Key Takeaways
- The number of Ethereum investors owning less than 0.01 ETH and 0.1 ETH has been increasing since early November.
- Myanmar's shadow government declared the USDT stablecoin as an official currency.
- Following a 30% decrease from its November high, Bitcoin is holding steady.
After hitting a record high of around $4,867 on Nov. 10, Ethereum's native token, Ether (ETH), has lost almost 18% and is presently trading near $3,900. Nevertheless, the price drop hasn't discouraged small-scale investors from purchasing the coin.
The number of Ether addresses holding less than or equal to 0.01 ETH hit an all-time high of 19.95 million on Dec. 4, as per data obtained by Glassnode, a blockchain analytics platform, on the day ETH plunged to as low as $3,575 per coin (data from Coinbase).
Despite Ether's drop from $4,867 to $3,575, the number of Ethereum wallets with holdings of at least 0.1 ETH continued to rise, finally reaching a new record high of 6.37 million on Dec. 12.
Buy and sell crypto in 5 minutes.
As a result, on December 12, the number of Ether addresses having a non-zero balance hit a new high of approximately 70 million.
On the other hand, addresses with less than or equal to 1 ETH fell in lockstep with prices, showing that they were less interested in purchasing Ether's sessional declines.
The USDT stablecoin has been declared an official currency by Myanmar's shadow government
According to the NUG finance minister, Tether would improve trade speed and payment efficiency.
Myanmar's shadow government, the National Unity Government (NUG), formed by followers of imprisoned leader Aung San Suu Kyi, has designated Tether (USDT) as an official currency for local use.
According to a Bloomberg story, the NUG will accept Tether for its ongoing fundraising campaign to overthrow Myanmar's present military authority. The shadow government also garnered $9.5 million by selling "Spring Revolution Special Treasury Bonds" to Myanmar diasporas all over the world. Through the issuance of NUG-issued bonds, the group hopes to raise $1 billion.
On Monday, the NUG Ministry of Planning, Finance, and Investment announced the change on its Facebook page.
Swap digital currencies at a low fee.
The NUG's decision to make Tether an official currency challenges the Central Bank of Myanmar's crypto prohibition, enacted in May of last year.
Privacy issues and the present regime's seizure of funds spurred the adoption of Tether as an official currency for local use. According to the NUG finance minister, Tether’s formation is primarily for "domestic use to make things easy and accelerate the current trade, services, and payment systems."
After a 30% drop from its November high, Bitcoin is holding steady
Bitcoin has stabilised after falling further from its record high in November, as speculative demand for cryptocurrencies is affected by the likelihood of less central bank support.
Following a 6.3 percent dip the day before, the digital asset traded at $46,435 at 6:47 a.m. in London on Tuesday. Ether, Solana, and Dogecoin were among the other coins that suffered losses.
Digital currencies, like other speculative investments like meme stocks, have faltered recently, in part because the Federal Reserve and other central banks are reducing the flood of pandemic-era liquidity that boosted a variety of markets.
Bitcoin has lost more than 30% of its value since hitting an all-time high of about $69,000 on November 10. According to proponents, retail and institutional investors are rapidly diving into crypto assets.
Start crypto investing
In a note, Chris Weston, head of research at Pepperstone Financial Pty Ltd., wrote, "These once liquidity beneficiaries are the canary in the coal mine, and what the Fed giveth, they are now geared to take away." "Crypto gets the added momentum from the adoption story," he continued.
In 2021, the world's largest virtual currency is still up approximately 60%, outperforming traditional assets such as global stocks, commodities, and gold. However, Bitcoin's wild swings have shattered the controversial narratives that portray it as a store of value and inflation hedge.
Maybe you are interested:
