🚀ETH Stakers Flock To Rocket Pool

GM Defiers!

In today’s newsletter, we’ll be discussing the recent surge in Rocket Pool adoption following the Atlas upgrade, the significant increase in LayerZero usage after the Arbitrum airdrop, and the dramatic drop in CAKE prices due to Syrup Pool unlocks. Additionally, we’ll be looking at the current state of the NFT market and how collectors are reacting to the ongoing downturn.

✍️ In today’s newsletter:

• Rocket Pool minipools are gaining users as Kraken exits staking business
• Airdrop farmers appear to be driving LayerZero activity
• Pancakeswap grapples with token unlocks
• NFT traders have been realizing substantial losses

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🎬 WATCH

Watch our 5-step guide to trading new tokens safely. And check out our podcast with Nick Johnson, the founder of the Ethereum Name Service (ENS).

Liquid Staking

Rocket Pool Adoption Surges After Atlas Upgrade

TLDR Rocket Pool has seen an 11% increase in users staking on its platform since the successful deployment of its Atlas upgrade, which lowered the amount of collateral required to participate in Ethereum staking. The platform is now the fifth-largest staking provider. Rocket Pool’s RPL token rallied prior to the Atlas upgrade, but has since fallen by 23%.

SO WHAT The success of Rocket Pool’s Atlas upgrade is a positive development for the Ethereum staking ecosystem. The lower barriers to entry can attract more participants and increase the amount of ETH staked, which can help to further decentralize the network.

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Airdrops

LayerZero Usage Triples After Arbitrum Airdrop

TLDR LayerZero, a cross-chain interoperability protocol, has experienced a threefold increase in cumulative transactions since Arbitrum airdropped $1.7 billion of ARB tokens to its users. This indicates that users are expecting another ARB-like windfall and shows how airdrops are significant drivers of activity in the crypto space.

SO WHAT The trend of users interacting with projects in hopes of receiving a payout has accelerated since the distribution of free ARB tokens a month ago.

DEXs

CAKE Plummets On Syrup Pool Unlocks

TLDR PancakeSwap’s governance token, CAKE, has dropped more than 24% in the past week, making it the worst performer among the top hundred digital assets. This drop occurred after approximately 6 million CAKE tokens were unlocked from the Syrup Pool mechanism, which allows users to lock tokens to earn CAKE rewards.

SO WHAT The increased supply has caused selling pressure, and as a result, multiple proposals to tweak CAKE’s tokenomics to become more sustainable went live in the past week. One of these proposals is on track to pass, with 67% of voters agreeing to reduce CAKE emissions for the Syrup Pool from 6.65 CAKE to 3 CAKE per block.

NFTs

NFT Collectors Capitulate As Downturn Drags On

TLDR The NFT market is experiencing a rough patch, with holders selling their digital assets at a substantial loss, resulting in a significant drop in both volume and users across all NFT marketplaces. Losses on secondary sales are averaging $1.9 million per day, with spikes as high as $3 million.

SO WHAT The downturn indicates that NFT prices were driven more by hype than fundamental value. This correction could be a healthy sign for the NFT market as it eliminates speculation and encourages market participants to focus on the long-term potential of the technology.

🔎 OUR REPORTERS ARE WATCHING

• Catalyst raises $4.2M to build cross-chain liquidity layer
• Circle launches cross-chain transfer protocol

🌍 ELSEWHERE

• Franklin Templeton CEO: The Future of the Crypto Industry Is Regulated (Coindesk)
• Lens protocol launches Optimistic Layer 3 solution (Twitter)
• Celsius Creditors Seek to Unmask ‘Suspicious’ FTX Crypto Trades (Bloomberg)