming years promise a blend of progress and challenges in the crypto space.
In sum, while both the ‘Onchain Summer’ event and the appointment of Philip Jefferson added a touch of excitement and anticipation to the market scenario, uncertainties and risks inherent to the crypto market accompanied these developments. Par for the course, you might say, in the constantly evolving world of cryptocurrencies.
Source: Cointelegraph
