New data from CryptoQuant indicates that profitable Bitcoin mining operations will require the cryptocurrency’s market price to stay above a hefty $80,000 following the upcoming halving event. This scenario is set against the backdrop of Coinbase’s Layer-2 network Base achieving a significant milestone, overtaking $4 billion in total value locked (TVL), thereby leading Ethereum and Arbitrum in a 30-day transaction volume. Separately, in a recent legal outcome, Terraform Labs and its executive Do Kwon have been deemed guilty of investor deception by the United States Securities and Exchange Commission (SEC).
Profit Thresholds for Bitcoin Miners Post-Halving
With the Bitcoin halving anticipated to take place in mid-April, CryptoQuant’s CEO Ki Young Ju has pointed out that the expense of mining Bitcoin will double, potentially impacting the price of Bitcoin due to changes in miner activity. As of April 6th, the cost to mine a single Bitcoin stands at $49,902, while the market price hovers over $70,000. However, post-halving, this cost is projected to soar beyond $80,000, necessitating a market price above this threshold for sustained miner profitability.
Coinbase’s Base Dominates in Locked Value
Coinbase’s Ethereum Layer-2 network Base has registered a total TVL of $4.15 billion, marking a remarkable 13.2% growth within just a week. This growth spurt has catapulted Base ahead of both Ethereum and Arbitrum in terms of 30-day transaction volume. The network now holds the third rank among Ethereum Layer-2 networks, trailing behind Optimism and the leader, Arbitrum. Base’s transaction rate recently spiked by nearly 30%, surpassing both Arbitrum and the Ethereum mainnet.
Consequences of the Terraform SEC Case
The verdict from the SEC’s case against Terraform Labs and Do Kwon has left both the entity and its executive liable for deceiving investors. The SEC successfully argued that Terraform Labs and Kwon misled investors about the security of cryptocurrency assets and the stability of the Terra USD stablecoin. Additionally, they were accused of providing false statements concerning the adoption of Terraform’s blockchain network by a payment application.
Inferences from This Article
- Bitcoin mining profitability hinges on the market price exceeding the post-halving cost of mining, projected at $80,000.
- Coinbase’s Base network shows vigorous growth, surpassing rivals with its $4.15 billion TVL and transaction rates.
- The SEC’s case outcome places responsibility on Terraform Labs and Do Kwon for misleading crypto investors.
The outcomes of these developments provide valuable insights into the future landscape of Bitcoin mining, the competitive dynamics of Ethereum Layer-2 networks, and the continuing need for regulatory vigilance in protecting crypto investors.