Finance Redefined: Solana's Network Congestion, Binance Labs' Bitcoin Focus, and DeFi's $100B Milestone
Summary:
This weekly update from Finance Redefined discusses key events in decentralized finance (DeFi). Solana is dealing with a week-long network congestion issue, similar to what Ethereum experienced in 2017, expected to be fixed by April 15. Binance Labs is focusing on Bitcoin by investing in Bitcoin-native restaking protocol BounceBit. Solana-based DeFi protocol MarginFi saw over $190 million in withdrawals amid managerial issues and competitor claims. Elsewhere, blockchain analysis firm Arkham has accused competitors of spreading false rumors about its ARKM token transfer. Finally, the total value locked into DeFi protocols has surpassed $100 billion.
Welcome to your weekly compilation of crucial decentralized finance (DeFi) updates - Finance Redefined. Prepared to provide a comprehensive recap of important unfolding events. Similar to the network traffic problem Ethereum dealt with in 2017, Solana has been stymied by network congestion for nearly a week, causing a surge in transactional failures. Solana's developers are aiming to have this resolved by April 15, naming this a bug, rather than a design defect. In the meantime, Binance Labs is redirecting its DeFi attention towards Bitcoin by investing in BounceBit, a Bitcoin-centric restaking protocol.
Furthermore, the Solana-based DeFi protocol MarginFi experienced a withdrawal of over $190 million amid managerial crisis and competitors' allegations of unfulfilled promises. To handle the escalating transaction failure issue, Solana developers are eyeing April 15 as the fix date. Mert Mumtaz, CEO of Helius Labs, insists that Solana's current problem is an implementation bug, not a design failure. Helius Labs exclusively supports Solana's blockchain infrastructure.
Arkham, the blockchain analysis firm, denounced their competitors for spreading false information, creating an atmosphere of fear, uncertainty, and doubt after questions were raised about the company's ARKM token transfer. Without naming its critics, Arhkam responded to a post by Nansen, another blockchain analysis firm, that alleged Arkham had moved a significant amount of ARKM ($56 million) to various wallets and Binance exchange over two days.
In a shift of investment attention, Binance Labs has financially backed BounceBit, a Bitcoin restaking protocol. Binance Labs is the investment branch of the world's largest crypto exchange — Binance. BounceBit fuses centralized finance and DeFi to cultivate more Bitcoin utility.
Amid the turmoil around token controversies, the CEO of MarginFi abruptly resigned, resulting in outflows amounting to nearly $200 million from the lending platform, hosted on Solana. Edgar Pavlovsky, the erstwhile MarginFi CEO, cited internal and external disagreements as the reason for his sudden exit.
As per the DeFi market review, information from Cointelegraph Markets Pro and TradingView indicates that the top 100 DeFi tokens by market capitalization have performed well this week, with the majority showing gains on weekly charts. The total value invested across DeFi platforms crossed the $100 billion milestone. Join us next Friday for another round of key DeFi updates, deserving stories, and vital learnings from this rapidly advancing sector.
Published At
4/12/2024 10:25:00 PM
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