📈Crypto Outperformed Stocks And Commodities In 2023

The Defiant

The Defiant Daily

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In today's newsletter, we take a closer look at the market's first-half performance in 2023, where we've seen impressive recoveries from Bitcoin and Ethereum, signaling an optimistic bounce back from last year's bear market. We also delve into the recent security incident involving Poly Network, where a hacker managed to issue an unlimited number of tokens. Finally, we look at an exciting development from Luminex – a new BRC-69 token standard that could revolutionize the way Ordinals are minted on Bitcoin, reducing costs by up to 90%.

✍️ In today’s newsletter:

  • Bitcoin and Ether outperformed in the first half of 2023
  • Poly Network exploited again for $10M
  • BRC-69 token standard aims to improve Ordinals' efficiency
  • Op-ed: Is the IRS Cracking Down on Crypto?


📈 Markets in last 24 hrs:

BTC$30,520 -1.3%
ETH$1,913 -2%
SPY$443.31 0.03%
PAXG$1,893 0.1%
Arch WEB30.87pts -3.12%
FINANCE0.93pts -2.81%
INFRA0.77pts -3.54%
CONSUMER1.07pts -3.44%
Arch WEB3

Learn more about Arch Indices here.


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Crypto Gains More Than Double Traditional Assets’ in First Half of 2023

TLDR In the first half of 2023, Bitcoin and Ethereum outperformed traditional assets, increasing by 85% and 63%, respectively, which gives hope that the bear market of 2022 might be over. This strong performance follows a significant downturn in 2022 caused by failures in major crypto networks and businesses.

Bitcoin's growth is partially attributed to early anticipation of the next halving event and the introduction of fungible and nonfungible tokens.

The DeFi sector has seen modest gains, primarily driven by liquid staking projects. Ethereum, with its transition to Proof of Stake, has become deflationary with its circulating supply decreasing this year.


“Phat Contract: Smart Contracts. Now Smarter.“

Phala Network, a leading computation infrastructure platform recently released Phat Contract, an off-chain program running on Phala Network which helps users to connect smart contracts anywhere while the app gains internet access.

Phat Contract is the optimal solution for implementing Web3 Functions.
In web3, ensuring efficient interaction with massive off-chain data while maintaining trustworthy and secure information has become exceedingly challenging. Therefore, Phat Contract enables smart contracts to extend their capabilities to the rich off-chain world, making smart contracts even smarter.

Use cases of Phat Contract are:

  • SocialFi developers can enable their smart contracts to read data from any API, including user profile stats like followers, posts, comments, and post stats.
  • Cross-chain DEX aggregators that enable users to swap tokens between various blockchains while ensuring the best possible price and minimal slippage in one-click.
  • Self-owned oracles where any smart contract can access a wide range of data from both on and off-chain data sources.

Phala launched a no-code experience for Phat Contract that allows developers to deploy pre-built templates for specific use-cases called Blueprints. The first Blueprint is a LensAPI Oracle, which makes it easier than ever to deploy a programmable web3 oracle in the Lens ecosystem and unlock the full potential of web3 social applications.

You can check out Phat Contract templates here.


Poly Network Hacker Mints Billions Of Tokens From Thin Air

TLDR Poly Network, a cross-chain bridging protocol previously known for suffering the second-largest DeFi exploit on record, has been hacked again. Blockchain security firms estimate the hacker made off with $10M. Poly Network has since suspended its services and is in contact with law enforcement and exchanges where the hacker might cash out.

SO WHAT With the number of exploits and rug-pulls significantly increasing in 2023, it underscores the need for robust security protocols and swift incident response in the crypto space. The role of exchanges in limiting the ill-gotten gains of hackers also highlights their importance in maintaining the integrity of the crypto ecosystem.


BRC-69 Token Standard Promises To Reduce Ordinals Fees By 90%

TLDR Luminex, a launchpad for Bitcoin Ordinals, has introduced a modified version of the BRC-20 token standard called BRC-69. This new standard could reduce minting costs by 90% by using a method called recursive inscriptions, where only a single line of text is inscribed on the blockchain instead of a full image, making the minting process more efficient.

SO WHAT This development could have significant implications for the Bitcoin network, as it may support further growth of Ordinals and enhance the feasibility of creating and trading NFT-like assets and memecoins on Bitcoin.


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Is the IRS Cracking Down on Crypto?

TLDR Crypto is more mainstream than ever — which means the IRS is paying closer attention to crypto transactions.

CoinLedger explores the different ways in which crypto tax fraud is increasingly becoming a focus for regulators — and how investors can stay proactive when it comes to reporting taxes and avoiding future trouble with the IRS.



  • Bitcoin, Ethereum CME Contracts Hit $46.8B in Trading Volume Last Month (Decrypt)
  • Valkyrie Refiles for Spot Bitcoin ETF With Coinbase as Surveillance Partner (Coindesk)
  • Crypto skeptic’s appointment to central bank casts doubt on China warming to digital assets (Fortune)