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🥶 DeFi Blue Chips Are Lagging ETH by The Most Ever Amid Record-Breaking Rally
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RECORD PRICE The vibe is palpable. Bitcoin enthusiasts are celebrating its all-time high this week, and Ethereum’s Ether broke its own record price of $4,357. Make no mistake, it’s a good time to be holding crypto, but it’s better if you’re in the two biggest cryptocurrencies than in DeFi’s blue chips.
CONTRAST The DeFi Pulse Index, a benchmark comprising 10 of the most valuable tokens in decentralized finance, is lagging behind ETH. And not in a small way. The index, which includes tokens from Uniswap, Aave, and MakerDAO, is up a modest 26% in the last 90 days, according to data from CoinGecko. In contrast, ETH has surged more than 102% in that same period.
DPI/ETH Measured another way, DPI has actually slid 21.8% against ETH for the last 30 days, and is at the lowest level ever in ETH terms in Coingecko data going back to Sept. 2020.
What gives? It stands to reason that the leading DeFi tokens would outperform or at least keep pace with Ethereum. These are the platforms, after all, that are putting decentralized finance to work with new applications. Backers of tokens representing the future of finance would surely like to see it trade well against ETH, which is a relatively simple buy and hold trade.
WINDFALL It’s been more than four years since Summer 2017 when three ICO-funded projects got hit by a hacker and lost 153,000 ETH. The victims think they have a way to be made whole again now. It would be an enormous windfall if it works.
HUSTLE At current prices, the stolen ETH would be worth approximately $600M. At the time of the hack, it was more like $30M. If the funds were returned under this plan, it could be an important turning point in cybercrime, where criminals learn that stealing digital assets is a tough hustle in the current state of blockchain forensics.
AMNESTY Today, the victims — Aeternity (a smart contracts startup), Edgeless (gaming) and Swarm City (decentralized e-commerce) — are offering their adversary amnesty if nearly all the funds are returned to a specific wallet address. They are putting out a call on a group Medium blog today, the Defiant has learned.
NEWS The Terra stablecoin, UST, will be moving over to the Cosmos universe imminently, which should be quite helpful for the progress of DeFi in that ecosystem.
VOTE Do Kwon, CEO of Terraform Labs, the company behind the Terra blockchain, told The Defiant via email that once the current vote to enable inter blockchain communication (IBC) is through at just before midnight Eastern Time, the new functionality will kick in right away. This will mean that UST and Terra’s sought-after governance token, LUNA, should shortly be available to anyone with funds in ATOM or other IBC-ready assets.
SO WHAT Stablecoins are maybe the most important basic building block for decentralized finance (DeFi), and UST in particular has grown over $2B in total supply this year as it is used in Terra’s growing DeFi ecosystem. The move onto Cosmos should open up further use cases for UST, as well as provide a stablecoin for Cosmos-based applications.
APPLICATIONS Ever since DeFi Pulse launched its website in February 2019, the world of decentralized finance (DeFi) has completely changed. Now DeFi Pulse, which measures the total dollar value of assets that have been committed to DeFi applications on the Ethereum blockchain, has just crossed the $100B mark.
THRESHOLD The site has been teasing the threshold since early September, when it hit $98B on Sep. 6, only to plunge down to $83B by Sep. 10. DeFi Pulse first logged $1B in assets locked in early July 2020, meaning it took around 15 months for it to 100X the size of the market.
DEFAULT INDICATOR This milestone means there is now more than $100B worth of crypto assets sitting inside applications and earning yield and waiting for someone to make use of them. This idea of taking advantage of the open nature of Ethereum to create a metric based on these deposits’ dollar-value originated with DeFi Pulse. It’s known as “total value locked” and it has become the default indicator for a market’s health.
NFTs go physical! More and more consumer brands are looking into NFTs to take their product to new audiences and enjoy the borderless nature of crypto.
Singapore-based NFT1 just announced their first drop of 'Lucky Duckies Originals'. The NFT line will be dropped on Binance the 22nd of October, co-produced with vaunted Taiwan-based computer accessory maker Ducky and crypto media Cointelegraph. Ducky is known not only for ultra high-quality peripherals, but also an artistic approach to product design and a strict adherence to very limited production.
Lucky Duckies collections change the NFT game through Physical Item Peg, which allows NFT collectors to claim limited real-world physical collectibles that are pegged with the most special and rare Duckies. The SSR NFTs of the 'Lucky Duckies Originals' collection will be pegged to a yet unreleased limited edition set of upcoming Ducky keyboards giving crypto collectors prime access to the keyboards before they officially go on sale. The Lucky Duckies team plans to keep innovating within the space, minting their pegged NFTs on different blockchains with low gas fees.
Ark Invest founder and CEO Cathie Wood did not invest in the ProShares Bitcoin Strategy Exchange Traded Fund, or ETF, on opening day, according to Business Insider.
Cryptocurrency index fund manager Bitwise Asset Management formed a Polygon fund to give investors exposure to the layer 2′s native MATIC token. The fund will test the thesis of whether the popular Ethereum scaling solution has staying power.
We’re excited to announce the closing of our Series A. The round was led by Polychain Capital and includes previous investors Andreessen Horowitz, Placeholder, A_Capital, and Scalar Capital. New investors in the round include Advanced Blockchain, Republic, Rarestone, Yunt Capital, P2P Validator, Ethereal Ventures, and their limited partners; and Femboy Capital.
The Wu-Tang Clan’s one-of-a-kind 2015 album “Once Upon a Time in Shaolin” has found a new home in the world of digital art.
Most Read in The Defiant
Fantom Deploys High-Speed PoS to Solve the ‘Blockchain Trilemma’ While the ever expansive world of decentralized finance is improving on its traditional counterpart the web3 is not without its problems.
Hey Bitcoin ETF! Say Hello to the 500 DeFi Index Funds Already Trading The first Bitcoin ETF starts trading today and that’s a big deal. Everyone from multi-billion dollar investment firms to Wall Street hedge funds to individual investors can now easily and relatively cheaply buy Bitcoin. From the position of a news organization (and individual) who is optimistic about crypto’s future it feels almost wrong to write anything but a celebratory post. But still.
DeFi 2.0 Wave of New Projects Test Liquidity Mining Alternatives Things aren’t getting easier for those struggling to stay current with the lightning quick DeFi space. Just when you think you’re up to speed with the latest token or protocol along comes something new. Brace yourselves because here comes DeFi 2.0. What that term actually means is still in flux.
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🧑💻 ✍️ Stories in The Defiant are written by Brady Dale, Owen Fernau, Samuel Haig, Bailey Reutzel, DeFiDad and yyctrader, and edited by Edward Robinson, Bailey Reutzel, and Camila Russo. Videos are produced by Robin Schmidt, Alp Gasimov and Daniel Flynn. Podcast is led by Camila, edited by Alp.
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