Digital Asset Market Update – Week of March 8th, 2021

The digital asset market never sleeps, and there’s a never-ending influx of news to cover. This week, 4 major developments that confirm emerging trends and could positively impact the current bull market.

Watch: We do a video version of our Digital Asset Market Update on our YouTube channel

Ethereum approves EIP 1559

 

Ethereum is considered inflationary, but EIP 1559 is a deflationary update. This upgrade was approved by Ethereum developers for the July 2021 “London” hard fork and would take a portion of fees out of circulation permanently. In other words, a portion of Eth would be permanently burned when paying fees to transact on the Ethereum blockchain.

This also improves the user experience of the network as Ethereum users would reliably estimate the fees paid for transactions. As it stands currently, fees are determined because of the auction system in place.

 

Norway’s Aker adds BTC to the balance sheet

 

Norwegian oil billionaire Kjell Inge Rokke purchased $58 million worth of Bitcoin as “the best defense against the disruption facing the finance industry and central banking.” Rokke believes finance is as sure to get disrupted as fossil fuels are and that it could become the underpinning of a new financial structure.

China’s Meitu adds ETH to the balance sheet

 

We’ve seen billions worth of Bitcoin added to the balance sheet of MicroStrategy and Tesla during this bull run. More corporations will soon announce that they’re doing the same. However, not many corporates have announced adding ETH to the balance sheet, although we know they have been.

That all changed when Meitu, a software company, purchased $22M worth of Ether and $17.9M worth for their treasury. While Bitcoin is king, most of the innovation in the space comes out of the Ethereum network, which points to a much larger upside when it comes to price.

Billions of BTC Pulled Off Coinbase

 

When Billions in Bitcoin are moved off of exchanges and into unknown wallets, it signals that whoever purchased them is planning on holding. We’re in an inflationary environment with unforeseen economic turmoil with historic money printing. No one knows how everything could play out over the next several years.

Additionally, when billions suddenly move off coinbase, it could also signal that other major corporations are signally the purchase of a large amount of Bitcoin for their treasury reserve.

However, we all know that the dollar is losing 15% per year, and Bitcoin has historically gained 200% per year. Leaving your wealth in dollars is becoming extremely irresponsible, considering the data.