Lưu trữ cho từ khóa: Ethereum

Altcoin

Crypto VC funding: SecondLive bags $12m, RD Technologies raises $7.8m

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SecondLive and RD Technologies are the top two startups with the largest volume of fundraising for the week, the latest data shows.

While the amount of disclosed venture rounds this week was comparatively less than what was announced in recent weeks, crypto venture capital activity for the year is on pace to dethrone 2023’s total of $2.6 billion, according to PitchBook.

Some $2.2 billion had been raised as of July 30. The amount, raised across 24 funds, is still far behind 2022’s total of $22.7 billion.

Crypto.news compiled the data from Sept. 29 to Oct. 5 from Crypto Fundraising. Here’s what we found.

SecondLive, $12 million

  • SecondLive is a metaverse platform that lets users create their own avatars.
  • The firm has raised a total of $15 million so far.
  • The latest $12 million raised was in a private round led by Crypto.com.

RD Technologies, $7.8 million

  • RD Technologies is a fintech firm that has a primary focus on payments and commerce.
  • The firm has raised $7.8 million in a Series A round led by HongShan, HIVEMIND and Aptos Labs.

LAYER, $6 million

  • LAYER is an Ethereum (ETH) scaling solution that allows developers to write blockchain applications in various languages.
  • The firm recently raised $6 million in a seed funding round, which was led by 1Kx.

Synnax Technologies, $1.55 million

  • Synnax is a platform that introduced AI credit intelligence for privacy-focused credit analysis.
  • The firm has raised a total of $2.55 million so far.
  • The latest fund raised was $1.55 million in a round led by WINTERMUTE and Ton Ventures.

Sophon, not disclosed yet

  • Sophon provides an architecture for seamless handling of applications like gaming and socialfi.
  • The firm has raised a total of $70 million so far.
  • The latest amount invested by Binance Labs hasn’t been disclosed yet.

Read last week’s column here.

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Theo Crypto News

DeFi

Ethereum’s lowered yield might signal a paradigmatic shift in the ecosystem | Opinion

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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.

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Theo Crypto News

Altcoin

Ethereum’s identity crisis deepens as inflation returns, analyst warns

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Q3 revealed a challenging landscape for the crypto market, marked by low on-chain fees, rising Bitcoin dominance, and Ethereum’s struggle with inflation and underperformance.

Ethereum’s (ETH) identity is shifting as it moves from a deflationary model to inflation, raising doubts about its role as a cryptocurrency amid the rise of layer 2 solutions and Bitcoin’s (BTC) dominance.

In an X article on Oct. 4, IntoTheBlock’s head of research Lucas Outumuro noted that although on-chain fees have seen a slight rebound in September, Ethereum continues to grapple with substantial fee reductions that have hindered its performance.

“While fees have bounced back slightly in September, Ethereum’s trend towards substantially lower fees is a key contributor to ETH’s underperformance as the market effectively rejects the thesis of ETH as money.”

Lucas Outumuro

Meanwhile, Bitcoin’s market share climbed to its highest level since April 2021, even as its price remained mostly stable throughout the quarter, Outumuro says, adding that Ethereum and altcoins keep reaching new yearly lows. In the meantime, Bitcoin’s fees plummeted by 86% over the quarter, reflecting a market that appears unfazed by this decline.

“The divergence between BTC and ETH’s price, while both of their fees plummeted, suggests one of them is being valued as money and the other one more closely tied to its cash flows.”

Lucas Outumuro

The Dencun upgrade, which introduced EIP-4844, has had a major impact on Ethereum’s economics. Though it spurred layer 2 transaction volumes, mainnet fees hit all-time lows, raising concerns about Ethereum’s deflationary narrative. Fewer fees mean less ETH is burnt, leading it to become “inflationary again after the Ethereum community consistently focused on its deflationary path before that,” Outumuro pointed out.

Other than that, the ETH/BTC ratio has fallen nearly 30% since the Dencun upgrade, signaling an “identity crisis” for Ethereum, according to Outumuro. As of press time, Ethereum is trading at $2,390, more than 50% below its all-time high from three years ago.

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Theo Crypto News

Altcoin

Visa unveils blockchain platform for banks to handle fiat-backed tokens

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Visa has announced a new platform to help banks issue and manage fiat-backed tokens on blockchain networks, with BBVA set to pilot the platform by 2025.

Global payment network Visa has unveiled a blockchain-based platform to help financial institutions integrate fiat-backed tokens, aiming to bridge traditional banking and blockchain technology.

In an Oct. 3 press release, Visa said the so-called Visa Tokenized Asset Platform will enable financial institutions to mint, burn, and transfer tokens backed by fiat currencies, such as stablecoins, with BBVA, a Spanish multinational banking giant, set to pilot the technology on the public Ethereum (ETH) blockchain in 2025.

Visa says the VTAP solution integrates with existing banking infrastructure via APIs, allowing banks to explore tokenization use cases within a sandbox environment. The platform’s programmability also enables financial institutions to automate processes, such as “administering complex lines of credit using smart contracts and use fiat-backed tokens to release payments when payment terms are met.”

“We’re excited to leverage our experience with tokenization to help banks integrate blockchain technologies into their operations.”

Vanessa Colella, global head of innovation and digital partnerships, Visa

Per the press release, BBVA has been testing the platform throughout 2024, focusing on token issuance, transfer, and redemption on testnet blockchains. However, it is unclear when exactly the Spanish giant plans on piloting the platform. Visa says its platform is designed to support interoperability across multiple blockchain networks, though it is unclear what other networks are in line for support.

Visa raises concerns over stablecoin adoption

Earlier in May, Visa unveiled a study challenging the assumption that stablecoin transactions are approaching volumes seen in traditional payment networks. Cuy Sheffield, Visa’s head of crypto, noted that a significant portion of stablecoin activity is driven by automated bot transactions, rather than genuine usage.

The findings, however, sparked debate, with some industry participants questioning Visa’s methodology. While Visa remains cautious about stablecoin adoption, others argue that stablecoins are still in a nascent stage and should not be dismissed based on current data.

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Theo Crypto News

Altcoin

Phishing attacks, private key leaks resulted in $668m stolen in Q3: CertiK

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In Q3, threat actors stole over $750 million worth of cryptocurrency across 150+ security incidents, marking a 9.5% increase in value lost despite 27 fewer incidents compared to Q2.

Phishing attacks and private key compromises were significant contributors to over $750 million in cryptocurrency thefts during Q3, according to data from blockchain analytics firm CertiK. Despite a decline in the total number of security incidents to more than 150, the total value lost increased by 9.5% compared to the previous quarter.

Per CertiK’s estimates, hackers have now stolen nearly $2 billion in 2024 alone, with the data showing $505.5 million lost across 224 attacks in Q1 and $687.5 million in Q2. In Q3, phishing emerged as the most damaging attack vector, with nearly $343.1 million stolen across 65 incidents.

“These attacks typically involve bad actors posing as legitimate entities to trick users into revealing sensitive information, such as login credentials.”

CertiK

Private key compromises ranked as the second most costly attack vector, resulting in $324.4 million stolen across 10 incidents. Together, these two vectors accounted for $668 million in losses, while additional security incidents in Q3 involved code vulnerabilities, reentrancy events, and price manipulation, highlighting the urgent need for improved security protocols in the decentralized finance sector.

CertiK notes that Ethereum (ETH) remained the most targeted blockchain, with $387.9 million stolen in 86 incidents, significantly outpacing Bitcoin (BTC), which was also heavily targeted. As hackers continue to evolve their tactics, the blockchain firm says the crypto industry must prioritize user education and advanced security measures to protect assets.

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Theo Crypto News

Altcoin

Spot Bitcoin ETFs record second consecutive outflow day amid geopolitical uncertainty

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U.S. spot Bitcoin exchange-traded funds experienced a second consecutive day of outflows on Oct. 2, as Bitcoin’s price dropped below $61,000, driven by escalating tensions in the Middle East.

According to data from SoSoValue, the 12 U.S.-listed spot Bitcoin ETFs recorded $91.76 million in net outflows, continuing from the previous day’s $242.53 million withdrawal.

ARK 21Shares’ ARKB fund led the outflows, with $60.26 million exiting the fund, marking its third consecutive day of losses. Grayscale’s flagship GBTC followed closely, registering $27.31 million in outflows, bringing its total withdrawals since inception to $20.12 billion.

Notably, BlackRock’s IBIT ETF saw its first negative flow in almost a month, with $13.74 million withdrawn. This marks a shift from its previous strong performance, although the fund has still managed to attract $21.52 billion in inflows since its launch. Bitwise’s BITB also experienced significant outflows, with $11.51 million leaving the fund.

In contrast, Fidelity’s FBTC ETF stood as the only outlier on the day, posting inflows of $21.08 million, partially offsetting the broader trend of outflows across the market.

The overall trading volume across the 12 Bitcoin ETFs fell significantly, dropping to $1.66 billion on Oct. 2 from $2.53 billion the day before. Despite this recent downturn, these funds have attracted a cumulative $18.53 billion in net inflows since their respective launches, indicating that long-term institutional interest in Bitcoin ETFs remains resilient.

Eric Balchunas, Senior ETF Analyst at Bloomberg, recently noted BlackRock’s IBIT and Fidelity’s FBTC as top performers in terms of assets under management among ETFs launched since 2020. Both funds were introduced following the 2022 bear market, indicating the growing institutional focus on Bitcoin despite prevailing market volatility.

Bitcoin price under pressure as geopolitical risks mount

The recent wave of outflows aligns with Bitcoin’s (BTC) price struggles, as the cryptocurrency fell to a low of $60,100 earlier on Oct. 2 before recovering to just above $61,300. The ongoing tensions between Israel and Iran, specifically in light of Israel’s expected response to an Iranian attack, have intensified market instability, adding to downward pressure on Bitcoin.

Market analysts have expressed concerns about further downside risks.

Analyst Ali has forecasted a potential correction of over 15%, predicting that if Bitcoin fails to maintain support at $60,900, it could see a deeper plunge toward $52,000.

Crypto Capo, another prominent market commentator, warned that if Bitcoin reaches this level, Ethereum could fall to $1,800, signaling broader weakness across the cryptocurrency market.

Ether ETFs buck the trend with inflows

While Bitcoin ETFs continued to struggle, U.S. spot Ether ETFs saw a reversal in flows, registering $14.45 million in net inflows on Oct. 2 after two consecutive days of outflows.

BlackRock’s ETHA fund led the recovery with $18.04 million in inflows following a day of no activity, while Franklin Templeton’s EZET ETF attracted $1.81 million, marking its first inflow since mid-August.

However, Grayscale’s ETHE continued to experience outflows, with $5.4 million withdrawn on the same day. The remaining Ether ETFs saw zero flows on the day.

At the time of publication, Ethereum (ETH) was down 3.8%, trading at approximately $2,386, as the broader cryptocurrency market continued to face pressure from geopolitical events and investor uncertainty.

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Theo Crypto News

Altcoin

Cardano’s Charles Hoskinson receives award in Switzerland for Crypto Valley

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Cardano founder and Input Output CEO, Charles Hoskinson, received an award in Switzerland for his role in Ethereum Foundation’s creation of Crypto Valley.

According to Input Output’s press release, Hoskinson and seven other Ethereum (ETH) co-founders were honored with a prestigious award from the Canton and City of Zug at the ETH10X in Zug, Switzerland on Oct. 2.

ETH10X was an event held in celebration of Ethereum Foundation’s  10th anniversary. The Cardano (ADA) founder was recognized for his involvement in Ethereum’s creation of Crypto Valley, a global hub for blockchain innovation.

“It’s an incredible honor to be recognized at ETH10X alongside my fellow Ethereum founders. Crypto Valley has been a cornerstone for the global blockchain industry, and I am proud to have played a part in its origins,” said Hoskinson upon receiving the award.

Although he is no longer a part of Ethereum Foundation, Hoskinson expressed his continued commitment towards paving the way for the blockchain industry, which has led him to collaborate with Jeremy Wood in 2015 to create Input Output, is one of the world’s leading blockchain infrastructure research and engineering companies.

“Our mission has always been to push the boundaries of decentralization, and with projects like Cardano and Midnight, we are leading the way in building more secure, inclusive, and scalable financial systems that can empower people around the world,” said Hoskinson.

One of Input Output’s most notable project is Cardano, a third-generation blockchain platform that hosts the ADA cryptocurrency. Now, Input Output is preparing for its fourth-generation blockchain platform, Midnight.

Input Output claims Midnight will allow users to put confidential and public information on-chain, empowering selective disclosure and addressing critical issues such as privacy, identity, and interoperability.

Aside from Cardano and Midnight, Input Output recently launched the Chang hard fork on Sept. 1, a projects that marked the age of Voltaire for Cardano by implementing CIP-1694.

ETH10X brings together key figures in the blockchain space to commemorate a decade of Ethereum and Crypto Valley’s development

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Theo Crypto News

Bitcoin

COPA and Unified Patents launch ‘Blockchain Zone’ to combat patent trolls

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Crypto advocacy group COPA has partnered with Unified Patents to launch a campaign targeting “patent trolls.”

According to an Oct. 1 announcement, the Cryptocurrency Open Patent Alliance teamed up with Unified Patents, a member-based organization specializing in patent advisory services, to create the “Blockchain Zone.”

The initiative seeks to protect blockchain developers and companies from legal challenges brought by non-practicing entities and patent trolls that want to profit from these litigations.

For those unaware, Patent trolls are individuals or organizations that hold patents for the sole purpose of profiting from them through licensing or litigation, in most cases without any intention to develop or use the technology themselves.

Founded in 2020 by Jack Dorsey, founded fintech firm Block, formerly Square, COPA focuses on ensuring that key crypto technologies remain free for all to use. Prominent COPA members include MicroStrategy, Worldcoin, Kraken, and Blockstream, among others.

COPA founding member Coinbase’s Chief Legal Officer, Paul Grewal, emphasized the need to stop such entities, calling patent trolls “barriers in the path of innovation” and adding that they hinder progress and stifle creativity.

Reportedly, NPEs were responsible for 58% of all patent litigations last year, and the majority of the cases were directed toward tech companies like Samsung, Google, and Apple.

History of patent trolls in the crypto space

In the crypto space, there have already been cases of alleged patent trolling. Recall that the DeFi Education Fund (DEF), a Washington D.C.-based policy research group, moved to cancel a patent owned by True Return Systems (TRS) last year.

TRS had sued MakerDAO and Compound Finance for allegedly infringing on its patent, which links off-chain data to a blockchain. DEF called TRS a “patent troll” and argued that the patent should never have been issued.

The launch of the Blockchain Zone aims to prevent such legal challenges from slowing down development and ensure that the blockchain sector remains free from “baseless patent assertions,” said Kevin Jakel, CEO of Unified Patents.

As a part of the collaboration, COPA members will receive pass-through protection at no cost, meaning they will not have to face legal threats from NPEs unaided.

The new initiative continues the work COPA has been doing, which includes past efforts to debunk false intellectual property claims within the community.

Specifically, COPA brought a case against Dr. Craig Wright, who claimed to be Bitcoin’s anonymous creator, Satoshi Nakamoto. In March 2024, following a lengthy legal battle, UK High Court Judge James Mellor concluded that Wright was not involved in the development of Bitcoin and was not Satoshi.

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Theo Crypto News

Altcoin

Spot Bitcoin ETFs record outflows of $242.6m as Bitcoin retreats below $62k

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Spot Bitcoin exchange-traded funds recorded significant outflows ending their eight-day inflow streak on Oct. 1 as Bitcoin retreated below $62,000 amid rising tension in the Middle East.

According to data from SoSoValue, the 12-spot Bitcoin ETFs saw net outflows of $242.53 million, breaking an inflow streak that had brought $1.42 billion into these funds over the previous eight days. This marked the largest daily outflow since Sept. 3, when $288 million exited Bitcoin ETFs.

Among the funds, Fidelity’s FBTC led the outflows with $144.7 million withdrawn on Oct. 1, followed by ARK 21Shares’ ARKB, which saw $84.3 million in outflows. Bitwise’s BITB and VanEck’s HODL also experienced notable outflows, losing $32.7 million and $15.8 million, respectively, while Grayscale’s Bitcoin Trust saw a more modest decline of $5.9 million.

The remaining spot Bitcoin ETFs recorded no outflows on the day.

Despite the outflows, trading volume across the 12 Bitcoin ETFs surged, reaching $2.53 billion on Oct. 1. Since their launch, these funds have attracted a cumulative total of $18.62 billion in net inflows, highlighting sustained interest despite recent volatility.

The sharp outflows in Bitcoin ETFs were closely tied to geopolitical events. As news of Iran’s missile strikes on Israel broke, Bitcoin’s (BTC) price fell over 3.7%, shedding nearly $4,000 within 24 hours. The cryptocurrency hit a two-week low of around $60,315 before rebounding to approximately $61,500 at the time of writing.

This decline in Bitcoin’s price was accompanied by a shift in market sentiment, as reflected in the Crypto Fear and Greed Index. The index dropped from a neutral reading of 50 to a fear level of 42, indicating growing investor caution in the face of heightened geopolitical risks.

Spot Ether ETFs also see outflows

Meanwhile, U.S. spot Ether ETFs continued to experience outflows, with a total of $48.52 million leaving these products on Oct. 1. Grayscale’s Ethereum Trust led the outflows, shedding $26.6 million, while Fidelity’s Ethereum Trust saw $25 million withdrawn.

Bitwise’s ETHW experienced more modest outflows of $895.65K. The remaining spot Ether ETFs remained neutral on the day.

Ether ETFs also saw a rise in trading volume, increasing to $290 million on Oct. 1, up from $147.9 million the previous day. Since their launch, these products have recorded cumulative net outflows of $572.31 million.

At the time of publication, Ethereum (ETH) was down 6.3%, trading at approximately $2,474, as the broader cryptocurrency market continued to face pressure from geopolitical events and investor uncertainty.

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Theo Crypto News