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Trader Joe’s Entered The Top 5 DEX Due To Liquidity Book Model’s Stability On Arbitrum

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Since launching its V2 platform on Arbitrum on February 1, 2023, Trader Joe’s has quickly climbed to become one of the top five decentralized exchanges in terms of trade volume.

The initiative introduced a liquidity incentive scheme to encourage more deposits for trading in ARB, ETH, and USDC, distributing 300,000 tokens valued at about $171,000. The deadline for the incentive scheme is April 6.

According to the project’s social media account, Trader was responsible for 15.7% of the first week’s ARB trade volume.

While JOE token incentives helped make the ARB token more liquid, the team’s ingenuity in improving the capital efficiency of the DEX is the main driver of its expansion.

Trader Joe’s Advances In The DEX Space Rankings

In Q4 2022, Trader upgraded to its V2 version and introduced the Liquidity Book (LB) model, which competes with the V3 liquidity model from Uniswap.

Trader’s approach permits liquidity providers (LPs) to add liquidity in certain “price bins.” According to Delphi research, its design delivers “zero-slippage” and “enables significantly greater flexibility due to its fungible nature and provides superior flexibility and experience for LPs.”

The DEX received accolades from Power DeFi user Yash for its inventiveness, which is leading to organic growth.

The objective of the Uniswap V3 and LB models is to concentrate liquidity around active trading ranges to maximize fees for liquidity providers and minimize slippage for traders.

Joe’s appears well-positioned to acquire market share in emerging ecosystems such as Ethereum ETH Layer-2s and sidechain. In addition to Uniswap, the project confronts competition from a significant event mandated by source code licensing policies.

The code license for Uniswap V3 expired on April 4, allowing teams to alter their DEX design. PancakeSwap, the leading decentralized exchange (DEX) on Binance Chain, is one of the first teams to fork Uniswap’s model to establish trading desks on BNB Chain and Ethereum-based blockchains.

Price Overview For Joe

Based on the last trade price of $0.57, the Delphi research predicted that sJOE token holders would see a P/E of 15.5% to 7.5% following the release of V2.1 in the second week of April.

PE ratio
Trader Joe's Entered The Top 5 DEX Due To Liquidity Book Model's Stability On Arbitrum 2

Token Terminal data shows that a price-to-earnings ratio of less than 15.2 would rank Trader Joe’s among the top 15 protocols regarding actual earnings for token holders. Regarding widely used DeFi protocols like dYdX, SushiSwap, and Convex Finance, the P/S ratio is determined by dividing a token’s fully diluted market value by its annualized revenue for token holders, which is greater than 15.

Related Reading | This Ethereum L-2’s DEX Stole $100K User Funds

Aave V3 Proposes Expansion To BNB Chain, Introduces New Collateral Options

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In an exciting move to expand its presence and tap into the growing DeFi ecosystem of the Binance Smart Chain (BNB Chain), the Aave community has proposed the deployment of Aave V3 on the BNB Chain. 

This proposal aims to foster collaboration between Aave and BNB Chain communities, opening up new opportunities for both ecosystems.

According to the governance proposal, Aave V3 will be deployed on the BNB Chain with a selection of suitable assets for collateral. The proposed collateral assets include BNB, WBTC, BETH, WETH, USDC, and USDT, representing a diverse range of popular tokens in the crypto space. 

This move is expected to attract users from the BNB Chain community and leverage the growing DeFi ecosystem on BNB Chain.

The motivation behind this proposal is multifaceted. Aave stands to benefit from gaining access to BNB Chain’s large user base, DeFi ecosystem, and potential additional revenue streams. 

On the other hand, BNB Chain would benefit from having a flagship DeFi project like Aave on its platform, further diversifying the DeFi options available to its users.

Proposed Risk Parameters For Aave V3

The proposed risk parameters for the collateral assets have been carefully considered, with inputs from risk service providers and feedback from its Aave community.

The risk parameters include loan-to-value ratios, liquidation thresholds, liquidation bonuses, reserve factors, and more. These risk parameters are crucial in maintaining the stability and security of the protocol on the BNB Chain.

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The deployment of V3 on the BNB Chain would require a comprehensive checklist to ensure a smooth transition. It includes obtaining feedback and input from the community and risk service providers on the proposed risk parameters and deployment details. 

Additionally, an infrastructure/technical evaluation report from BGD Labs, Oracle recommendation (Chainlink), and support from The Graph would be integrated into the proposal. 

It’s worth mentioning that the Aave-Chan Initiative (ACI) has prepared this proposal solely to facilitate community discussion and is not compensated in any form by Binance & BNB.

As the proposal undergoes refinement based on community feedback and risk service provider recommendations, it will eventually be put up for a snapshot vote for final approval. If consensus is reached, a deployment AIP (Aave Improvement Proposal) will be submitted to activate V3 on the BNB Chain, as per the proposal.

This move by the community to deploy V3 on the BNB Chain with diverse collateral assets represents a strategic expansion of the protocol and a step toward further collaboration between both communities. 

However, if successful, it could pave the way for increased adoption of Aave on the BNB Chain and contribute to the growth of the DeFi ecosystem as a whole.

Related Reading | Marathon’s Bitcoin Production Hits Record High In Q1 2023 With 41% Increase

Weekly Market Watch: Bitcoin Bulls Lead The Way, Altcoins Follow Suit

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Last week, the crypto market experienced a bullish surge, which left bears struggling to counter the bulls’ momentum. Notably, both Bitcoin and Ethereum faced the brunt of this upward trend. However, the positive impact of this surge had a favorable effect on the overall market outlook. 

Nevertheless, certain altcoins displayed considerable gains in the weekly chart, standing out in the crypto market for their exceptional performances amidst the bullish trend of Bitcoin and Ethereum.

Some low-cap coins on the list of weekly gainers have shown substantial growth, with Solar (SXP) leading the pack, followed by Hedera (HBAR), and third in line is Stellar (XLM).

Solar (SXP) has experienced a significant surge of 160% over the past week, making it the leading performer among the top 100 tokens by market capitalization. 

SXP 7D graph coinmarketcap
Source: CoinMarketcap

This rise in value can be attributed mainly to its recent achievement of Binance, the leading global crypto exchange, which has announced its support for the mainnet swap and rebranding plan of Swipe (SXP) to Solar (SXP). 

As per the plan, all ERC20, BEP2, and BEP20 Swipe (SXP) tokens will be migrated to the Solar mainnet at a ratio of 1 Swipe (SXP) = 1 Solar (SXP):

After the mainnet swap is complete, deposits and withdrawals of ERC20, BEP2, and BEP20 Swipe (SXP) tokens will no longer be supported. Binance will only support deposits and withdrawals of Solar (SXP) tokens via its mainnet.

Currently, SXP is trading at $0.6933, demonstrating a 16% increase in the past 24 hours and a 14.14% surge in its marketcap. The token hit its peak of $0.736 after beginning the week at $0.2641, displaying a strong and remarkable performance. 

Meanwhile, Hedera (HBAR) is also gaining attention from the community as a second top weekly performer. Over the past week, FLR has experienced a surge of approximately 18.24%. As of now, HBAR is trading at $0.07149; in the last 24 hours, the token has experienced a 1.66% decrease.

HBAR 7D graph coinmarketcap 1
Source: CoinMarketcap

The HBAR price surged following the developers of HashPack announced the release of version 7.1.1. The latest update addresses several community-raised issues and includes improvements to token price accuracy. 

In addition, the update addresses some community-raised issues, including fixing AR support in mobile apps and improving the transfer confirmation screen.

Stellar (XLM), which is currently trading at $0.108 with a 17.76% rise in the weekly chart, is also gaining attention. This surge can be attributed to the latest announcement that Coinme and Stellar Development Foundation have partnered to introduce Circle’s USDC on Stellar through the Coinme wallet. 

XLM 7D graph coinmarketcap 2
Source: CoinMarketcap

The integration will improve the accessibility and user experience of USDC, promoting financial inclusion and providing a new option for unbanked or underbanked Americans to access digital finance.

Moreover, some popular coins are experiencing gains in weekly charts, including XRP at 16%, FXS at 8%, and DOGE, with an increase of 6%, according to the data from CoinMarketcap. 

Bitcoin (BTC) & Ethereum (ETH) Weekly Review

Bitcoin, the largest cryptocurrency, has hit a major resistance level of $29,159.90 in the past week, sparking excitement amongst traders as it inches closer to the coveted $30,000 threshold. 

BTC 7D graph coinmarketcap 7
Source: CoinMarketcap

Despite facing multiple hurdles, Bitcoin has displayed remarkable resilience in recent times, consistently attempting to set new local all-time highs. This impressive performance was in sharp contrast to market predictions at the end of last year when many observers anticipated a steep drop to $10,000 following the collapse of FTX. 

As it turns out, Bitcoin has defied expectations, closing out Q1 2023 with a remarkable surge of over 70%, marking its best quarter in two years. According to Santiment, there also has been a significant increase in the number of addresses holding ten or more Bitcoins, with a staggering rise of 10,279, or a 7.1% increase, since February 2022. 

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Although the overall percentage of available Bitcoin held by these wallets has remained relatively stagnant, the actual amount is quickly closing in on the all-time high recorded in September 2019.

Ethereum, the second most valuable cryptocurrency, has faced a similar fate to Bitcoin but has seen a slight increase in value over the past week. It recently reached a key resistance level of $1,844.68. 

ETH 7D graph coinmarketcap 8
Source: CoinMarketcap

Lately, there has been a battle between buyers and sellers for Ethereum’s price, with buyers looking to surpass the significant resistance level of $2000 and sellers resisting. 

Ethereum’s upcoming upgrade, the Shanghai upgrade, is set to launch on April 12, 2023, and is expected to significantly impact the cryptocurrency’s price, potentially pushing it above $2000.

According to the data from CoinMarketCap, Bitcoin is currently trading at $28,044.81, with a 1.02% growth over the past seven days but a 1.73% decrease in the past 24 hours. While ETH is trading at $1,786.93, experiencing an increase in the last seven days and a 2.03% decrease in 24 hours.

Binance’s BUSD Bleeds As Outflows Hit Over $500 Million

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Outflows of BUSD, a Binance stablecoin pegged to the US dollar have steeply increased following CFTC’s lawsuit alleging “Willful Evasion” of U.S. regulations and the sale of unregistered crypto derivative products.

Over $500 million of the asset has been removed from the exchange in 24 hours since the lawsuit went public, but this is still less than the February SEC crackdown on BUSD issuer Paxos, which resulted in over $2 billion in BUSD outflows.

After Paxos was told by US regulators to stop minting BUSD, the exchange is reportedly converting its BUSD holdings in the Secure Asset Fund for Users [SAFU] to TUSD and USDT.

The trading platform recently announced the addition of XRP, Solana, Matic, SSV, Lido DAO, and Optimism as additional TUSD trading pairs. The blog stated that trading them can begin on March 29 at 08:00 UTC.

Even though the stablecoin backed by Justin Sun only has a $2 billion market cap, Binance’s preference for it has sparked discussions in the crypto community.

“It might be due to the fact that Binance was preparing for the transition from BUSD to an alternative stablecoin such as TUSD or USDC,” CryptoQuant head of marketing Hochan Chung told media source in a Telegram message.

“Also the changes in Binance’s exchange reserves of BTC, ETH, and other stablecoins are not notably significant. Only the BNB price has been damaged [down 5.78% in the past 24 hours] from the issue,” Chung added.

Data from Nansen revealed that the trading exchange holds over $7 billion in BUSD.

BUSD Is A Commodity- CFTC’s Complaint

As reported by TronWeekly, Binance was the subject of a complaint filed by the Commodity Futures Trading Commission [CFTC] for violating federal regulations.

C.Z dismissed the CFTC’s civil lawsuit as an ”incomplete recitation of facts” and called it unexpected after cooperating with the agency for more than two years. He also assured a full response to the lawsuit in the near future.

As per the lawsuit, CFTC considers BTC, ETH, LTC, and BUSD as commodities while the SEC labeled these as security, reflecting regulators’ lack of clarity over the crypto assets classification.

Meanwhile, the filing has sent a panic wave in the crypto markets, as the market rally stalled at the $1.2 trillion level.

Tether On Rise: Company Predicts $700M Profit in Q1, Excess Reserves Cross $1B Mark

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Tether, the company behind the USDT stablecoin, has disclosed that it is poised to generate a remarkable profit of $700 million in the first quarter of 2023. In a recent interview, Paolo Ardoino, the firm’s Chief Technology Officer, unveiled that this profit would raise its excess reserves to an impressive $1 billion.

As traders become more drawn to stablecoins, such as Tether’s USDT, they allow for quick and easy movement in and out of different cryptocurrencies without the need to convert funds back into fiat currency. 

However, concerns have been raised about the transparency of the assets that back these stablecoins, with some issuers criticized for being forthcoming.

The company has taken steps to address these concerns by moving its holdings from commercial assets to US Treasuries, considered more reliable assets. It also produces attestations, which are reports produced by an auditor to verify the reserves and assets that Tether holds.

Additionally, the company makes its money from various sources, including fees, investments in digital tokens and precious metals, and issuing loans to other institutions. The total value of USDT in circulation has grown substantially this month from $70.98 billion on March 1 to $78.14 billion on Thursday, according to CoinMarketCap.

Ardoino Defends Tether’s Record 

This growth can be partly attributed to the collapse of Silicon Valley Bank, which caused Circle, the issuer of the rival stablecoin USD Coin, to reveal a $3.3 billion exposure to SVB. Investors became concerned about USDC’s stability and flocked to Tether. 

However, after the US government guaranteed depositors, USDC regained its peg after it said the $3.3 billion reserve deposit held at SVB would be fully available to people.

Despite the criticisms that have been leveled at stablecoin issuers, Ardoino defended the company’s record and claimed that the company is profitable and able to weather financial crises. He also pointed out that Tether is making money while banks are failing, making it the safest choice among all available options.

Ardoino said:

Tether is making money, and banks are failing. So if you have to put money somewhere, I guess that Tether is the most safe among all the choices.

Tether’s estimated profit for the current quarter represents a significant milestone for the company, as it will take its excess reserves to over $1 billion for the first time. Once liabilities are subtracted, the company’s total assets amount to $960.6 million.

Tether’s success highlights the growing importance of stablecoins in the cryptocurrency market. As traders look for ways to move in and out of different cryptocurrencies quickly and efficiently, stablecoins like USDT provide a valuable bridge between fiat currencies and digital assets.

Related Reading | Ethereum Dev Gear Up For Shanghai/Capella Upgrade & Increased Bug Bounty

Cardano Trading Pair Delisted Citing Low Trading Volume

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Cardano, Shiba Inu, Polygon, and Solana are among the crypto assets to be delisted by Binance.US due to low trading activity.

Based on recent trading activity, Binance.US will remove and cease trading for the following Advanced Trading pairs on March 29, 2023, at 8 p.m. PDT / 11 p.m. EDT. 

As per the announcement post, the affected trading pairs are ADA/BUSD, ALGO/BUSD, BUSD/USD, BUSD/USDT, EOS/BUSD, LPT/BUSD, MANA/BUSD, MATIC/BUSD, NEAR/BUSD, OMG/BUSD, SHIB/BUSD, SOL/BUSD, TRX/BUSD, USDC/BUSD, XTZ/BUSD, and ZIL/BUSD. 

It added:

We recommend that you carefully review your trades and execute or cancel open orders on impacted Advanced Trading pairs before they are removed from Binance.US. Deposits and withdrawals for BUSD remain available. 

The delisting occurred as regulatory action against the token issuer and a scheduled delisting from a major cryptocurrency exchange caused Binance USD’s market cap to drop below $10 billion for the first time in almost two years.

The New York Department of Financial Services instructed stablecoin issuer Paxos to stop creating new Binance USD [BUSD] tokens as of February 21.

In terms of Cardano, its ADA token was recently coupled with the second-largest stablecoin in the world to trade on Binance’s US market. Together with ADA, the stablecoin’s rival Solana [SOL] was also added.

Binance.US noted that the inclusion of the two leading altcoins aims to achieve “scalability, interoperability, and sustainability.” TronWeekly reported the other day.

At the time of writing, ADA was marginally down in the last 24 hours to $0.37. The 7th-ranked altcoin’s market cap stood at $12.8 billion.

Cardano DeFi Surge To New Heights

Despite the lackluster price action, the Cardano network is seeing positive growth.

According to data from pool.pm, the total number of native assets has surpassed eight million and is currently 8,027,363. They were minted on 70,901 different policies. Moreover, 7,511,799 NFTs have been reported based on the same data source.

With 118 projects already launched, there are 1,213 projects developing on Cardano, bringing the total number of transactions on the network to 63 million.

Data from DeFiLlama showed that the ADA-denominated value locked in the Cardano DeFi has risen to new heights of 405.63 million. As of now, Cardano DeFi has a total value locked in dollars of $135 million, the highest in 2023.

Bitcoin Dominance Surges As Ethereum Struggles To Keep Up: Kaiko’s Insights 

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The ratio of Bitcoin to Ether has reached its highest level since July 2022, as Bitcoin continues to outperform the broader cryptocurrency market. According to Kaiko Research’s report, BTC is currently trading at nine-month highs, up 30% over the past seven days. 

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Investors are increasingly turning to Bitcoin in the spot markets and the perpetual futures market, as evidenced by a surge in open interest. The data shows $2.6 billion more in open positions in BTC than at the beginning of the week, indicating a significant influx of investment into derivative markets. 

The rise in open interest was driven by price effects and the opening of new contracts, as indicated by the increase in BTC open interest by over 50k in just one week. 

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While ETH open interest only rose by $600 million, with an 18% increase compared to BTC’s 51% surge, suggesting that it struggled to gain as much momentum as BTC.

Bitcoin Rallies Amdist Market Uncertainty

The increase began after the USDC turmoil subsided and has continued despite ongoing stress in the banking sector and uncertainty around the Fed meeting. 

However, despite surging volumes, liquidity remains thin, with a 2% market depth for BTC-USD and BTC-USDT pairs hitting 10-month lows after Silvergate’s collapse, per the report. 

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Depth dropped even lower than levels seen in the immediate aftermath of FTX, likely due to the closure of major on-ramps for crypto markets, which included Silvergate’s SEN payment network.

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Meanwhile, the relevance of fiat versus stablecoin usage on centralized exchanges is on the rise. Presently, stablecoins dominate 78% of all trades on such exchanges, while only 19% are in fiat currencies. The remaining trade volume is divided between Bitcoin, Ethereum, and exchange tokens such as BNB. 

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Additionally, as fiat on-ramps become scarcer, the market share of stablecoins is expected to grow, particularly on offshore platforms like Binance, which are already being disconnected from fiat payment rails. USDT accounts for 80% of all stablecoin-denominated trades. 

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However, with every regulatory crackdown comes opportunity, particularly for regions abroad. The big question is whether Europe or APAC can replace some of the fiat payment rails that have been dismantled in the US. 

Moreover, the report revealed that in 2023, weekend liquidity management has also become a challenge for crypto markets, which operate 24x7x365 and struggle to match their needs with traditional financial institutions. 

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On average, there was a 33% reduction in weekend trading volumes compared to weekdays, but this difference varied greatly among different exchanges. Nevertheless, the closure of two major crypto-friendly banks in the US is expected to worsen market fragmentation between these exchanges.

Related Reading |  Shytoshi Kusama Reacts To Shiba Inu-Themed Restaurant’s Live Broadcast

Osmosis Foundation Joins Bitcoin Revolution: Converts 10% of Treasury Cash to Native BTC

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In a significant move for the decentralized finance (DeFi) space, the co-founder of Osmosis has announced that the Osmosis Foundation has converted more than 10% of its cash in the treasury into Bitcoin. Osmosis is the largest dex in the Cosmos ecosystem, with its platform mainly consisting of OSMO and USDC.

The co-founder’s tweet confirmed that the converted amount was in Native BTC, although the total amount of the treasury cash and the specific ratio of conversion to Bitcoin remains uncertain.

The announcement has sparked a wide range of responses from the community, with some questioning the duration of the conversion, while others see it as a smart play, positioning the platform for future success.

One member of the community said, “For how long?” expressing concern over the volatility of Bitcoin, while another commented, “I guess a smart play is until $69k when people get giga euphoric, and the retrace begins.”

Some members of the community also questioned the need for voting on such matters, while others praised Osmosis for taking control of its own destiny in a decentralized manner.

However, the adoption of Bitcoin by a major player like Osmosis can only bring more attention to the DeFi space. Some members even believe that Bitcoin is finally starting to behave like digital gold, with one saying:

Looks like Bitcoin is finally acting like digital gold, only took a few bank failures to make it happen.

Nevertheless, it remains to be seen how this move will affect Osmosis and the Cosmos ecosystem, but the announcement is a significant step for the DeFi space as a whole.

Bitcoin Rally: Goldman Sachs Declares Best-Performing Asset

Bitcoin’s bearish trend has abruptly ended as the world’s largest cryptocurrency marked its key resistance at $28,000. Bulls initiated a rally on March 17th, breached the $27,000 resistance, and surpassed the major resistance level on March 19th at $28,000. This sudden surge has led Goldman Sachs to declare Bitcoin as the best-performing asset of the year.

Additionally, this surge also gains significant attention as the discussion between former a16z partner and Coinbase CTO Balaji Srinivasan and pseudonymous Twitter speaker James Medlock has sparked excitement within the global cryptocurrency community. 

Srinivasan recently announced a $2 million bet on Bitcoin (BTC), with hopes for a 40x rally in just 90 days. This is being touted as potentially the largest bet in the history of the cryptocurrency ecosystem, and if Srinivasan is proven wrong, he has agreed to pay $1 million to his opponent.

TRON Founder Steps Into Rescue Credit Suisse For the 2nd Time

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After UBS’ bid for the troubled bank Credit Suisse fell short, Justin Sun, founder of the TRON blockchain, proposed a $1.5 billion acquisition deal for the institution.

In his Twitter thread, the crypto billionaire claimed that turning Credit Suisse into a financial institution that supports cryptocurrencies, would pave the way for a more creative and decentralized financial system.

By acquiring Credit Suisse and transforming it into a crypto-friendly financial institution, we can create a new standard for financial innovation that benefits everyone. We can also leverage the country’s progressive policies and position ourselves as a leader in financial innovation.

The digital asset industry was just recuperating from the collapse of the crypto trifecta banks when another major European bank waved the red flag.

On 14 March, Switzerland-based Credit Suisse presented its annual report for 2022 stating that it had found serious deficiencies in the controls over financial reporting.

The bank’s share price fell by about 25% the following day after its biggest backer, Saudi National Bank, turned down further financial support.

Later that same week, Credit Suisse used a variety of strategies to raise money, including a 50 billion Swiss franc loan from the Swiss National Bank.

All that, however, failed to stop as investors and clients continued to withdraw money from Credit Suisse, with withdrawals reaching over 10 billion Swiss Francs.

TRON Founder Assistance To Crisis-Hit Credit Suisse

In order to avoid a potential bank run, the Swiss authorities persuaded the UBS group to acquire the troubled bank.

As per the latest reports, UBS declared that it has struck an agreement to buy Credit Suisse for $3.25 billion [CHF 3 billion] in an all-stock transaction.

That being said, this isn’t the first time the TRON founder has proposed to help the distressed bank.

Back in Oct 2022, the crypto mogul expressed interest to buy shares of the embattled investment bank and bring it to web3.

The bank’s CEO, Ulrich Koerner, then released a strategic plan that was regarded as the bank’s “D-Day” in order to prevent bankruptcy.

A few weeks ago, Sun delivered on his pledge to send $100 million USDC, into the Huobi exchange’s newly established liquidity fund, TronWeekly reported.

According to the TRON founder, “leveraged liquidation on the market driven by a few users” was what led to the sharp declines in the price of the exchange’s native token HT and subsequent comeback.

Cardano Goes Full P2P With The Launch Of Node 1.35.6

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There has been an upgrade to Cardano Blockchain. The version, dubbed node 1.35.6, would give the Cardano node dynamic P2P capability, increasing network resiliency, according to developers.

To put it simply, this version adds peer-to-peer [P2P] support which helps to increase decentralization and throughput.

Without the need for static setups, network users can now test automatic node communication.

Additionally, users only need to change the “EnableP2P” setting to true and update the configuration file with the new connection layout to enable this capability. Those who prefer the previous connecting technique can still use it.

The latest development updates on the Cardano platform, including the completion of benchmarking tests and studies for the new SECP primitives and of course the node v.1.35.6 release, was announced by the company in a lengthy list published by the IOG team on 3 March.

Previously, Input Output, the team responsible for Cardano research and development, released the node version 1.35.5 in response to the brief node outage the network experienced in mid-Jan, 2023.

Over 50% of the network’s nodes went offline as a result of the brief node outage. Nonetheless, the network was able to recover on its own, without assistance, in a matter of minutes.

Just a few days back, Cardano founder Charles Hoskinson emphasized the significance of supporting fresh decentralized alternatives in the wake of the most recent bank catastrophe.

Cardano Founder Doubles Down On Crypto Banks

Hoskinson shared his view on the unstable and volatile banks and how crypto needs to delink itself from these traditional legacy institutions.

His remarks come after three leading crypto banks collapsed- Silvergate was liquidated, and Silicon Valley Bank [SVB] and Signature was shut down by regulators, sending investors into a panic mode.

Particularly, stablecoin USDC, whose dollar peg fell to an all-time low due to its issuer Circle’s $3 billion reserves in the beleaguered SVB.

On the other hand, the stablecoin created by COTI on Cardano, called Djed, outperformed the rest of the market and was once even trading at $1.08 per dollar.

The stablecoin problem served as Djed’s first significant test since it was introduced on Cardano’s core network less than a month ago. For those new, Djed is an algorithmic stablecoin with redundant collateral, designed by COTI.