EnigMATIC

Chart of the Day

BTC’s down, but ETH’s okay.Despite bullish sentiment extending into August, the price of Bitcoin underwent a slight correction and is currently hovering around the $39k zone. Ether, however, looks to extend its record-long winning streak in the run-up to the much anticipated yet highly controversial London Upgrade, which has earned consensus amongst broader markets as long-term bullish for ETH. While Ether takes center stage, it is worthwhile to give some thought to how the change in fee structure could potentially affect layer 2 scaling solutions such as Polygon. Past metrics indicate that Polygon adoption is closely correlated to Ethereum’s gas fee. Polygon has proposed its own implementation of EIP-1559, and is considering transferring the base fee to the network’s DAO to help fund protocol development. Its native token, MATIC, has staged a decent recovery in July, and should the bullish momentum continues, it will likely revisit the key level at $2. 

Talk of the Town

Regulatory pressure. In tandem with the crypto tax provision of the infrastructure bill that caused some anxiety across the market, U.S. lawmakers introduced new legislation to regulate crypto assets and protect investors. The 58-page draft, introduced by Don Beyer, whose involvement with digital assets has been tangential at most, seeks to create a sweeping framework for digital assets and attempts to draw the line between cryptocurrencies that can be treated as securities or commodities.