SEC Allegations Against Binance and Coinbase Could Hinder DeFi's Future
The SEC's allegations against Binance and Coinbase could have negative consequences for the decentralized finance (DeFi) industry, which aims to provide financial services in a decentralized manner. The charges against centralized exchanges raise doubts about the future of DeFi, and may discourage developers and entrepreneurs from pursuing new concepts. Furthermore, the regulatory approach towards DeFi exchanges appears biased, creating an unlevel playing field compared to traditional financial institutions. To unlock the full potential of DeFi and promote financial inclusiveness and empowerment, regulatory measures should strike a balance between regulation and decentralization.
SEC Crackdown on Binance and Coinbase Leads to 444% Surge in DeFi Trading Volumes
Welcome to Finance Redefined, a newsletter that provides weekly updates on decentralized finance (DeFi) developments. The recent lawsuits by the US Securities and Exchange Commission (SEC) against centralized crypto exchanges Binance.US and Coinbase have resulted in a surge in DeFi trading volume. While the SEC's enforcement action against centralized exchanges has been widely reported, the regulator is also pursuing cases against the decentralized exchange (DEX) ecosystem. Crypto venture capital firm Paradigm has criticized the SEC's approach, arguing that DEXs are not securities exchanges. Additionally, a US district court has dismissed a lawsuit against DeFi protocol PoolTogether, which had raised $1.4 million through an NFT sale to fund its legal defense. Despite a bullish start to June, the DeFi market experienced a decline in the second week due to the SEC's enforcement action, with most of the top 100 DeFi tokens trading in the red and the total value locked falling below $50 billion. However, the median trading volume across the top three DEXs increased by 444% in the past 48 hours, as crypto investors turned to DeFi in response to the SEC's legal actions against centralized exchanges. Finally, at least $35 million worth of crypto has been stolen from Atomic Wallet users since June 2, according to an analysis by on-chain sleuth ZachXBT.
Metalpha: Can Digital Asset Derivatives Be a "Wall Breaker" for Traditional Finance and Web3
Metalpha is a multinational digital asset derivatives service provider headquartered in Singapore and founded in 2021.
Nolus Protocol Introduces DeFi Lease To Make Crypto Lending Accessible for the Average User
Crypto lending is a crucial aspect of DeFi, enabling users to borrow and lend digital assets through specialized protocols. DeFi lending protocols operate directly on the blockchain, with smart contracts facilitating each loan or borrowing.
DeFi Value Locked Remains Stable Despite SEC Drama and Falling Token Prices
Despite falling prices, the value locked on decentralized finance (DeFi) applications operating on blockchains of tokens alleged as securities by the SEC remained mostly stable, indicating positive sentiment among global market participants. The SEC charged Binance and Coinbase with selling unlicensed securities in the US, despite a lack of regulatory clarity on whether crypto tokens can be considered securities.
Can HOPE bring "HOPE" to the DeFi ecosystem?
The HOPE ecosystem is a fully evolved DeFi application ecosystem designed to provide frictionless and transparent financial infrastructure and services for all. It combines the features of traditional and centralized finance and creates an all-in-one ecosystem of pioneering decentralized financial applications.
Cryptology Expands into Latin America as Gold Sponsor of BlockchainCon LatAm 2023 in Peru
Cryptology, a reputable CEX with a large user base, has announced that it will be a gold sponsor at the upcoming BlockchainCon LatAm 2023 in Peru from 8-10 June. The company is expanding into Latin America and will showcase its suite of products and new mobile app at the conference.
Decentralized Application Industry Grows by 9.97% in May, Led by Gaming and DeFi Sectors
The decentralized application industry experienced a growth of 9.97% in May, with an average of 1,967,051 daily unique active wallets. The gaming and decentralized finance (DeFi) sectors were the main drivers of growth, although DeFi saw a decline in total value locked.
Cardano's DeFi Landscape Expands with Integration of VyFinance DEX Protocol into MuesliSwap Aggregator
Cardano's DeFi landscape is expanding as VyFinance DEX protocol integrates with MuesliSwap DEX Aggregator, offering limitless trading potential on the Cardano network. This move is part of Cardano's ongoing efforts to increase its presence in the DeFi sector. Additionally, Cardano has surpassed Bitcoin in total value locked (TVL), with a TVL of $183.19 million, reflecting a significant increase in active users and protocols on the network. These developments highlight the growing interest and trust in Cardano's DeFi ecosystem.
DeFi Faces Competition from Ethereum's Annual Staking Reward, but Liquid Staking Derivatives Could Revive Network Activity
According to Glassnode analysts, the DeFi activity on Ethereum has decreased during the bear market and is facing competition from Ethereum's annual staking reward of 4%. However, there is a growing DeFi narrative around liquid staking derivative (LSD) tokens that could revive Ethereum's network activity. The percentage of gas consumed by DeFi protocols has dropped from 34% in 2020 to 8-16% presently, with NFTs commanding the maximum share of 25-30%. The DeFi "Blue-Chips" have lost 88% of their market capitalization from the all-time highs of $45 billion in May 2021. Staking has become popular among Ethereum investors, especially after the Shapella upgrade in April 2023, which enabled redemptions from the staking contract. LSD platforms like Lido and Rocket Pool account for one third of this massive market. These applications offer tokenized representation of staked ETH, allowing investors access to the staking yields without compromising liquidity. The liquidity of LSD tokens on Curve Finance, the largest stablecoin exchange in the market, has surpassed $1.5 billion.
