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Ethereum News of the Week NFT OKEx Insights

Ethereum bug causes network split, OpenSea dominates NFT market

2021.08.29 Adam James

A surprising Ethereum bug has come to light amid a continued NFT frenzy and a return to all-time high hash rates.

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The mania surrounding nonfungible tokens is showing no signs of slowing down following the news that payments giant Visa purchased a CryptoPunk. Benefiting the most from the hype is OpenSea, which has surpassed $2 billion in monthly volume — far more than any competitor. However, a surprising bug has popped up that affects the majority of Ethereum nodes.

Here’s everything you need to know about these stories, and more, in this week’s edition of OKEx Insights’ News of the Week.

Bug affecting majority of Ethereum clients causes network split

The Ethereum network has split after a bug caused nodes running older versions of Geth to diverge. Geth clients affected are specifically v1.10.7 and older — which accounts for roughly 75% of Ethereum’s nodes.

As of the time of this writing, the story is developing and more details are still emerging.

Key takeaways

  • Though the bug isn’t necessarily critical at this stage, there are concerns that — with a majority of Ethereum nodes running affected versions — a double-spend attack could occur. Sentnl auditor Guido Vranken called the big a “high severity issue.”
  • The news comes after Ethereum’s London upgrade has already burnt well over $300 million in ETH since being implemented roughly three weeks ago. Ethereum’s hash rate has also returned to all-time highs.

Visa adds CryptoPunk 7610 to collection of commerce artifacts

Visa purchased a CryptoPunk — specifically, CryptoPunk 7610 — for roughly $150,000 as a means of entering into the world of NFTs. Citing historical context, the payments giant claims the NFT purchase is now part of its “collection of historic commerce artifacts — from early paper credit cards to the zip-zap machine.”

Key takeaways

  • The news of Visa’s purchase caused a surge in CryptoPunks prices. In the hour following the company’s announcement, roughly 90 punks changed addresses for a total of approximately $20 million.
  • Considering the sizable war chest Visa holds, many industry pundits have claimed Visa’s CryptoPunks purchase was merely a marketing ploy to promote the NFT space, which it is likely looking to enter in earnest.

OpenSea surpasses $2 billion in monthly volume

This week, OpenSea became the first NFT-dedicated marketplace to surpass $1 billion in monthly volume. In fact, as of the time of this writing, the leading NFT platform has surpassed $2 billion this month.

Key takeaways

  • OpenSea has cemented its dominance among NFT marketplaces. 
  • Last month, OpenSea hit a valuation of $1.5 billion — and seems poised for more success as the wider NFT market surges.
No NFT marketplace even comes close to OpenSea in terms of monthly volume. Source: The Block

Problematic infrastructure bill deadline set

The United States’ high-profile $3.5 trillion infrastructure bill now has a deadline of September 27 to pass. The bill was previously held up by debate surrounding problematic language regarding cryptocurrency taxation, as it opens the door for virtually anyone participating on blockchain networks to be considered brokers for tax purposes.

Key takeaways

  • The deadline doesn’t bode well for cryptocurrency proponents — who were dealt something of a loss during the last round of negotiations — due to the fact that the voting procedure is likely to be truncated.

El Salvador’s Bitcoin wallet downloadable next month

El Salvador’s government-supported Bitcoin wallet will be available for download on Sept. 7, per a tweet from the country’s president. Those who download the Chivo wallet — which is optional — will receive $30 in BTC.

Key takeaways

  • The wallet will allow users to automatically convert BTC transactions into USD, or convert retained BTC to cash instantly at ATMs.
  • The launch of the Chivo wallet app will coincide with the official implementation of El Salvador’s high-profile Bitcoin law.

OKEx Insights presents market analyses, in-depth features and curated news from crypto professionals.

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Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.



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