🚧Inscriptions-Induced Congestion Splits Crypto Community

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Surging activity resulting from the proliferation of inscription tokens across Layer 1 networks is dividing the web3 community. While some see inscriptions as a new way method to fairly launch new tokens, others argue the tokens lack utility and are created by frivolously wasting block space.

In other news, Jito is challenging Lido by fully diluted valuation, Andreessen Horowitz is bullish on GameFi and AI in 2024, and LayerZero confirmed it will launch a token soon.

Plus, check out our explainer looking at how AI is converging with web3.

✍️ In today’s newsletter:

  • Inscriptions activity surges alongside controversy
  • JTO trades at $2B fully diluted valuation
  • A16z eyes eight trends for 2024
  • LayerZero says token is coming next year
  • Everything you need to know about AI and crypto


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Waste Of Block Space Or Egalitarian Issuance Mechanism? Inscriptions Divide Web3 Community

TLDR Activity surrounding inscription protocols is surging, pushing up transaction volumes on Polygon, BNB Chain, and Near, but driving crippling congestion on Bitcoin and TON.

SO WHAT The recent spike in activity and activity and speculation surrounding inscriptions tokens is ruffling feathers in the crypto community. Proponents argue inscriptions offer a new mechanism for fairly launching tokens, while critics say the tokens offer little utility and waste block space.

READ MORE: Waste Of Block Space Or Egalitarian Issuance Mechanism? Inscriptions Divide Web3 Community


Jito Briefly Surpasses Lido's Valuation at Launch

TLDR Jito, the leading liquid staking protocol on Solana, has overtaken Lido, the Ethereum-based liquid staking goliath, by fully diluted valuation (FDV) after launching a token. The protocol distributed $160M worth of JTO tokens, currently equating to a $3B FDV.

SO WHAT JTO's bullish launch follows an impressive recovery for Solana, with the network's total value locked jumping 154% since the start of October. JTO is Solana's second-largest protocol, holding more than $455M worth of assets.

Read More: Jito Briefly Surpasses Lido's Valuation at Launch


Eight Trends That Excite a16z For 2024

TLDR Andreessen Horowitz, a crypto VC heavyweight, has outlined eight web3 trends it is closely eying for 2024. The firms tips that we will see important advancements in the AI, GameFI, and NFT spaces, in addition to advancements in SNARKS, user interface, and modular blockchains.

SO WHAT Andreessen Horowitz's predictions come as the crypto sector is showing early signs it is gearing up for a new bull market, with spot Bitcoin ETF speculation and bullish expectations for the Bitcoin halving leading the charge. However, the VC firm is looking to emerging web3 technologies to birth future blue-chip projects.

Read More: Eight Trends That Excite a16z For 2024


LayerZero To Launch Token In 2024

TLDR LayerZero, a leading cross-chain interoperability protocol, put an end to long-running speculation that it may launch a token. “We’ll state now in no uncertain terms that there will be a LayerZero token,” the project tweeted. LayerZero added it will distribute the token by the second half of 2024.

SO WHAT The news follows enormously successful airdrops from Jito and Celestia, with both project's tokens trading at multi-billion FDVs. Airdrop opportunists have long been actively using LayerZero in the hope of securing a sizable token allocation.

Read More: LayerZero To Launch Token In 2024


The Convergence of AI and Blockchain

TLDR Our AI explainer seeks to examine the intersection between artificial intelligence and web3 technologies, examining many some of the hottest projects and use cases embracing AI in crypto.

SO WHAT The increasing convergence between AI and blockchain is a hot topic in crypto, with A16z naming artificial intelligence atop its list of narratives to watch next year. However, demystifying the hype from concrete initiatives remains a steep challenge for many onlookers.

Read More: The Convergence of AI and Blockchain



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