• Block Inc.’s fourth quarter report revealed a 7% drop in bitcoin revenue due to the price drops.
• Cash App’s bitcoin gross profit decreased by 25%, coming in at $35 million for the quarter.
• After releasing its earnings report, Block’s stock prices rose significantly due to an increase in gross profits of 40%.
Block Inc.’s Q4 Report Reveals Drop in Bitcoin Revenue
Block Inc.’s fourth quarter report revealed a 7% drop in bitcoin revenue due to the price drops. The company attributed this decrease to Bitcoin’s 65% decline throughout 2022. As a result, Cash App’s bitcoin gross profit decreased by 25%, coming in at $35 million for the quarter. This was the lowest quarterly total since the company began reporting on this metric.
Bitcoin Sales Dropped Year-on-Year
Throughout 2022, Cash App made $7.11 billion in bitcoin revenue and $156 million in bitcoin gross profit, representing decreases of 29% and 28%, respectively, when compared to 2021’s figures. Despite this, Block reported a significantly increased net loss for the quarter, reaching $114 million and adjusted profits before interest, tax, depreciation and amortization (EBITDA) rose to $281 million – a 53% rise from 2021’s Q4 figure.
Functionality For Transactions Via Lightning Network Enabled
On October 25th functionality for transactions made via the Bitcoin Lightning Network was enabled on Cash App. In addition it offers bitcoin sales to consumers via their app – bringing money into their business model – however these sales are now dropping as shown through their Q4 report.
Afterhours Trading Results In Price Increase
After releasing its results report, Block’s shares experienced an increase through after hours trading which has been credited by some analysts to the surge in revenue that followed from an increase of 40% from 2021’s Q4 figure..
Aggregate Revenue Up By 4th Quarter
The aggregate amount of revenue during the period was reported as being up at $4.65 billion which is up from last year’s figure too – all things considered it was still an overall success story despite lower than expected sales of Bitcoin through cash app services
• Norway’s economy crimes unit, Økokrim, seized NOK 60 million ($5.9 million) in cryptocurrency as part of their investigation into the Sky Mavis cyber attack.
• The funds are allegedly linked to North Korea’s intelligence agency and Lazarus, a hacking group based in the country.
• The Økokrim is partnering with FBI specialists to track stolen assets via cryptocurrency transactions and prevent them from being used for criminal activities.
Norway Seizes Millions in Crypto
Norway’s economy crimes unit, Økokrim, has successfully seized NOK 60 million (or $5.9 million) in cryptocurrency as part of their ongoing investigation into the Sky Mavis cyber attack that occurred in March 2022.
Alleged North Korean Link
The successful seizure of the cryptocurrency has put a significant spanner in the works of the hackers’ laundering process, which is allegedly linked to Lazarus, a North-Korea based hacking group according to a February 2023 report. Moreover, it is believed that North Korea’s primary intelligence agency, the Reconnaissance General Bureau, is behind up to $1 billion worth of crypto theft via teams – Lazarus, Andariel, and Kimsuky.
In order to prevent any further criminal activity with these funds an international collaboration between Økokrim and FBI specialists has been established with the aim of tracking stolen assets via cryptocurrency transactions across time zones. Marianne Bender, first states attorney for Økokrim has emphasized how this case demonstrates that authorities have the skills necessary to follow money on blockchain platforms even when criminals try to outsmart them with advanced tactics.
Økokrim will be communicating with Sky Mavis for compensating victims of Axie Infinity hack maximumly possible restitution but they also have intel on what hackers are looking for beyond just cashing out cryptocurrencies – funneling funds into North Korea’s nuclear weapons program which makes this investigation even more crucial.
Fighting Cybercrime Globally
This development sets an example for global collaboration in fighting against cybercriminals who use profiteering through these kinds of attacks as their modus operandi. With this latest breakthrough authorities will work towards preventing stolen assets from being used for any illegal activities while ensuring that victims receive proper compensation wherever possible.
• The total value locked (TVL) in three top Ethereum-based liquid staking protocols has risen to more than $11b, with Lido (LDO), Coinbase (COIN), and Rocket Pool (RPL) all seeing gains.
• Liquid staking is an automated process that allows users to stake their ETH on the Beacon chain, a proof of stake blockchain.
• Coinbase Ventures recently announced they would join Rocket Pool’s Oracle DAO, sparking debates about whether Ethereum is becoming too centralized.
Liquid Staking Protocols Surge in Ethereum
The liquid staking industry has been thriving on the Ethereum (ETH) network of late since the introduction of the Beacon chain. Liquid staking is an automated process that allows users to stake their ETH on the Beacon chain, a proof of stake blockchain. As of Feb. 9, the total value locked (TVL) in three top Ethereum-based liquid staking protocols had risen above $11b, with Lido (LDO), Coinbase (COIN), and Rocket Pool (RPL) all recording gains in the 20-40% range over the past month, according to DeFi LIama.
Why Are Liquid Staking Protocols Surging?
Ethereum’s beacon chain has been making waves lately due to its ability to support liquid staking. Like traditional staking, users still get rewards when they stake their tokens. However, they have the added benefit of moving their assets around while staked. Allowing users to maintain the liquidity of their tokens while they stake for better platform security enhances overall liquidity. Additionally, the Beacon Chain’s shorter staking window allows users to switch up their strategies rapidly to capitalize on market trends.
Market and Price Action Analysis
Coinbase and Rocket Pool have been making waves in the liquidity staking space. Coinbase Ventures recently announced they would join Rocket Pool’s Oracle DAO. According to a survey by Gnosis co-founder Martin Köppelmann, Lido currently controls 27.5% of staking, while Coinbase is in second place at 14.5%. This has sparked a debate about whether Ethereum is becoming too centralized, with Bitcoin maximalists arguing that this proves so..
Lido 3-month price chart shows it gained 17% over 7 days taking its price up to $2.71 as of Feb 9th with a market cap of $ 2 billion making it 30th largest crypto by market cap meanwhile rocket pool 3 month price chart also indicates 40 % increase over last month .
The recent surge in TVL can be attributed mainly due to increased adoption and trust among investors as well as technology update allowing faster transactions which promote higher liquidity levels hence higher discounts offered by platforms like lido , coinbase and rocket pool .
• Ethereum (ETH) started the new year with a 90-day high of $1,674 on Jan. 21 and was trading at $1,572 as of Jan. 30th
• The Federal Reserve is expected to retain its stringent measures in order to keep the economy in check
• Ethereum will be ushering in a new era with the launch of the Shanghai upgrade (EIP-4895), transitioning from proof-of-work to proof-of-stake consensus mechanism
Ethereum Price Analysis
Ethereum (ETH) started 2021 off on a strong note, rising above $1,600 for the first time since February 2021. As of January 30th, ETH was trading at $1,572. The crypto community is now looking ahead to the Federal Reserve’s decision on interest rate hikes which could potentially impact digital assets such as Ethereum.
Factors Affecting Ethereum Price
Ethereum has become popular amongst developers, entrepreneurs and investors due its versatility and resilience. It boasts a wide range of capabilities from DeFi to gaming and data storage making it an attractive asset for many users. Factors that could directly influence Ethereum price include scalability issues and user adoption rates.
The Shanghai Upgrade
The impending launch of the Shanghai upgrade (EIP-4895) marks a new era in Ethereum development. After their September 2022 upgrade dubbed “The Merge”; ETH transitioned from proof-of-work consensus mechanism to proof-of stake validators requiring users to lock their funds indefinitely to become validators. However, this transition will change with the Shanghai upgrade allowing users to withdraw their funds after staking 32 ETH without having an indefinite lock up period.
Long Term Prediction
Analysts have predicted that long term gains could be seen for ethereum in 2023 given that current trends remain stable throughout 2022. If user adoption increases alongside successful upgrades then we may see further gains for ETH over the next few years however this all depends on how successfully these upgrades are implemented and accepted by users worldwide .
It is clear that ethereum has a bright future ahead if it can continue its current growth trajectory into 2023 and beyond. With successful implementation of upcoming upgrades such as The Merge and Shanghai we may see more stability for Ethereum allowing it potential gains as we move forward into 2023 and beyond.