Research Summary
The report discusses the launch of a zk-rollup for Bitcoin by Citrea, the scheduling of Ethereum’s Dencun hard fork, and Solana’s first network outage in a year. It also highlights the decline in Maker’s DAI stablecoin supply and other news in the crypto space.
Key Takeaways
Bitcoin’s zk-Rollup Innovation
- Bitcoin’s zk-Rollup Launch: Citrea, incubated by Chainway Labs, has launched the first zero-knowledge rollup on Bitcoin. This allows Bitcoin users and applications to process transactions on an off-chain ZK-Rollup for cheaper and faster settlement. The zk-rollup uses inscriptions and BitVM technologies, marking a significant moment in Bitcoin’s evolution as a platform.
Ethereum’s Dencun Hard Fork
- Scheduled Ethereum Upgrade: The Dencun hard fork is set to be activated on Ethereum on March 13, 2024. This upgrade will support the migration of users away from Ethereum to Layer-2 rollups. However, it is unlikely to present Ethereum stakeholders with immediate benefits or improvements to the end-user experience once activated.
Solana’s Network Outage
- Solana’s Network Downtime: Solana’s network experienced its first outage since February 2023. The outage was a setback for the chain’s credibility, but it appears to have had a limited impact on the network’s perception compared to previous incidents. The network’s long-term trajectory remains focused on high-profile airdrops, decentralization of the governance process, and development of a robust application ecosystem.
Maker’s DAI Stablecoin Supply Reduction
- DAI’s Supply Reduction: Maker’s DAI stablecoin has seen a 373m reduction in its circulating supply over the last 10 days, the largest 10-day reduction since the USDC de-peg during the banking meltdown in March 2023. The decline was triggered by an increase in stability fees for crypto-backed vaults.
Other Crypto News
- Regulatory and Market Developments: The SEC has adopted a rule for stricter oversight over dealers, including crypto and DeFi. BlockFi and 3AC have reached a settlement deal, and Consensys’s MetaMask has incorporated features to facilitate easier crypto purchases. Polygon has released ‘Type 1 Prover,’ and developers are combining ERC-20 tokens and NFTs. MicroStrategy acquired 850 bitcoin for $37.2 million in January.
Actionable Insights
- Monitor zk-Rollup Developments: The launch of zk-rollup on Bitcoin by Citrea could lead to a new wave of innovation, expanding Bitcoin’s scope of applications. Stakeholders should monitor these developments and their potential impact on the Bitcoin ecosystem.
- Prepare for Ethereum’s Dencun Hard Fork: With the Dencun hard fork scheduled for March 13, 2024, Ethereum node operators should prepare for the upgrade and its potential implications.
- Assess Solana’s Network Stability: Following Solana’s network outage, stakeholders should assess the network’s stability and the potential impact on its credibility and DeFi activity.
- Track DAI’s Supply Changes: The significant reduction in DAI’s supply could have implications for the stablecoin market. Stakeholders should track these changes and their potential impact.
- Stay Updated on Regulatory Developments: With the SEC adopting stricter oversight rules for dealers, including crypto and DeFi, stakeholders should stay updated on regulatory developments and their potential impact on the crypto market.
