Daily Edition · Page 6

THE DAILY INDEX

Technology, AI, software, security, crypto and business

MARKETS & BUSINESS

TLDR Crypto

COURT RULES THAT NONE OF THE TOKENS TRADING ON KRAKEN ARE SECURITIES

The Federal Court for the Northern District of California ruled that none of the tokens on Kraken are securities and that the definition of SEC's “crypto asset security” is confusing and unclear. The case is proceeding to discovery, as agreements or contracts around a token could be considered a security. The SEC will have to prove that transactions on exchanges satisfy the Howey test, which is an arduous task to take across the industry.

NIGHTSHADE 2.0: NEAR'S NEW SHARDING DESIGN

Nightshade 2.0 allows for stateless validation, meaning NEAR validators no longer have to store their shard's state to verify state transitions and blockchain updates. It also improves performance and adds capacity for more shards - NEAR currently has six and plans to add four more by the end of the year. In 2025, the team will focus on dynamic re-sharding, which adjusts the number of shards based on network load and is considered “the holy grail of sharding.”

HYPERLIQUID: INNOVATING ON-CHAIN PERPETUAL TRADING

Hyperliquid has quickly become a leading DeFi platform, offering a high-performance L1 with an onchain perpetual exchange and spot trading platform. It has already surpassed established competitors in TVL and daily trading volume, introducing features like the Hyperliquidity Provider Vault for passive LPing. Its competitive fee structure, upcoming EVM support, and potential token release position it favorably, with valuations ranging from $1 billion to $3.5 billion.

HOW DOES THE ETHEREUM FOUNDATION SPEND ITS ETH?

The Ethereum Foundation holds $845 million in ETH, representing 0.25% of the total supply. It allocates funding to education, research, and development, which has led to the development of zero-knowledge cryptography and funded conferences, online courses, and novel projects like the ZK Email Wallet and Daimo payment protocol. The foundation recently came under fire for transferring $100 million to Kraken for future expenses as some in the community call for greater transparency.

CRYPTO BULL RUN DRIVEN BY MACRO FACTORS

The current crypto bull run seems to be influenced by external macroeconomic factors. However, additional market boosts may stem from exciting upcoming projects and developments across various crypto platforms. Some of these include new mainnets like Monad and MegaETH, innovative token models like those proposed by Eigenlayer, significant upgrades on Ethereum (e.g., Pectra), and major rebranding initiatives like Fantom's transformation into Sonic.

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