Welcome to Finance Redefine, a newsletter designed to bring you the most important developments of the past week. A newsletter delivering essential decentralized finance (DeFi) insights each week.
Last week in DeFi, Solana continued to gain momentum and could upset Ethereum in terms of transaction fees within the next week. The UK’s Financial Conduct Authority (FCA) is working to incorporate the best parts of traditional finance (TradFi) and DeFi-related regulations to ensure a comprehensive cryptocurrency framework.
One trader lost $1 million worth of cryptocurrency assets due to the 0L network hard fork.
The top 100 DeFi tokens by market capitalization had a mixed week, with some tokens recording double-digit growth and others trading in the red on the weekly charts.
Solana Could Overturn Ethereum Trading Fees in a Week: Report
The Solana network could be on track to overtake the Ethereum network in terms of transaction fees, a potentially significant development for Solana’s status as the so-called “Ethereum killer.” Moreover, Solana’s total economic value of $2.8 million was almost similar to Ethereum’s total economic value of $3.1 million on May 7.
Solana could cut Ethereum’s transaction fees as early as this week, according to Dan Smith, senior research analyst at Blockworks. However, Solana’s daily transaction fees are still far from those of Ethereum. Ethereum generated more than $2.75 million in fees in the 24 hours ending May 8, while Solana generated $1.49 million, according to DefiLlama data.
Continue reading
FCA crypto regulator will do what’s best for TradFi and DeFi, exec says
When regulating cryptocurrencies such as Bitcoin (BTC), the UK financial authority aims to make the most of TradFi and DeFi, according to an FCA executive.
The cryptocurrency community and regulators have long been considering the best approach to regulating cryptocurrency markets, raising concerns about over- or under-regulation of cryptocurrencies. According to Matthew Long, FCA director of payments and digital assets, the right way to regulate the industry is to combine different approaches to see which is most effective.
Continue reading
Traders lose 7-digit amounts due to 0L network hard fork
The unfortunate trader reportedly lost over $1 million in cryptocurrency due to the 0L network hard fork. Pseudonymous trader NN lost an amount due to a hard fork that was not approved by the community.
The anonymous trader said he purchased 147 million Libra tokens, worth about $1.47 million at the time, in February 2023, before joining the protocol to support marketing efforts. The value of Libra has fallen more than 58% since May 3, trading above $0.001 as of 12:35 PM UTC, according to CoinGecko data.
Continue reading
First Bitcoin-based synthetic dollar to launch with 25% yield
Hermetica has launched the first Bitcoin-backed synthetic US dollar with yield generation capabilities in the latest development in Bitcoin-based DeFi.
USDh, a new synthetic dollar scheduled to launch in June, will offer users returns of up to 25%, according to an announcement Hermetica shared with Cointelegraph. According to Jakob Schillinger, founder and CEO of Hermetica Labs, the new synthetic dollar will allow Bitcoiners to hold and earn returns in U.S. dollars without having to trust the banking system or be exposed to products unrelated to Bitcoin.
Continue reading
DeFi Market Overview
DeFi’s top 100 tokens by market capitalization had a weak week, trading in the red on most weekly charts, according to data from Cointelegraph Markets Pro and TradingView. The total value locked in DeFi protocols has grown to over $90 billion.
Thank you for reading our roundup of the most influential DeFi developments this week. Join us next Friday for more stories, insights and education about this dynamically evolving space.