EigenLayer May Face Yield Crisis Amid Bitcoin Fee Dip; New Telegram Apps to Boost Crypto Adoption
Summary:
Industry observers predict a potential yield crisis at EigenLayer due to its swift expansion, which could overshadow its Actively Validated Services. Bitcoin fees fell sharply after reaching a record high on the day of Bitcoin halving. Meanwhile, the TON Foundation anticipates that new Telegram mini-apps will significantly push crypto adoption following the launch of Tether's USDT stablecoin on Telegram's Web3 ecosystem.
Observers within the industry speculate that a crisis in yield could be imminent at EigenLayer. Following a peak on April 20th, the day of the Bitcoin halving, Bitcoin transaction fees have witnessed a dip. Simultaneously, an executive from the TON Foundation shared with Cointelegraph their belief that the introduction of new mini-applications from Telegram will considerably encourage the wider adoption of cryptocurrency.
EigenLayer, known as the most significant restaking protocol on Ethereum due to its total value locked (TVL), might be on the verge of a serious yield predicament, as suggested by industry insiders. This problem arises from EigenLayer's swift expansion in TVL, potentially outperforming its Actively Validated Services (AVS), which could trigger a drastic drop in yield, as speculated by Chudnov, an anonymous figure linked with the 3Jane derivatives exchange. In a post dated April 22, he mentioned that although EigenLayer had an excess of $15B in its TVL, the AVS may only require less than 10% for security, potentially causing yields to plummet.
Just a day after hitting a record daily average of $128 on April 20, the Bitcoin halving day, Bitcoin fees have seen a significant decrease. According to mempool.space, by April 21, average fees for medium-priority Bitcoin transactions decreased to between $8-10.
The day before, Bitcoin collected a total of $78.3 million, surpassing Ethereum by more than 24 folds as reported by Crypto Fees. On the day of Bitcoin halving, an enormous 37.7 Bitcoin were paid to Bitcoin miner ViaBTC, making it the most coveted virtual asset in the network's 15-year span.
As reported by Justin Hyun, an executive of the TON Foundation, the release of mini-applications on Telegram will spark greater crypto adoption, following Tether's USDT stablecoin’s launch on Telegram's web3 ecosystem. The launch of USDT on TON will "unlock the creator economy which is currently active within TON and Telegram". Conveniently, users will not have to overcome the hurdle of acquiring a different crypto or token.
As Hyun explained, the most intriguing applications are those that participate in social viral mechanics. A daily stream of games powered by Telegram's mini-apps is being unveiled. In Hyun’s view, TON is going back to its original plan conceived several years ago, prior to the disruption of its ICO plans due to regulatory opposition. The TON Foundation was founded in 2021 by developers who assumed control of the project.
Please note that this article does not offer any type of financial advice or recommendations. Any investment or trading move comes with risk, and individuals should perform their own comprehensive research before making a decision.
This reporting was made possible by Geraint Price, Sam Bourgi, and Felix Ng.
Published At
4/22/2024 3:47:16 PM
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