Cryptocurrencies continue to elicit bids as the buying spree continues to gather momentum. Bitcoin is already up by more than 30% for the year to record highs of $35,000. Ethereum, the second-largest cryptocurrency by market cap, is also registering substantial gains after powering through the $1,000 mark.
A 10% plus gain pushed Ethereum market value to more than $127 billion, which is 13.6% of the total cryptocurrency market cap. When the cryptocurrency raced to record highs its market cap stood at $135 billion, which is now in sight given the price gains being experienced in the market.
Bitcoin remains the most valuable cryptocurrency with a market cap of more than $640 billion accounting for more than 60% of the total cryptocurrency market cap. In contrast, XRP has been battered even as other cryptocurrencies continued to race higher.
Increased regulatory scrutiny is the biggest tailwind that continues to negatively affect XRP market sentiments. The crackdown on Ripple comes amid reports that Founder Jeb McCaleb sold $400 million worth of XRP token in 2020.
The Ripple architect reportedly sold out 1.2 billion XRP coins throughout the year at an average price of $0.34 a coin. McCaleb’s total liquidation to date stands at about $1.2 billion placing him high on the crypto’s rich list. McCaleb appears to have timed his sales as the cryptocurrency value has taken a significant hit in the aftermath of increased regulatory scrutiny.
Privacy Crypto Delisting
Privacy-focused cryptocurrencies also face an uncertain future as more cryptocurrency exchanges join the delisting spree. Bittrex is the latest exchange to delist Monero, Dash, and Zcash. The exchange has given coin holders until January 15 to conduct any transactions on the three altcoins
ShapeShift cryptocurrency exchange has already delisted the three privacy coins due to regulatory concerns. Huobi and Bithumb are the other crypto exchanges to take drastic changes as they seek to avert regulatory scrutiny.
The delisting drive comes amidst increased regulatory scrutiny over concerns that the privacy coins are being used to fuel illegal activities. Regulations are increasingly coming into effect designed to stamp out crime and protect investors against some of the privacy coins. Likewise, exchanges have been left with no choice but to delist the coins.
Crackdown on privacy coins does not come as a surprise as digital currency enthusiasts have called out the coins in recent months. For instance, the Bitcoin SV community has called out some of the coins for tainting cryptocurrencies’ budding reputation on enabling crime.
Sweden Digital Currency
Separately, Sweden’s digital currency is already causing anxiety among bankers. Launched in December after a pilot program at the central bank the e-Krona is threatening to erode bankers deposit base
While the country central bank wants to use the digital currency to enhance how payments are made, bankers are crying foul insisting that the e-krona could radically change the dynamics of the banking system.
E-krona holders will have a direct claim on the central bank thus effectively bypassing commercial banks. Likewise, there are growing fears that as more people move their money out of deposit accounts and into the digital currency, commercial banks will be deprived of any funds