Bitcoin Mining Profitability Risks, Base Surpasses Ethereum & Arbitrum, and Terraform Labs' Legal Fall
Summary:
CryptoQuant indicates that Bitcoin prices must exceed $80,000 for mining profitability post-halving. Coinbase’s layer-2 network, Base, boasts over $4 billion total value locked, surpassing the 30-day transaction counts of Ethereum and Arbitrum. In a recently concluded U.S. SEC civil suit, Terraform Labs and Do Kwon have been deemed liable for investor fraud.
CryptoQuant data suggests that for Bitcoin miners to remain profitable post-halving, the Bitcoin price must stabilize above $80,000. Coinbase’s layer-2 network, Base, now has over $4 billion total value locked and its 30-day transaction count has surpassed that of Ethereum and Arbitrum. In new legal developments, the U.S. SEC has deemed Do Kwon along with Terraform Labs liable for investor fraud, as revealed in a civil suit resolved on April 5.
CryptoQuant CEO Ki Young Ju points out that the Antminer S19 XP's mining expense will inflate from $40,000 to $80,000 following the forthcoming mid-April Bitcoin halving. This increase impacts the price of Bitcoin (BTC) and alters miner behaviour because double the mining costs will be required to yield the identical amount of BTC. Presently, the average cost to mine Bitcoin is around $49,902, but this will rise to over $80,000 after the halving, necessitating a higher BTC trading price for miner profitability to persist.
Meanwhile, Coinbase’s Ethereum layer-2 blockchain Base has reached $4 billion in total value locked (TVL) for the first time, as its 30-day transactions have exceeded those of Ethereum and Arbitrum. Base currently ranks third in terms of total TVL in Ethereum layer 2, with figures showing continued growth. Moreover, Base’s 30-day transaction count has surpassed Arbitrum's and Ethereum's, boosted by recent memecoin activity that has caused a rise in the market capitalization of its meme token.
In legal news, Terraform Labs and Do Kwon have been held accountable by a U.S. SEC jury for deceiving investors. After swift deliberation, the jury found in favour of SEC's claims that Terraform was built on dishonesty. The spectacular crash of Terraform Labs in May 2022 had significant repercussions on the crypto industry. Arrested last March, Do Kwon is currently in Montenegro, with his extradition process halted on April 5.
Published At
4/8/2024 4:08:45 PM
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