DeFi
Four “revolutionary” DeFi trends that will define the next crypto bull market – DL News
What you will learn
- New DeFi, like liquid restocking, will attract more attention in 2024.
- The repurchase of liquidity already represents a market of 600 million dollars.
- The search for yield and airdrop farming will drive greater multi-chain engagement this year.
DeFi was the biggest growth driver for crypto last year, as it had twice as many users with over 100 transactions as any other sector of the crypto market.
This growth was fueled by an increase in transaction activity on layer 2 Ethereum blockchains like Arbitrum and Optimism, and the return of Solana after the collapse of FTX.
This trend is expected to continue this year amid a possible rise, with trading on decentralized exchanges and yield farming expected to be the most dominant on-chain activity in 2024.
This is according to a new report on on-chain cryptocurrency users by blockchain data platform Flipside Crypto.
“Significant regulatory, institutional and financial announcements were published every month” in 2023, the report said. “These developments set the stage for a breakthrough in 2024.”
Driving this growth in recent times: EigenLayer, a Ethereum Liquid Resumption Protocol.
Staking in DeFi means locking a token into a blockchain network or DeFi protocol, usually in exchange for a yield.
Locked tokens are generally unusable, but some protocols like Lido offer liquid staking in which a liquid staking token or LST is given in exchange for the locked crypto, along with the opportunity to earn yield.
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“New DeFi like EigenLayer will gain prominence and be adopted by the native Web3 audience,” Flipside said.
Liquid staking has the benefit of giving users access to their locked coins in the form of LST which they can deploy on other DeFi protocols to earn compound gains. Flipside highlighted four other trends to watch:
Restore staked crypto
Liquid restocking is an extension of the DeFi liquid staking primitive. It allows users to refresh their LSTs to get more yield and another token called Liquid Resume Token, or LRT.
There are even protocols like Pendle that will accept an already yield-bearing LRT deposit from a user and provide them with another yield-bearing token, thus pushing the compounding yield potential further.
Flipside’s prediction of a liquidity buyback boom in the coming year may already be showing signs of becoming a possibility. The new DeFi sector is already a A $600 million market — market growth driven not only by the frenzy of compound returns but also the possibility of parachute drops.
New DeFi niches such as liquid restocking come with expectations of airdrops for early participants. These expectations have been reinforced by majors like EigenLayer which offer a points system to depositors, the points having become an indicator of possible airdrops.
Despite its growth potential, Flipside does not envision a bubble emerging due to liquid staking this year.
“We are still far from the frenzy of 2021, where anyone could simply launch a project and use 10,000% APY inflation tokens to attract users,” said Carlos Mercado, data scientist at Flipside. DL News.
Instead, Mercado identified the lack of customer diversity among Ethereum stakeholders and validators as a possible source of concern. More than 80% of Ethereum validators use Geth, an execution client responsible for processing transactions and deploying smart contracts.
This reliance on Geth makes it a majority client in Ethereum and any issues with Geth could cause system-wide outages in Ethereum.
Given the possible scale of the problem, Mercado said he expects stakeholders to diversify and look to other customers.
“The good news is that these staking methods are in direct competition with other on-chain opportunities, so there is a natural reluctance for them to become “too big to fail” – as yields fall with the number of participants,” Mercado said.
Multi-chain engagement
Flipside’s report only covers eight blockchains – Bitcoin, Ethereum, Arbitrum, Optimism, Polygon, Base, Solana, Avalanche – all but Bitcoin and Solana are EVM networks.
EVM networks run on the Ethereum Virtual Machine and use the same smart contract logic for their applications. This compatibility also facilitates liquidity migration through protocols called bridges that allow users to send cryptos across different blockchains.
Last year, however, only a small percentage of users interacted with at least two EVM chains. But Flipside expects a shift this year with greater multi-chain engagement among DeFi users, particularly those looking to capitalize on yield and airdrop opportunities across different blockchains.
Greater multi-chain engagement will mean flexible liquidity migration and an increase in the volume of crypto flowing across bridges. Bridge protocols have historically been targets for hackers, leading to some of crypto’s biggest thefts, including $125 million missing of the Multichain multi-chain bridge last year.
Mercado noted that bridge security is a big issue while adding that market participants are moving towards more secure solutions for cross-chain crypto transactions.
“The lock and mint mechanism that prevailed throughout 2021-2022, which left a pot of tokens that hackers observed, faced significant competition from order books or trading bridges. routing that are more efficient in terms of volume transferred per locked value, and canonical bridges like USDC Cross Chain. Transfer protocol,” Mercado said.
Layer 2 concurrent blockchains
Three of the blockchains covered in the Flipside report – Arbitrum Optimism and Base – are layer 2 of Ethereum. These are networks created to scale Ethereum by processing transactions outside of the main network, but still rely on the security of Ethereum for their purpose.
Polygon is also a scalable blockchain for Ethereum, but is technically not a layer 2, but rather a side chain.
Ethereum Layer 2s have seen a Cambrian explosion over the past 18 months, swelling the EVM blockchain market. With limited liquidity for investors, the report predicts greater competition among incumbents, including reducing transaction costs and providing a smoother user experience.
Ethereum itself stands to gain from rivalry between its Layer 2 networks, as increased network activity means more money for validators.
This struggle for market share dominance between Ethereum layer 2 networks may also affect the value of their respective native tokens, the report states.
Booming infrastructure and channel specialization
In addition to Ethereum layer 2 networks, the overall crypto infrastructure stack has grown in the last year and Flipside predicts an even bigger boom in 2024.
The report highlights significant gains made in zero-knowledge technologies and data availability solutions like Celestia as reasons for this expectation.
New entrants such as blockchain scaling Monad and Berachain are also expected to contribute to this growth, the report said.
Ultimately, the report expects developers to optimize their respective technological strengths, leading to specialized blockchains rather than the general-purpose blockchain networks currently available.
Osato Avan-Nomayo is our DeFi correspondent based in Nigeria. He covers DeFi and technology. To share tips or story information, please contact him at osato@dlnews.com.
DeFi
If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation
Bonk and Pepe appear set to net new investors 10x to 100x returns over the next 12 months. However, cryptocurrencies in the DeFi play-to-earn gaming sector could offer even greater returns. As August approaches, Rollblock is emerging as a standout DeFi play-to-earn gem with the potential to 100x-1000x gains in the fourth quarter and beyond.
The project features an innovative revenue sharing model and exceptional accessibility, attracting players and investors. Additionally, Rollblock’s extensive game library of over 150 titles and enhanced sports betting are further driving excitement for the platform. Cryptocurrency analysts are expecting a sudden surge in demand. 800% a push for Rollblock from the beginning of September.
Bonk remains strong despite market fluctuations
While most well-known cryptocurrencies struggled throughout July, Bonk remained strong. As one of the highest-grossing meme cryptocurrencies of 2024, Bonk rose over 24% in July, while most cryptocurrencies experienced negative fluctuations.
Investors looking to add a relatively safe memecoin to their portfolio should consider Bonk. While Bonk is unlikely to generate explosive gains of 250x to 1,000x from here on out, Bonk could still theoretically provide returns in the 20x to 100x range.
Pepe should see a big rise in the next bull run
Alongside Bonk, Pepe has yet to go through a bull run. This means that there are still substantial gains to be made from Pepe over the next 12 months.
Pepe is down 4% in 30 days, but that shouldn’t worry Pepe investors in 2024. Experts believe Pepe’s best days are still ahead, with crypto analysts predicting a 10x to 50x surge in the next election cycle around November.
In the long term, Pepe could surpass the 100x mark for today’s investors. However, Pepe is a memecoin, and one should exercise caution when investing in purely speculative assets that have no utility.
Rollblock’s Unprecedented Hype Potential Could Push It Past 100x Valuation in Q4
Rollblock is a GambleFi Play-to-Earn token that integrates centralized and decentralized gambling on a single platform. By allowing players to earn rewards through active participation and gameplay, the platform creates a compelling incentive structure that appeals to both casual and competitive players.
With its cutting-edge blockchain technology, Rollblock offers top-notch security that keeps bets and transactions on the platform secure. The platform’s lack of KYC mandates appeals to both users who value anonymity and security.
Rollblock’s revenue sharing model, which allocates up to 30% of casino revenue to RBLK token holders, is a major draw for investors. The model involves burning half of the repurchased tokens and distributing the other half to stakers, increasing the token’s value and encouraging long-term investment.
The platform is also constantly evolving thanks to user feedback which has enabled updates such as the upcoming sports betting feature within the platform’s casino. This addition will complement Rollblock’s extensive game library of over 150 titles, ranging from traditional poker to innovative blockchain-based games.
RBLK is expected to emerge as one of the leading DeFi tokens in 2024. With a price of $0.0172 with impressive growth potential and over 140 million tokens sold recently, Rollblock is on track to enter the top 100 cryptocurrencies by Q4, making today a lucrative time to buy RBLK tokens.
Discover the exciting opportunities of the Rollblock (RBLK) presale today!
Website: https://presale.rollblock.io/
Social networks: https://linktr.ee/rollblockcasino
No spam, no lies, only insights. You can unsubscribe at any time.
DeFi
Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong
Veteran cryptocurrency investor Arthur Cheong believes the digital asset sector offers long-term holders a golden opportunity.
Cheong, the founder of DeFiance Capital, tell His 171,700 followers on social media platform X indicate that he believes decentralized finance (DeFi) is hugely undervalued.
According to Cheong, DeFi projects are innovating at a rapid pace and leaving traditional financial (TradFi) companies in the dust.
“It’s been a long time since I’ve been this excited about the risk/reward and potential upside of DeFi. This is probably the most misjudged moment since the pre-DeFi summer of 2020, with extremely promising prospects.
I see opportunities not only in OG (original) DeFi, but also in some newer projects that are evolving rapidly and growing at a pace that fintech startups will do anything to match.
The veteran investor also believes that crypto is now here to stay following recent launch from the Ethereum spot market (ETH) exchange-traded funds (ETFs) last week.
“Overall, the floodgates are open and there is no turning back. TradFi asset managers will continue to launch new crypto products because, guess what: there is huge demand for them!”
I expect them to launch actively managed crypto ETFs [in the] coming years. ”
Earlier this month, Cheong laid that it might be a bad strategy for cryptocurrencies to seek mass adoption, believing that digital assets are designed to disrupt several key financial sectors.
“I think we should accept that cryptocurrencies may not be suited for mass adoption like Web2, but rather are optimized for some narrow but very high-impact use cases like stateless global money, cross-border payments, and decentralized finance.
Chasing mass adoption of normies may be chasing the wrong Grail from the start.
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Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their own due diligence before making any high-risk investments in Bitcoin, cryptocurrencies or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured image: Shutterstock/ktsdesign
DeFi
Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong
Veteran cryptocurrency investor Arthur Cheong believes the digital asset sector offers long-term holders a golden opportunity.
Cheong, the founder of DeFiance Capital, tell His 171,700 followers on social media platform X indicate that he believes decentralized finance (DeFi) is hugely undervalued.
According to Cheong, DeFi projects are innovating at a rapid pace and leaving traditional financial (TradFi) companies in the dust.
“It’s been a long time since I’ve been this excited about the risk/reward and potential upside of DeFi. This is probably the most misjudged moment since the pre-DeFi summer of 2020, with extremely promising prospects.
I see opportunities not only in OG (original) DeFi, but also in some newer projects that are evolving rapidly and growing at a pace that fintech startups will do anything to match.
The veteran investor also believes that crypto is now here to stay following recent launch from the Ethereum spot market (ETH) exchange-traded funds (ETFs) last week.
“Overall, the floodgates are open and there is no turning back. TradFi asset managers will continue to launch new crypto products because, guess what: there is huge demand for them!”
I expect them to launch actively managed crypto ETFs [in the] coming years. ”
Earlier this month, Cheong laid that it might be a bad strategy for cryptocurrencies to seek mass adoption, believing that digital assets are designed to disrupt several key financial sectors.
“I think we should accept that cryptocurrencies may not be suited for mass adoption like Web2, but rather are optimized for some narrow but very high-impact use cases like stateless global money, cross-border payments, and decentralized finance.
Chasing mass adoption of normies may be chasing the wrong Grail from the start.
Don’t miss a thing – Subscribe to receive email alerts directly to your inbox
Check Price action
follow us on X, Facebook And Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their own due diligence before making any high-risk investments in Bitcoin, cryptocurrencies or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured image: Shutterstock/ktsdesign
DeFi
If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation
Bonk and Pepe appear set to net new investors 10x to 100x returns over the next 12 months. However, cryptocurrencies in the DeFi play-to-earn gaming sector could offer even greater returns. As August approaches, Rollblock is emerging as a standout DeFi play-to-earn gem with the potential to 100x-1000x gains in the fourth quarter and beyond.
The project features an innovative revenue sharing model and exceptional accessibility, attracting players and investors. Additionally, Rollblock’s extensive game library of over 150 titles and enhanced sports betting are further driving excitement for the platform. Cryptocurrency analysts are expecting a sudden surge in demand. 800% a push for Rollblock from the beginning of September.
Bonk remains strong despite market fluctuations
While most well-known cryptocurrencies struggled throughout July, Bonk remained strong. As one of the highest-grossing meme cryptocurrencies of 2024, Bonk rose over 24% in July, while most cryptocurrencies experienced negative fluctuations.
Investors looking to add a relatively safe memecoin to their portfolio should consider Bonk. While Bonk is unlikely to generate explosive gains of 250x to 1,000x from here on out, Bonk could still theoretically provide returns in the 20x to 100x range.
Pepe should see a big rise in the next bull run
Alongside Bonk, Pepe has yet to go through a bull run. This means that there are still substantial gains to be made from Pepe over the next 12 months.
Pepe is down 4% in 30 days, but that shouldn’t worry Pepe investors in 2024. Experts believe Pepe’s best days are still ahead, with crypto analysts predicting a 10x to 50x surge in the next election cycle around November.
In the long term, Pepe could surpass the 100x mark for today’s investors. However, Pepe is a memecoin, and one should exercise caution when investing in purely speculative assets that have no utility.
Rollblock’s Unprecedented Hype Potential Could Push It Past 100x Valuation in Q4
Rollblock is a GambleFi Play-to-Earn token that integrates centralized and decentralized gambling on a single platform. By allowing players to earn rewards through active participation and gameplay, the platform creates a compelling incentive structure that appeals to both casual and competitive players.
With its cutting-edge blockchain technology, Rollblock offers top-notch security that keeps bets and transactions on the platform secure. The platform’s lack of KYC mandates appeals to both users who value anonymity and security.
Rollblock’s revenue sharing model, which allocates up to 30% of casino revenue to RBLK token holders, is a major draw for investors. The model involves burning half of the repurchased tokens and distributing the other half to stakers, increasing the token’s value and encouraging long-term investment.
The platform is also constantly evolving thanks to user feedback which has enabled updates such as the upcoming sports betting feature within the platform’s casino. This addition will complement Rollblock’s extensive game library of over 150 titles, ranging from traditional poker to innovative blockchain-based games.
RBLK is expected to emerge as one of the leading DeFi tokens in 2024. With a price of $0.0172 with impressive growth potential and over 140 million tokens sold recently, Rollblock is on track to enter the top 100 cryptocurrencies by Q4, making today a lucrative time to buy RBLK tokens.
Discover the exciting opportunities of the Rollblock (RBLK) presale today!
Website: https://presale.rollblock.io/
Social networks: https://linktr.ee/rollblockcasino
No spam, no lies, only insights. You can unsubscribe at any time.
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