Weekly Update - DeFi and Layer 1 & Layer 2 News (Week 5, 25/01/2024 - 31/01/2024)
Ethereum Dencun upgrade goes live on the Sepolia testnet. New developments in liquid restaking ecosystem underway; TVL reaches US$2B in Jan 2024. Immutable zkEVM launches, mainnet early access live.
Weekly DeFi Index
This week’s market cap index was positive at +10.24%, while volume and volatility indices were negative at -27.82% and -18.32%, respectively.
TVL of Top Chains
Top DEX by Chain
News Highlights
Ethereum’s Dencun upgrade has gone live on the Sepolia testnet and is set to go live on the final testnet, Holesky, on 7 February. The activation date of Dencun on the main blockchain will be confirmed following the final testnet deployment.
Immutable zkEVM, a Polygon-powered Layer-2 blockchain optimised for Web3 gaming, has launched its early access phase on the mainnet. Immutable zkEVM comprises an EVM-equivalent blockchain client secured by Zero-Knowledge (ZK) proofs and it provides blockchain gaming developers with building tools.
Starknet is collaborating with Celestia to implement Layer-3 chains within the Starknet ecosystem. It aims to utilise Celestia’s Blobstream technology to enhance data availability and scalability and has set a goal to enable off-chain scaling solutions on Starknet.
LayerZero Labs announced the launch of LayerZero V2, which introduces new key features such as Universal Messaging, Unified Semantics, and modular security.
dYdX has introduced liquid staking, allowing stakers to convert their DYDX tokens into liquid staking tokens which can be used in other DeFi applications. The new feature was launched in collaboration with liquid staking provider Stride. Other providers such as Persistence and Quicksilver are expected to launch it in the coming weeks.
Derivatives liquidity protocol Synthetix deployed V3 of its perpetual contracts protocol on the Ethereum Layer-2 blockchain Base. It aims to simplify the creation and trading of new derivatives products for developers and traders on Synthetix-powered exchanges like Kwenta, Polynomial, and dHEDGE.
The Stellar Development Foundation decided to delay the upgrade of its blockchain to add Ethereum-style smart contracts after discovering a bug in the Stellar Core v20.1.0 software. The foundation plans to ‘disarm’ its own validators to prevent them from voting to upgrade the network. Additionally, a fix for the bug should be available within the next two weeks.
DeFi platform Abracadabra confirmed that it has been hit by a security attack, resulting in a loss of approximately $6.4 million. According to blockchain security firm Blocksec, the attack involved a malicious actor draining funds from the project’s smart contracts by taking advantage of a rounding issue, which resulted in what is known as a ‘precision loss’. The incident also caused the MIM stablecoin to depeg briefly to $0.7, and has since recovered to the $0.97 range.
Recent Research Reports
Crypto Market Sizing Report 2023: Global crypto owners reached 580 million by the end of 2023.
Exploring the Future of Blockchain Gaming: Trends and Opportunities: A comprehensive review of the blockchain gaming industry, the state of the gaming market, current challenges and opportunities, and what lies ahead for on-chain games.
2023 Year Review & 2024 Year Ahead: 2023 has been an eventful year for the crypto industry. In this report, we curate the top crypto events and trends of 2023, followed by our outlook for 2024.
Recent University Articles
Liquid Staking vs Traditional Staking — What Are the Differences and How Do They Work?: Staking and liquid staking are popular ways for cryptocurrency holders to earn rewards. Here’s how the two approaches differ.
How to Buy Bitcoin: Learn the basics of buying and holding Bitcoin with this step-by-step guide.
What Is Bitcoin’s Price? A Short History: The price of BTC has experienced peaks and valleys ever since the coin launched in 2009. Learn all about its ups and downs in this guide on Bitcoin’s price history.
Disclaimer
The information in this report is provided as general market commentary by Crypto.com and its affiliates, and does not constitute any financial, investment, legal, tax, or any other advice. This report is not intended to offer or recommend any access to products and/or services. While we endeavour to publish and maintain accurate information, we do not guarantee the accuracy, completeness, or usefulness of any information in this report nor do we adopt nor endorse, nor are we responsible for, the accuracy or reliability of any information submitted by other parties.
This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of, or located in a jurisdiction, where such distribution or use would be contrary to applicable law or that would subject Crypto.com and/or its affiliates to any registration or licensing requirement.
The brands and the logos appearing in this report are registered trademarks of their respective owners.
We’re all ears.
Your feedback has always helped us provide insightful crypto market trends. Tell us how we can improve this newsletter further by taking a quick survey below (it will only take less than a minute). Thank you!
Thank you for reading! We hope you find our Weekly DeFi and Layer 1 & Layer 2 News Update enlightening!
Hungry for more? Visit our Research Hub and University to access other insightful crypto research!
Share with a friend if you like our email!