TronWeekly

Crypto World News

You are here: Home / Archives for Uniswap

Uniswap

Altcoin Potential: Navigating Capital Rotation Amidst Bitcoin ETF Surge

by

According to the Glassnode report, the recent surge in interest surrounding new spot Bitcoin ETFs, the landscape of digital assets is experiencing a notable uptick, potentially signaling the onset of a bullish market trend. Investors are closely monitoring capital rotation into alternative cryptocurrencies (altcoins), a topic previously explored in WoC 04 to discern prevailing market sentiments and risk appetites.

Key insights from Glassnode Altcoin Indicator, a macro-level gauge tracking momentum within the Total Altcoin Cap and the inflow of capital into major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Stablecoins, suggest a positive momentum trajectory since October of the previous year. Despite a temporary pause following the launch of Bitcoin ETFs, this momentum reignited on February 4th.

image 96 2
Altcoin Potential: Navigating Capital Rotation Amidst Bitcoin ETF Surge 8

Bitcoin remained in the lead when it came to market capitalization, accounting for more than 52% of the total digital asset market cap. Ethereum came second at 17%, with stablecoins at 7%, leaving another 24% to be spread evenly throughout the rest of the altcoin sector.

image 96
Altcoin Potential: Navigating Capital Rotation Amidst Bitcoin ETF Surge 9

Also painting some of the year-to-date gains, it became clear that Bitcoin and Ethereum remain at the head of the pack and in the front runners, having both gained +17.6% and +18.2%, respectively, outpacing the performance of the broader basket of altcoins.

image 96 1
Altcoin Potential: Navigating Capital Rotation Amidst Bitcoin ETF Surge 10

Continuing with the sector’s Realized Cap, further analysis of capital movements inside the digital asset markets, already observed, only confirms that the appeal of Bitcoin is dominating while Ethereum is slowly catching up. The above observation also indicates further that after the gain of strength in Ethereum, altcoins see capital inflow, hence the slow rotation down the risk curve relative to the majors.

image 96 3
Altcoin Potential: Navigating Capital Rotation Amidst Bitcoin ETF Surge 11

Key trends in Altcoin trading behavior

Across diverse ecosystems, including Ethereum, Cosmos, Polkadot, and Solana, analysis demonstrates that the standout performance of Solana is characterized by high volatility as well as significant upside gains. But the capital inflows have been seen in the Ethereum ecosystem with changing magnitudes, whereby sectors like DeFi, GameFi, Staking, and Staking tokens have started depicting some positive consistency.

image 96 4
Altcoin Potential: Navigating Capital Rotation Amidst Bitcoin ETF Surge 12

Uniswap, being a decentralized exchange and an indicator of altcoin trading tendencies, has shown a steady growth in altcoin trading demand, accounting for nearly 12% of Uniswap volume. This implies that investors are increasingly becoming interested in longer-tail assets.

image 96 5
Altcoin Potential: Navigating Capital Rotation Amidst Bitcoin ETF Surge 13

Changes in liquidity provisioning on Uniswap mirror shifting market dynamics, with evident increased liquidity observed for tokens beyond the top 50, indicative of cautiously expanding interest in less mainstream assets. But, though liquidity has moved along the risk curve, the same can’t be said for trade volume, and this has now been confirmed, so the cautious hypothesis of investor behavior is more firm.

image 96
Altcoin Potential: Navigating Capital Rotation Amidst Bitcoin ETF Surge 14

Nevertheless, the rise caused by the advent of Bitcoin ETFs is seen as positive for digital assets. However, most capital moving into altcoins is still focused on higher market cap assets, which indicates investors’ selectivity. Such emerging ecosystems as Solana, Polkadot, and Cosmos are remolding Ethereum’s traditional dominance and transforming market dynamics as the digital asset landscape continues evolving.

Solana’s Jupiter Leads DeFi Charge With $500M+ Trading Volume

by

The Solana ecosystem is currently witnessing a surge in activity, particularly in the decentralized finance [DeFi] sector. Notably, the project named Jupiter has risen to prominence, surpassing the Ethereum-based Uniswap to claim the top spot in the decentralized exchange [DEX] space. Jupiter, the star DEX, has achieved an impressive 18% market share volume, outperforming Uniswap. Data from Coingecko reveals that Jupiter’s trading volumes have soared to over $500 million within the last 24 hours, exceeding Uniswap’s $400 million.

This milestone is significant within the broader context of the decentralized crypto exchange landscape, where a total of 635 platforms contribute to a combined 24-hour trading volume of $2.86 billion, reflecting a 22% change in the past day. Currently, the DeFi volume dominance stands at 5.9%, with the three largest decentralized exchanges by volume being Jupiter, Uniswap V3 on Ethereum, and Orca.

Jupiter, a popular DEX aggregator, is gearing up for an airdrop event scheduled for January 31, 2024, wherein one billion JUP tokens will be distributed to selected wallet addresses. This announcement has generated excitement and anticipation among the Solana community and crypto traders, especially considering the notable price surges witnessed by airdropped tokens on Solana throughout 2023.

Solana
Solana's Jupiter Leads DeFi Charge With $500M+ Trading Volume 16

Despite the absence of a released whitepaper, Jupiter’s blog outlines plans for four rounds of JUP airdrop distribution for the community. The initial round will prioritize existing users of Jupiter and Solana. Subsequent rounds will be determined following the formation of a decentralized autonomous organization [DAO], with the second round emphasizing growth by attracting new users and enhancing liquidity within the Solana ecosystem.

Solana’s Transaction Volume Hit New High

Expanding the focus to Solana’s native token, SOL, which emerged as one of the best-performing altcoins in 2023, continues its impressive trajectory in 2024. In January, the layer-one network witnessed its highest transaction volumes in 14 months, and the daily new addresses reached an all-time high, surpassing the previous record set a day before.

January has proven to be a remarkable month for Solana, securing over 10 million new addresses and surpassing the network’s previous record in December 2023, further underscoring its growing popularity and adoption.

dYdX Crushes Uniswap’s Dominance with $757M Volume

by

An era draws to an end. There is a new DEX king. The dYdX Chain, based on Cosmos, has emerged as the new authority of decentralized exchanges [DEX]. Surpassing the established Uniswap, the DEX Chain’s version 4 [v4] achieved a remarkable 24-hour trading volume of $757 million, outpacing Uniswap v3, which recorded $608 million in the same period. This marks a major shift in the DEX landscape.

dYdX
dYdX Crushes Uniswap's Dominance with $757M Volume 18

The momentum leading up to this milestone began a day earlier when dYdX Chain’s trading volumes surpassed those of its v3 after two months. Over 31 epochs, more than 70,000 dYdX v3 users earned approximately 185 million, engaging in activities such as trading, market making, and staking. The success can be attributed to various factors, including user rewards and a focus on achieving 10x outcomes by the platform builders.

David Gogel, Head of Growth & Operations at the DEX, highlighted the significance of community control, empowering traders, liquidity providers, and partners to collectively shape the protocol through over 30 governance proposals. This collaborative effort resulted in a staggering $1 trillion in trading volume on dYdX v3, emphasizing the strength of the dynamic ecosystem.

Governance proposals for dYdX v3 are often centered on emission reduction and reward optimizations. Notably, the community decided to enhance the utility of the governance token by adopting DYDX as the L1 token. Additionally, the transition involved bridging tokens from the Community and Rewards Treasuries, leading to a complete shift in rewards from v3 to the DEX Chain.

dYdX’s Rise To Power

With the implementation of DIP 29, trading and liquidity provider rewards on v3 have been reduced to zero. Meanwhile, traders now have the opportunity to receive up to 90% of fees paid back as trading rewards, along with incentives from the 6-Month Launch Incentives Program. It has quickly made waves, becoming the largest DEX by volume with $18 billion in cumulative volume and an impressive $1 billion+ all-time high in daily volume.

Additionally, there are 43 million USDC deposited as collateral, and over 70% of the total ethDYDX supply has been bridged, with 76 million DYDX tokens staked to validators, offering double-digit annual percentage rates [APRs] in USDC for validators and stakers.

BitPay Diversifies: Unveils Support For Uniswap, Chainlink, & BNB In Payments

by

To increase accessibility and ease of use in cryptocurrency payments, BitPay, initially a Bitcoin payments startup, has announced support for “dozens” of additional cryptocurrencies. The Atlanta-based company, founded in 2011, has been gradually expanding its platform to include various digital assets, moving beyond its initial focus on Bitcoin.

At its peak in 2020, BitPay processed 90% of its payments in Bitcoin. However, the recent developments indicate a strategic shift towards diversification. BitPay has successfully raised over $70 million in funding from notable firms such as Founders Fund, Index Ventures, Virgin Group, and Aquiline Technology Growth, underscoring the growing interest in the cryptocurrency space.

Recently, Litecoin (LTC) has emerged as a frontrunner in BitPay’s payment processing service, constituting an impressive 38.25% of all transactions, according to data released by the Litecoin Foundation. This development coincides with Litecoin hitting a new all-time high, further solidifying its prominence in the crypto payment ecosystem.

BitPay Customers Splurge On Gucci, Ralph Lauren, & AMC Theatres

BitPay CEO Stephen Pair emphasized the company’s commitment to making crypto payments accessible to a broader audience. In a statement, Pair said: “These updates and all of the newly supported assets mark an invitation to crypto customers: pay for what you need and splurge on what you want.”Customers of BitPay can currently utilize various cryptocurrencies to purchase goods from renowned merchants such as Gucci, Ralph Lauren, and AMC Theatres.

Additionally, the platform enables users to make essential payments like car and mortgage payments, expanding the practical applications of cryptocurrency in daily life. The company has also announced upcoming support for Cronos and Basic Attention Token, signaling its continuous efforts to stay at the forefront of the evolving crypto landscape. This move aligns with a broader trend observed among web3 companies, which are actively working to simplify the accessibility and utilization of tokens beyond Bitcoin.

BitPay’s expansion to include support for a diverse range of cryptocurrencies reflects the industry’s ongoing efforts to overcome barriers and make digital assets a mainstream means of transaction. Last year, the Bitcoin payments app Strike similarly broadened its horizons by incorporating support for Tether’s USDT stablecoin, underscoring the dynamic nature of the crypto payments sector.

Related Reading | Bitcoin ETF Showdown: BlackRock’s 12-Month Fee Twist

Crypto Airdrop Bonanza: $26.6B Tokens Distributed In Top 50

by

A new report by CoinGecko has shed light on the biggest crypto airdrops, revealing that the top 50 airdrops have collectively distributed an impressive $26.6 billion worth of tokens based on their all-time high valuations. The study, spanning from 2020 to 2023, meticulously analyzed the airdrop landscape, presenting intriguing insights into this unique aspect of the crypto space.

The undisputed champion of crypto airdrops is Uniswap (UNI), which distributed a staggering $6.43 billion worth of $UNI on September 16, 2020. Uniswap’s airdrop, aligned with the DeFi Summer frenzy, reignited interest in a model first introduced in 2014 with Auroracoin. Apecoin (APE) secured the second spot, doling out $3.54 billion worth of $APE on March 17, 2022, with recipients having the potential to snag a free Bored Ape Yacht Club NFT. 

dYdX (DYDX) claimed the third position, distributing $2.00 billion worth of $DYDX on September 8, 2021, with the caveat of a gradual release over five years. Together, Uniswap, Apecoin, and dYdX constitute a significant 45.1% of the top 50 airdrops, amounting to $11.99 billion. The remaining airdrops in the top 50 vary from $0.05 billion to $1.97 billion.

Crypto Airdrop Chronology: Trends Over The Years

Examining the temporal dimension, 2021 witnessed a surge in major airdrops, with 18 out of the top 50 occurring, compared to a mere five in 2020. However, 2022 and 2023 experienced a decline, attributed to the crypto winter bear market, with 14 and 13 airdrops making the cut, respectively.

image 85

The total value of airdrops, measured at their all-time high prices, exhibited a modest increase from $7.28 billion in 2020 to $7.46 billion in 2022. Noteworthy is the emergence of Bonk (BONK) in late 2022, swiftly securing a top 10 spot with an ATH of $0.000025 in December 2023.

Zooming in on 2023, 13 airdrops made it to the top 50, with a total value of $4.56 billion at their all-time high. Arbitrum (ARB) seized the limelight as the largest airdrop in 2023, distributing $1.97 billion worth of $ARB on March 23, 2023. Celestia (TIA) and Blur’s first airdrop claimed the second and third positions, contributing to 69.9% of the total airdrops in 2023.

image 84
Ranking the top 20 crypto airdrops, valued at the token all-time high prices as of December 21, 2023:

Nevertheless, these airdrop dynamics offer a glimpse into the innovative strategies employed by projects to engage and reward their communities, making crypto enthusiasts eagerly anticipate the next groundbreaking distribution event.

Related Reading | Polkadot (DOT) Sets New Record For Daily Transactions, Surpassing 1 Million

Uniswap X Achieves $1 Billion In Trades, New Fillers Reshape Market Dynamics

by

In a recent development, prominent crypto journalist Colin Wu, through a Wublockchain X post, recently uncovered a significant achievement regarding Uniswap X. The decentralized and open-source protocol, enabling trades across Automated Market Makers (AMMs) and diverse liquidity sources, has marked a remarkable milestone. Since its inception in July of this year, the platform has surged past a substantial threshold, accumulating a cumulative trading volume that exceeds $1 billion.

The trading ecosystem on Uniswap X has long been dominated by major market makers Wintermute and Tokka Labs, consistently accounting for 60%-80% of the daily trading volume. However, a noticeable shift is emerging with the advent of new players in the prevalent Defi market landscape.

Uniswap X New Entrant Reshapes Platform Dynamics

A recent development has witnessed a newly onboarded Filler on Uniswap X quickly ascending to the top spot within the past month, shaking up the established order and introducing a fresh dynamic to the platform. Currently, the platform boasts 15 active Fillers, with an additional 4 in onboarding. This surge in participation has led to a burgeoning competition among Fillers, prompting discussions on the optimal number required to ensure competitive pricing and expedited transaction speeds.

Notably, a newly introduced Filler disrupted the norm by seizing over 50% of the trading volume since its integration, significantly reducing the market share of the second-ranked Filler from its initial 90% at launch to roughly 20%. The third-ranked Filler also commands a similar share of around 20% of the total trading volume, emphasizing the dominance of market makers among the top performers.

Furthermore, there have been observable actions among token holders capitalizing on price surges. According to Lookonchain data, user stevu.eth withdrew substantial UNI tokens from Binance, accumulating holdings valued at $3.18 million.

Amidst a recent bullish wave in the crypto market, Uniswap’s native token (UNI) has emerged as one of the top-performing coins. Over the past week, UNI’s price surged by approximately 24%, elevating it from roughly $5.09 to $6.35.

This upward trajectory pushed UNI’s market valuation to $4.8 billion, marking its highest since August. The decentralized finance (DeFi) ecosystem has continued to flourish. According to CoinMarketCap’s data, as of November 2023, the total market capitalization of DeFi amounts to $66.09 billion.

The DeFi market took 14 months to achieve this valuation following the earlier DeFi bubble in 2022. This illustrates the resilience and growth potential of DeFi despite market volatility. This trend reflects the growing adoption of DeFi in mainstream markets and the continual advancement of innovative DeFi products and services.

Midas to Unveil stUSD Token, Linking U.S. Treasuries with DeFi Platforms

by

In an upcoming convergence between traditional finance and the ever-expanding realm of cryptocurrencies, Midas, a stablecoin backed entirely by U.S. Treasuries, is set to introduce its stUSD token across various decentralized finance (DeFi) platforms like MakerDAO, Uniswap, and Aave in the forthcoming weeks. This revelation was disclosed in a presentation deck obtained by CoinDesk.

The Midas project, aiming to establish a solid footing in the DeFi space, is strategically procuring U.S. Treasury bonds through asset management giant BlackRock. The procurement entry is facilitated using Circle Internet Financial’s USDC stablecoin, as detailed in the presentation. Additionally, institutional partners like Fireblocks and Coinfirm are involved, providing custody technology and blockchain analytics support, respectively.

Tokenizing Treasuries: Midas’ Game Plan

The motivation behind this move stems from the substantially higher yields observed in traditional financial assets like U.S. Treasuries in comparison to the returns on conventional DeFi products. Midas aims to tokenize these traditional financial assets, making them seamlessly available within the DeFi ecosystem, as articulated in their presentation.

This strategic move resonates with the current industry trend of tokenizing real-world assets, particularly attracting attention from traditional finance entities. The focus on tokenizing Treasuries has seen significant growth in 2023, prompting the Midas project to tap into this potential.

Notably, the Midas team comprises industry figures like Fabrice Grinda, the founder and executive chairman of Global Technology Acquisition Corp. (GTAC), and Dennis Dinkelmeyer, the vice president of GTAC.

The stUSD token, being 100% backed by U.S. Treasuries and issued under German law as a debt security, emphasizes the adherence to regulatory compliance and legal frameworks. Midas highlights its compliance with European Securities Regulation and Anti-Money Laundering laws, further ensuring that the token’s transfer embodies the transfer of underlying legal rights.

Despite these advancements, neither Grinda nor Dinkelmeyer responded to requests for comment as of press time. The imminent integration of Midas into the DeFi space represents a pivotal step in bridging the gap between traditional finance and the evolving landscape of decentralized finance.

Related Reading | Shibarium Surges 3000%, Ushering in New Era for SHIB 

Uniswap Scam Token Accusations Fall Flat with Judge’s Dismissal

by

On August 30th, the United States District Court for the Southern District of New York rejected the lawsuit against Uniswap (decentralized exchange), its CEO, and its backers in the world of venture capital.

The legal action had been initiated by six individuals who had purchased tokens on Uniswap that they asserted were fraudulent, during the period from December 2020 to March 2022. The individuals who brought the lawsuit alleged that they suffered financial losses due to investing in liquidity pools that were managed and generated by Uniswap‘s smart contracts.

This collective legal complaint, known as a class action, was officially lodged in April 2022. The plaintiffs sought compensation under the 1933 Securities Act, which is the same legal framework employed by the U.S. Securities and Exchange Commission (SEC) to target cryptocurrency companies.

Uniswap Legal Battle Ends: Crypto Case Dismissed

However, Judge Katherine Polk Failla pointed out that both Uniswap and the plaintiffs were unaware of the scammers’ identities responsible for the issuance of counterfeit tokens. Interestingly, this same judge is overseeing the SEC vs. Coinbase legal battle. Notably, the judge also affirmed that Ethereum is categorized as a commodity rather than a security. She emphasized that the lawsuit had no connections to securities laws.

“The Court chooses not to stretch the scope of federal securities laws to encompass the alleged actions, and concludes that the concerns raised by the Plaintiffs would be better suited for Congress rather than this Court.”

Onlookers and advocates within the industry remarked that this demonstrates a profound comprehension of the decentralized finance (DeFi) landscape. Stephen Palley, a Partner at Brown Rudnick, remarked: “Although this isn’t a case centered around product liability or negligence, it does touch on analogous matters: the foreseeability of harm, accountability for misuse by third parties, and the resulting damages.” He further suggested that cases like this will play a significant role in future legislative discussions over the next decade.

Bill Hughes, a lawyer associated with ConsenSys, expressed: “This is a substantial development. While I’m still analyzing the verdict, it has a more direct impact on applying existing securities laws to the realm of DeFi than the cases involving Ripple or TerraForm Labs.” He went on to elaborate, “The mere fact that Uniswap provided the platform on which the creators of the fraudulent tokens executed their scheme does NOT establish Uniswap’s responsibility for the fraud and subsequent harm, particularly within the context of U.S. securities laws.”

Uniswap is flooded with counterfeit tokens; however, due to its decentralized nature, it cannot be held accountable or deemed responsible for their presence.

DeFi Resilience Amidst Crypto Chaos: Maker Emerges As A Beacon of Stability 

by

In a recent update from IntoTheBlock, a notable analytics platform, a stark contrast has emerged within the cryptocurrency market. While numerous alternative cryptocurrencies, known as altcoins, have been grappling with substantial losses, with more than 90% of their holders facing negative returns, major Decentralized Finance (DeFi) tokens have exhibited remarkable resilience in the face of market turmoil.

Delving into token holders’ profit and loss profiles over the past year, an intriguing trend has surfaced. Most DeFi token holders find themselves in a relatively similar position to the previous year. 

Nevertheless, the intricate dance of volatility has not left them untouched, leading to notable fluctuations in profitability. In contrast to the broader landscape of altcoins, these DeFi tokens have managed to maintain a more favorable balance between profits and losses.

DeFi Tokens vs. Altcoins: Crypto Profitability Trends

A standout performer within this cluster is Maker, which has not only weathered the storm but has also managed to improve its position. Unlike its counterparts, Maker stands out as the sole asset, where fewer holders are at a loss compared to last year. In a noteworthy accomplishment, Maker has consistently upheld its status as the most profitable asset for its holders over a significant portion of the year.

For a comprehensive understanding, the following table compares the current percentage of holders at a loss for five prominent DeFi tokens:

  • Compound: 92.92%
  • Ox: 85.97%
  • Uniswap: 71.93%
  • AAVE: 76.35%
  • Maker: 52.36%

This data highlights the differing levels of resilience exhibited by these DeFi tokens, with Maker’s notable performance accentuating its position as a beacon of stability and profitability within the often tumultuous realm of cryptocurrencies. 

A recent IntoTheBlock report highlights a growing trend in the DeFi ecosystem where protocols are breaking down into smaller, more versatile components. Examples include UniSwap v2’s Hooks, Eigen Layer’s restaking primitives, and new versions of protocols like Euler. This trend suggests a move towards partitioning protocols into micro-primitives for novel functionalities. 

Despite the decentralized finance sector previously focusing on core financial primitives, the current generation of protocols combines these with application-level features. This complexity could be addressed by adopting an approach similar to micro-services in distributed programming.

Related Reading | Dogecoin Defies Trademark Norms, Sparks Crypto Cheers

Friend.tech Ascends: Joins The Elite Top 3 Protocols

by

Friend.Tech, an innovative decentralized application, is rapidly gaining attention as it achieves the astonishing feat of generating more than $1 million in fees within a mere 24 hours, effortlessly overshadowing the Uniswap and Bitcoin networks.

Built on the OP Stack in collaboration with Optimism, Base, Friend.Tech introduces a distinctive concept, allowing users to invest in shares of their friends and influencers. This investment not only grants them ownership but also provides exclusive access to private conversations with the chosen individual.

In the preceding 24 hours, Friend.Tech has managed to accumulate a staggering $1.12 million in protocol fees, effectively surpassing both the Uniswap and Bitcoin networks, ranking second only to Ethereum and Lido protocols in terms of generated revenue. The platform’s earnings have surged to an impressive 1165.2 ETH, along with a total transaction volume of 25,633.5 ETH.

Additionally, an online source highlighted that Friend.Tech has climbed up to reach the top 3 protocols in terms of fees and revenues, signifying a remarkable accomplishment within the context of the BuildOnBase initiative.

image 43 6
Friend.tech Ascends: Joins The Elite Top 3 Protocols 22

David Phelps, co-founder of the governance platform JokeRace, lauded FriendTech for its exceptional user experience, describing it as the most exciting innovation witnessed in the cryptocurrency domain. He underscored its advantages, such as functioning as an app without requiring an app store, facilitating seamless bridges, and allowing one-time deposits without the need for repeated transaction signing.

Critics Are Not Impressed With Friend.Tech

While the app garners praise for its role in bringing numerous individuals into the cryptocurrency realm and attracting sign-ups from non-crypto figures, cautionary voices have emerged, highlighting the potential risk of burnout.

Doing some research on friendtech, please be careful putting too much money into it. The same team launched. KosettoIsKawaii end of 2022. Sold a bunch of wearable NFT stickers. Had users spamming referral codes. Hyped and pumped. Then the entire thing just disappeared, last update was in January that a Chrome extension was available. No communication or warning to users.

On a contrasting note, some experts contend that FriendTech’s success is closely linked to the triumph of Coinbase Base. Evidently, the app’s impact on Base’s recent success is evident, with over 257k transactions on FriendTech and a total of 600k transactions on the Base network. This symbiotic relationship has resulted in approximately $50k in fees generated for the chain within a mere 24-hour period.