Summary of this article
Germany left $5 billion in unclaimed Movie2K Bitcoin.
Ethereum saw $5 billion daily stablecoin inflows.
Stablecoins replace bolívar in Venezuela’s economy.
German authorities have presumably forfeited around 50,000 Bitcoin linked to the pirating website Movie2K, based on data examined by blockchain monitors. The coins are worth close to $5 billion currently and have not been touched since 2019.
Cointelelgraph reported, in January 2024, police confiscated nearly 49,858 Bitcoin from actors associated with Movie2K. By July and June, the government had already sold this sum for approximately $2.9 billion, at an average price of $57,900 per coin. Bitcoin's value has since then risen almost twice, which makes the previous sale even more prominent.
However, a blockchain analytics company, Arkham Intelligence, indicated that there are still over 100 wallets containing more coins associated with the same piracy site. These other 45,060 Bitcoin were not part of the previous seizure. Files indicate they have not been moved for over five years and are assumed to remain in the possession of the individuals who operated the site.
Officials have not indicated whether further action will follow. In order to seize the remaining coins, officials would have to link the wallets to illicit activity and then secure legal permission to transfer them. That would require both technical tracing and court proceedings.
The Movie2K case is the largest in Germany involving digital assets. Although the government managed to auction a record quantity of Bitcoin earlier this year, the uncovering of unturned holdings points to the extent of funds related to online piracy and the difficulty of obtaining all of the assets related to the operations.
Ethereum Recorded $5 Billion In Stablecoins Daily Last Week
Ethereum experienced a huge surge in stablecoin inflows for the week. On average, around $5 billion of new stablecoins were introduced into the network per day. This has increased the overall value of stablecoins on Ethereum to approximately $165 billion, its highest point to date.
The supply of stablecoins on Ethereum has grown sharply over the past year. Since January 2024, the total has more than doubled, showing the growing role of Ethereum as the leading platform for stablecoin activity. Some analytics platforms give slightly different sums, but all point to record highs during the past week.
Ethereum remains the largest in the world for stablecoins. Currently, it holds about 57 per cent of all stablecoins minted on blockchains. Tron is the second largest with around 27 per cent of the market, and Solana is third with less than 4 per cent. Other blockchains collectively take up the remaining portion.
Stablecoins have become the pivot of blockchain transactions as they enable users to spend digital dollars instantly and at a reduced cost. Such huge inflows, such as those in the past week, indicate both huge demand for stablecoin consumption as well as Ethereum's dominant role as the prime network underlying them.
The influx of billions of dollars' worth of new stablecoins daily has distinguished Ethereum from other competing blockchains. With all-time balances and ongoing development, the network is the most significant centre for stablecoin action globally.
Stablecoins Replace Bolívar As Everyday Currency In Venezuela
In Venezuela, stablecoins like Tether's USDt, referred to as "Binance dollars," have become the preferred medium of exchange. Annual inflation of 229 per cent has made the bolívar practically useless. Now, individuals are using digital dollars for basic necessities, like food, rent, wages, and vendor purchases.
The bolívar has been supplanted by hyperinflation, tight capital controls, and several exchange rates. There are three exchange rates that apply currently. The official rate of the Central Bank is 151.57 bolívars per US dollar. The parallel market trades at 231.76 bolívars, and the Binance rate for USDt is 219.62. In practice, everyone and most businesses use the Binance dollar rate as it is more convenient to transact with and is more accepted.
Commodities and services now come with US dollar prices, while also being paid for in US dollars. USDt has emerged as a more effective currency, according to Cointelegraph, providing stability and acting as a standard among income levels. This has enabled individuals of various backgrounds to trade on more level terms.
Meanwhile, Venezuela is ranked 18th globally in total cryptocurrency usage and 9th on a per capita level. Stablecoins are the most popular in smaller transactions, representing 47 per cent of crypto transfers below $10,000.
