Research Summary
The report discusses the evolving landscape of the cryptocurrency industry, highlighting Kraken’s consideration of launching its own Layer 2 network, the partnership between Yuga Labs and Magic Eden to enforce NFT royalties, and Lido’s governance token holders approving a proposal for new validators. It also touches on the rise in Bitcoin inscription activity, various corporate developments, and collaborations in the crypto space.
Key Takeaways
Kraken’s Layer 2 Aspirations
- Exploring Partnerships: Kraken is considering launching a Layer 2 network and is in talks with teams like Polygon, Matter Labs, and Nil Foundation.
- Unique zk-Based Network: The potential Kraken L2 network could be the only zero-knowledge-based L2 among its competitors.
- Centralized Exchange Strategies: Exchanges are increasingly offering on-chain solutions like sponsored infrastructure or self-custodial wallets to engage users.
Yuga Labs and NFT Royalties
- Enforcing Royalties: Yuga Labs partners with Magic Eden to launch a marketplace that honors creator royalties amid declining NFT royalties.
- Influence on Royalty Debate: Yuga Labs, with a significant market share, aims to reshape the anti-royalty narrative.
- Financial Impact on Creators: The NFT sector is concerned about the potential strain on creators if royalties are eliminated, given the historical earnings of over $1.8 billion from secondary sales.
Lido’s Validator Onboarding
- Approval of New Validators: Lido governance token holders have approved a proposal to onboard new validators through the Obol and SSV networks.
- Staking Module Development: A “staking module” will be created to organize new distributed validators into pools, with a phased rollout planned.
- First-Mover Advantage: Lido’s cautious approach to new technologies, like the slow rollout of staked ETH withdrawals, reflects its significant market presence.
Bitcoin Inscription Activity
- Record Inscription Count: Bitcoin inscription count reached its second-highest daily figure, with the majority being text-based.
- Fee Generation Increase: The rise in inscription activity led to a 6-month daily high in fees generated, reaching 55 BTC.
Corporate and Ecosystem Developments
- Corporate Announcements: Binance unveils a self-custody wallet, Coatue Management marks down its OpenSea stake, and The Graph plans new services.
- Collaborative Efforts: Polygon Labs and NEAR Foundation work together on a zkWasm L2 Prover, and other ecosystem funds and services are launched.
Actionable Insights
- Monitor L2 Network Developments: Keep an eye on Kraken’s potential Layer 2 network launch and its impact on the competitive landscape of crypto exchanges.
- Assess NFT Market Dynamics: Consider the implications of Yuga Labs’ royalty-enforcing marketplace on the NFT sector and creator earnings.
- Evaluate Lido’s Staking Innovations: Observe Lido’s implementation of new staking modules and their effect on the protocol’s market dominance and decentralization.
- Analyze Bitcoin Inscription Trends: Study the increase in Bitcoin inscription activity and its influence on network fees and user engagement.
- Explore Ecosystem Collaborations: Investigate the potential of new collaborations, such as the partnership between Polygon Labs and NEAR Foundation, and their contributions to the crypto ecosystem.
