Welcome to Finance Redefined, your weekly source of essential insights into decentralized finance (DeFi) – a newsletter designed to bring you the most important developments from the past week.
In the world of DeFi, Solana continues to gain momentum and could potentially surpass Ethereum in terms of transaction fees within the next 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 by market cap had a mixed week, with some experiencing double-digit growth while others faced losses on the weekly charts.
Report suggests Solana may overtake Ethereum in transaction fees
The Solana network is on track to potentially surpass Ethereum in transaction fees, a development that could solidify its position as the “Ethereum killer.” On May 7, Solana’s total economic value reached $2.8 million, which is close to Ethereum’s total economic value of $3.1 million.
According to Dan Smith, a senior research analyst at Blockworks, Solana could surpass Ethereum’s transaction fees within the week. However, Ethereum is still generating significantly higher daily transaction fees compared to Solana. On May 8, Ethereum generated over $2.75 million in fees, while Solana generated $1.49 million, according to DefiLlama data.
FCA aims to combine TradFi and DeFi approaches for crypto regulation
The Financial Conduct Authority (FCA) in the UK aims to adopt a balanced approach to regulating cryptocurrencies like Bitcoin. Matthew Long, the FCA’s director of payments and digital assets, believes that the best way to regulate the crypto industry is to combine different approaches and evaluate their effectiveness.
This approach takes into consideration the concerns of both the cryptocurrency community and regulators, ensuring that the market is neither over-regulated nor under-regulated.
Trader loses seven-figure sum due to 0L Network hard fork
A trader, known as NN, allegedly lost over $1 million in cryptocurrency due to the 0L Network hard fork. The hard fork was not approved by the community, leading to the loss of NN’s 147 million Libra tokens, which were worth approximately $1.47 million at the time of purchase in February 2023. The value of Libra has since dropped by over 58% since May 3, according to CoinGecko data.
First Bitcoin-backed synthetic dollar to launch with 25% yield
Hermetica has announced the launch of the first-ever Bitcoin-backed synthetic United States dollar with yield-generating capabilities. The synthetic dollar, USDh, is set to be released in June and will offer users yields of up to 25%. This innovative product allows Bitcoin holders to earn yield on their U.S. dollars without relying on the traditional banking system or venturing into non-Bitcoin-related investments.
DeFi market overview
Data from Cointelegraph Markets Pro and TradingView reveals that the top 100 DeFi tokens had a bearish week, with most experiencing losses on the weekly charts. However, the total value locked in DeFi protocols surpassed $90 billion.
Thank you for reading our summary of the most impactful DeFi developments this week. Join us again next Friday for more stories, insights, and education on this rapidly evolving space.