Research Summary
The report discusses various developments in the cryptocurrency and blockchain sector, including updates from Pendle Finance, Polygon, Revolut, SEC, Circle, Kamino Finance, Avalanche, Zilliqa, EigenLayer, MetisDAO, Manta Pacific, OKX, Aperion, and Electric Coin Company. It also provides data on trending assets, trading volumes, total value locked (TVL), and fees.
Key Takeaways
Pendle Finance’s Upcoming Upgrade and Campaign
- Pendle’s Protocol Upgrade: Pendle Finance, a DeFi protocol, is preparing for an upgrade to Pendle V3, which will introduce an on-chain system for margin interest rate swap markets. This development could potentially enhance the functionality and efficiency of the platform.
- Leaderboard Campaign: Pendle is also running a leaderboard campaign on Arbitrum, with the top trader of the season winning 10,000 ARB. The campaign, which ends on December 20, 2023, could stimulate trading activity on the platform.
Regulatory Changes Impacting Crypto Businesses
- Revolut’s Crypto Suspension: UK-based fintech firm Revolut will suspend crypto buying for its business customers from January 4, 2024, due to anticipated regulatory changes from the Financial Conduct Authority (FCA). This move indicates the potential impact of regulatory shifts on crypto services.
- SEC’s Delayed Decision: The U.S. Securities and Exchange Commission (SEC) has postponed its decision on Hashdex’s Ethereum ETF and Grayscale’s Ethereum Futures ETF, reflecting the ongoing regulatory uncertainty surrounding crypto-based financial products.
Blockchain Developments and Challenges
- Polygon’s Inscription Lead: Polygon POS leads in inscriptions on EVM chains with 161 million, significantly more than the second chain, BNB, with 78 million. This suggests a high level of activity and adoption of the Polygon platform.
- Zilliqa’s Technical Issue: The Zilliqa chain is currently halted due to a technical issue, causing a 5% drop in ZIL’s value. This incident underscores the technical risks inherent in blockchain platforms.
Notable Fundraising and Adoption
- MetisDAO’s Ecosystem Fund: MetisDAO has announced a $100 million ecosystem growth fund, starting in Q1 2024. This substantial fund could potentially stimulate growth and innovation within the MetisDAO ecosystem.
- Aperion’s Blockchain Migration: Aperion, developed by Axie Infinity creator Sky Mavis, has successfully migrated to the Ronin blockchain. This move could potentially enhance Aperion’s performance and scalability.
Performance of Crypto Assets
- Trending Assets: METIS and WOO have shown strong performance, with METIS up 25.19% and WOO up 10.19% on the day. INJ also continues to show strength, up 10.18% on the day.
- Trading Volumes: swETH saw increased trading volumes following EigenLayer’s decision to raise LST caps to 500k ETH, indicating heightened market activity around this asset.
Actionable Insights
- Monitor Regulatory Developments: The upcoming regulatory changes that led to Revolut’s decision to suspend crypto buying for its business customers highlight the importance of staying abreast of regulatory developments in the crypto space.
- Assess Impact of Platform Upgrades: Pendle Finance’s upcoming upgrade to Pendle V3 could potentially enhance the platform’s functionality and efficiency. Stakeholders should assess the potential impact of this upgrade on their operations or investments.
- Consider Technical Risks: The technical issue that halted the Zilliqa chain underscores the technical risks inherent in blockchain platforms. Stakeholders should factor these risks into their decision-making processes.
