Web3🌕Monday Highlights: Bitcoin Drop, Celo’s Testnet Launch, Solana’s Bug Bounty, Germany’s Bitcoin Holdings

Welcome to a new week of Web3 insights! Today brings a lineup of significant developments shaping the digital landscape. Join us as we unpack these updates and their implications for the evolving world of decentralized technologies. Whether you're an investor, developer, or enthusiast, stay informed with our deep dive into today's Web3 highlights.

1. Bitcoin falls below $55,000 amid anticipated future selling.

Bitcoin dropped 6% to $54,600 over the weekend despite recovering some losses from last week. Challenges include market uncertainty, potential selling pressure from the German government holding $2.2 billion in BTC, and repayments to 127,000 creditors of the defunct Mt. Gox exchange, starting this month. Mt. Gox will distribute 142,000 BTC and 143,000 Bitcoin Cash, adding significant selling pressure. The market saw $210 million in liquidations, with $175 million from long positions. Global liquidity tightening, indicated by the Federal Reserve and China’s recent actions, may further affect crypto prices and volatility.

Bitcoin Dips Below $55,000 as ‘Significant’ Selling Expected in Months Ahead - Decrypt

Bitcoin dropped by 6% to $54,600 during weekend trading, despite recovering some of the losses incurred at the end of last week.

DecryptSebastian Sinclair

2. Celo introduces Dango Layer 2 testnet to integrate with Ethereum.

Celo, the mobile-first Layer 1 blockchain, has launched its Dango Layer 2 testnet as a major step toward joining the Ethereum ecosystem. Celo, EVM-compatible, decided to convert its Layer 1 network into an Ethereum Layer 2 chain using Optimism's Stack. This will enhance transaction speed, increasing throughput by 50% and reducing block time from 5 seconds to 2 seconds. Users can continue using native USDT and USDC stablecoins for gas costs, with easier bridging of tokens between Ethereum and Celo. The mainnet launch is anticipated in early winter 2024.

Celo launches Dango Layer 2 testnet in first step towards joining Ethereum ecosystem

Celo will join Optimism’s “Superchain” ecosystem of Ethereum Layer 2 networks rather than remain as an EVM-compatible Layer 1 blockchain.

The Block[email protected]

3. Solana launches $1M bug bounty for Firedancer client.

Firedancer, Solana's pioneering validator client, has launched a groundbreaking $1 million bug bounty program in collaboration with Immunefi. This initiative invites developers to scrutinize and discover critical bugs in Firedancer, designed to enhance Solana's transaction throughput and network resilience. Developed by Jump Crypto, Firedancer aims to outperform previous network protocols like QUIC during high-demand scenarios, ensuring robust performance for Solana's $60 billion ecosystem. The bounty program, running from July 10 to August 21, offers substantial rewards for identifying vulnerabilities, reinforcing Solana's commitment to maintaining a secure and efficient blockchain infrastructure.

$1M bug bounty for Solana Firedancer client goes live this week

A $1 million bounty will be on offer for those spotting vulnerabilities in Solana’s new Firedancer validator client.

CointelegraphBrayden Lindrea

4. Germany maintains $2.2B in Bitcoin holdings.

Germany's recent BTC sales and Mt. Gox reimbursements have stirred crypto markets. With 39,826 BTC worth $2.2 billion, approximately 9% of daily trading volume, market volatility persists. The government's actions have seen BTC's price drop by nearly 20% to $55,490 in four weeks, declining by 13% in the past week alone. Justin Sun's offer to purchase BTC off-market aims to mitigate negative impacts. Critics view Germany's strategy as a geopolitical misstep, favoring BTC's scarcity and energy-intensive mining process over fiat's inflationary risks. This scenario underscores BTC's strategic value amidst global economic uncertainties.

Germany Sill Holds $2.2B Worth of Bitcoin, Blockchain Data Show

Germany has been running down its coin stash since mid-June.

CoinDeskOmkar Godbole

Stay tuned as the Web3 landscape continues to evolve with groundbreaking advancements and strategic moves. Bitcoin's market dynamics, Celo's ambitious Ethereum integration, Solana's innovative bug bounty program, and Germany's significant Bitcoin holdings are just the beginning of this week's developments. Let's navigate the exciting world of Web3 together, keeping you informed and ahead of the curve in this ever-changing digital ecosystem. Thanks for joining us, and we'll see you in the next update!

WEB3 AI ML