Research Summary
The report covers a range of developments in the digital asset space from 13-11-2023 to 19-11-2023. Key topics include Pendle Finance’s growth, South Korea’s National Pension Service’s investment in Coinbase, BlackRock’s filing for an Ether ETF, and Polygon’s skyrocketing gas fees. The report also discusses various governance proposals, token launches, and partnerships in the crypto industry.
Key Takeaways
Pendle Finance’s Expansion and Spartan Capital’s Investment
- Spartan Capital’s Support: Spartan Capital has made an additional investment in Pendle Finance through an OTC purchase. This investment aims to support Pendle’s growth and expansion into new areas like real-world asset derivatives.
- Pendle’s Growth Potential: Pendle Finance, a DeFi protocol, allows users to tokenize and trade future yields from staked assets and real-world assets. By enabling speculation on yields from both blockchain and traditional assets, Pendle presents an opportunity to bring more capital into DeFi and further its growth.
South Korea’s National Pension Service’s Investment in Coinbase
- First Digital Asset Investment: South Korea’s National Pension Service (NPS) purchased $20 million worth of Coinbase shares. This is the first investment the NPS has made in any digital asset related company, marking a significant milestone in the acceptance of digital assets by traditional financial institutions.
BlackRock’s Ether ETF Filing
- BlackRock’s Ether ETF: BlackRock, one of the world’s largest asset managers, has officially filed for a spot Ether ETF with the SEC. This move signifies growing institutional interest in Ethereum and could potentially lead to increased liquidity and price stability for the cryptocurrency.
Polygon’s Rising Gas Fees
- Polygon’s Gas Fee Surge: Polygon’s gas fee skyrocketed to as high as 4000 gwei as the number of transactions on the network peaked to its highest since 2021 at 6.1 million transactions. This surge in gas fees is likely due to Polygon’s inscription event of PRC-20 POLs, indicating high network usage and demand for Polygon’s services.
Philippines Government’s Tokenized Bonds
- Philippines’ Tokenized Treasury Bonds: The Philippines government will be offering $179 million of 1-year tokenized treasury bonds. The bonds will be due in November 2024 with a minimum denomination of $180,000. This move represents a significant step towards the adoption of blockchain technology in the public sector.
Actionable Insights
- Investigate the Potential of DeFi Protocols: The growth and expansion of Pendle Finance, a DeFi protocol that allows users to tokenize and trade future yields, highlight the potential of DeFi protocols in attracting more capital into the crypto space. Stakeholders should explore the opportunities presented by such protocols.
- Monitor Institutional Investment in Digital Assets: The investment by South Korea’s National Pension Service in Coinbase shares indicates growing institutional interest in digital assets. Stakeholders should monitor these developments as they could significantly impact the digital asset market.
- Assess the Impact of Ether ETFs: BlackRock’s filing for a spot Ether ETF could potentially lead to increased liquidity and price stability for Ethereum. Stakeholders should assess the potential impact of such ETFs on the Ethereum market.
- Consider the Implications of Rising Gas Fees: The surge in Polygon’s gas fees due to high network usage indicates the growing demand for its services. Stakeholders should consider the implications of such trends on the cost and scalability of blockchain networks.
- Explore the Use of Blockchain in Public Sector: The offering of tokenized treasury bonds by the Philippines government represents a significant step towards the adoption of blockchain technology in the public sector. Stakeholders should explore the potential use of blockchain technology in public finance and governance.
