21Shares has released an in-depth report analyzing the decline in various aspects of the industry. In this report, you will find interesting developments regarding Chainlink, Bitcoin, and other hosts
21Shares has released an in-depth report analyzing the decline in various aspects of the industry. In this report, you will find interesting developments regarding Chainlink, Bitcoin, and other hosts.
- Solana surpassed Bitcoin and Ethereum as the main highlight of the previous quarter.
- OP and MKR have their high points as there are more expectations in the fourth quarter.
In the third quarter of 2023 (Q3), the cryptocurrency market dominated by Bitcoin [BTC] was full of twists and turns. To some extent, market participants have many things to celebrate. At other times, beliefs that are beneficial to the market or maintain a good and stable level are suppressed.
Decoupling encrypted assets from other assets
Interestingly, 21Shares released an in-depth report,
However, in September, interest rates did not increase, leaving the possibility of interest rate hikes in the following months. On a quarterly basis, Bitcoin fell by 11.52%, while Ethereum fell by 13.60%. The S&P 500 index, which has a strong correlation with BTC and ETH, was once in the opposite direction. This led 21st century stocks to conclude that "cryptocurrencies have always been negatively correlated with this index, indicating that investors consider them high-risk asset classes. However, as crypto expands in the use case, we see that the asset class itself is becoming increasingly de correlated
Solana Defeats Bitcoin and Ethereum
But with Solana, it faces numerous challenges and FUD has recently outperformed Bitcoin and Ethereum. One of the main reasons why tokens are impressive is their collaboration with payment platform Visa.
Around September, credit card giants announced increased support for Solana blockchain, supporting Circle [USDC] transactions. According to Visa, its decision to integrate Solana is due to blockchain efficiency of processing up to 2000 transactions per second (TPS).
Therefore, SOL prices are the only part of the ecosystem that has been positively affected. According to data shared by 21Shares, the total value lock-in (TVL) of Blue Harbor also recorded significant growth in this quarter.
TVL measures the unique deposit of locked or fixed assets in the agreement. When TVL increases, it means that the liquidity deposits of DAPPS under the agreement increase.
On the contrary, a decrease indicates insufficient liquidity. In the case of Solana
OP and MKR also have their own era
Additionally, it seems that only Solana has achieved growth in the top 90 days of TVL rankings. However, throughout the quarter, there were two projects that cannot be ignored: MakerDAO [MKR] and Optimism [Arithmetic].
For optimism, its native token can maintain a growth rate of 7.43% over the past 90 days. This increase may be related to several developments occurring in blockchain. For example, there has been a surge in the adoption of OPStack.
On the other hand, MKR may achieve a 79% growth in the third quarter, thanks to its annual revenue growth and the benefits brought by Maker's participation. Real World Assets (RWAs). Isleen has also made some significant progress this quarter, especially in terms of betting and expansion solutions on blockchain.
The Days of Ethereum and the Chain Link
For example, in order to combat the centralization of blockchain, Ethereum utilized distributed verification technology (DVT). DVT allows multiple node operators to run a single validator. This is done to reduce the compromise risk associated with validators without affecting blockchain.
In addition, the liquid pillar sector continues to dominate activities on the blockchain. The report shows that liquid collateral business accounts for 42.8% of all business, with Lido Finance (LDO) ranking first.
At the same time, Ethereum has also postponed its next major upgrade, the Denchun upgrade, until next year. Based on the extensions on the blockchain, a customizable aggregation provider, Eclipse, has introduced a modular extension solution. Interestingly, this development brought Solana and Islian together.
21 Corporation pointed out that,
In the context of Eclipse, the L2 architecture will use Ethereum for settlement while leveraging Solana's parallel processing capabilities for high-performance execution
Another project that has undergone significant development this quarter is Chain Link. But this time, it introduced a study explaining how to tokenize world assets on the blockchain to improve adoption rates.
As shown above, Chainlink explains that Cross Chain Interoperability Protocol (CCIP) can help stabilize the infrastructure of the US dollar currency and points out that,
The initiative is built around three pillars - educational content to promote understanding of ecosystems, development of best practices and industry recommendations to promote industry compliance, and active commitment to building on chain infrastructure that meets the needs of all stakeholders
The fourth quarter may bring more
Entering the fourth quarter (Q4), there seems to be many things worth looking forward to. The integration of Bitcoin Lightning Network on Coinbase is an example. This is to ensure faster and more effective BTC transactions and cross-border payments.
Entering the fourth quarter (Q4), there seems to be many things worth looking forward to. The integration of Bitcoin Lightning Network on Coinbase is an example. This is to ensure faster and more effective BTC transactions and cross-border payments.
Another aspect to consider is the potential revival of Solana. The blockchain's response to the FTX crash was very poor, which is no longer news. However, with several key developments in the third quarter, it is possible to see an increase in the adoption rate of Solana. In response, 21Shares pointed out that,
Thanks to a new protocol called bubble gum, Solana has seen a surge in ultra-low cost NFT minting, which has compressed the minting process. As a reference, an 86K collection can be airdropped to users using Solana for approximately $100, while on Ethereum it is close to $200000
#Ethereum # # BTC # # Digital Currency#
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