Heimdall Newsletter #3
Weekly Crypto Recap by Heimdall
Welcome to Heimdall Newsletter #3, your trusted guide in the crypto universe. This week, we’re diving into the world of Bitcoin ETFs, exploring the innovative realm of LSDfi, and keeping a keen eye on the rise of Layer 2s.
Brimming with the latest crypto news, in-depth market analysis, and thought-provoking insights, the Heimdall Newsletter is your one-stop destination for all things crypto.
Crypto News Spotlight 🍿
Taylor Swift’s Unshaken Deal with FTX: Pop icon Taylor Swift may not have completely severed ties with the now-defunct FTX crypto exchange, despite public statements suggesting otherwise. A recent report from CNBC indicates that Swift had agreed to a partnership with FTX, but the exchange’s former CEO, Sam Bankman-Fried, was advised against proceeding. Swift was reportedly one of the few celebrities investigating whether the exchange was dealing in unregistered securities. FTX filed for bankruptcy last November and is now embroiled in legal battles, with Bankman-Fried facing charges related to alleged fraud and money laundering. This development underscores the importance of due diligence in crypto, even for high-profile partnerships. Read more…
Multichain Faces Crypto Exodus: Multichain, a prominent bridge contract operator, has recently seen a significant outflow of various popular tokens from its contracts, including its Fantom bridge. The sudden withdrawal of tokens such as $wBTC, $USDC, $USDT, and several altcoins, totaling over $130M, has raised eyebrows in the crypto community. Amidst speculations of a potential hack, several crypto projects have reassured their communities of their unaffected status, including the Magic Internet Money stablecoin. Binance CEO, Champeng Zao, also confirmed that Binance had previously moved all assets out of Multichain and closed deposits. While some believe this to be a standard fund transfer, the Multichain team is actively investigating the abnormal movement of locked-up assets to an unknown address. As the situation unfolds, it serves as a reminder of the importance of asset security in the crypto space. Read more…
The Staking Debate — Vitalik Buterin’s Stance: Ethereum co-founder Vitalik Buterin has recently revealed that he only stakes a ‘small portion’ of his Ether holdings. As he explained on the Bankless podcast, the primary reason is the complexity of setting up multi signature wallets necessary for staking. This revelation has sparked a debate in the crypto community, with Cardano founder Charles Hoskinson expressing surprise and stating that all of his Cardano is staked. Buterin also discussed the EigenLayer protocol, a testnet solution that allows Ethereum validators to ‘re-stake’ their assets onto other networks, though he cautioned about the centralization risks it poses. The debate around staking and its implications intensifies as the crypto world evolves. Read more…
Crypto News Flash 🔥
- Steve McQueen’s Legacy in Web3: A Unique NFT Collection
- SEC Eye on Barnbridge DAO: Barnbridge DAO has entered the SEC’s spotlight, and work is on ice for now. More updates to follow!
- Binance Steers Clear of Multichain Issues: Binance’s skipper assures users that the Multichain hiccup doesn’t impact Binance or its users. No alarms going off on the Binance deck.
- Valkyrie’s Second Shot: The crypto asset giant Valkyrie tries again for a Bitcoin spot ETF, roping in Coinbase as the SSA partner. Will they hit the bullseye this time?
- The Retirement Party at Binance: Binance plans to retire a handful of deposit addresses in an upcoming wallet upgrade. An end or a new beginning?
- Celsius Faces the Heat: The CFTC concludes that crypto lender Celsius and its former CEO broke the rules. A chilly predicament in the hot crypto world!
- On the Cards for Cardano: Analysts foresee a staggering 300% rally for ADA. Brace yourself for a thrilling journey!
- BlackRock’s Bitcoin Venture: The asset management behemoth has reapplied for a Bitcoin spot ETF. Will they strike gold this time?!
- RBI’s Digital Rupee Initiative: The Reserve Bank of India is investigating cross-border payment possibilities with a potential digital rupee
Trend Tracker 🧠
BTC ETFs: In our first newsletter, we discussed the potential game-changer that Bitcoin ETFs could be, making it easier for traditional investors to invest in Bitcoin. Since then, major players like BlackRock, Fidelity, and ARK Invest have been racing to approve their ETFs. Despite initial setbacks, these firms have refiled their applications, sparking renewed hope for approving Bitcoin ETFs this year.
LSDfi Newcomers: In our second newsletter, we highlighted the rise of LSDfi, a combination of LSD & finance. We’ve seen the emergence of LSD-backed stablecoins and LSD indexes, offering new ways to stake ETH and diversify risk. Protocols like PENDLE have grown significantly, and the narrative around LSDfi continues to evolve.
Upcoming Layer 2s
After the rise of alternative Layer 1s in 2021, Layer 2s are now stepping into the spotlight. Among them, FraxChain, a hybrid rollup with integrated zk-proofs, is particularly intriguing.
FraxChain aims to address the scalability challenges faced by the Ethereum mainnet. FraxChain introduces a hybrid roll-up architecture that combines the advantages of optimistic rollups and zero-knowledge proofs. This architecture is designed to handle a high volume of transactions without incurring exorbitant fees or experiencing sluggish transaction times.
One of the key ideas surrounding FraxChain is the concept of it being a decentralized bank account that is fully programmable. This means that users can securely store their assets on FraxChain and utilize smart contracts to automate various financial activities.
FraxChain also introduces a novel governance mechanism for the ecosystem involving $FXS holders. Through FraxChain, $FXS holders can vote on who can operate sequencers for the network, ensuring that the ecosystem's operations are governed by the community rather than a centralized authority.
Moreover, FraxChain can seamlessly integrate with other Frax products, such as $frxETH. This integration enables users to stake their $ETH on FraxChain and receive $frxETH in return. This $frxETH can then be utilized within other decentralized finance (DeFi) protocols to earn yield, expanding the range of opportunities available to users.
As we move forward, Layer 2s could be crucial in scaling Ethereum and enhancing its usability. This week, we’re taking a closer look at the rise of Layer 2s and what they mean for the future of blockchain.
These are just a few of the trends shaping the crypto world. Stay tuned as we continue to track these and other emerging trends in the blockchain universe.
Market Analysis 🔍
Now, let’s dive a bit deeper. Bitcoin may have completed an irregular ABC correction and could continue its new upward cycle represented by the 12345 waves in green. If this occurs, we could see a test of the $31,400 mark.
However, if it loses support at the $29,500 level, it could indicate a larger correction to the $27,500 region. Bitcoin recently dropped below the $30,000 level ahead of the upcoming nonfarm payrolls (NFP) report in the United States, which is expected to come in at 225,000 for June, less than the 339,000 jobs added the month prior.
A strong number could almost certainly guarantee that the Federal Reserve will hike rates later this month. These waters can be unpredictable, so let’s keep a keen eye on the horizon.
Biggest Movers and Shakers
As of today, when this newsletter was written on July 8, 2023, the global crypto market cap stands at $1.22 trillion, marking a 0.32% change in the last 24 hours.
The total trading volume in the last 24 hours is $31.0 billion, with Bitcoin and Ethereum holding the helm, commanding 48.13% and 18.34% market dominance, respectively.
Here are the most trending coins of the day, providing a glance at the movers and shakers in the crypto market this day.
Here are the top gainers of the week according to Coingecko, providing a snapshot of the coins that are leading the pack in today’s crypto market
A Pulse on Market Sentiment
The Fear and Greed Index is a barometer for the market’s emotional state, swinging between extreme fear (indicating a potential buying opportunity) and extreme greed (a potential selling signal). Let’s look at where the index stands today and what it might mean for your crypto strategy.
The long vs short ratio gives us a glimpse into the market sentiment, revealing whether traders are bullish (long) or bearish (short) on a particular coin. Let’s look at where the ratio stands this week and what it might mean for your crypto strategy.
Featured Article ✨
This week’s featured article is an insightful piece from Heimdall’s Research 👉 Modular Blockchains Explained: Enhancing Scalability and Revenue Models.
Here are the key takeaways from the article:
- Understanding Modular Blockchains: Modular blockchains are a hot topic in the crypto industry. Unlike traditional monolithic blockchains that handle all tasks on a single layer, modular blockchains split these tasks across multiple chains, allowing each chain to specialize in a specific function. This modular design offers a more customized and optimized solution for different user needs.
- Advantages of Modular Blockchains: Modular blockchains offer several advantages over monolithic blockchains, particularly in terms of scalability, decentralization, and security. They enhance scalability by moving transaction execution to separate chains (Layer-2 solutions), while using proofs to verify transactions on the main chain. They also enhance decentralization by separating the roles of block producer and verifier, ensuring a sufficient number of independent verifiers.
- Modular Blockchains in Practice: Pioneering projects like Celestia and Ethereum’s rollups are seizing the growth opportunity of modular blockchains. Celestia focuses on the data availability and consensus layer of modular blockchains, while rollups play an important role as an execution layer where transactions are processed faster and at a lower cost than the main chain.
- Ethereum’s Embrace of Modularization: Ethereum has embraced modularization, leading to the emergence of Layer-2 solutions like Optimism and Arbitrum, enabling greater scalability. The Ethereum Foundation has also proposed an Ethereum Improvement Proposal (EIP) called Danksharding to enhance the user experience with rollups.
- Re-staking and the Paradigm Shift: The concept of re-staking is part of a paradigm shift in the Layer 1 industry. Re-staking tackles the issue of fragmented blockchain security by pooling the security of Ethereum. It enables other applications and projects to leverage Ethereum’s security instead of creating their own.
- Potential for Bitcoin to Follow the Same Path: Bitcoin has the potential to follow a similar path as Ethereum in terms of being a secure layer for building applications. Projects like Stacks and Babylon have already started building applications on the Bitcoin blockchain, leveraging its security and robustness.
This article provides an in-depth understanding of modular blockchains, their unique features, and the potential impact they could have on the crypto industry. It’s a must-read for anyone interested in the future of blockchain technology.
Recommended Reads 📚
As we navigate the vast cosmos of the crypto world, staying informed and updated is essential. That’s why we’ve curated a list of insightful reads that we believe will enrich your understanding and broaden your perspective.
- Warner Music has teamed up with Polygon Labs to launch a Web3 music accelerator program.
- Solana Takes the Lead: Tops the Weekly Price Change Percentage Among the Top 100, Courtesy of @VentureCoinist
Conclusion 🫰
We’ve navigated another whirlwind week in the crypto cosmos together 🚀
What’s next on this thrilling odyssey? You’ll have to stick with us to discover in the next edition!
Now, it’s your turn to take the stage! Got a burning question or a fresh perspective on the latest crypto trends? We’re all ears.
If you’ve enjoyed our voyage, why not bring a friend along for the ride? Share the knowledge, spread the word, and turn this crypto journey into an epic saga together.
Remember, you’re not just a reader. You’re a part of the Heimdall tribe. So keep that curiosity alive, keep those questions rolling, and we’ll meet you next week for more crypto adventures.
Until then, keep shining bright, Heimdall comrades!
Catch you on the flip side 🤝
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