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Both bitcoin and ether maintained their new higher levels last week as the cryptoasset market continued to show positive signs, despite some obvious volatility still in play for price levels. 

Bitcoin began the week trading above $23,000. The cryptoasset showed some volatility over the week, trading down below $22,250 on Thursday, but quickly recovering its position. A late surge has seen it rise above $23,500 this morning.

Ether began last week around $1,675, falling below $1,575 early in the week but trading back up to reach above $1,725. This morning it is trading just below this level. 
 

Ethereum gas fees at record low levels

As the Ethereum network gears up for The Merge, its gas fees are moving at record lows. The network’s transaction fees, known as ‘gas’ fees, have been at their lowest rates since 2020. This is really positive for the network. 

Gas fees became one of the banner issues of 2021 for Ethereum and its related cryptoasset ether. Fees per transaction were running extremely high, around $40 per transaction on average, leading some analysts to call the network broken. But cooling demand on the network has brought these fees back to earth.  

While it can be hard to see an upside to falling cryptoasset prices, with The Merge approaching, affordable fees can be a really good thing. At a time of huge change for the network, low barriers to entry are critical to encourage new participants. 
 

Bitcoin is quietly competing with Ethereum

While much focus is put on The Merge, and the array of dApps and other protocols on the Ethereum blockchain, the growing Bitcoin Lightning network has much to offer too, according to a report from Arcane Research. 

Bitcoin’s Lightning Network is a really interesting aspect of the world’s largest cryptoasset that often goes forgotten. But Arcane’s study finds the number of payments has doubled in a year on the network and the value of payments has increased 400% (by dollar value). 

The lightning network has tantalizing possibilities to help bitcoin grow its dominance as a global cryptoasset. Arcane also found that access to the network has ballooned in less than a year, from around 100,000 to over 80 million by March 2022. This upscaling of the network cannot be ignored in the future even as the number of competing blockchains proliferate. 
 

UK parliamentary group launches crypto inquiry

The Crypto and Digital Assets All Party Parliamentary Group (APPG) has launched an inquiry into the UK’s cryptoasset sector and is looking to advise the Government on the next steps for crypto in the UK.

The Financial Services and Markets Bill has recently been launched, containing some key provisions around crypto and stablecoins in particular. As such it's great to see a Parliamentary grouping engaging with the sector and hoping to learn more about how it works, and its potential benefits in the UK. 

Crypto is at a critical juncture in the UK in terms of developments in the sector. Positive, innovation-supporting consumer and investor protections will help grow confidence in the space while allowing the UK to remain a hub for development of the technology.

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