From the increase in interest rates to the historical link between Ethereum and Solana; 3 important events of this week of digital currencies

This week we will see three important events that can initiate important trends in the digital currency market until 2023. The possible increase in bank interest rates in the United States, the change of fees in UniSwap and the launch of the Neon Labs protocol with the aim of communicating between the Ethereum blockchain and Solana are important events that you should keep an eye on.

According to “The Block”, the close correlation of the digital currency market with other financial markets has caused the impact of the Federal Reserve’s decision this week on the price of Bitcoin and other altcoins to be noticed by investors.

Also, the DeFi industry will see a new trend in its income distribution; A controversial issue related to the classification of digital currencies as securities. Solana is also launching a new protocol that could make this ecosystem a host for new protocols, applications, and users.

Macroeconomic events

This is a very busy week of the year for the financial markets after a few weeks away from major news releases from the Federal Reserve.

The Federal Reserve’s decision on interest rates will be the most important event this week, which is expected to increase by 0.5 percentage points. Jordi Alexander, chief information officer at Selini Capital, tweeted in November that a 0.5 percentage point rate hike was reassuring.

Jordi said in a separate tweet:

Although there are still many issues to be resolved in the cryptocurrency space, macroeconomic conditions have improved since the middle of the year.

The Federal Reserve press conference will be held on Wednesday at 23:00 Tehran time. The economic estimate of the Federal Open Market Committee and the interest rate will be released 30 minutes before this conference.

Changes in uniswap fees

UniSwap, the largest decentralized exchange by fees received, will start voting this week for changes to its fees.

The purpose of this fee change is to increase the trading volume, liquidity and stability of the UniSwap ecosystem by adding fees. The additional fees will go to UniSwap’s coffers and will not be distributed to users. The initial pilot program of this project will be implemented for 120 days.

If the proposal is approved, UniSwap will begin the pilot program and apply a 10% fee to three of its largest trading pools.

Serious discussions about the proposed fee increase began in July. UniSwap’s decision on the proposal will set a precedent for the entire cryptocurrency industry, the draft said. Competing decentralized exchanges, such as Sushiswap, have also begun discussing a new proposal to send fees to the accounts of users who have staked Sushi tokens.

This pilot program will be used to evaluate the effectiveness of the change in fees and how it will affect the execution of transactions of this decentralized exchange.

Launching the main network of Neo Labs

Developer tools platform Neo Labs will launch its mainnet on Monday. This protocol allows Ethereum applications to be developed on the Solana network.

NeoLabs is the first Ethereum virtual machine for Solana and will have a native token called Neon. Neon Token will be used to pay transaction fees and participate in the management of this protocol. Users can use the popular Metamask wallet to store Neon.

Neo Labs claims that Ethereum-based applications will be able to access the Solana blockchain without the need for code changes to take advantage of its scalability and liquidity. Also, this protocol is developing an infrastructure with full compatibility between Ethereum and Solana applications; Although a date for this release has not been announced. Currently, Ethereum-based developers will be able to build apps on the network, but not by writing native Solana apps.

Well-known protocols such as Aave and Curve will be launched in the Ethereum Neon virtual machine after the mainnet is launched.

Marina Guryeva, CEO and founder of Neon Labs says:

Ethereum Neon Virtual Machine unites the best of both worlds of Ethereum and Solana and puts an end to the “Ethereum killer” narrative once and for all.

The Ethereum Virtual Machine is the most popular software in the cryptocurrency industry that allows developers to build and run decentralized applications. Compatibility with the Ethereum virtual machine makes it possible to develop or connect applications to other blockchains. The lack of Ethereum virtual machines has been an obstacle to the entry of developers and communication between the Ethereum and Solana ecosystems.