DeFi Weekly Review: Solana Gains Momentum, Trader's Major Loss, and First Bitcoin-Backed Synthetic Dollar Launches
Summary:
This week's key movements in the DeFi sector include Solana continuing its trajectory and possibly overtaking Ethereum in transaction costs within a week. The UK's FCA is merging useful aspects of both traditional and DeFi regulations to create a comprehensive crypto blueprint. A trader lost over a million dollars due to the 0L Network hard fork. The performance of the largest 100 DeFi tokens was varied, with some experiencing growth and others declining. Hermetica is set to launch the first Bitcoin-backed synthetic US dollar with yield-generating capabilities. The total value locked in DeFi protocols rose past $90 billion.
This is Finance Redefined, your indispensable guide to the past week's key movements in the domain of decentralised finance (DeFi). Last week's DeFi action saw Solana sustain its upward trajectory, potentially eclipsing Ethereum in terms of transaction costs within the next week. The UK's Financial Conduct Authority (FCA) is endeavouring to amalgamate the beneficial aspects of mainstream finance and DeFi regulations to provide a comprehensive digital currency blueprint.
In unfortunate trading news, a trader kissed goodbye to more than a million dollars in digital currency following the 0L Network hard fork. Looking at the largest 100 DeFi tokens, their performance was varied; some exhibited substantial growth while others dipped into the red.
Breaking down the Solana vs Ethereum story, Solana could be inching closer to besting Ethereum in transaction costs; an outcome that could shake up its reputation as the go-to alternative to Ethereum. On May 7, Solana's total economic worth of $2.8 million almost matched Ethereum's value of $3.1 million.
Senior research analyst at Blockworks, Dan Smith, predicts Solana could outpace Ethereum's transaction fees this week. Yet, Solana's daily transaction rates lag far behind Ethereum's.
Turning to regulatory news, the UK's finance watchdogs, the FCA, plan to cherry-pick the finest elements from mainstream and DeFi methods, an executive has revealed. The global cryptocurrency fraternity and regulatory authorities have long mulled over the most effective strategy for regulating the crypto sector, with fears of excessive or inadequate regulatory measures. Matthew Long, FCA's digital payments and digital assets director, suggests the most efficacious way of regulating the industry is fusing methods and observing the results.
In asset loss news, one trader had to face a loss of over $1 million in cryptocurrency due to the 0L Network hard fork. The trader, who goes by the pseudonym 'NN', lost these assets due to a hard fork, a move the community did not sanction.
Finally, in a pioneering move for Bitcoin DeFi, Hermetica is launching the world's inaugural Bitcoin-backed synthetic US dollar with the potential to generate yields. This new synthetic dollar, dubbed 'USDh', will be available from June, offering gains of up to 25%, a recent announcement from the company revealed.
A snapshot of last week's DeFi market shows a bearish trend across the top 100 tokens, with most witnessing a drop according to Cointelegraph's data. Total value secured in DeFi protocols surpassed the $90 billion mark.
That concludes our recap of the week's most notable DeFi occurrences. Stay tuned for more transformational stories, insights, and learning from this rapidly evolving field.
Published At
5/10/2024 10:25:00 PM
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