Welcome to Finance Redefined, a weekly newsletter that provides essential insights into decentralized finance. This newsletter is designed to bring you the most important events of the past week.
There was another positive outlook for crypto investors this week, as Pitchbook data showed that despite a decline in overall deal volume in Q2 2024, investment in crypto startups increased by 2.5% to $2.7 billion.
In the broader cryptocurrency space, the Tron network has surpassed the Ethereum network’s 90-day revenue and is on track to hit $2 billion in revenue by the end of 2024. According to Sun, this would make it “the most profitable blockchain on the planet.”
Cryptocurrency Startup Funding in Q2 Rises to $2.7 Billion Despite Declining Total Trading Volume
Crypto startups raised slightly more venture capital in Q2 than in Q1, despite a decline in total deal counts, according to data from Pitchbook.
Pitchbook said in an Aug. 9 report that total invested capital rose 2.5%, but deals were down 12.5% compared to the first quarter.
Pitchbook said this could lead to greater expectations from institutional investors in the market.
“As positive investor sentiment toward cryptocurrencies returns and there are no major market downturns, we expect investment volumes and velocity to continue to increase throughout the year,” Pitchbook wrote.
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Tron Network Surpasses Ethereum in Revenue Over the Past 90 Days
According to data from Token Terminal, the Tron network has surpassed the Ethereum network in revenue over the past 90 days, with fee income reaching approximately $435 million, while Ethereum’s fee income was approximately $364 million.
Tron founder Justin Sun highlighted the blockchain network’s 30-day earnings performance, which according to the Tron founder “exceeded Ethereum’s protocol earnings by 50%.” Sun offered forward-looking guidance for Tron.
“If this trend continues, Tron’s protocol revenue could surpass $2 billion this year, making it the most profitable blockchain on the planet!”
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ZK-based DEX raises $10M from Web3 giants, launches mainnet
With $10 million in seed funding, Vessel plans to develop a comprehensive layer 3 solution for DeFi, focusing on exploring zero-knowledge (ZK) technology and applications. The goal is to solve key challenges in DeFi, such as liquidity fragmentation and cross-chain compatibility.
One of the main challenges in the cryptocurrency trading industry is finding the right balance between efficiency and transparency. Centralized exchanges offer fast transactions, but often lack transparency, which raises concerns about security and trust.
On the other hand, decentralized exchanges (DEXs) offer users greater visibility into the operation of the system, but are typically lengthy processes that run counter to the fast pace of the cryptocurrency markets.
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Coinbase Finds Flawed Analysis in SEC’s Proposed Exchange Definition
Coinbase has filed a new letter to the U.S. Securities and Exchange Commission regarding the agency’s proposed revisions to the definition of a national securities exchange. This is Coinbase’s third written response, focusing on the SEC’s cost-benefit analysis of the proposed changes.
Coinbase claims the SEC lacks the information necessary to conduct a cost-benefit analysis and instead relies on irrational arguments. Paul Grewal, the letter’s author and Coinbase’s chief legal officer, said the SEC should at least withdraw its proposal and start over after completing its investigation.
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Ethereum Supply Surpasses 120 Million ETH, Staking and Re-Staking Surge
Ethereum, the decentralized open-source blockchain platform, recently achieved a major milestone when the total supply of Ether reached 120 million.
The surge in staking and re-staking of Ether (ETH) is further strengthening the proof-of-stake consensus mechanism.
According to the latest data from Ultrasound.money, the ETH supply has increased to approximately 120.28 million ETH, with 77,091 ETH issued over the last 30 days.
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DeFi Market Overview
According to data from Cointelegraph Markets Pro and TradingView, most of the top 100 cryptocurrencies by market cap ended the weekend with a second straight week of losses.
Among the top 100, the Solana-based Mimecoin Dogwifhot (WIF) recorded the biggest loss on the weekly chart, down more than 20%, followed by the Brett (BRETT) token, down around 17%.
Total value locked in DeFi. Source: DefiLlama
Thanks for reading our roundup of the most impactful DeFi developments of the week. Join us next Friday for more stories, insights, and education on this dynamic and evolving space.