📉Crypto Markets Suffer $100B Flash Crash

TLDR A sudden flash crash wiped $100B from the combined crypto market cap in over the course of just a few hours earlier today. The move drove $500M worth of liquidations in a single hour, flushing excessive leverage from the markets.

SO WHAT The move comes as investors are anxiously awaiting a verdict from the U.S. Securites and Exchange Commission on pending applications for spot Bitcoin ETFs.

READ MORE: Flash Crash! $100B Wiped From Crypto Market Cap In Three Hours

TLDR A new rule from the U.S. Internal Revenue Service requiring that businesses handling crypto assets report transactions received worth at least $10,000 took effect on Jan. 1. The reports must include detailed information on transactional counterparties, and businesses that don't comply could face felony charges.

SO WHAT The rule is the latest example of U.S. regulators seeking to clamp down on crypto. However, the IRS is attracting criticism for failing to provide guidance on how to report the receipt of validator rewards.

READ MORE: New IRS Rule Mandates Business Report Crypto Transfers Worth $10K+

TLDR The market cap of DeFi tokens tagged roughly $80B on Dec. 3 after gaining 88% since mid-October. The total value locked in DeFi protocols is also up 55% over the same period.

SO WHAT The metrics trended to their highest level since Terra's failure wiped tens of billions from the DeFi markets in mid-2022, signifying recovery across the decentralized finance sector.

READ MORE: DeFi Market Cap Tags Highest Level Since Terra Collapse

TLDR Solana continues kicking goals, with the network flipping Ethereum by stablecoin volume and Google search traffic for the first time in recent weeks. Solana is also vying with Ethereum to lead the NFT markets by sales volume.

SO WHAT The milestones follow an impressive recovery for Solana, with its SOL network token gaining more than 900% since the start of 2023. Solana USDC has also emerged as the single-most traded stablecoin amid the surge in activity.

READ MORE: Solana Flips Ethereum By Stablecoin Volume and Google Search Traffic

TLDR Declan Fox, the senior product manager for Linea at Consensys, delivers a call to action for rollup providers to outline plans for progressive decentralization and trust minimization. Fox also argues that zero-knowledge solutions are best poised to facilitate decentralized security.

SO WHAT Competition to scale Ethereum is heating up, with a new generation of zero-knowledge rollups seeking to dethrone the incumbent optimistic rollups in Arbitrum and Optimism.

Read More: Linea's Journey Towards Progressive Decentralization: The Key To Minimizing Trust With Zero-Knowledge Technology

TLDR Ethereum has started 2024 with deflationary ETH issuance, with Ether's supply growing by 3,051 coins since tagging a post-merge low on Dec. 30. The news results from a decline in on-chain activity amid the New Year holidays.

SO WHAT Ethereum realized its deflationary promise throughout the majority of 2023, with ETH's supply steadily falling except for during September and October.

READ MORE: Ether Supply Grows Amid Activity Lull During New Year Holidays

• Vitalik Buterin wants ENS domains on Layer 2
• Bitcoin community celebrates 15th anniversary of genesis block
• Ethereum Foundation schedules Devcon 7 for November in Thailand

• Coinbase shares slip 20% into the new year as price of bitcoin seesaws (The Block)
• Jupiter Targets JUP Airdrop for End of January (Coindesk)
• Binance dominance fell to 44% last year amid mounting regulatory and legal woes (CryptoSlate)