Over the last week the cryptocurrency market has slid back from $247 billion to $240 billion. Bitcoin has dropped below $9000 again. Currently it’s sitting at around $8790. Historically November has always been Bitcoin’s best performing month. Crypto community is waiting excitedly what will the next three weeks will bring. Most coins are seeing losses in the 2-5% range. Ether is holding its price around $186. Ethereum’s Istanbul network upgrade is scheduled on the 4th of December. Istanbul hard fork will change a few facets of Ethereum functionality, including the data storage process, mining algorithm. Many are expecting such upgrade will increase the computation cost thus the transaction fee will go up. Usually the price of a coin goes up in anticipation of the upcoming hard fork. Also the upgrade might increase the volatility in the prices of Ether as after the fork people tend to sell to take profits after price appreciation.
Stellar Lumens has soared up 25% last week. The Stellar Development Foundation (SDF) has burned a total of 55 billion Lumens (XLM) which is worth $4.4 billion. Coin burning is the process of permanently removing coins from circulation, reducing the total supply. Reducing the supply of a coin, makes the value of the remaining coins more scarce and therefore more valuable.
One after another, central banks are considering to issue their own national digital currency. The Central Bank of Tunisia has launched their digital currency, e-dinar. Turkey is also working on to issue a blockchain based national digital currency which will be tested and issued by the end of 2020. According to Reuters report The Finnish EU presidency has proposed a draft document which suggests issuing a digital euro and urges member states to develop a common approach to cryptocurrencies. The draft document has been reviewed and intended to be approved by EU finance ministers on the 5th of December and we will cover about the final version of EU document in our future newsletter.