Uniswap Challenges SEC, Bitcoin Runes Drops Transactions, DeFi Value Surges: Weekly Recap
Summary:
The week in decentralized finance (DeFi) was marked by anticipation of a US-based Ether exchange-traded fund and challenges over DeFi's regulatory future. Uniswap, a decentralized exchange, vowed to challenge the U.S. SEC over a Wells notice, terming its case as 'weak'. Meanwhile, Bitcoin Runes observed an 84% drop in transactions since its peak in April. Ethereum's co-founder suggested implementing zero-knowledge (ZK) likes on the new decentralized social platform Farcaster to counter preference falsification. Following market momentum, the total value in DeFi protocols surged $10 billion, crossing $100 billion once again. StarkWare introduced ZKThreads, a new scaling solution aimed to prevent trapped funds. The top 100 DeFi tokens by market capitalization experienced a gainful week.
Decentralized finance (DeFi) has experienced an anxious week, teetering on the edge of excitement for an anticipated approval of the US-based spot Ether exchange-traded fund (ETF) and concerns about DeFi's regulatory future. Uniswap, a renowned decentralized exchange (DEX), declared its readiness to challenge the U.S. Securities and Exchange Commission (SEC) in relation to a Wells notice received from the agency, branding the SEC's argument as 'weak'. Meanwhile, Bitcoin Runes, once hitting its popularity peak in April, has since witnessed an 84% drop in transactions. Co-founder of Ethereum, Vitalik Buterin, proposed the utilization of zero-knowledge (ZK) likes on the new decentralized social media platform Farcaster to tackle preference falsification. Following a week of bullish market momentum, the total worth locked in DeFi protocols experienced a $10-billion surge, surpassing $100 billion once again.
Uniswap Labs, the brains behind the Uniswap DEX, took a firm standpoint against SEC's Wells notice, hinting towards probable enforcement action. A May 21 blog post ascertained the SEC's 'weak' legal justifications for issuing the notice and reiterated Uniswap's readiness to fight back legally, if needed. The company's legal team has previously defended corporations including Grayscale and Ripple against the financial watchdog. Chief legal officer, Marvin Ammori, critiqued the SEC's case for being 'feeble and false' by considering all tokens as securities in its jurisdiction.
Taking the spotlight off the DEX and onto Bitcoin Runes, the protocol appears to be losing grip of its share of Bitcoin transactions. Despite dominating Bitcoin transactions on eight different occasions, mostly over the weekends, since its April 20 launch, Bitcoin Runes is faltering. The protocol's initiation coincided with Bitcoin's fourth halving event which caused a significant surge in transaction volume on the Bitcoin blockchain. Income from Bitcoin mining surpassed the milestone figure of $100 million for the first time, reaching an unprecedented daily earnings of $107.7 million.
Moving onto social media platforms, Ethereum's co-founder, Vitalik Buterin affirmed his approval of the announcement by X engineer Haofei on Farcaster, the decentralized platform. Haofei divulged X's plans for making 'Likes' private. Buterin moved ahead with the idea, recommending Farcaster to integrate ZK 'likes' to avoid preference falsification as a result of societal pressures or fear.
In other news, StarkWare introduced ZKThreads, a new scaling solution designed to alleviate trapped funds and boost decentralized application scalability. Louis Guthmann, StarkWare's head of product/market strategy, commented on ZKThreads by stating their 'layer-scaling technology could avert a disaster similar to FTX'.
As per data sourced from Cointelegraph Markets Pro and TradingView, the top 100 DeFi tokens by market capitalization experienced a gainful week as most of the tokens saw a positive trend on weekly charts. After enduring weeks of bearish pressure, the total worth locked within DeFi protocols once again crossed $100 billion. We look forward to bringing you more updates, insights, and understanding of this rapidly advancing field next Friday. Stay tuned!
Published At
5/24/2024 10:25:00 PM
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