Policies

▌Morgan Stanley's New PAVA Indicator Divides ETH Users into 'Believers' and 'Speculators'

Morgan Stanley has introduced a new speculation indicator – a tool called PAVA (price-adjusted volume per address) that uses speculative activity among traders to forecast ether (ETH) pricing. The indicator, calculated by dividing the cryptocurrency price in U.S. dollars by the ratio of the blockchain transaction volume to active wallet addresses (90-day average), will allow investors to estimate ether price trends, particularly when undergoing extreme market lows. The indicator differentiates price movement based on market fundamentals from price movement based on network usage, and divides crypto market participants into two groups: believers and speculators.

Cryptocurrency

▌Bitcoin Lightning Network Capacity Exceeded 4500BTC, a Record High

According to the 1ml of the latest data, the number of Bitcoin Lightning Network nodes was 17,771, a year-on-year increase of 0.42%; the number of channels was 87,205, a year-on-year increase of 1.7%; the network capacity was 4,521.87BTC, a year-on-year increase of 7%.

▌German Crypto Exchange Nuri Files for Insolvency, Users are Still Able to Access Deposits

Cryptocurrency exchange Nuri GmbH has filed for insolvency in Berlin, according to a court filing. Nuri said the sell-off in the crypto market coupled with the collapse of Celsius Network ultimately led to the decision. Nuri has also said its users can still access deposits.

▌Oanda Analyst: Bitcoin May Rise if U.S. Inflation Eases

Oanda analyst Craig Erlam believes that Bitcoin may rise if Wednesday’s CPI data shows that U.S. inflation in July eased. He said that weaker inflation data may be the catalyst for Bitcoin to break through $25,000, and has once again targeted the target price range of $28,000 to $32,000. which has been volatile since the beginning of the summer. Bitcoin has not been traded in this range since the beginning of the summer. Given that core inflation is expected to rise, it will be difficult for the Fed to raise interest rates by less than 75 basis points without a slowdown in inflation.

▌Anonymous User Sent ETH to Well-known Crypto Celebs From Tornado Cash

A small amount of ETH was sent from a sanctioned Tornado Cash address to a variety of wallets belonging to well-known crypto figures and celebrities. This move appears to be some kind of protest against the protocol getting hit by US sanctions. As noted by Astaria CTO Joseph Delong (the former CTO of SushiSwap), someone is sending 0.1 ETH to a range of crypto wallets, mostly wallets associated with ENS names and prominent crypto figures.

Key Economic Events

▌Bank of England: Metaverse Crypto Use Raises Systemic Risk

The widespread adoption of crypto assets in a fully developed metaverse could pose a systemic risk to financial stability and would require a “robust consumer protection” framework, Bank of England researchers Owen Lock and Teresa Cascino said in a blog post on Tuesday. According to the researchers, digital worlds and platforms could host large numbers of real-world economic transactions conducted through crypto tokens such as Bitcoin and Ethereum.