TLDR CRYPTO 2024-11-08

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AVALANCHE FOUNDATION BUYS BACK $52 MILLION WORTH OF AVAX TOKENS FROM DO KWON'S DEFUNCT 'LUNA FOUNDATION GUARD'

The Avalanche Foundation has repurchased $52M worth of AVAX tokens from the defunct Luna Foundation Guard, closing its involvement with Do Kwon's failed Terra stablecoin project. The tokens will support grants, incubators, and events to boost the Avalanche ecosystem.

DETROITERS WILL BE ABLE TO PAY THEIR TAXES IN CRYPTO NEXT YEAR USING PAYPAL

Starting in mid-2025, Detroit residents will be able to pay city taxes and fees in crypto using PayPal. Detroit is the largest U.S. city to offer this option. The city is encouraging blockchain entrepreneurs to propose civic applications that could improve transparency, data security, and public services to support Detroit's goal of becoming a tech-friendly hub.

PAYPAL-BACKED MAGIC LABS AND POLYGON LAUNCH A NEW CROSS-CHAIN NETWORK AIMING TO BUST 'BLOCKCHAIN SILOS'

PayPal-backed Magic Labs and Polygon have launched “Newton,” a new cross-chain network that aims to simplify cross-chain dapp usage. Newton will allow developers to create dapps that operate across chains without needing separate wallets. Magic Labs will integrate Newton with its Passport wallet for a unified user experience.

INTRODUCING POND

Pond is building a decentralized AI model layer specifically for crypto applications. The platform has demonstrated strong early results across multiple use cases, including accuracy in calculating dynamic DeFi fees, malicious address detection, and NFT recommendations. These implementations showcase the value of crypto-specific models as the agent narrative takes center stage.

AERODROME: THE ONCHAIN LIQUIDITY ENGINE

Aerodrome has emerged as the dominant DEX on Base, capturing 63% market share and growing its TVL to $1.3B and monthly volumes to $16.5B. Its success stems from its design, which combines features from Curve tokenomics and Uniswap V3-style concentrated liquidity. The platform has become particularly popular for cbBTC, commanding 80% of volume, while its emissions strategy has been productive in building sustainable liquidity.

ECONOMIC IMPLICATIONS OF A COMPETITIVE BLOB MARKET

The blob market has entered a new competitive phase. It has generated $11M in fees since its inception. 11.8% of fees were from priority fees, while the rest of the ETH was burned. L2s have profited nearly $20 million from the cost savings from blobs, with some achieving 99% profit margins on transaction fees. Fees could see a similar increase if the blob count doubles, though increased competition and proposed changes like EIP 7762 could impact profitability and fee dynamics.

A FRUSTRATED MIGRATION AND A PLEA TO THE DEGEN COMMUNITY

DEGEN has experienced challenges migrating its L3 blockchain from Conduit, citing prolonged delays, unfulfilled contractual obligations, and poor operational practices, which have consequently led to significant downtime, lost funds (~$160k), and withheld assets. It is launching a new L3 chain to ensure the community's interests are safeguarded and to restore trust in the ecosystem.

CRYPTO MARKET TAILWINDS

The coming months may be transformative for crypto, with favorable political and economic conditions likely boosting BTC and ETH, regulatory clarity benefiting the DeFi ecosystem, Solana volumes surging, and crypto x AI projects gaining traction amidst increasing global liquidity and rising asset price targets.

HIGH ETH SPOT ETF INFLOWS

Eth spot ETF inflows hit $52.3M, the highest amount since more than a month ago (September 27).

WINTERMUTE PROPOSES TURNING ON THE FEE SWITCH

Wintermute has proposed a fee switch for Ethena's sENA that will allow ENA holders to share in USDe revenue.

ECLIPSE LAUNCHES ITS MAINNET

Eclipse, a Layer 2 built using the Solana Virtual Machine, is now live on mainnet.

CBBTC GOES LIVE ON SOLANA

Coinbase has launched cbBTC, a 1:1 Bitcoin-backed SPL token held in Coinbase custody, on Solana, offering users easy access to Bitcoin within the Solana ecosystem.