📉Crypto Assets Crash To Fresh 2024 Lows
Crypto assets are in free-fall, with the combined crypto cap tumbling 16% in two weeks. However, Bitcoin and DeFi assets are performing stronger than the broader digital asset sector, posting losses of 5% and 7.5% respectively.
In other news, the Ethereum Foundation has offloaded $1.6M worth of Ether, EtherFi's TVL is up 140% since the start of January, and the Rari Chain Layer 3 network is live on mainnet.
Also, Terraform Labs has taken the "strategic step" of filing for bankruptcy.
✍️ In today’s newsletter:
- Crypto market cap crashes 16% in two weeks
- Ethereum Foundation sells $1.6M in ETH
- EtherFi TVL nearly doubles in three weeks
- Terraform Labs initiates bankruptcy proceedings
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Crypto Assets Slide To New 2024 Lows
TLDR Digital assets are crashing, with the sector's combined market cap giving up 16% in 12 days. BTC is down 4.5 in the past 24 hours, while Ether tumbled 8%.
SO WHAT Bitcoin is holding up relatively strong after ranking among the worst-performing assets last week, with the launch of the first spot Bitcoin ETFs manifesting as a sell-on-the-news event. DeFi tokens are also outperforming the broader web3 markets, with DeFi tokens tumbling 7.5% since tagging a local high on Jan. 11.
READ MORE: Crypto Assets Slide To New 2024 Lows
Ethereum Foundation Sells $1.6M Of ETH
TLDR The Ethereum Foundation was spotted offloading seven figures worth of Ether amid the recent market sell-off. The foundation is yet to explain the heavy ETH sales.
SO WHAT News of the Ethereum Foundation selling treasury assets serves as a blow to confidence in ETH. Ether was the 31st worst-performing coin among the top 100 digital assets by market cap over the past 24 hours.
READ MORE: Ethereum Foundation Sells $1.6M Of ETH
Ether.fi TVL Goes Parabolic On EigenLayer Restaking Demand
TLDR The total value locked in EtherFi, a liquid staking protocol offering native restaking yields via EigenLayer, has surged to new all-time highs after rallying 140% since the start of January.
SO WHAT The news follows surging popularity of EigenLayer, with the protocol's TVL jumping 551% since mid-December after the project increased its pool limits.
Shell Protocol has launched its stakeable SHELL governance token. Airdrop recipients can check their eligibility through the Shell app. This token launch coincides with DeFi unifier Shell v3, which natively integrates Balancer and Curve pools in one single interface.
Shell aims to ultimately unify DeFi with a single app for NFTs and one-to-many swaps across every major protocol. Shell was created by Cowri Labs, a Hawaii-based DeFi development team, and has grown to a user base of 45,000.
Shell has received pushback from airdrop farmers for its sybil-resistant reward scheme. The SHELL token is currently trading through the Shell app. As for Cowri Labs, the team is already planning future integrations, with Uniswap and Aave on the near horizon.
Terraform Labs Files For U.S. Bankruptcy
TLDR Terraform Labs, the team behind the notorious failed Terra network, has filed for bankruptcy in what the company describes as a "strategic step." Do Kwon, the founder of Terraform Labs, estimates the company's total assets are valued between $100M and $500M. Liabilities are estimated to be in the same range.
SO WHAT Terra's failure is largely credited as the final death knell of the previous bull cycle. The network's collapse wiped billions from the combine crypto market cap, triggering contagion risk that culminated in widespread insolvencies suffered by CeFi institutions.
READ MORE: Terraform Labs Files For U.S. Bankruptc