Ethereum burns $76.7M due to memecoin boom, Celsius users can access court-approved withdrawals, Voyager liquidates assets, and more. Stay ahead with Datawallet's daily insights.
Ethereum Burns $76 Million & Celsius Opens Withdrawals 🔥

Ethereum Burns $76 Million & Celsius Opens Withdrawals 🔥

Ethereum burns $76.7M due to memecoin boom, Celsius users can access court-approved withdrawals, Voyager liquidates assets, and more. Stay ahead with Datawallet's daily insights.

May 9, 2023
| Issue

Happy Monday, and welcome to another edition of the Datawallet newsletter, your go-to place for the latest updates and insights from the dynamic world of crypto. Here we share information for both experienced and novice investors and participants in the crypto sphere. Get ready for some thrilling news. 

Today’s drop will cover these key daily news items:

Ethereum Burn hits 10-month all-time high

The recent "memecoin" trading boom on Ethereum has led to increased transaction fees and Ether burning, reaching 10-month highs. This has caused a shrinking Ether supply, which some investors view as a potential catalyst for price growth. In the past week, Ethereum burned $76.7 million worth of Ether, with Uniswap accounting for 35% of all transaction fees. 

The surge in memecoin trading has led to a shrinking Ether supply, as the amount burned is three times greater than new Ether entering the system. This has implications for structural buy flows and the cost to submit transactions, as users must replace the Ether they spend to pay for these transactions. As Ethereum can only process a limited number of transactions per block, increased demand for blockspace raises required base fees and pushes users to pay premiums for faster processing.

Ethereum Burn

Celsius users able to undertake Court-approved withdrawals

Celsius, the once-trusted crypto lending platform, has just made a stunning announcement that is sure to delight its loyal users! After months of patiently waiting, certain lucky individuals will now have the opportunity to reclaim a full 100% of their original funds, more than 300 days after the platform temporarily froze withdrawals. This exciting news comes after the platform recently received court approval to release the remaining 6% of distributable custody assets to eligible users, who until now were only able to withdraw up to 94% of their funds.

A glimmer of hope shone for Celsius patrons as the proclamation heralded a stride forward in compensating those who had lost their hard-earned money - a predicament that had persisted since June 2022 when the enterprise halted transactions, eventually filing for insolvency in July. Several individuals had voiced their discontent with the backlog of withdrawal attempts that had piled up, even though the funds were seemingly accessible, with a few alleging that their appeals took an inordinate amount of time to be processed.

Voyager to liquidate assets

The legal representatives of Voyager Digital have declared that the bankrupt cryptocurrency lender will be engaging in a self-liquidation process and winding down its operations. This decision was made after failing to secure a deal with either FTX US or Binance.US for the sale of their assets. A recent court filing revealed that the announcement came a mere 10 days after Binance US backed out of a $1 billion deal due to government intervention. 

Prior to this, Voyager had struck a deal with FTX, which fell through after FTX filed for bankruptcy protection. Unfortunately, Voyager's customers are only expected to receive a meager 36% initial recovery rate of their cryptocurrency holdings, far lower than the 72-73% estimates for successful acquisition plans or even the recovery estimates for creditors of other bankrupt cryptocurrency platforms. However, Voyager's recovery rate may still rise if Alameda Research's attempt to retrieve $446 million from Voyager's estate fails. Currently, Voyager's lawyers have reserved $259.6 million of the estate's holdings for litigation costs, administrative claims, and other "holdbacks."

Liechtenstein to accept Bitcoin for government services

Liechtenstein's fearless leader, Prime Minister Daniel Risch, has just made a major move towards the future by announcing the acceptance of Bitcoin for government services. According to local news outlets, the tiny yet mighty nation is fully embracing the power of blockchain technology.

Although Risch didn't provide an exact timeline for implementation, the savvy finance minister made it clear that Liechtenstein won't be holding onto any digital assets. Instead, they plan to immediately convert Bitcoin deposits into Swiss francs, their beloved national currency. This clever strategy effectively bypasses any concerns over Bitcoin's infamous volatility.

Despite not being a member of the European Union, Liechtenstein is proudly a part of the European Economic Area, where the EU's Markets in Crypto-Assets (MiCA) regulation may soon apply. This progressive stance towards crypto regulation could lure in even more digital currency enthusiasts to the charming principality.

PEPE plummets 50%

After experiencing one of the most incredible rises in altcoin history with a jaw-dropping increase of nearly 5,000,000%, Pepecoin (PEPE) holders might be cashing in on their positions and taking profits. This wild ride has taken the token to new heights, hitting a market capitalization of $1.8 billion in just over three weeks since its mid-April launch, only to come crashing down by almost 45% from its peak of $0.00000431 on Friday.

It's likely that traders are cashing in on their PEPE positions or utilizing advanced trading strategies, especially with the introduction of several pepe-tracked futures in the past week. These profits are possibly being converted into Ether (ETH), which recently set a lifetime high of $4,500 and experienced an all-time high in deposits to exchanges since November 2021.

According to on-chain analytics firm Santiment, the increasing number of ether deposits may be stemming from traders taking profits on their Pepe positions. Who knows what kind of wild ride these altcoins will take us on next?

Other breaking news

  • Binance resumes Bitcoin withdrawals despite high transaction fees
  • Gravita Protocol unveiled 
  • 2023 a new beginning for Filecoin?
  • Ripple to spend $200 million in lawsuit against SEC
  • Sam Altman’s Worldcoin releases first major consumer product

Wrapping up

That wraps up our Monday! The meme craze comes crashing down with PEPE losing over 50%, but there is good news for Celsius faithful, now you can withdraw almost all of your holdings from the platform. Liechtenstein marches into the future by announcing it will accept BTC for government services, and Ripple will likely spend a fortune battling the SEC. 

Stay informed and ahead of the game with our daily crypto scoop. See you tomorrow!