🔮 Dencun Upgrade, SOL and Memes, Is ETH a Security, LSE to Accept BTC and ETH ETN

Token Specific News

Ethereum Finalizes 'Dencun' Upgrade, Introducing Proto-Danksharding to Lower Data Fees

Ethereum has completed its much-anticipated "Dencun" upgrade, marking a significant milestone aimed at reducing data fees and fostering growth on layer-2 networks like Arbitrum and Polygon. The upgrade introduces "proto-danksharding," creating a dedicated space on the blockchain, known as "blobs," for storing data separately from regular transactions at a lower cost. Blobs are created by splitting data into smaller pieces, which are then mathematically transformed into a unique identifier for storage and later retrieval. This process not only optimizes data storage on the blockchain but also ensures transactions can be processed more swiftly and cost-effectively. While the price of ether (ETH) remained relatively stable post-upgrade, the long-term impact is expected to benefit layer-2 networks significantly. Proto-danksharding enables these networks to post data to Ethereum more efficiently, reducing fees for end-users and improving scalability. The Dencun upgrade, alongside proto-danksharding, incorporates eight (other) Ethereum Improvement Proposals (EIPs) primarily aimed at developers, including fee reduction for on-chain data storage (EIP-1153), enhancements to bridge and staking pool designs (EIP-4788), improvements to the Ethereum Virtual Machine (EIP-5656), elimination of code potentially terminating smart contracts (EIP-6780), optimizations for staking user experience (EIP-7044), expansion of attestation slot inclusion range (EIP-7045), slowing down the rate of staking (EIP-7514), and aiding rollups in obtaining cost information for blob transactions (EIP-7516).

Source: Substack

MicroStrategy, Big Performance

MicroStrategy has announced its intention to offer $500 million in convertible senior notes due in 2031, with an option for an additional $75 million. The proceeds from this offering will be directed towards acquiring more bitcoin and for general corporate purposes. This move follows a recent trend of the company's efforts to accumulate bitcoin, including a previous $700 million convertible note offering and the recent purchase of 12,000 bitcoins for $821 million. MicroStrategy holds approximately 205,000 bitcoins, and its stock has seen significant growth, up 676% in the past year, with a 41% increase in the past five days alone. The offering, targeted solely at institutional investors, coincides with a similar move by Coinbase, which announced a proposed $1 billion offering of senior convertible notes for general corporate purposes.

SOLana Growth Pushed By Its Growing Base of Memecoins

Amidst the broader crypto rally, Solana-based memecoins have garnered significant attention, with classics like DOGE and SHIB seeing notable gains. Notably, PEPE, a poster child of last spring's memecoin mania, has surged over 100% in the past week. Solana memecoins, including BONK, received a boost in December as the network experienced a resurgence. One standout token, dogwifhat (WIF), gained traction after being listed on Robinhood Europe and Binance, soaring over 600% in the past 30 days. Additionally, a new genre of memecoins, featuring misspelled celebrity names like Jeo Boden, has emerged, garnering significant market caps. Solana's lower transaction fees have made it an attractive platform for memecoin trading, with even higher transaction prioritization during trading frenzies, as evidenced by peak tips to validators recorded on March 6th.

Source: Dune

MakerDAO Raises Stability Fees for DAI Amid Demand Concerns

MakerDAO has implemented significant increases in stability fees associated with minting its DAI stablecoin, aiming to mitigate potential demand shocks. The fee hikes, ranging from 140% to 150%, apply to minting DAI against various collateral types, while the DAI Stability Rate (DSR) for deposits has also been raised from 5% to 15%. These adjustments, described as temporary measures, aim to address concerns of excessive DAI demand amid bullish sentiment in the crypto market. Despite holding substantial reserves and real-world assets, MakerDAO experienced significant outflows from its Peg Stability Module (PSM), prompting the need for swift action to stabilize the protocol.

Evaluating GPU Compute Networks: Balancing Supply and Demand Growth

GPU compute networks like Render and Akash operate as two-sided markets, navigating the delicate balance between the supply of physical compute resources and the demand from users. Scaling these networks requires simultaneous growth in both supply and demand, presenting a classic chicken-and-egg challenge. Suppliers need revenue to join, while demand requires sufficient suppliers to fulfill jobs. Growth in these networks typically occurs in alternating bursts, with periods of demand and supply expansion. Assessing the current state of compute networks can help determine whether constraints on growth stem from the supply side or the demand side.

Source: Messari

February Sees Surge in Daily Active dApp Users

According to a report, the daily active users of decentralized applications (dApps) reached a new all-time high for the second consecutive month in February, with an average of 6.7 million wallets interacting with dApps each day, surpassing January's record by 26.4%. GameFi projects, particularly blockchain games, saw a significant increase in users, representing 28% of daily dApp users, with MotoDEX, Sweat Economy, and Hot Game being the top performers. While DeFi user engagement remained stable, decentralized exchanges (DEXes) accounted for a significant portion of the top ten dApps, with DEXes recording nearly $50 billion in trade volume during the week of Feb. 25. The spike in dApp activity coincided with the surging prices of Bitcoin and Ethereum, with DEXes gaining traction on the dApp leaderboard. Additionally, the user base for NFT protocols and SocialFI dApps also experienced growth. Despite a slight decline in monthly NFT volume, NFT marketplaces continued to compete for dominance, with Blur, Magic Eden, and OpenSea emerging as key players in the market.

Source DappRadar

Regulation

Crypto PACs Make Impact in Super Tuesday Elections

During Super Tuesday elections in the United States, crypto super PACs, including Fairshake, Protect Progress, and Defend American Jobs, spent over $13 million on races across California, Alabama, Texas, and North Carolina. Notably, they supported candidates with pro-crypto stances, resulting in victories for three crypto-friendly Democrats and one pro-crypto Republican. Fairshake spent heavily to oppose Rep. Katie Porter's Senate bid, while Protect Progress supported candidates like Shomari Figures in Alabama and Julie Johnson in Texas. Tim Moore, backed by crypto PACs, won the North Carolina Congressional race, with intentions to flip the seat in November. Additionally, crypto PACs plan significant spending in the Ohio Republican primary, supporting pro-crypto candidate Bernie Moreno against Sherrod Brown, a noted crypto skeptic, who currently chairs the Banking, Housing, and Urban Affairs Committee. Furthermore, former President Donald Trump, previously critical of Bitcoin, is reportedly showing a shift in stance towards the cryptocurrency.

Grayscale Plans Bitcoin Mini Trust Launch Amid GBTC Outflows

Grayscale Investments intends to launch the Bitcoin Mini Trust, utilizing a portion of its GBTC shares, in response to significant outflows from the flagship fund. The proposed ETF aims to offer lower fees compared to GBTC and compete with existing low-cost ETFs in the market. Grayscale emphasizes that the spinoff will not trigger taxable events for GBTC holders. With the launch, Grayscale seeks to enhance accessibility to digital asset investments and broaden Bitcoin's availability to investors. The SEC filing marks a critical step in establishing the Bitcoin Mini Trust as a distinct entity from GBTC.

To Be, or Not To Be (a Security), That Is the Question

The chair of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, refrains from stating whether Ethereum is classified as a security, particularly amidst considerations for spot Ethereum ETFs. Gensler asserts that the determination hinges on the specifics of each crypto token and emphasizes the need for scrutiny regarding potential investor profit expectations. The SEC's handling of Ethereum-related ETF applications, including delays in decisions, reflects its cautious approach akin to the process for spot Bitcoin ETFs. Gensler's current stance contrasts with previous assertions made while he was at MIT, where he indicated Ethereum was not considered a security by the SEC due to its decentralization.

London Stock Exchange to Accept Bitcoin and Ether ETN Applications

The London Stock Exchange (LSE) is set to accept applications for bitcoin and ether exchange-traded notes (ETNs) in the second quarter of this year. This move follows the successful launch of spot bitcoin exchange-traded funds (ETFs) in the United States. ETNs are debt securities that allow exposure to underlying assets, facilitating the trading of securities tracking the value of bitcoin and ether during London trading hours. The decision comes after the UK Financial Conduct Authority's approval of proposals from Recognized Investment Exchanges to establish crypto-backed ETN market segments. The crypto ETNs will be exclusively available to professional investors, with a specific launch date to be announced later.

Wyoming to Implement New Law for Decentralized Autonomous Organizations (DAOs)

Wyoming Governor Mark Gordon signed the Decentralized Unincorporated Nonprofit Association Act, allowing decentralized autonomous organizations (DAOs) with at least 100 members to operate as unincorporated nonprofit associations. The law, effective from July 1, 2024, permits DAOs to engage in profit-making activities while directing proceeds towards their nonprofit purpose. It also enables DAOs to acquire and transfer property, including tokens. The legislation aims to facilitate blockchain projects to function within legal boundaries without compromising decentralization and maintaining permissionless operations. This law builds upon previous legislation, providing a comprehensive framework for DAOs in Wyoming, addressing issues that were not initially covered under LLC policy.

Other Domestic Regulation Updates

• A bill before the Arizona state senate would encourage the state’s portfolio of retirement plans for government workers to include Bitcoin ETFs
• SEC postpones decisions on bitcoin ETF options proposals
• BlackRock plans to purchase spot bitcoin ETFs for its Global Allocation Fund
• Bloomberg analysts substantially lower likelihood of spot ether ETF approval in May to 30%

Other International Regulation Updates

• A judge in Montenegro has ruled that Do Kwon can be extradited to his native South Korea after serving his sentence there, after a U.S. bid to extradite the Terra founder was rejected. Again.
• European Banking Authority takes next step in finalizing stablecoin policy
• Deutsche Börse Launches Institutional Crypto Trading Platform
• Thai SEC Greenlights ETF Trading for Institutions, Wealthy Individuals
• Nigeria Detains Two Binance Execs, Alleging Firm Crashed its Currency

Pain & Gain

Pain

• Floor Prices Of Top NFT Collections Crash As Cryptocurrencies Rally
• Farcaster Users, Revenues Plummet as Interest in New Feature Wanes

Gain

• Wormhole Releases Airdrop Eligibility Tool
• Mastercard and MetaMask Test Blockchain-Powered Credit Card
• Bitcoin miner revenue hits all-time high amid price surge
• The Bitcoin halving is now set to take place a few days earlier than expected
• Arkham claims to identify Tesla and SpaceX's Bitcoin addresses holding nearly 20,000 BTC
• More than $123 million has been staked on Jupiter's JUP, marking the steepest rise yet