👑Bitcoin Dominance Surges to Two-Year High
Bitcoin dominance has hit 50% for the first time since April 2021. Meanwhile, decentralized exchange Curve is mulling over expanding its collateral options for its crvUSD stablecoin to include wrapped Bitcoin. In the world of NFTs, the Solana network shows promising signs of recovery with a surge in daily NFT transactions. Meanwhile, the crypto community rallies in support of blockchain detective ZachXBT, quickly raising funds for his legal defense against a defamation lawsuit.
✍️ In today’s newsletter:
- Bitcoin whales accumulated $3.5B in the past 3 months
- Curve proposes to add wBTC and ETH as collateral for crvUSD
- Solana NFT activity doubles in May
- ZachXBT raises over $1M in three days for legal defense
📈 Markets in last 24 hrs:
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Bitcoin Dominance Rises To Highest Level In Over Two Years
TLDR Bitcoin's market dominance has increased to over 50% of the total crypto market cap for the first time since April 2021. Its outperformance comes amid BlackRock's filing for a Bitcoin ETF, an increase in on-chain activity, and considerable accumulation by large-scale investors, also known as whales.
SO WHAT The rising dominance of Bitcoin signals a shifting preference among investors away from more speculative altcoins. The upcoming Bitcoin halving in ten months could lead to further price increases in line with previous trends. The BlackRock Bitcoin ETF, if approved, could provide an additional regulated platform for retail investors to gain exposure to Bitcoin, potentially driving up demand.
In less than two months, the Asymetrix team has successfully attracted a substantial TVL of $18 million to their protocol. The project has been under development since 2022 and was finally deployed to the Ethereum mainnet at the end of April 2023.
Asymetrix is a DeFi protocol for asymmetric ETH staking rewards. Users deposit their stETH (Lido’s staked ETH) into a common pool. This pool grows daily at the rate of liquid staking rewards, which is around 5% per year. Than instead of distributing these earnings among all participants, Asymetrix makes a weekly random draws. This mechanics rewards some participants with a significantly high APR on their deposit, thereby adding an element of chance to the traditional reward model. However, the original deposits of all users remain untouched, regardless of the rewards distribution.
The team emphasizes transparency and security within the protocol. That's why they incorporate top-tier solutions to ensure these aspects - Chainlink VRF serves as the provider for randomness, and a thorough security audit of the code has been performed by the leading company, Hacken.
Curve Looks To Expand crvUSD Collateral Assets
TLDR Curve is considering a proposal to support more collateral assets, such as wrapped Bitcoin, for its crvUSD stablecoin. A proposal is also underway to include native Ether as collateral. However, with crvUSD interest rates at over 5%, its competitiveness in the market is uncertain. Meanwhile, a proposal to freeze the CRV lending market on Aave V2 has been rejected by the Aave community.
SO WHAT These developments could enhance the flexibility and appeal of Curve's crvUSD stablecoin, potentially attracting more users.
Solana NFT Activity Doubles In May
TLDR Solana's on-chain NFT activity has been increasing, with the daily NFT transaction count doubling since the start of May. In contrast, Ethereum's NFT activity has significantly reduced from over 100,000 daily transactions in March to less than 20,000.
SO WHAT The increased NFT activity on Solana indicates a potential recovery and renewed interest in its network. This could bring a much-needed boost to Solana and its native SOL token, especially considering its struggles in the bear market.
Donations for ZachXBT’s Legal Defense Reach $1M Target in Less Than Three Days
TLDR ZachXBT, a well-known figure in the crypto community for exposing scams, is being sued for defamation by Jeffrey Huang, a.k.a. MachiBigBrother. In response, ZachXBT appealed to the crypto community for funds to support his legal defense, which could exceed $1M. The response was overwhelming, with the target reached in just three days.
SO WHAT The strong support ZachXBT received underscores the importance the crypto community places on transparency and accountability. It also demonstrates the strength of the community in rallying behind a cause they believe in. However, the lawsuit and its outcome could have implications for other whistleblowers in the space.
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