It’s been an exciting week for the crypto market with incredible developments taking place. Bitcoin and Ether soars to new all-time highs; the world’s fourth largest cryptocurrency, XRP, is now more valuable than one of France’s largest banks; Binance decides to launch zero commission stock trading with Tesla heading up proceedings; and a Miami nightclub becomes the first in the U.S to accept cryptocurrencies.
Bitcoin and Ether Hit All-Time High
The price of Bitcoin and Ether jumped to record highs on Tuesday. This comes ahead of the much-anticipated stock market debut of crypto exchange, Coinbase. In terms of data from Coin Metrics, the price of Bitcoin rose to more than 4% in the preceding 24 hours to record $62,718. The second most valuable cryptocurrency, Ether, also enjoyed an exponential rise with its value sitting at $2,210.
Coinbase is poised to make an appearance today (Wednesday) and is said to be valued at almost $100 Billion. If that is the case, it would be valued higher than major trading venue operators such as Intercontinental Exchange. Coinbase’s stock market debut has been praised by crypto investors, as this shows a remarkable shift from the years of scepticism from regulators and Wall Street.
XRP Market Cap Tops $72 Billion
XRP, the world’s fourth largest cryptocurrency, rose above $1.50 this Tuesday with gains of almost 15% in the preceding 24 hours. This meant that the total market cap shifted above $70 billion, a first since January 2018. Incredibly, XRP is now more valuable than one of France’s largest banks, BNP Paribas.
The latest spike in the price of XRP came after a peak in demand from retail traders. XRP’s price rose from $0.55 to as high as $1.58 in the past 2 weeks. Another contributing factor to this exponential rise was Ripple’s recent announcement in March that they had acquired a 40% share in one of the largest cross-border payment firms in Asia, Tranglo.
At the start of the year, XRP was trading at $0.23 after crashing by almost 60% due to the US Securities and Exchange Commission (SEC) filing a lawsuit against Ripple. XRP is now up by almost 600% since the year started, with a market cap of $72 Billion at the time of writing.
Binance Launches Zero-Commission Stock Trading
The biggest crypto exchange, Binance, once again shows fantastic innovation in the crypto sector by launching stock derivatives. This means that stock trading is now available for many more users. Each of the digital tokens are supported by a portfolio of underlying securities, with each token valued at one share of equity stock. This enables users to have no commission and affordable access to the stock market.
Binance has launched these zero-commission tradeable stock tokens with the assistance of CM-Equity AG and Digital Assets AG. Tesla’s stock derivatives will be the first stock tokens to be traded on Binance, with a minimum traded value of 1/100 of a stock token. Binance will use BUSD, their USD-pegged stablecoin, to price and settle all trades.
Any of Binance’s users who hold stock tokens will qualify for capital returns. This includes dividends and stock splits that they would typically enjoy with traditional shares. CEO of Binance, Changpeng Zhao said “Stock tokens demonstrate how we can democratize value transfer more seamlessly, reduce friction and costs to accessibility, without compromising on compliance or security.”
Corporate Nightclub in Miami becomes First to Accept Crypto
Miami-based nightclub, E11EVEN, has become the first corporate nightclub in the US to accept cryptocurrencies. This welcome addition is part of the club’s grand post-pandemic reopening on 23 April 2021. Incredibly, E11EVEN claims the title as the highest-grossing nightclub in the world.
Guests can reserve tables with a whole host of cryptocurrencies including Bitcoin, Dogecoin, Ripple, and Ether. Although the crypto payment processor hasn’t been disclosed as yet, nearly all commercial payment processors have the ability to convert cryptocurrencies into fiat.
E11EVEN’s operating partner, Gino LoPinto, explained that their cutting-edge clientele from across the globe are mostly crypto savvy and felt enthusiastic about their guests taking advantage of this innovation. Whilst cryptocurrencies remain volatile, the owners have viewed their increasing value over the long-term.
This move further positions Miami as the Bitcoin capital after the city’s mayor, Francis Suarez, submitted a proposal to store city funds and pay employees in cryptocurrency. Moreover, the world’s biggest cryptocurrency conference has made the decision to move from Los Angeles to Miami.
Any data, text or other content on this page is provided as general market information and not as investment advice. Past performance is not necessarily an indicator of future results.