Welcome to Finance Redefined, your weekly dose of essential insights into decentralized finance (DeFi) – a newsletter designed to bring you the most important developments from the past week.
This week in DeFi, Solana continued to gain momentum and is poised to surpass Ethereum in terms of transaction fees in the coming week. The Financial Conduct Authority (FCA) in the United Kingdom is working on creating a comprehensive crypto framework by incorporating the best aspects of traditional finance (TradFi) and DeFi-related regulations.
Unfortunately, a trader lost over a million dollars worth of crypto assets due to the 0L Network hard fork. The top 100 DeFi tokens had a mixed week, with some experiencing double-digit growth while others traded in the red.
According to a report, Solana could potentially overtake Ethereum in transaction fees, solidifying its position as the “Ethereum killer.” Solana’s total economic value of $2.8 million is nearing that of Ethereum’s $3.1 million. Analysts predict that Solana could surpass Ethereum’s transaction fees as early as this week, although Ethereum still generates significantly higher fees on a daily basis.
In terms of regulation, the FCA aims to strike a balance by combining the best practices from both TradFi and DeFi. Matthew Long, the FCA’s director of payments and digital assets, believes that taking a hybrid approach will yield the best results in regulating the crypto market.
In an unfortunate incident, a trader lost over $1 million in cryptocurrency due to the 0L Network hard fork. The trader had purchased 147 million Libra tokens in February 2023, but the value of these tokens has since plummeted.
On a positive note, Hermetica has launched the first-ever Bitcoin-backed synthetic United States dollar with yield-generating capabilities. The new synthetic dollar, USDh, will offer users yields of up to 25%, providing Bitcoin holders with an opportunity to earn yield on their U.S. dollars without relying on traditional banking systems.
In terms of market performance, the top 100 DeFi tokens had a bearish week, with most trading in the red. However, the total value locked in DeFi protocols exceeded $90 billion.
Thank you for reading our summary of the most impactful DeFi developments this week. Join us next Friday for more stories, insights, and education on this rapidly advancing space.