Crypto News

At Bitcoin Market Journal, we invest in crypto tokens as if they were stocks. While there are important differences between the two, we analyze crypto “companies” like traditional companies, and diversify our investments with a mix of both. More on our approach here. Key Takeaways: Fees often play a significant role in a crypto project’s success in the long-term: they’re like the fees charged by a traditional company for using their product or service. Monitoring fees can give you insight into network usage and demand. Some of the top cryptocurrencies by fees include Ethereum, Tron, Tether, Bitcoin, and Lido Finance. Just as a traditional company generates income by charging customers for its products or services, crypto companies collect fees from users who transact on the network. Essentially, fees are how crypto companies make money. Think of it like a toll road. Drivers pay a fee to use the road, which is then collected by the company or authority that maintains the infrastructure. The more popular and essential the road, the higher the fee revenue. Similarly, a blockchain network that processes many transactions—especially if users are willing to pay higher fees for faster service—will generate substantial fees, which can indicate a great long-term investment. For crypto investors, fees are a great barometer of a company’s success. Because they are like revenue of a traditional company, they are one of our most important metrics for identifying promising crypto investments. In this guide, we’ve rounded up the top crypto companies earning the most fees. Top Crypto Investments by Fees Ethereum With almost $2B in fees this year, Ethereum’s high fee revenue is a result of several factors. On one hand, there has been an increase in usage due to the DeFi and NFT market boom. However, network congestion and gas fee structures also play a role. Ethereum is no stranger to network congestion, and when this happens, users have to bid higher gas fees in order to have their transactions prioritized. Ethereum also has a base fee mechanism that was introduced in August 2021. The base fee adjusts automatically based on network congestion, with fees rising during periods of high activity. Under this structure, users can also pay “tips” to have their fees prioritized. Ethereum experienced a spike in fees in March 2024 due to a growth in speculative activity, particularly on decentralized exchanges like Uniswap. This activity was fueled by the rising popularity of ERC-404, an unofficial token standard that enables fractionalized NFTs. These tokens have much higher gas fees — as much as three times more than traditional NFTs – which led to a surge in gas prices. Broader events in the crypto market also played a role, as BlackRock launched a bitcoin ETF in early March that increased overall interest in cryptocurrencies. Tron Tron has earned about $1.35 billion in fee revenue this year, partially due to stablecoin activity, as Tron has become the go-to network for USDT (Tether) transactions. USDT is one of the most popular stablecoins in the world, and Tron’s fast speeds and low transaction costs have made it a preferred network for many stablecoin users. Unlike Ethereum, Tron is designed for low-cost microtransactions, making it an attractive platform for those performing frequent, small-value transactions. Where Ethereum’s fee growth has been fairly flat, Tron’s fees are definitely growing. Tether As of this writing, Tether has earned $1.209B YTD in fees. As mentioned, Tether remains one of the most widely used stablecoins, and it’s a go-to for many for cross-border payments and remittance services, particularly in countries where traditional banking systems are unreliable. It is also currently one of the most transacted assets on the Ethereum blockchain, and when Ethereum experiences congestion due to high network activity, Tether benefits by earning more in fees. Bitcoin Bitcoin has earned substantial revenue in fees this year – around $800 million – in part due to a significant uptick in transaction volume. Additionally, bitcoin introduced the Ordinals protocol in 2023, which allows users to embed data, such as texts or images, directly onto the bitcoin blockchain. This has led to minting more NFTs on bitcoin, which previously was not a widespread practice. Minting NFTs requires more block space, leading to higher transaction fees, particularly in times of high demand. These “BRC-20 tokens” have also led to speculative trading activity on bitcoin, which has resulted in more network congestion, therefore increasing fees further. Bitcoin’s fees also spiked in April 2024, due to the highly anticipated halving event on April 20th, wherein rewards for miners were cut in half. This led to increased competition among users trying to have their transactions confirmed on the final blocks before and immediately after the halving. Despite the spike in fees, things cooled down quickly after the halving, with fees returning to normal levels shortly afterward. Lido Finance Lido Finance has earned $780.413M YTD in fees. Lido’s high fee revenue can be partially attributed to it being a dominant blockchain for liquid staking, particularly Ethereum staking. Additionally, Lido’s liquid staking token, stETH, has become widely used on DeFi protocols. Lido has also expanded its staking services to other PoS networks like Solana, Polygon, Polkadot, and Kusama. This diversification has brought in additional staking fees from these networks, further boosting Lido’s overall earnings. Crypto Fees vs. Revenues At Bitcoin Market Journal, we define “fees” and “revenue” differently: Fees: refers to the total amount of money that users pay to use the network or protocol. It includes transaction fees, swap fees, or other service charges. For example, Ethereum’s fees are what users pay to miners or validators to have their transactions included in the blockchain. Revenue: Revenue is the portion of the fees that is actually retained by the protocol or distributed to its stakeholders. It represents the “income” that is earned by token holders, developers, or validators after paying for the network’s operating costs. The Relationship Between Fees and Project Success Fees often correlate directly with the success of a crypto company. Fees can be a crucial

Homepage > News > Finance > Is this a hint at what BRICS currency system will look like? The much-anticipated 2024 BRICS summit is set to take place between October 22 and 24 in Kazan, Russia. As the event draws near, speculation about the details of the much-touted BRICS digital currency and payments network is rife. So far, details have been sparse, but the Deputy Chairman of the State Duma, Alexander Babakov, dropped a hint in late September. The Russian higher-up told Ria Novosti newspaper that BRICS could use blockchain technology and digital currencies for inter-bloc settlement. Babakov said a BRICS payment system was the “key to economic sovereignty and independence.” While hints about the use of blockchain and digital currencies have been dropped before, the timing of Babakov’s recent comments suggests there could be much more to the rumors than mere speculation. What is driving BRICS to de-dollarize? The search for alternative payment systems and the quest to de-dollarize began when the United States placed hundreds of sanctions on Russia after it invaded Ukraine. After losing $300 billion in reserve assets, Russia quickly became the most sanctioned country on earth, although its economy is still growing in terms of purchasing power parity. Aside from Russia’s woes, former U.S. President Donald Trump‘s trade war with China and the ongoing tit-for-tat tariffs between China and the European Union have intensified BRICS’ economic independence plans. It appears that, once again, the world is separating into separate economic spheres, and mistrust between them is growing. However, de-dollarization won’t happen overnight. China still holds $3.28 trillion in reserves and $767.4 billion of U.S. Treasury securities. And while Mexico became the United States’ biggest trading partner in 2023, China still does $575 billion in trade with America annually. Despite this, BRICS internal settlements in its national currencies surpassed those in USD in September 2024. Regardless of how slowly it happens, de-dollarization is the aim and is happening gradually but inevitably. How blockchain tech can enable peer-to-peer settlements Projects like mBridge have already shown how blockchain and tokenized currencies can dramatically speed up settlements between central banks. While Russia isn’t permitted to be part of such systems as long as U.S. sanctions remain in place, the concept has been proven, and BRICS can create a similar system. How might blockchain tech play a role? They can make peer-to-peer payments between entities of any kind possible for tiny fees. While BRICS trade balances only need to be settled periodically, blockchains and digital currencies could make settlement possible in real-time. The purported BRICS system is part of a larger trend utilizing blockchains, digital ledgers, tokenized currencies, and CBDCs to shake the existing financial infrastructure and order. While nations and corporations may still choose not to do business with Russia in fear of secondary sanctions, such a system would make inter-BRICS payments much more efficient, less expensive, and resistant to third-party interference. Will the new BRICS currency and payment system be revealed in Kazan later in October? If Alexander Babakovs’ comments are anything to go by, something is cooking, and we may get to taste it soon. Watch: Revolutionizing everyday life with blockchain title=”YouTube video player” frameborder=”0″ allow=”accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share” referrerpolicy=”strict-origin-when-cross-origin” allowfullscreen> #hint #BRICS #currency #system

Image attributed to: newsBTC.com The cryptocurrency world is buzzing with excitement today, and if you’re not paying attention to the latest Ethereum news, you’re missing out! One name that’s been making waves is Mpeppe (MPEPE), a new ICO that’s got Ethereum (ETH) investors dreaming of significant returns. So, what’s all the fuss about? Let’s break it down. First off, Mpeppe is capturing the attention of the ETH community with its unique blend of meme culture, sports fandom, and blockchain innovation. Inspired by the legendary Pepecoin and the soccer superstar Kylian Mbappé, Mpeppe is not just another token; it’s a movement aimed at uniting sports enthusiasts and crypto investors alike. With its ICO priced attractively, many are hopping on the Mpeppe train, believing it could deliver some serious gains. According to NewsBTC, the buzz around Mpeppe is palpable, and investors are optimistic. What’s even more enticing is the promise of potential 350x gains. Yes, you read that right! Ethereum holders are on the move, looking to diversify their portfolios with Mpeppe, which is being touted as a compelling investment opportunity. The combination of a low entry price and high growth potential makes it a hot topic among crypto enthusiasts. NewsBTC highlights how the buzz around Mpeppe is attracting savvy investors eager to capitalize on this new opportunity. But wait, there’s more! The recent drop in Ethereum gas fees has further fueled interest in Mpeppe. As investors flock to purchase this new memecoin, Ethereum’s network is experiencing a noticeable decrease in transaction costs. With Mpeppe priced at just $0.001777, more investors can afford to jump in, making it easier to buy and trade. NewsBTC explains how this surge in Mpeppe purchases is positively impacting Ethereum’s ecosystem. So, what does all this mean for Ethereum (ETH) investors? Well, Mpeppe is not just another memecoin; it’s a unique opportunity that combines entertainment with financial utility. By integrating with decentralized finance (DeFi) protocols, Mpeppe offers practical financial services such as lending, borrowing, and yield farming. This versatility is a major draw for investors who understand the growing importance of DeFi in the crypto space. In conclusion, the latest Ethereum news today is all about Mpeppe (MPEPE). With its innovative approach, community-driven focus, and the potential for substantial returns, it’s definitely an ICO to watch in 2024. As the excitement continues to build, Mpeppe is positioning itself as a key player in the next generation of memecoins. Keep your eyes peeled, because this is just the beginning! #Mpeppe #MPEPE #ICO #Everyones #Talking

Bitcoin, the leading cryptocurrency by market value, rose to nearly $63,500 during the North American daytime, probing a downtrend line characterizing the pullback from late September highs above $66,000, according to data source CoinDesk and TradingView. Prices topped $63,400 late Friday but failed to sustain the move and dipped to $62,400 early today. #Bitcoin #BTC #Takes #Shot #63.5K #Chinas #Vague #Fiscal #Stimulus #Deters #Capital #Shift

Polymarket is a “prediction market,” which really means “gambling platform.” Thrust to prominence due to the U.S. presidential election, you can bet real money (in the USDC stablecoin) on the outcome. You can also bet on practically anything, including the next James Bond actor, whether the US will confirm aliens exist, and whether bitcoin will hit $250,000. Polymarket has become a societal phenomenon, quoted by mainstream media and tweeted by Elon Musk, who claimed it is more accurate than polls, since real money is on the line. Built on Polygon, it is one of the first bona fide mainstream crypto products. In this guide, I’ll explain how it works, the difference between gambling and investing, and the real investing opportunities in Polymarket’s massive growth. How Polymarket Works It’s similar to sports betting, but easier to understand. You buy “shares” of an outcome, each priced between $0 and $1. The price of a share reflects the crowd’s best guess on the probability of that outcome happening. If it happens, each share pays out $1. If not, it pays $0. For example, let’s say there’s a bet on Polymarket on whether it will rain tomorrow: “Yes” shares are priced at $0.70 (the crowd believes there’s a 70% chance of rain) “No” shares are priced at $0.30 Let’s say you buy 10 “Yes” shares: Cost: 10 x $0.70 = $7.00 (You bet $7.00) If it rains: Payout is 10 x $1 = $10.00 (Profit: $3.00) If it doesn’t rain: Payout is $0 (Loss: $7.00) Polymarket aggregates the beliefs of all the bettors, weighted by the amount they’re willing to bet. It’s also called “the wisdom of the crowds,” though this statement is misleading, because many bets on Polymarket can be manipulated by people with insider knowledge. The Problem with Polymarket Let’s say, for example, that an upcoming HBO documentary was going to finally reveal the identity of bitcoin creator Satoshi Nakamoto. A bet forms on Polymarket guessing who the famous person is going to be. Think of the hundreds of people who have been involved in the making of that documentary, from the HBO executives to the lowly video editors. They know the answer. Any one of them can hop on Polymarket before the release date, place a bet, and win real money – at a very favorable payout. For some bets (like the outcome of the election or this year’s Super Bowl winner), no one definitively knows which way it will swing. But for many bets on Polymarket (like whether Taylor and Travis will break up, or whether Lana Del Ray will get pregnant this year), some people know, and you don’t. That’s why a bet on Polymarket is a sucker’s bet. Gambling vs. Investing Gambling is bad; investing is good. Gambling promises something for nothing. The house always wins. And, for some unlucky gamblers, it can be highly addictive, robbing them of everything. In the end, no value is created (unless you want to claim “entertainment value,” but it’s only entertaining when you win). Investing is good, because it puts our money behind important companies that provide products and services that society needs. It lets us pool resources into building things the world wants. In the end, massive value is created. I would never recommend placing a bet on Polymarket: let the suckers do that. Nor would I invest directly in Polymarket – any more than I would invest in a casino. To me, society would be better off if gambling was banned completely. Everyone is talking about Polymarket, though, and no one mentions it’s built on blockchain technology. CNN and Fox News talk about it constantly, but no one cares it’s crypto! This is a milestone moment. We have finally arrived. Which means there are intelligent investing opportunities in Polymarket, behind the scenes. The Investing Opportunities Polymarket is built on Polygon (POL), one of the most popular layer-2s for Ethereum (ETH). This means Polymarket’s smart contracts – the millions of rapid-fire bets being made around the world – are faster and cheaper than running on Ethereum directly. There’s no Polymarket token at this point (that token launch would be bananas), but investors can simply buy and hold POL, the platform Polygon is built upon (and named after). Better yet, you can buy and hold ETH, the foundational platform underneath Polygon and Polymarket. The engineering behind Polymarket is kind of amazing. You link a crypto wallet to Polymarket, then deposit USDC into the Polymarket wallet. When you buy shares, you’re really buying corresponding ERC-20 tokens that are minted or burned as needed, when trades execute. Put another way, each bet has its own set of outcome tokens, minted as NFTs, and collateralized by USDC. If you’re betting on the highest-grossing movie this year, you’re getting an NFT representing “Inside Out 2,” “Deadpool 3,” etc. – and the NFT can either be redeemed for winnings, it or goes to zero. But who determines the winner? Anyone can propose an outcome by staking a bond of $750. For the next two hours, other users can dispute the proposed resolution. If no dispute is raised, the proposer gets a reward of $5, bets are paid out, and the market is settled. What if you disagree with the outcome? Some outcomes are not clear, so any other user can dispute the proposed outcome by staking another $750 bond. From here, it goes to a human vote using the Universal Market Access (UMA) protocol, which is like an independent jury of UMA token holders, separate from Polymarket. From here, the winning proposer gets back their original $750 bond, plus $250 taken from the disputer’s bond. This system is designed to reduce “sore loser” disputes: if you’re wrong, you’ll lose even more money by disputing the outcome. I’m greatly simplifying the technology behind this system, but it’s pretty incredible: a fully-automated global market where you can bet on anything, run on blockchain-based smart contracts. We’ve finally got a mainstream blockchain product. Even if it is gambling.

Homepage > News > Business > Block Dojo: Empowering Philippine startups through innovation and investment In the evolving landscape of the Philippines’ tech startup scene, innovation thrives alongside the challenge of scaling effectively. Block Dojo, a global venture builder program plays a crucial role in providing support for early-stage companies in the Philippines specializing in artificial intelligence (AI) and Web3 technologies. Recently, at the Manila House, amid a backdrop of cocktails and casual networking, Block Dojo Philippines showcased six promising startups who pitched their business ventures to investors during the second Block Dojo’s Investors Night event. title=”YouTube video player” frameborder=”0″ allow=”accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share” referrerpolicy=”strict-origin-when-cross-origin” allowfullscreen=””> Speaking to some of the founders on the Dojo’s role in their growth trajectory, Clarice Cabanlit, Founder and CEO of Willow, told me about the invaluable guidance she received from Block Dojo Philippines‘ mentors in navigating business complexities, from finance to legal matters. “They have been very instrumental in helping me understand the different aspects of the business,” she noted. Jynon Mapa, Founder and CEO of Park King, shared sentiments similar to Cabanlit’s, stressing Block Dojo’s focus on providing the tools and insights necessary to align product development with customer needs, as well as strategic partnerships for scaling effectively. “The network, the masterclasses, the way they teach us about grit and building momentum… it’s all about building partnership, building your team, building your product to be customer-centric. They really help us in terms of being ready to scale,” he said.  Dominic Santiago, Head of Marketing at Block Dojo Philippines, discussed the program’s mission to foster collaboration and innovation within the startup ecosystem. For his part, Block Dojo Philippines serves as a dynamic hub where like-minded individuals converge to exchange ideas and drive industry transformation. “Dojo does want to be able to be that place where people can come together and really drive that innovation forward. We want to champion those guys that are currently being underserved, and these people who currently don’t have access to the funding, don’t have access to the mentorship, the network, or just the services that are required to get to a business from an idea to actual traction,” said Santiago. Kristoffer Briones, Country Managing Director of Block Dojo Philippines, talked about the comprehensive support framework offered by the program. From foundational business education to blockchain integration and networking opportunities, Block Dojo empowers startups to thrive in today’s competitive environment. Block Dojo Philippines Investors Night was a testament to Block Dojo’s commitment to nurturing innovation and facilitating investment opportunities. The exclusive event showcased six innovative entrepreneurs to a group of potential investors. Among the creative business solutions presented by the cohorts at the Block Dojo Philippines Investors Night were: Johannes Cortez’s “BeFit2Together,” a platform merging video game mechanics with fitness. Clarice Cabanlit’s “Willow,” a coaching platform that focuses on personal and professional development. Pierre Legislador’s “Upraised,” a matchmaking platform connecting real estate projects with funders. John Dometita’s “Pettopass,” an interactive platform that offers personalized pet care services. Jynon Mapa’s Park King, a mobile app that streamlines parking reservations before events. Gabriel Avelino Sampedro’s “Certifyed,” a blockchain solution app that verifies credentials and digital certificates. The evening kicked off with insightful remarks from David Almirol, Undersecretary of E-governance at the Department of Information and Communications Technology (DICT), who drew from his experience as a tech startup founder. In an interview, Almirol emphasized the crucial role of initiatives like Block Dojo in empowering startups with genuine opportunities for growth and expansion saying, “We need more Block Dojo’s. We need groups that actually empower the startups, not only giving them opportunity, but giving them a real way to expound and a real way to really grow.”  Sabine Ong, Investments Analyst at Nila Capital Partners, reflects on the challenges and opportunities in the Philippine startup ecosystem. She points out that while there is growing interest in blockchain technology, traditional mindsets and funding constraints pose obstacles. “In the strict sense of businesses, not everybody is open yet to incorporating blockchain technology. I feel like the Philippines sometimes have a traditional mindset, as can be seen in startup funding. If you compare it to [the] Southeast Asian region, funding isn’t as available as other regions. Hopefully, Block Dojo will be one of the companies that can change that,” she said. The landscape of tech startups is evolving rapidly, and Block Dojo plays an active role in this transformation. Whether you’re interested in exploring new ideas or considering investment opportunities, Block Dojo offers a platform to engage in this dynamic sector. For more information on how Block Dojo can support your startup journey or investment goals, visit their website today. Watch: Meet the new Block Dojo Philippines founders aiming for global success title=”YouTube video player” frameborder=”0″ allow=”accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share” referrerpolicy=”strict-origin-when-cross-origin” allowfullscreen=””> #Empowering #Philippine #startups #innovation #investment

Image attributed to: Cointelegraph.com Today in the world of cryptocurrency, Bitcoin is making headlines with a flurry of significant activities. First off, Mt. Gox, the infamous defunct crypto exchange, has shifted a whopping $700 million in Bitcoin. This marks the first major transaction since late July, as they moved around 12,000 BTC to a new wallet. While some speculate it could be for distribution, experts believe it’s more of a strategic maneuver. You can read more about this development here. Meanwhile, analysts are buzzing about Bitcoin’s current price metrics. According to a report from CryptoQuant, two key indicators suggest that Bitcoin is still on a steady bull cycle with no signs of a bubble. They argue that despite not reaching its previous all-time high, the price action is developing steadily without significant anomalies or sharp jumps. For more insights, check out the full article here. In regulatory news, the National Futures Association (NFA) has slapped a $150,000 fine on Ikigai Strategic Partners for an illicit Bitcoin loan. This fine is part of the ongoing fallout from the liquidity crunch that followed the FTX collapse in 2022. The NFA is ramping up its scrutiny of crypto activities, aiming to enforce compliance in a rapidly evolving market. You can read the details here. On the price front, Bitcoin short-term holders are feeling the heat, as noted by Glassnode. They reported that these holders have carried the brunt of losses following Bitcoin’s recent drop below $50,000. The analysts believe this price correction was an overreaction by short-term holders who bought during the 2024 rally. For a deeper dive into this analysis, check it out here. In a related note, CryptoQuant has reported a sharp decline in Bitcoin demand since April, with purchases in the U.S. dwindling significantly. The analysis indicates that apparent demand for Bitcoin has dropped from a high of 496,000 BTC to a negative growth of 25,000 BTC recently. This trend raises questions about the sustainability of Bitcoin’s current market dynamics. More details can be found here. On a more optimistic note, Metaplanet, a Tokyo-based investment firm, has seen its stocks surge after acquiring an additional 57.273 BTC, valued at around $3.4 million. This move aligns with their strategy to strengthen their Bitcoin reserves amidst current market conditions. The firm’s stock price increased by over 11% following the announcement. For more on this acquisition, read here. In a broader market perspective, Bitcoin whales are back in action, accumulating 94,700 BTC over the past six weeks. This surge in accumulation comes at a time when many retail investors are pulling out due to market volatility. This trend signifies a potential bullish outlook among key market players. For a closer look at this phenomenon, check it out here. However, it hasn’t all been smooth sailing. Bitcoin recently faced a sharp drop, losing $2,000 in mere minutes, triggering over $100 million in liquidations. This sudden downturn has left many wondering about the underlying causes, especially since the broader crypto market also saw declines. For a detailed account of this price drop, read here. In terms of market dominance, Bitcoin has managed to maintain its position with $42 million in inflows, according to a report from CoinShares. This marks a continuation of positive momentum, especially after a week where Bitcoin regained investor interest. For more insights on Bitcoin’s market performance, check out the full report here. Lastly, hedge fund CEO Charles Edwards draws parallels between Bitcoin’s current market behavior and Gold’s performance during its 2008 rally. He suggests that Bitcoin is on the brink of a massive breakout, similar to Gold’s significant rally after a prolonged consolidation period. For a comprehensive analysis, read more here. As we wrap up today’s roundup of the latest bitcoin news today, it’s clear that the cryptocurrency market is in a state of flux, with both challenges and opportunities emerging. Stay tuned for more updates as we navigate this ever-evolving landscape. #Major #Moves #Market #Trends

“I don’t think that folks who are paying attention should be much distracted by these efforts to create confusion, because I think the judge got it right, and I think they should welcome the opportunity for the court of appeals to roll on this issue and finally, bring the clarity that we need,” Alderoty said about the appeals court taking up the case – though, he added, the U.S. “really needs a policy solution” from legislators rather than court rulings. #Ripple #Plans #CrossAppeal #SEC #Case #Preserve #Arguments

At Bitcoin Market Journal, we invest in crypto tokens as if they were stocks. While there are important differences between the two, we analyze crypto “companies” like traditional companies, and diversify our investments with a mix of both. More on our approach here.   Key Takeaways: The Graph helps developers get easy access to blockchain data. Its early entry into this specialized space has given it a significant first-mover advantage. Demand-side revenue for The Graph has seen a substantial increase, growing by 160% to an all-time high of $113,000 in Q2 ‘24, according to Messari. The Graph’s usage has also experienced remarkable growth, with query volume hitting an all-time high of over 2.9 billion queries in Q2 ‘24. There is currently no significant competition for The Graph; however, there is still potential for new entrants to challenge its position. In 2017, three software developers—Yaniv Tal, Jannis Pohlmann, and Brandon Ramirez—found themselves united by a common frustration: accessing data from blockchain networks was incredibly challenging. They recognized the potential of blockchain technology but found it difficult to extract meaningful information from it. This shared experience sparked the idea for a groundbreaking project called “The Graph.” They envisioned building a bridge between the vast world of blockchain data and the developers who needed it to create applications. They wanted to simplify the process of querying blockchain data, making it more accessible and efficient. Initially focused on Ethereum, The Graph quickly gained traction and expanded its reach to other blockchains like Polygon, Avalanche, and Binance Smart Chain. Each new integration brought them closer to a unified platform to pull any data from any blockchain. A pivotal moment arrived in December 2020 when The Graph launched its mainnet. This achievement marked a turning point, as they successfully decentralized both the indexing and querying processes—something many thought would be impossible. This launch drew considerable attention from the crypto community, attracting over $69 million in funding through various rounds. Beyond the money, they learned that their vision was not only useful but essential for the blockchain ecosystem. Today, The Graph is a cornerstone of blockchain infrastructure. It powers countless applications by simplifying access to decentralized data. What began as a solution to their own challenges has evolved into a vital resource for developers looking to innovate in the Web3 space. Key Fundamental Data Daily Active Users (DAU): The Graph currently records roughly 600 daily active users, a significant decline from earlier in the year when DAU figures were around or above 10,000. However, despite this drop in DAU, The Graph’s overall engagement remains strong. According to Messari’s Q2 ‘24 report, The Graph handled over 2.9 billion queries—an 84% increase from 1.6 billion in Q1 ‘24. This substantial jump in query volume suggests a growing level of user engagement across the network. Fees and Revenues: The Graph generates revenue primarily through two streams: indexing rewards (supply-side) and query fees (demand-side) paid by users who query data from the protocol. According to Messari, supply-side revenue decreased by 7% from the previous quarter, totaling nearly $17.6 million in Q2 2024. On the other hand, demand-side revenue saw a significant increase of 160%, reaching an all-time high of $113,000 in the same quarter. Market Cap: GRT currently has a market cap of $1.3 billion, reflecting a 40% increase from a year ago. However, since March 2024, its market cap has seen a significant decline of 69%. Despite this drop, GRT remains far ahead of competitors like Covalent, which has a market cap of $68 million. Market Analysis Who are they targeting? Is this market large and growing? Problem that it solves: When building dapps on blockchains, it is often inefficient to access on-chain data. The Graph is a decentralized indexing protocol that gives developers a powerful query language, enabling them to effortlessly retrieve and analyze blockchain data. Customers: The primary users of The Graph protocol are developers and teams building decentralized applications on blockchain platforms. They use The Graph to efficiently access and query blockchain data for various purposes. Value creation: The Graph eliminates the need for developers to construct and manage their own data servers and indexing infrastructure, thereby reducing operational costs and allowing resources to be redirected toward core development tasks. (Ship products faster.) Market structure: While the market for decentralized indexing and querying solutions is relatively new, The Graph has established itself as the leader in this space. Market size: The potential market for The Graph is significant, particularly as it continues to expand its services to include more blockchain networks. The Graph currently reports serving over 75,000 projects and handling more than 1.2 trillion queries. (However, this number seems wildly overstated, compared to Daily Active Users above.) Still, the demand for data indexing and querying services like those provided by The Graph is expected to rise. Regulatory risks: As a pioneer and leader in its space, The Graph is highly susceptible to regulatory scrutiny. Our analysts rated GRT a 3.8 out of 5 for market analysis. Download the complete scorecard here. Competitive Advantage How big is the company moat? Can they defend against competitors? Technology/blockchain platform: The Graph is built on established blockchain networks including Ethereum, Polygon, and Avalanche. Lead time advantage: The Graph holds a first-mover advantage and has established itself as the leading decentralized protocol for indexing and querying blockchain data. Contacts and networks: The Graph’s network appears to be well-developed, having landed partnerships with reputable projects such as Chainlink. Our analysts rated GRT a 4.3 out of 5 for competitive advantage. Download the complete scorecard here. Management Team Does the team have the experience, intelligence, and integrity to make the company great? Entrepreneurial team: The Graph was created by experienced software engineers Yaniv Tal, Brandon Ramirez, and Jannis Pohlmann, with The Graph being their most successful venture to date. Industry/technical experience: The Graph has a solid and experienced blockchain team responsible for building and maintaining the protocol. The team comprises different groups, each with a wealth of technical experience. Integrity: The team

Homepage > News > Business > UAE reduces tax burden; IMF seeks high taxes for BTC miners The United Arab Emirates has exempted digital asset holders from paying value-added tax (VAT) on their transactions, extending the same exemptions enjoyed by traditional financial services to the nascent sector.  On the other hand, the International Monetary Fund (IMF) calls for higher taxes for BTC miners, which could raise the electricity prices for the sector by up to 85% to curb emissions. UAE extends VAT exemptions to digital assets  In a recent update, the UAE’s Federal Tax Authority (FTA) revealed that it had amended VAT regulations to exempt the transfer and conversion of digital assets. Effective November 15, the Cabinet approved the amendments earlier this year, as revealed by the global accounting giant PwC.  The exemptions cover other digital asset-related services, including managing investment funds focusing on digital tokens. However, they don’t cover financial securities or the digital representation of fiat currencies. The tax exemptions will be treated as effective from January 2018. As such, virtual asset service providers (VASPs) in the UAE can claim input tax recovery for the VAT they have paid for those six years, which PwC says can be done through the FTA’s voluntary disclosure process. With the VAT exemption, the UAE is finally classifying digital assets “in the same bucket as traditional financial services, several of which are already exempt from VAT. This legitimizes VAs,” says Ankita Dhawan of Metis Institute, an English boutique advisory.  The UAE joins the European Union, which scrapped VAT for digital asset transactions nearly a decade ago. In 2015, the Court of Justice of the European Union ruled that the exchange of a digital asset for fiat is exempt from VAT in a case referred by a Swedish court. However, some services, such as mining and wallets, could attract taxes depending on the individual country’s laws. The United Kingdom followed the EU’s lead and exempted digital asset exchanges from VAT, classifying them as a supply of a financial service, which is exempt from VAT by law. Australia and Singapore also exempt the exchange of digital assets for fiat from the Goods and Services Tax (GST). Other jurisdictions where digital asset exchange is exempt from GST, VAT, or consumption tax include Canada, Switzerland and Japan. IMF: Tax BTC miners to cut down carbon footprint While the UAE is reducing the tax burden on the digital asset sector, the IMF is calling for higher taxes for BTC block reward miners and artificial intelligence (AI) data centers, claiming that their energy consumption and carbon footprint are surging at a concerning rate. In a blog post, IMF executives Shafik Hebous and Nate Vernon-Lin blasted digital assets and AI for being ‘power-hungry.’ They claimed that one BTC transaction consumes the same energy as an average Pakistani does in three years, while a ChatGPT query consumes 10 times more energy than a Google (NASDAQ: GOOGL) search. The IMF claimed that its research had shown that digital asset miners could generate 0.7% of all carbon dioxide emissions by 2027, while data centers could hit 1.2% of the global total or 450 million tons. “The tax system is one way to steer companies toward curbing emissions,” the global financier says. It suggested a direct tax of $0.047 per kilowatt hour for BTC miners, which it believes would bring them up to global standards. If other factors are considered, such as the impact of air pollution on the health of the surrounding communities, this tax should hit $0.089. This would translate into an 85% increase in the average price of electricity for miners. Conversely, it would result in $5.2 billion in global revenue and a reduction in annual emissions by 100 million tons. With electricity accounting for up to 80% of the miners’ total costs, this would deal a big blow to a sector that has already been struggling, with most public miners recording losses in the first half of the year. While advocating for higher taxes for miners, the IMF acknowledged that in many jurisdictions, the situation is the opposite, with miners enjoying generous tax exemptions and other financial incentives. In Texas, for instance, the Electric Reliability Council of Texas (ERCOT) has faced backlash from residents and legislators for cutting deals with BTC miners to compensate them for reducing their energy consumption in peak demand periods. In one instance, ERCOT paid Riot Blockchain over $31 million not to mine. Beyond taxes, the IMF advocated for “credits for zero-emission, bilateral power purchase agreements, and potentially renewable energy certificates.” Watch: Bitcoin tech is all about unleashing potential for small people title=”YouTube video player” frameborder=”0″ allow=”accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share” referrerpolicy=”strict-origin-when-cross-origin” allowfullscreen> #UAE #reduces #tax #burden #IMF #seeks #high #taxes #BTC #miners