Cryptocurrency Market Sees Volatility Amidst TON Blockchain Outage and MakerDAO Rebranding This week, the cryptocurrency market experienced significant fluctuations due to two major events: an outage on the TON blockchain and a major rebranding effort by MakerDAO, a decentralized lending protocol. As a result, major cryptocurrencies such as Bitcoin, Ether, and others saw a 3.5% …
TON Blockchain Outage and MakerDAO Rebranding Rock Crypto Markets
Cryptocurrency Market Sees Volatility Amidst TON Blockchain Outage and MakerDAO Rebranding
This week, the cryptocurrency market experienced significant fluctuations due to two major events: an outage on the TON blockchain and a major rebranding effort by MakerDAO, a decentralized lending protocol. As a result, major cryptocurrencies such as Bitcoin, Ether, and others saw a 3.5% drop in their respective prices, with the CoinDesk 20 Index dropping to 1,934 and $59,953 and $2,522, respectively.
The TON blockchain, founded by Telegram, experienced heightened network activity for almost six hours before another unexpected spike, likely due to the DOGS memecoin airdrop released by the Ton Foundation to publicize the arrest of Telegram founder Pavel Durov. Note that Telegram and TON are not the same. The network’s transaction throughput was lower than expected during the outage, resulting in a decrease in transactions per second. As repercussions, Bybit, an important cryptocurrency exchange, temporarily suspended withdrawals and deposits.
The TON blockchain’s native token, toncoin, experienced a 9% decline to $5.13 during the outage, but its losses were reduced when the blockchain was restarted, currently trading at $5.05. However, the TON network has demonstrated resilience in recent times, and its developers are committed to enhancing its scalability and performance. The airdropping of the memecoin DOGS was deemed successful in driving traffic and interest on the site.
Meanwhile, MakerDAO announced a major rebranding effort, introducing new tokens called “Sky“. The intention is to broaden the protocol’s reach and offerings by leveraging its $7 billion assets and stablecoin DAI, which has a market capitalization of $5 billion. As part of the new rebranding, MKR token holders will be able to exchange their tokens for 28,000 SKY tokens, signifying sweeping changes in governance and tokenomics. The move is likely to have a significant impact on the DeFi environment, as MakerDAO is one of the most influential decentralized lending protocols in the market.
Traditional assets such as the S&P 500 and Nikkei 225 experienced modest gains, while gold prices rose by 0.9% to $2,538, respectively. Despite the volatility in bitcoins and other crypto markets, investors are optimistic about the long-term viability of digital assets. The TON blockchain failure highlights the need for scalability and performance in decentralized networks, while the rebranding effort from MakerDAO underscores the dynamic nature of the DeFi space.
As the crypto market evolves, investors will continue to monitor the market for potential growth and adoption. The market’s fundamental principles remain unchanged despite the setbacks, and the potential for decentralized technologies to disrupt traditional financial systems remains significant. For more insights and information on the cryptocurrency market, check out our article on “Crypto Market Outlook 2023” on CoinSeeks.com.
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