Here’s what happened in crypto today
Today in crypto, VanEck warned that blockchain network Hyperliquid desperately needs developer activity to sustain its massive market cap, the governor of the Czech National Bank said he would consider Bitcoin as part of the bank’s diversification strategy in the future, and the United States Federal Reserve’s Michael Barr announced plans to resign as vice chair for supervision — which is seen as a win for crypto.VanEck: Hyperliquid needs developers to avoid becoming obsoleteAsset manager VanEck is bullish on Hyperliquid but warned that the layer-1 blockchain needs more developers to sustain its token’s $25 billion market capitalization. In a Jan. 6 post, VanEck analysts said Hyperliquid had become one of the most valuable blockchains since the HYPE token airdrop in November. However, the network has “yet to attract much of a developer community.”“If Hyperliquid is unable to meet the growth expectations of its community, the prisoner’s dilemma facing many newly rich $HYPE holders may quickly unravel,” VanEck warned.VanEck said it took Hyperliquid just one month of trading to become the “13th most valuable project in crypto.” Its growth reflects broader adoption of decentralized exchanges, which saw more than $430 billion in trading volume last month.Meanwhile, the HYPE token has rallied more than 500% since its Nov. 29 launch.Czech National Bank governor weighs Bitcoin for future reserve strategyThe governor of the Czech National Bank, Aleš Michl, recently considered Bitcoin as a potential diversification strategy for the country’s foreign exchange reserves, highlighting growing government interest in cryptocurrency as a savings technology.In an interview with CNN Prima News, Michl said he was considering acquiring “a few Bitcoin” for diversification, which wouldn’t count as a significant investment for the bank.The Czech National Bank’s board, composed of seven members, would need to approve any decision to acquire Bitcoin.When asked about a potential acquisition, Janis Aliapulios, an adviser to the board, confirmed that the bank is not currently planning a Bitcoin (BTC) investment. Still, Michl remains open to considering Bitcoin diversification in the future.“To sum up, CNB is now not considering buying crypto assets for its reserves. However, Governor Michl did not rule out further future debate on this topic,” Aliapulios told Cointelegraph.The bank will continue its diversification plan via gold purchases in the near future, with plans to increase gold holdings to about 5% of its total assets by 2028, Aliapulios added.Bitcoin could emerge as a significant reserve asset next to gold, thanks to its robust yearly returns. During the past year, Bitcoin rose by over 131% while gold prices rose by about 30%, TradingView data shows.US Fed bank regulator Michael Barr to step downThe United States Federal Reserve’s Michael Barr is set to resign as vice chair for supervision — marking the latest exit by a US official apparently linked to “Operation Chokepoint 2.0” — a purportedly concerted federal effort to debank crypto companies. Barr’s resignation will take effect on Feb. 28 — or earlier, if a successor is appointed, he said in a Jan. 6 letter addressed to US President Joe Biden. Barr will, however, continue to serve as a member of the Federal Reserve Board of Governors.Some crypto industry executives have viewed Barr as a key reason why many US banks have been hesitant to offer services to crypto firms, especially after a March 9, 2023 speech where he seemingly confirmed the central bank’s outlook:“We would likely view it as unsafe and unsound for banks to directly own crypto-assets on their balance sheets.”