📉Ethereum L2 Throughput Sinks 32% In Six Weeks
The dominance of Ethereum's base-layer is at a two-month high relative to its L2 ecosystem. Mainnet throughput has steadily trended around 12 transactions per second for the past year, while L2s are down 32% after posting a high six weeks ago.
Gary Gensler, the chair of the U.S. Securities and Exchange Commission, acknowledged the fifteenth anniversary of the Bitcoin Whitepaper via tweet. In substantive regulatory news, updated U.S. Treasury Department sanctions prompted WalletConnect to block Russian users from accessing its service.
Tron is now the leading the network by stablecoin transfer based on active wallets, according to a hedge fund-backed study. The news comes as the Aave community is exploring measures to the price of its stable token, GHO, up to $1. USDC also began shutting down consumer accounts.
Celestia, a highly anticipated "modular" blockchain launched on mainnet. The projected airdropped its native tokens to active users on Ethereum L2s, Cosmos and Osmosis stakers, and select web3 developers.
The Hashflow decentralized exchange introduced trading fees on its platform alongside a revenue-sharing mechanism. Stakers accrue 50% of fees, while 30% will fund token buy-backs.
And on-chain researchers believe someone is trying to manipulate the price of SUSHI for personal gain.
✍️ In today’s newsletter:
- Ethereum L2 activity recedes
- Gary Gensler's Bitcoin birthday message
- WalletConnect blocks Russian users
- Tron tops stablecoin users
- Aave looks to restore GHO peg
- Circle offboards consumer accounts
- Celestia launches on mainnet
- Hashflow redistributes revenue
- Are traders manipulating SUSHI?
📈 Markets in last 24 hrs:
|S&P 500||$4,194||↗ 0.65%|
|Arch WEB3||0.91pts||↙ -0.6%|
|↳ FINANCE||0.85pts||↙ -0.82%|
|↳ INFRA||1.02pts||↙ -0.12%|
|↳ CONSUMER||1.01pts||↙ -1.13%|
Learn more about Arch Indices here.
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Ethereum Mainnet Reclaims Dominance From Layer 2s
TLDR Layer 2 activity has slumped 32% since peaking at 64.2 transactions per second in mid-September. The downtrend means Ethereum's relative dominance is at a two-month high.
SO WHAT The initial frenzy surrounding freshly deployed Layer 2s like Base and ZkSync Era is dying down with transaction volumes dropping 50% and 85% from their record highs respectively. However, Layer 2s have still facilitated a roughly 400% increase in combined Ethereum throughput without spiking fees.
Gary Gensler Posts Halloween-Tinged Wishes for Bitcoin White Paper Anniversary
TLDR Gary Gensler, the chair of the U.S. Securities and Exchange Commission, took to the social media network formerly known as Twitter to celebrate the 15th anniversary of the Bitcoin Whitepaper. However, Gensler's tweets quickly devolved into thinly veiled threats aimed at the broader web3 industry.
SO WHAT The SEC has copped criticism from elected lawmakers, crypto industry stakeholders, and even judges for overstepping its jurisdiction to wage an aggressive campaign of regulation-by-enforcement targeting web3 under Gensler's oversight.
Updated U.S. Sanctions Prompts WalletConnect To Block Russian Users
TLDR WalletConnect, a prominent infrastructure provider enabling connections between wallets and dApps, has blocked Russian IP addresses from accessing its platform.
SO WHAT WalletConnect rolled out the restrictions in response to the U.S. Treasury Department updating its sanctions guidance. Certain Ukrainian regions were temporarily impacted by the new guidelines.
On Wednesday, September 20 at 1500 UTC, the Stellar Testnet successfully upgraded to Protocol 20, which introduces support for Soroban smart contracts. Developers worldwide can now access Soroban’s Turing-complete functionality to deploy and invoke DeFi protocols in a common, widely used sandbox environment.
The Stellar network has long been known for supporting connections to real-world financial infrastructure. With the Protocol 20 upgrade, the access those connections provide will combine with the innovation potential created by smart contracts to allow for something unique: cash to DeFi.
Many Stellar ecosystem projects are already poised to take advantage of the cash-to-DeFi opportunity.
In a demo featured at Meridian, the annual Stellar conference, Beans, a user-friendly, consumer-facing Stellar network wallet, showed what it might look like to integrate with Blend, a Soroban-built lending protocol, to allow a user in Malawi to cash into a USDC balance via Moneygram and, in one click, deposit that balance into an interest-generating account.
These types of interactions have the potential to open access to the next generation of financial infrastructure.
The Testnet upgrade is the last step before validators vote on a Mainnet upgrade, and if that vote goes through, the upgrade is immediate. The Stellar network will likely have smart contracts before the end of the year.
Tron Quietly Becomes the Leading Blockchain for Stablecoin Transfers
TLDR Anecdotal reports from crypto users around the world and research from a major hedge fund indicate Tron now leads the stablecoin sector by user base.
SO WHAT While Tron is a centralized blockchain, users in emerging markets are flocking to the network for its low-fee transactions. However, Ethereum L2s now offer stable tokens transfers at an order of magnitude cheaper to savvier users.
Aave Floats New Plan To Restore GHO Peg
TLDR Aave's decentralized stablecoin, GHO, has consistently traded below its $1 peg. Aave governance has noted, and is now considering measures intended to shore up its price.
SO WHAT With users of the world's largest web3 lending protocol able to mint GHO against their deposits, the stablecoin was tipped to claims significant market share. However, GHO adoption has been sluggish at best, and the token has traded close to $0.97 since deployment.
Read More: Aave Floats New Plan To Restore GHO Peg
USDC Issuer Circle is Shutting Down Consumer Accounts
TLDR Circle, the company behind the second-largest stablecoin, USDC, has began eliminating accounts held by retail users. However, Circle said the decision was taken to off-board said accounts in September 2021.
SO WHAT Onlookers criticized Circle for winding down redemption services for retail users. The company emphasized that "hundreds of services worldwide, via retail exchanges, brokerages or wallet services" will allow individual users to purchase or "redeem" USDC after the Nov. 30 deadline.
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Modular Blockchain Celestia Goes Live With Traders Receiving TIA Tokens
TLDR The highly anticipated "modular blockchain," Celestia, is now live on mainnet. The milestone introduces data availability sampling and facilitates permissionless blockchain deployment for Celestia.
SO WHAT Celestia's mainnet debut coincided with an airdrop intended to distribute Celestia's TIA token to a wide cross-section of the web3 userbase, including Cosmos stakers, protocol developers, and active Ethereum Layer 2 wallets.
Hashflow Turns On ‘Fee Switch’, Redistributing 50% Of Revenue To Stakers
TLDR Hashflow, a novel decentralized exchange facilitating trades from market makers, launched trading fees alongside a fee-sharing mechanism. HFT stakers will receive 50% of revenue, with 20% of fees supporting the Hashflow Foundation, and 30% funding HFT buy-backs.
SO WHAT The rollout follows controversy in the Uniswap community after Uniswap Labs imposed a 0.15% fee on trades executed through its front-end interface. Uniswap Labs is pocketing 100% of fees — projected to reach tens of millions annually — despite UNI tokenholders long calling for a share of protocol revenue.
Observers Suspect Market Manipulation As SUSHI Rallies 20%
TLDR Lookonchain, an on-chain research team, flagged suspicious SUSHI transactions executed on decentralized exchanges. Lookonchain concluded an entity is seeking to manipulate the price of SUSHI for personal gain.
SO WHAT The news marks the latest drama facing the Sushi community. The project has faced a multi-year governance saga, and, recently, legal challenges from the SEC.