Weekly DeFi Roundup: Market Declines as Chainlink, Balancer Experience Setbacks; Blockchain Capital Launches New Funds
Summary:
This week in decentralized finance (DeFi) saw a 15.5% decrease in sector-wide economic activity in August, according to VanEck. Blockchain Capital launched two new crypto-focused funds, totalling $580 million. Meanwhile, Balancer protocol blamed a breach on its DNS provider and Chainlink collaborated with Arbitrum for DApp development. Market conditions led to top DeFi tokens trading in losses as the exchange volume dropped. Information provider None Trading announced shut down after a "critical exploit". Despite the downturn, the total value tied up in DeFi protocols reached $44 billion.
Step into your weekly rundown of crucial developments in the decentralized finance (DeFi) landscape - Finance Redefined. This week, our focus primarily shifts to a fresh analytical report from investment manager VanEck. The report highlights a 15.5% decrease in DeFi sector's economic activity in August. Intriguingly, Blockchain Capital has introduced two new cryptocurrency-centred funds, bringing the total to $580 million.
Balanced protocol blamed a recent breach on its DNS service provider, stating a code vulnerability allowed attackers to compromise their front end. Meanwhile, Chainlink partnered with Arbitrum to focus on decentralized application (DApp) development on Ethereum's layer-2 scaling solution, Arbitrum.
Due to a market slump following the US Federal Reserve's interest rate hold-off, the top 100 DeFi tokens took a hit last week, with majority trading in losses.
The DeFi arena suffered more negatives in August when on-chain economic activity reduced. VanEck's analysis indicates that the exchange volume dropped by 15.5% to $52.8 billion compared to July, based on measurements from the MarketVector Decentralized Finance Leaders Index.
Blockchain Capital has confirmed two fresh funds amounting to $580 million to invest in infrastructure, gaming, DeFi, and consumer and social technologies. These will serve as the sixth early-stage fund and the first "opportunity fund" of Blockchain Capital.
Chainlink has tapped into the Ethereum layer-2 scaling protocol Arbitrum supporting cross-chain DApp development. The project was launched on September 21, giving developers access to Chainlink's solution that benefits from Arbitrum's low-cost, high-throughput scaling.
Balancer's team, which operates an Ethereum-based automated market maker, stated that its website's front end was compromised on September 19 due to foul play against its DNS provider. This led to the theft of an estimated $238,000 in cryptocurrency.
Non-trading, a cryptocurrency and nonfungible token trading tool designed on Discord, shut down following a "critical exploit" in its system. The significant loss of funding and "team tokens" caused three core team members to depart, resulting in an almost impossible task to continue operating the project effectively.
Last week, DeFi's top 100 tokens, based on market capitalization, faced bearish trends with most of them trading in losses. The total value tied up in DeFi protocols achieved $44 billion.
We appreciate your time and attention to our summarized facts and figures from this week's most influential DeFi developments. Join us again next Friday for another insightful update on this ever-evolving space.
Published At
9/23/2023 7:20:00 AM
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