What happened in the world of crypto over the weekend? Read U.Today’s news digest to find out!
U.Today has prepared a summary of the top four news stories over the weekend. Don’t miss anything important in the crypto industry!
Is Cardano expanding? Charles Hoskinson is working on “something really cool” in Papua New Guinea
In his Friday tweet, Cardano creator Charles Hoskinson informed his followers that he is currently in Papua New Guinea, “working on something really cool.” He did not provide any details on what exactly he is working on; however, judging by Hoskinson’s travels in the past, it could be a new Cardano project. Back in October 2021, the IOG co-founder went on a “pan-African tour,” visiting several African countries, including Nigeria and Zanzibar. Since then, Cardano has invested in several African blockchain and fintech start-ups, among which was Afriguild, a local blockchain gaming guild and decentralized autonomous organization (DAO).
There is a big “if” in the LUNC burning mechanism that caused the most recent market pump
At the beginning of September, the crypto community witnessed the parabolic growth of LUNC ignited by a proposal to include a 1.2% burning fee on every transaction made on the network. If centralized exchanges accept the burning fee, the burning volume would exceed $4 million in a day, the proposal states. However, this is where potential problems for Luna appear. Binance has recently released a statement informing its users that it will not implement the fee, which puts the daily burning volume at only $55,000. For a project with a $3 billion market capitalization, less than $100,000 of daily burning volume is insignificant. Thus, LUNC’s rally was based on on-chain manipulation and a questionable proposal that will not have the desired effect on the token’s market value, considering the action that centralized exchanges are taking.
XRP can now be burned via Bitcoin payment app on XRPL, here’s how
SpendTheBits, a project built on the basis of XRP Ledger, has recently received great support from the entire XRP community thanks to its major development aimed at implementing Bitcoin transactions and competing with the Lightning Network. According to the project’s team, the use of the XRPL blockchain allows BTC transactions to be much faster and cheaper. SpendTheBits’ most important feature is the use of XRP in transactions; in addition to the fact that XRP is used to activate an account, it will be burned with every BTC transaction through the XRP Ledger blockchain. Besides, CryptoLaw founder John Deaton noted that the case of SpendTheBits, which is built on XRP Ledger using open source code and not requiring Ripple’s permission to implement the technology, once again proves that the SEC’s claims against Ripple and XRP are absurd.
Cardano outperforms current proof-of-stake chains
According to a recent report on proof-of-stake chains, Cardano has over 1,182,080 staked wallets with a staking ratio of 72.63%, which reflects a high degree of decentralization. On the other hand, Polkadot has over 33,646 staked wallets (called Nominators) with a staking ratio of 52.4%, demonstrating a relatively low level of decentralization. Avalanche, in turn, has 22,890 individual staked wallets and a staking ratio of 64.9%, which is relatively higher than Polkadot’s 52.4%. In comparison to Polkadot, Avalanche has a high staking ratio, despite having a small number of staked wallets. With a total of 998 validators, Polkadot has a small number of validators compared to Cardano, which has over 3,202 stake pools/validator nodes. Polkadot validator nodes can be run by anyone, but there is a limit of 297 validators per era/epoch that can participate in the 24-hour validation.