DeFi

Why EigenLayer and other re-staking projects are cooling off – DL News

Published

6 months ago

19 July, 2024

Why EigenLayer and other re-staking projects are cooling off – DL News

EigenLayer TVL is down a fifth from its June high.
Farmers are looking for greener pastures, an analyst told DL News.

After a roaring start to the year, EigenLayer, the protocol that pioneered Ethereum’s multi-billion dollar re-staking sector, is slowing down.

Resttaking is the process of using the same capital to secure Ethereum and various other protocols simultaneously. The total value of cryptocurrencies deposited into EigenLayer for resttaking has fallen 20% since reaching a peak of $20 billion on June 6.

Affiliated “liquid resttaking” protocols – which facilitate the deposit of cryptocurrencies into EigenLayer – have also been affected. The value of cryptocurrencies deposited into Renzo and Kelp DAO have fallen by 44% and 17% respectively over the past month. Competitors Ether.Fi and Puffer Finance experienced anemic growth during this period.

The collapse of EigenLayer impacted liquid re-staking protocols, such as Renzo.

“Retaking, whether it’s EigenLayer, Symbiotic, Karak, etc., is now entirely incentivized by points,” said Ian Unsworth, founder of Kairos Research. DL News“Right now, I think we can attribute the capital outflows to the massive reduction in incentives compared to what they were a few months ago.”

Points are crypto-based loyalty rewards. Developers say they are a way to measure users’ “contribution” to a protocol based on predefined metrics, but most users see them as a way to allocate tokens in future airdrops and increase engagement.

Rapid growth

Since its debut last year, EigenLayer has risen to the top of Ethereum’s decentralized finance ecosystem. As of Friday, it was still the second-largest DeFi protocol, managing over $15 billion in crypto.

Proponents of resttaking have called it one of the most exciting developments on Ethereum, something that could make it safer, cheaper, and easier to launch new protocols.

“Anyone who uses the word AVS or resttaking is just being fooled. [investor] money that was forced down their throats,” Ether.Fi Mike Silagadze, CEO said DL News earlier this year, using the acronym for protocols that build on EigenLayer.

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In February, venture capital firm Andreessen Horowitz invested $100 million in EigenLayer’s Seattle-based parent company, Eigen Labs.

“The implications of this are profound,” Ali Yahya, a partner at Andreessen Horowitz, wrote in a February blog post announcing the investment.

EigenLayer has the potential to unlock “100x faster innovation” of crypto-based technology, Yahya continued.

But the main resttaking project has also sparked controversy, with critics warning it could destabilize Ethereum.

A “healthy step”

EigenLayer was rolled out in stages. benefits It is planned to generate and distribute among the “restakers” who will come Later this year.

To attract users, EigenLayer and liquid restaking protocols offered users “points” when they deposit their crypto. These points were used to split the distribution of tokens across multiple airdrops.

Now that the airdrops are over, investors are looking for greener pastures elsewhere.

The value of cryptocurrencies in EigenLayer is down 20% since its June high.

“Since there are still no AVS rewards, we have to attribute the outflows to the lack of current incentives,” Unsworth said.

“AVS rewards for EigenLayer are not far away, and without incentives we believe we will see a more “organic” market equilibrium develop.”

This same exodus led to the reduce by half of the value of cryptocurrencies deposited in Pendle, another related protocol.

“I want to be clear that this is a healthy step in the process,” Unsworth said, “and we believe resttaking will continue to be a massive market and an important influence across the entire Ethereum network.”

Aleks Gilbert is DL News“New York-based DeFi correspondent. Got a tip? You can reach him at aleks@dlnews.com.

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DeFi

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Published

6 months ago

29 July, 2024

CoinFlix Staff

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.

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DeFi

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Published

6 months ago

29 July, 2024

CoinFlix Staff

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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