This week’s Defi revealed debate as to whether an increase in recruitment among Wall Street participants would lead to the first expansion of the crypto market, a “supercycle” that would raise digital asset valuations beyond the historic four-year cycle time frame.
As a major smart contract blockchain, Ethereum’s native ether (ETH) tokens can be set up to benefit from “Wall Street Running to Blockchain,” according to Bitmine, ETH’s largest corporate holder.
Despite optimistic predictions, ether prices fell 13% in the past week, falling below the $4,000 level for the first time since August 8th, Cointelegraph data shows.
In the broader cryptocurrency market, the best schedule for high lipid (hype) tokens distributes approximately $11.9 billion in hype tokens in 24 months for the team. This could be the “first true test” of token elasticity.
That’s what’s called the “Damocles Sword” moment, which introduces monthly unlock worth about $500 million, of which about 17% will be absorbed into buybacks, leaving around $410 million with potential supply overhangs.
The whale wallet “0x316F” withdrew a $122 million worth of hype token on Monday shortly after Melstrom warned of incoming sales pressure.
Ethereum Bulls Tout Supercycle; Wall Street is skeptical
The cryptocurrency market will experience the first extension cycle with more institutional capital and trading products in the Web3 industry, making digital asset investments more accessible.
Some investors predict a crypto “supercycle” that could override the theory of the four-year crypto market cycle related to half of Bitcoin (BTC), and confirm that digital asset valuations will rise beyond this historic time frame.
In the case of ether, the world’s second largest cryptocurrency, the world’s largest corporate ether holder, the supercycle could be catalyzed by the wider adoption of Wall Street’s blockchain technology.
Ether’s first major driver, according to Bitmine, is “Wall Street running to the blockchain.”
Despite optimism about a potential supercycle, not all Wall Street participants are bullish on the ether price trajectory.
Citigroup, a US investment bank, fell well below ETH’s all-time high of $4,953 on August 24th.
“Current prices exceed activity estimates and could be driven by recent purchase pressure and excitement over use cases,” City wrote in a Monday memo seen by Reuters.
Ether has risen about 108% over the past six months and is trading at $4,177 at the time of writing, TradingView data shows.
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Circle explores “reversible” USDC transactions with a break from the spirit of cryptography
Circle, the world’s second-largest Stablecoin publisher, is reportedly considering reversible transactions to recover funds from fraud and hacks that counter one of Crypto’s founding principles. That transaction is final and beyond centralized control.
Circle president Heath Tarbert told the Financial Times on Thursday that the company is considering a mechanism that allows transactions to be rewind in the case of fraud or hacking.
“We’re thinking[. . .]We want the finality of the settlement whether there is a possibility of reversibility in the transaction, and at the same time, the finality of the settlement,” Tarbert told Fort. […]. ”
Clash with the spirit of code
Proponents of reversibility argue that it could help victims of fraud and strengthen mainstream trust in stubcoin. Still, this idea challenges a decentralized model that underpins cryptography. This model is permanent and immune from unilateral changes by the issuer or someone whose transaction is valid.
Cointelegraph asks the circle for details on transaction reversibility and comments on the parameters used to determine inversion.
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Vitalik is looking for open source infrastructure in health, finance and governance
Vitalik Buterin, co-founder of Ethereum, called for open source verifiable infrastructure across key sectors, including healthcare, finance and governance, warning that centralized systems risk eroding trust and security.
In a blog post Wednesday, Buterin argued that once digital infrastructure is incorporated into everyday life, opaque systems that shut down increase the risk of abuse and monopoly.
“The most civilizations out of the wave of new technology are not the ones who consumed it, they are not the ones who created it,” wrote Buterin, adding that “openness and verifiability can fight global Vulcanization.”
Buterin said it envisions a world in which verifiable devices form the backbone of global systems. “By default, you’ll get one that’s a digital computer that’s built and operated by a centralized company,” he warned. “But we can try and run towards a better alternative.”
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BlackRock wins $260 million in annual revenue from EtherETFS Bitcoin
BlackRock’s cryptocurrency-based Exchange-Traded Funds (ETFS) will become a revenue-raising machine, bringing $260 million in revenue to the world’s largest asset managers, signaling the “benchmark” model of traditional investment funds seeking a lucrative business model.
BlackRock’s Bitcoin and Ether ETFs generate $260 million in annual revenue, including $228 million from Bitcoin ETFs and $42 million from Ether products.
The profitability of BlackRock’s crypto-centric ETFs could drive more investment giants out of the traditional financial (Tradfi) space to launch regulated cryptocurrency-based trading products that serve as a “benchmark” for institutions and traditional pension funds, Waidmann said.
“This is no longer an experiment. The world’s largest asset manager has proven that crypto is a serious profit center. It’s a $1.5 billion business and is built almost overnight. For comparison, many fintech unicorns don’t make it in 10 years.”
Waidmann compared ETFs to Amazon. Amazon started with books before scaling it all. He said ETFs are “enterpoints into the crypto world.”
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Aster leads Perp Dex Surge to a daily trading volume of $70 billion
The permanent volume of Decentralized Exchange (DEXS) surged to an all-time high of $70 billion on Thursday, driven by Aster, the BNB chain’s new derivatives platform.
As the distributed persistent activity was heated, permanent Dex surged to record volumes for three consecutive days. On Tuesday, the total number of PERP DEXS reached $52 billion, followed by $67 billion on Wednesday.
The volume exceeded $70 billion on Thursday, highlighting new momentum in the Decentralized Financial (DEFI) derivatives market.
Astor has surpassed the leaderboard with almost $36 billion in 24-hour trading volume. This was over 50% of total PERP DEX activity on Thursday. The platform outperforms rivals such as Hyperliquid and Lighter, both of which have recorded over $10 billion.
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Overview of Defi Market
Most of the 100 largest cryptocurrencies by market capitalization ended in a week on Green, according to data from Cointelegraph Markets Pro and TradingView.
Story (IP) tokens marked the biggest weekly decline in the top 100, followed by the MemeCoin LaunchPad Pump.Fun (Pump) Token, which fell by more than 29% on the weekly chart.
Thank you for reading this week’s most impactful Defi development summary. See more stories, insights and education about this dynamic space next Friday.