Sui, often dubbed the Solana-killer, continued rising on Oct. 8 amid a record surge in its futures market.
Sui (SUI) jumped to an intraday high of $2.14, its highest price level in six months, and 181% above its lowest point last month. This recovery made it the leading gainer among the top 100 cryptocurrencies by market cap on Oct. 8.
At press time, Sui’s market cap stood at $5.46 billion, while its daily trading volume had more than doubled to $2.26 billion.
Key developments fuelling growth
A key catalyst for Sui’s recovery has been the significant demand in the futures market. Data from CoinGlass reveals that Sui’s open interest soared to an all-time high of $564 million on Oct. 8, surpassing the previous record of $502 million. This is a dramatic rise from September’s lows, where open interest hovered below $140 million, suggesting a substantial influx of speculative capital.
Futures open interest measures the volume of outstanding contracts—both buy and sell orders—that have yet to be executed. A surge in this metric typically signals heightened interest and confidence among traders.
Most of Sui’s futures activity has been driven by Bybit, followed closely by Binance and Bitget. Notably, Bybit’s decision to incorporate SUI into its Launchpool, marking the first time a non-Mantle token has been included, has helped bolster market activity.
Beyond the futures market, Sui’s fundamentals are also improving. The total value locked in Sui’s decentralized finance protocols surged by over 61.2% in the last 30 days, reaching $1.089 million, placing Sui among the top seven chains by value.
Further, the Sui network recently surpassed Solana in terms of daily transaction volume, a key metric for measuring network activity. As of Oct. 8, Sui recorded 58.37 million daily transactions compared to Solana’s 35.41 million, underscoring its growing user base and adoption.
Grayscale’s launch of the SUI Trust in September has added another layer of momentum to the token’s recent rally. The trust allows accredited investors to gain exposure to the SUI token, which has likely contributed to the token’s price appreciation by expanding its reach to institutional players.
Technical indicators signal sustained bullish momentum
From a technical perspective, Sui’s price action is signaling continued strength. The token is currently trading above its 50-day and 200-day moving averages, which formed a golden cross—a classic bullish indicator—on Sept. 22. This pattern suggests that the short-term trend has overtaken the long-term trend, often leading to further upward momentum.
SUI 50-day and 200-day SMA – Oct. 8 | Source: crypto.news
The Average Directional Index, which measures the strength of a trend, has surged to 55, well above the threshold of 25 that denotes a strong trend. The Moving Average Convergence Divergence indicator is also flashing bullish signals, with both the MACD line and its signal line trending upwards. These technical metrics suggest that Sui’s rally still has room to run.
SUI ADX and MACD chart – Oct. 8 | Source: crypto.news
As Sui approaches its previous all-time high of $2.17, this level now serves as a key resistance point. If the token can break through this barrier, it could set the stage for further gains.
Crypto mining giant Marathon Digital has been sued by residents of Granbury, Texas, over noise pollution, which locals claim harms their health and disrupts their daily lives.
A group of Grabury community members filed a lawsuit with the Texas State Court, Hood County, against Marathon Digital Holdings, Inc., alleging that the mining giant’s Bitcoin mine is causing “serious health and quality of life impacts” for those living nearby.
According to the nonprofit environmental law firm Earthjustice, which represents the concerned citizens, at least two dozen locals have faced serious health problems, including permanent hearing loss, debilitating migraines, tinnitus, and severe vertigo.
Further, the lawsuit highlights growing concerns about rising electricity costs in the community, with some reporting an increase of $100 to $200 per month in their bills.
Beyond financial strain, residents are also facing a sharp drop in property values, as relentless noise and vibrations from the cryptomine shake their homes—turning peaceful retreats into a “prison.”
The lawsuit seeks a permanent injunction to force Marathon to stop creating or allowing unreasonable noise from its operations. It also asks for any relief the court deems appropriate to protect the community’s rights and well-being.
“Residents’ homes are no longer the refuge they once were. Marathon must take immediate action to reduce their overwhelming noise pollution,” said Rodrigo Cantú, a senior attorney at Earthjustice.
The lawsuit follows multiple noise complaints by residents to local authorities, such as the Hood County Constable and Sheriff’s Office, from November 2023 through March 2024.
As previously reported by crypto.news, attempts to reduce the noise, including the construction of a 24-foot sound barrier, have fallen short. Residents argued that local regulations are toothless, with noise violations resulting in nothing more than a $500 fine.
At the time, Marathon said it commissioned a third party to conduct a sound study and pledged to investigate further.
A crypto mining hub
Cryptocurrency mining, notorious for its constant noise from thousands of high-powered machines and cooling fans, has found a major hub in Texas. After China banned crypto mining in 2021, Texas quickly emerged as a top destination due to its cheap electricity rates and regulatory incentives.
By April 2023, the state was home to five of the ten largest Bitcoin mining facilities in the U.S., including the massive Riot facility in Rockdale. However, the explosive growth of crypto mining has raised concerns about its impact on the state’s power grid, rising electricity costs for residents, and now increasing reports of health issues.
Since its inception in 2022, the Granbury mining site has changed hands multiple times. It started with Compute North Holdings before passing to U.S. Bitcoin Corp. and later Hut 8 Mining Corp., before ultimately handing over the keys to Marathon Digital Holdings, which took over in early 2024.
Spot Bitcoin exchange-traded funds in the U.S. saw a significant jump in net positive flows, while Ethereum spot ETFs saw a complete standstill.
According to data from SoSoValue, the 12 spot Bitcoin ETFs logged inflows of $235.19 million on Oct. 7, a surge of over nine times compared to the $25.59 million inflows recorded the previous trading day.
Fidelity’s FBTC led the charge with $103.68 million in inflows, followed closely by BlackRock’s IBIT, the largest spot Bitcoin ETF by net assets, which saw $97.88 million. IBIT had reported zero flows the prior day, making its rebound notable.
Bitwise’s BITB continued its streak with $13.09 million in net inflows over three consecutive days, while Ark and 21Shares’ ARKB added $12.63 million.
Other Bitcoin ETFs also saw inflows, with Bitwise’s BITB logging $13.09 million, extending its three-day streak of net inflows. Ark and 21Shares’ ARKB followed closely with $12.63 million in net inflows, while VanEck’s HODL and Invesco’s BTCO reported more modest inflows of $5.37 million and $2.53 million, respectively.
Meanwhile, Grayscale’s GBTC and the remaining spot BTC ETFs recorded zero net flows on the day.
Total trading volume across the 12 Bitcoin ETFs saw a significant rise to $1.22 billion on Oct. 7 from the prior day’s levels. These funds have collectively attracted a net inflow of $18.73 billion since their inception.
Political and economic factors drive sentiment
The inflows coincided with Bitcoin’s (BTC) price recovery to $63,000, reflecting a 2% rise on Oct. 7 from the previous day. The positive market sentiment followed a brief decline triggered by escalating geopolitical tensions, notably the Iran-Israel conflict.
While these global uncertainties weighed on markets, Bitcoin’s recovery also seems tied to developments in the U.S. political landscape and broader economic trends.
Recent events, including a rally in Butler, Pennsylvania, where former President Donald Trump appeared alongside Elon Musk, may have buoyed optimism among investors. Musk’s endorsement of Trump’s candidacy invigorated political supporters, which some analysts believe spilled over into markets, creating a positive feedback loop for Bitcoin.
This rally, coupled with unexpectedly strong U.S. employment figures, has bolstered confidence in Bitcoin as investors assess the intersection of political, economic, and market trends.
Despite the significant inflows, Bitcoin’s price did not remain steady throughout the day. By the end of reporting on Oct. 8, Bitcoin had dropped 1.8% to $62,332, and the broader cryptocurrency market saw over $218 million in liquidations.
Ethereum ETFs log zero flow day
In contrast to Bitcoin, the spot Ethereum ETFs saw a quiet day. According to SoSoValue data, the nine spot Ethereum ETFs in the U.S. recorded zero inflows on Oct. 7, after registering modest net inflows of $7.39 million on the previous trading day. Trading volume for these ETFs also shrank significantly, dropping to $118.43 million from $148.01 million on the prior day.
Ethereum’s (ETH) price also reflected the broader market downturn, falling 2.9% to $2,417 at the time of reporting, as investors remained cautious despite the surge in Bitcoin-related products.
Decentralized finance platform Infinex will leverage Wormhole’s interoperability solution to bolster its multichain app.
According to the latest announcement from Infinex, the integration of Wormhole (W) brings in-app token transfers to Infinex users. With Wormhole Connect, the DeFi platform will be able to remove the barriers and challenges that come with multiple chains and tokens.
Wormhole Queries, on the other hand, allows developers to benefit from on-demand retrieval of on-chain data across chains.
Driving multi-chain DeFi innovation
The integration with Wormhole brings multichain access to DeFi for users, with liquidity available across 30 top blockchain networks.
Infinex will tap into the overall security and low costs associated with the interoperability solution, which has various industry players using Wormhole. These include digital assets securities platform Securitize, stablecoin issuer Circle, asset management giant BlackRock, and decentralized exchange Uniswap.
The solution allows for easy recovery of assets stuck on non-Base Ethereum Virtual Machine-compatible chains, with secure syncing of account states via a single transaction. This means Infinex users will be able to recover non-USDC funds from various networks.
Apart from Solana, Infinex currently supports Base and Arbitrum among six EVM and non-EVM networks. The platform also offers access to non-fungible tokens and governance coins, with the platform recently raising over $65.2 million through an NFT sale.
The funding attracted the participation of key industry players, including Framework Ventures, Solana Ventures, Moonrock Capital and Wintermute.
Sui has surged more than 20% in 24 hours to reach its highest price level in six months, amid positive news from crypto exchange Bybit.
Bybit announced support for Sui (SUI) as a native ecosystem pool token on Oct. 7, coinciding with the token’s value skyrocketing.
Bybit Launchpool adds support for SUI
The market was looking bullish ahead of a busy week in the macroeconomic environment. Weak hands also appear to have exited amid last week’s sell-off related to geopolitical events.
For Sui, part of the upside may be attributed to Bybit expanding its ecosystem token pools by adding SUI. Sui on Bybit Launchpool offers the first mining pool for a token not within the Mantle ecosystem.
Bybit also supports SUI staking and is one of the top-tier exchanges to list the Sui project NAVI.
Gains see SUI outpace leading coins
SUI’s 20% rally in the past 24 hours follows a 115% surge in September. The token also continued higher after a recent dip as Bitcoin (BTC) traded to above $63,700 and Ethereum (ETH) reclaimed $2,480.
Notably, Sui price has traded higher since bottoming around $0.53 on Aug. 6. In recent weeks, this has coincided with a sharp increase in total value locked. DeFiLlama data showed SUI TVL reached $1.58 billion, which makes it currently the 9th largest chain by TVL.
In terms of price, bulls managed to break above $2 during the U.S. trading session on Oct. 7. The buying momentum saw it retest $2.09, with Sui being one of the biggest daily gainers alongside NEIRO and MOG tokens.
The last time SUI broke from below $2, it reached its all-time high of $2.17 on March 27, 2024.
The financial industry is at a tipping point, with DeFi leading the charge. While Ethereum (ETH) has long dominated the DeFi landscape, Bitcoin (BTC) —the original and most trusted cryptocurrency—remains underutilized and is well-positioned to unlock its untapped potential. Historically regarded as ‘digital gold,’ Bitcoin is on the verge of proving its far-reaching capabilities in DeFi, and it’s about time developers, investors, and institutions woke up to its immense potential.
The undervalued giant in DeFi
Bitcoin is far more than a store of value—it’s the bedrock of the cryptocurrency movement, and it’s absurd that it has been overlooked as a serious DeFi platform. As the most trusted and widely recognized cryptocurrency, Bitcoin dominates the landscape. Yet, despite its widespread adoption and liquidity, its role in DeFi has remained limited—not due to its potential, but rather its design. Bitcoin wasn’t initially built for smart contracts or dApps, giving Ethereum the early advantage in DeFi development.
But the tide is turning. With technologies like Taproot and the Lightning Network now in full play, Bitcoin is fully equipped to outpace any other blockchain in handling complex transactions with speed, security, and cost-efficiency. Frankly, it’s shocking that Bitcoin’s potential in DeFi has been ignored for this long. While Ethereum has pioneered decentralized applications and smart contracts, its challenges with gas fees and scalability remain. Bitcoin, with its advancements like the Lightning Network and Taproot, is addressing scalability differently, offering faster, more cost-effective solutions. Developers who fail to recognize this are missing out on the opportunity to build the future of DeFi on the most trusted and secure blockchain.
From digital gold to DeFi leader
Bitcoin’s reputation as a secure store of value is well-established, with a market cap exceeding $1 trillion and accounting for approximately 54% of the total crypto market. However, the idea that Bitcoin is only good for “holding” is outdated. The real game-changer is the series of upgrades that have made Bitcoin a viable and powerful platform for DeFi. For far too long, Ethereum has been the default choice for dApps and smart contracts, but that era is ending.
Advancements like the Lightning Network and Taproot are not minor tweaks—they are innovations that will catapult Bitcoin into the DeFi mainstream. Lightning enables near-instant Bitcoin transactions with nearly negligible fees, while Taproot vastly improves Bitcoin’s smart contract capabilities, making it more secure and scalable than Ethereum or any other blockchain. If you think Bitcoin is still just digital gold, you’re living in the past. It is now ready to take center stage as the true DeFi leader, offering solutions to the very problems that other blockchains continue to face.
The uncapped potential of crypto’s true titan
Bitcoin’s newfound capabilities are opening the door to a host of DeFi services, from lending and trading to asset management and governance. More importantly, Bitcoin’s integration with cross-chain platforms and scalability solutions like the Lightning Network means that it can now seamlessly interact with assets from other ecosystems like Ethereum and Stacks. The Lightning Network alone has been instrumental in enabling faster, low-fee transactions, proving Bitcoin’s capacity for handling both microtransactions and more complex DeFi operations. This isn’t just an incremental step forward—it’s a giant leap that proves Bitcoin’s growing dominance. For example, exchanges like Bitfinex have integrated the Lightning Network to facilitate instant Bitcoin deposits and withdrawals with significantly reduced fees, showcasing Bitcoin’s ability to handle high-throughput financial operations.
The days of Bitcoin being just a simple store of value are over. It’s now a multi-chain powerhouse, capable of integrating assets like Jettons, ERC20 tokens, RGB, Runes, and Taproot Assets into decentralized fundraising and governance platforms.
Opinion: Runes is making Bitcoin fun and accessible again
The growing institutional interest in Bitcoin is another sign that its future in DeFi is bright. Recent reports indicate that Bitcoin DeFi has a total value locked of around $1.2 billion, which is still a small fraction of Bitcoin’s overall market value but highlights significant growth potential. Even if a fraction of Bitcoin’s estimated $1 trillion capital were to be unlocked for DeFi, the impact would be massive.
Companies like MicroStrategy and Fidelity have expressed confidence in Bitcoin’s long-term value, and their exploration of Bitcoin-backed financial products signals growing institutional involvement. As DeFi matures, institutions are likely to follow. Platforms that integrate Bitcoin with DEXs are already enabling seamless trading across multiple blockchains like Ethereum and Stacks. Auction-based token sales and new funding models are making it clear that Bitcoin’s place in DeFi is not just growing—it’s surging.
Why Bitcoin is the future of DeFi
Let’s be clear: as DeFi continues to expand, the need for security and scalability will only grow. Bitcoin offers both in abundance. Ethereum’s issues with high gas fees and network congestion are well-known, but Bitcoin’s infrastructure, boosted by layer-2 solutions like Lightning and Taproot, is now proving itself to be the far superior choice.
Bitcoin’s support for multi-chain compatibility and cross-chain interoperability is solidifying its position as a leader in DeFi. The ability to integrate multiple blockchains into a cohesive ecosystem is something that no other platform can do as effectively as Bitcoin. If Ethereum was the starting point for DeFi, then Bitcoin is the destination.
As the market continues to mature, Bitcoin’s integration into the DeFi ecosystem will accelerate at a pace that will leave its competitors scrambling to catch up. DeFi is ready for Bitcoin—and Bitcoin is more than ready to lead.
Abdul Rafay Gadit made a move that is still seldom done in the banking world: He jumped from traditional finance, or TradFi, to decentralized finance, or DeFi.
TradFi is highly regulated and emphasizes protecting consumers. Yet, it can be slow, costly, and restricted to money movers with access to banking services. With DeFi, anyone with internet access can participate. And while it’s generally faster and more accessible, it carries risks such as smart contract bugs, hacking, and little to no regulation.
“I believe we’re at a pivotal moment where the two worlds are beginning to converge,” Gadit tells crypto.news.
After spending six years in corporate banking at Standard Chartered, Gadit launched Zignaly (ZIG) in 2018. Since then, the platform amassed over 500,000 users and 150-plus portfolio managers. It also has a decentralized blockchain called ZIGChain in the works.
Read on for Gadit’s thoughts about the latest trends in social trading and how it can bridge the divide between TradFi and DeFi.
How have your experiences in TradFi influenced your approach to ZIGChain?
Gadit: My transition from corporate banking to blockchain was driven by a desire to innovate and challenge the traditional financial systems I had been part of for six years. Working at Standard Chartered gave me deep insight into the inefficiencies and limitations within traditional finance, especially regarding accessibility, transparency, and opportunities for wealth generation.
Blockchain presented an entirely new paradigm — one that empowers individuals to control their assets, make decentralized decisions, and participate in open financial ecosystems. Co-founding Zignaly allowed me to bring my banking background into action, focusing on creating a platform where everyone, regardless of their background, could invest alongside experienced traders and benefit from the opportunities in web3.
My experiences in traditional finance significantly influenced our approach. We aimed to take the best practices from the banking world — like risk management, compliance, and user protection — and merge them with the innovation and openness of blockchain. Our goal was to create an infrastructure that enables wealth generation in a more democratized, transparent, and accessible way for all users.
What is your long-term vision for ZIGChain?
Our long-term vision is to create a robust, scalable Layer 1 blockchain that powers a truly decentralized wealth generation ecosystem — a platform where builders, fund managers, and users can collaborate to create and utilize next-generation DeFi tools, dApps, and infrastructure that promote financial inclusion and wealth creation.
Our goal is to not only drive adoption but also establish ZIGChain as a cornerstone of the web3 financial landscape — where builders, fund managers, and users alike can thrive in a transparent, secure, and high-performance environment. With the backing of industry leaders and a clear focus on sustainability and innovation, we’re well-positioned to make this vision a reality.
ZIGChain launched a $100-million ecosystem development fund in August. Where will that capital go?
The $100 Million Ecosystem Fund — backed by DWF Labs, UDHC Finance, and Disrupt — is critical to realizing our vision. We plan to deploy these funds to attract top-tier developers and projects, offering them the resources and support needed to build innovative tools natively on ZIGChain. This funding will help accelerate the growth of our ecosystem by fostering innovation, expanding our infrastructure, and creating incentives for key participants.
What are the most significant challenges in managing such a large social investment platform?
One of the key challenges we’ve faced with Zignaly is the limited access to asset classes. As of now, fund managers on our platform can only invest in tokens listed on centralized exchanges, which restricts the investment opportunities available to our users. However, with ZIGChain, we’re opening the doors to a much broader range of assets, including DeFi, real-world assets, NFTs, perpetual contracts, and tokens across multiple chains. This flexibility not only offers fund managers more options but also creates more diverse and profitable investment strategies for our users, ultimately increasing yield potential.
We’ve also encountered limitations within centralized finance, or CeFi, such as mandatory KYC processes and restricted access based on users’ nationality. These requirements can limit the participation of global users and create scalability concerns. ZIGChain, being a decentralized blockchain, circumvents many of these barriers. It enables a more inclusive and scalable system that allows users to participate without the stringent restrictions often imposed by centralized platforms. This makes ZIGChain accessible to a broader audience, ensuring that we can scale the platform to meet the growing demand.
Another limitation we’ve faced on Zignaly is the reliance on CeFi traders. Currently, we’re limited to fund managers and traders within centralized exchanges, but with ZIGChain, we unlock a whole new realm of DeFi traders. This opens up access to innovative DeFi strategies and products that weren’t previously available on Zignaly. By tapping into the DeFi space, we can significantly improve yield potential for our users, increase overall profitability, and diversify revenue streams for the business. This not only enhances the user experience but positions ZIGChain as a more dynamic and adaptable platform in the ever-evolving web3 landscape.
Given your background in corporate banking, how do you see the intersection of TradFi and DeFi evolving?
My background in corporate banking has given me a unique perspective on the potential synergy between traditional finance and decentralized finance. I believe we’re at a pivotal moment where the two worlds are beginning to converge, and this intersection presents immense opportunities for innovation and financial inclusion.
TradFi has long been the backbone of the global economy, with established frameworks for risk management, compliance, and trust. However, it also comes with limitations—restricted access to wealth-generating opportunities, high barriers to entry, and slow innovation. DeFi, on the other hand, offers openness, inclusivity, and decentralization, providing users with direct control over their assets and access to a broader array of financial products like staking, lending, and tokenized real-world assets.
As this synergy evolves, I see traditional institutions increasingly integrating DeFi solutions to improve efficiency and offer new services to their clients. This could include everything from tokenized assets and decentralized lending to programmable smart contracts for automating complex financial processes.
By building an ecosystem that combines the security and regulatory rigor of TradFi with the innovation and transparency of DeFi, we can create a more accessible and flexible financial system. I envision a future where users seamlessly move between traditional and decentralized financial products, unlocking new opportunities for wealth creation and financial empowerment on a global scale.
Does Zignaly compete with other social investing platforms?
At Zignaly, we don’t see ourselves in direct competition with other social investing platforms. Instead, we focus on competing with our vision to continually evolve and expand access to fund management for everyone. Our goal is to democratize wealth generation, ensuring that anyone, regardless of their financial background, can connect with professional fund managers and access a broad range of asset classes.
While other platforms may limit themselves to centralized systems or traditional investment assets, we’re pushing the boundaries by integrating DeFi, RWAs, NFTs, and more through ZIGChain. Our mission is to break down the barriers that have long excluded people from managing their wealth and open up a world of opportunity where access to financial growth is no longer a privilege, but a right for all.
So, in essence, our biggest competition is our own ambition to redefine what’s possible in the world of decentralized finance and fund management
What trends do you foresee in social investing?
Over the years, we’ve seen a strong demand for transparency, performance-driven strategies, and diversified asset classes. The key trend we’re observing in social investing is a shift toward decentralized platforms and more innovative investment opportunities, especially as users become increasingly aware of the benefits of DeFi and tokenized assets.
In the coming years, I foresee a growing demand for personalized investment strategies, where users won’t just follow a portfolio manager based on their past performance but will have access to real-time, dynamic strategies tailored to individual risk profiles, preferences, and goals. We also expect more integration with decentralized asset classes offering users an unprecedented level of diversification.
How does one stay ahead of the web3 curve?
To stay ahead in the web3 space, we’re constantly innovating. With ZIGChain, we’re creating a platform that not only offers access to a much wider range of assets beyond centralized exchanges but also introduces features like automated, trustless smart contract-based fund management, which significantly enhances security and transparency. We’re also building our infrastructure to accommodate more DeFi portfolio managers, allowing them to bring strategies and tools to our users. This will not only improve profitability for our users but also attract a new generation of traders to the platform.
Our goal is to lead the way in the evolution of social investing by staying decentralized, offering access to new and diverse asset classes, and continuing to prioritize security, transparency, and user experience.
In mid-August 2024, Ethereum (ETH) gas fees dipped to 0.6 gwei—a record low since 2019. While some see this as a concerning drop, it is symptomatic of broader, healthier shifts within the ecosystem.
Lower gas fees reflect decreased mainnet transaction volume, which has, in turn, led to reduced staking yields for validators. Simultaneously, the slow adoption of Ethereum exchange-traded funds in the US adds to the market’s uncertainty. These recent events have prompted some to question Ethereum’s viability and long-term future. But rather than signaling a crisis, these developments point to a new chapter in Ethereum’s evolution—one that marks a transition to a more mature and sustainable ecosystem.
The reduced yields should not be viewed as a sign of diminished activity or liquidity but as a result of Ethereum’s success in scaling and distributing its load across layer-2 solutions. This shift, alongside new investment vehicles like spot ETH ETFs, is creating a more efficient and accessible market, bringing long-term benefits to Ethereum and decentralized finance as a whole.
Ethereum’s paradoxical growth
Ethereum is currently experiencing what can best be described as paradoxical growth. On the one hand, its mainnet is seeing reduced transaction activity and lower yields. On the other hand, L2 solutions—designed to reduce transaction congestion—are flourishing. Daily transactions across L2 ecosystems surged to an all-time high of 12.42 million in mid-August, coinciding with the lowest gas fees seen on the Ethereum mainnet in years. These dynamics reveal that rather than a slowdown in the ecosystem, Ethereum is shifting its activity to more scalable, efficient layers.
The lowered staking yields for validators, which many are concerned about, are a natural consequence of this migration of activity from the mainnet to L2s. Over time, Ethereum’s mainnet may evolve into a settlement layer reserved for high-value transactions, allowing the bulk of lower-value activity to be handled by L2s. This isn’t a sign of decline but of a maturing market capable of meeting the demands of a growing user base while optimizing costs and efficiency.
Instead of focusing narrowly on the mainnet’s yield, stakeholders would do well to consider Ethereum’s ecosystem as a whole. Attracting more users to the protocol, enhancing accessibility, and rolling out initiatives like incentivized airdrops and points systems could help Ethereum further solidify its position as the go-to platform for decentralized applications and DeFi innovations.
The expanding influence of DeFi
Ethereum’s role as the foundational layer of DeFi continues to shape the broader blockchain space. Despite current concerns, Ethereum’s growth remains a powerful driver of innovation, and this evolution is crucial for the future of decentralized finance.
On the protocol level, Ethereum’s continued development and expansion create a more competitive and accessible network for users and developers alike. As Ethereum scales, its capability to support new dApps and financial products increases, further contributing to DeFi’s success. This, in turn, drives network effects, where increased participation enhances security, utility, and, ultimately, adoption.
Ethereum’s influence is also spreading to traditional finance, most notably through the introduction of spot ETH ETFs, which provide a more familiar and regulated entry point for institutional and retail investors alike. These ETFs lower the entry barrier for those unfamiliar with blockchain technology but eager to invest in the space. By offering a regulated framework and a product perceived as safer than direct token purchases, spot ETH ETFs are attracting traditional investors to the Ethereum ecosystem. This not only expands Ethereum’s reach but also positions ETH as more than just a tech-driven asset—transforming it into a recognized store of value.
As this trend continues, we can expect further integration between Ethereum and real-world assets, enhancing the network’s utility and long-term potential.
Supporting ecosystem transitions
As Ethereum navigates this paradigm shift, it’s important to recognize that these changes are a natural part of the ecosystem’s evolution. Lowered staking yields and gas fees are not indications of failure but reflections of Ethereum’s capacity to adapt and scale. Supporting this transition is crucial for the network’s long-term success, and this can be achieved through initiatives that prioritize user engagement and developer incentives.
For instance, platforms like Base—an L2 solution—handled over 109 million transactions in the past 30 days compared to Ethereum’s 33 million. This is a clear sign that L2s play a critical role in the network’s growth. However, acknowledging this shift isn’t enough; the ecosystem must prioritize collaboration among DeFi protocols to build dApps that maximize Ethereum’s potential. This is the only way for Ethereum to achieve its actual goal of serving the masses with decentralized technology.
A new dawn for Ethereum
The Ethereum mainnet’s lower yields and gas fees may appear to signal a slowdown, but they are, in fact, signs of Ethereum’s growing scalability and efficiency. As L2 networks take on more transaction activity and new financial products like spot ETH ETFs open the door for traditional investors, Ethereum is evolving into a more robust and versatile platform.
The ebbs and flows of market dynamics—like the recent yield reductions—are part of a larger shift that strengthens Ethereum’s role as the backbone of DeFi. The future of Ethereum lies in its ability to scale, integrate real-world assets, and foster a thriving community across its ecosystem. Far from being a calamity, the lower yields signal a new dawn in which Ethereum continues to lead the way in decentralized innovation.
The swift integration of digital payments has positioned web3 wallets as a central component of today’s financial ecosystem. In light of Thailand’s $13 billion digital wallet initiative, the question of how to build secure and scalable web3 wallets has become more urgent than ever. Are current web3 wallets truly ready for mass adoption, and what are the ways to address some of the most significant challenges in the space?
The expansion of wallet use cases
Web3 wallets, often regarded as gateways to the decentralized world, are evolving fast. Initially, their main use case revolved around storing and transferring cryptocurrencies. However, their utility now extends far beyond that. Non-custodial wallets are transforming the concept of ownership and control, empowering users to directly manage their digital assets, tokens, and even NFTs. They are becoming essential for DeFi, iGaming, and even governance voting within DAOs.
As these use cases expand, so does the adoption of web3 wallets. And Bitget Wallet’s rapid growth might be a good indicator of this trend. A significant factor in this growth has been Bitget Wallet’s web2 integrations, which boosted its monthly active users to 12 million, and tap-to-earn games, which have attracted a large audience by implementing wallet features directly into engaging mobile games. This has proven to be a major driver of adoption, particularly for regions where traditional finance is limited.
Challenges to adoption
Along with the growth, web3 wallets face significant hurdles when it comes to mass adoption. One of the most prominent challenges is security. A CertiK report recently revealed over $1.84 billion in security incidents tied to wallet vulnerabilities. While offering enhanced control, non-custodial wallets also place the security burden directly on users. It presents a high-risk scenario, particularly for individuals who are not technically savvy.
Implementing keyless multi-party computation technology is one way to address these issues. The upgrade eliminates the storage of private keys on any device or server, reducing the risk of hacking significantly. MPC provides a robust security layer without sacrificing convenience, as it distributes the control of private keys across multiple parties.
Another feature to tackle security concerns head-on is a self-custody model. Users maintain full control over their private keys, ensuring they, not third parties, are responsible for their assets. This self-custody feature is critical in empowering users, as it reduces the reliance on intermediaries and centralized custodial services that are prone to hacking. Users can trust that their assets are fully under their control, enhancing both security and user confidence.
Additionally, the incorporation of established web2 platforms like Telegram for user onboarding displays an innovative strategy for bridging the gap between web2 and web3. This kind of integration lowers the entry barriers, making it easier for new users to transition into the world of DeFi with no need for a comprehensive understanding of the complexities behind blockchain technology.
While scaling quickly to meet growing demand, especially as digital payments gain traction globally, wallets must ensure that their security measures remain ironclad. The ease of use and security often exist in a trade-off. Wallets that emphasize user-friendliness may risk cutting corners in security. On the other hand, more secure wallets often require a level of technical expertise that can be a barrier to mainstream adoption. Striking a balance between these two factors is critical for the long-term success of web3 wallets.
What comes next?
Looking forward, the future of web3 wallets will depend on their ability to continue evolving in line with the broader adoption of digital assets and payments. Web3 wallets will need to be both scalable and secure to meet the needs of a diverse, global audience. The path forward will likely involve further innovations in security, including the wider adoption of MPC technology, as well as efforts to make web3 wallets even more accessible to non-crypto natives.
