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Ether.fi Integrates Chainlink Proof of Reserve to Enhance eETH Transparency

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Key Takeaways

  • Ether.fi has adopted Chainlink’s Proof of Reserve on Ethereum mainnet, providing on-chain verification of over 2.4 million restaked ETH backing eETH.
  • This move boosts transparency and security for eETH users while aligning with decentralization goals.
  • The integration empowers developers and protocols with real-time collateral data, reinforcing trust in liquid restaking systems.

Ether.fi has now integrated Chainlink’s Proof of Reserve (PoR) onto the Ethereum mainnet. The cutting-edge oracle solution provides live, on-chain insight into assets held by ether.fi, at the current level of over 2.4 million ETH.

Strategic adoption is intended to further support eETH, ether.fi’s non-custodial liquid restaking token’s transparency and credibility.

eETH is structured to provide investors with the opportunity for Ethereum staking without losing the flexibility to use assets within the broader DeFi domain.

With restaked ETH in its liquid state, eETH allows investors to retain yield exposure and usability. Yet, as capital efficiency grows, so does verifiable backing’s role. Enter Chainlink PoR.

Chainlink Proof of Reserve guarantees every unit of eETH is collateralized at 1:1 against staked ETH. It provides decentralized verification at the blockchain level rather than depending upon centralized custodians and opaque reporting.

Anyone, whether an individual holder or an automated protocol, can now verify for themselves at any time ether.fi reserves.

StakeFi Analyst Highlights Importance of Chainlink Integration

The integration represents a milestone for staking infrastructure, according to StakeFi Research’s DeFi analyst Marcus Vayne.

Vayne underscores the point that as restaking increases in popularity, support for it from underlying protocols needs to keep pace in terms of scale and security. Vayne said:

With $4+ billion in locked value, ether.fi can’t afford to hide, Users demand assurance, and Chainlink’s decentralized oracle framework delivers that assurance without compromise.

Vayne also highlighted how this adoption can define industry standards. The adoption brings about a precedent for openly accessible, automatic reserve audits, something missing from most staking platforms.

It not only benefits the end user but also provides an opportunity for integration into other risk-focused DeFi applications.

By integrating PoR within its operational center, ether.fi is actively taking measures to mitigate concerns over user safety, liquidity, and trust.

With automatic checking of reserves, any disparity in eETH supply and actual reserves would trigger an immediate flag, possibly allowing for automatic measures within smart contracts.

Ether.fi Embraces Chainlink Proof of Reserve Integration

Ether.fi’s implementation of Chainlink Proof of Reserve is not merely an upgrade; it’s a statement. With its growth, transparency is turning out to be a competitive advantage.

In adopting an open, verifiable standard for reporting collateral, ether.fi isn’t merely keeping up; it’s leading the charge.

This integration reinforces the restaking story, showing how novel protocols can combine liquidity and security. It’s one that others will probably imitate as verifiable DeFi becomes increasingly defined.

Related Reading | BNB Strengthens Above Key Support Level, Eyes Bullish Breakout Above $650

Bitcoin, Ether Drop: But Solana Faces the Ultimate Test at $115

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Key Takeaways:

  • Crypto markets tumble as Trump announces sweeping reciprocal tariffs affecting global trade.
  • Solana plunges 11%, trading at $115.42, with analysts seeing potential for short-term recovery.
  • Analysts highlight key Fibonacci support levels that could dictate the next price movements.

Global markets plummeted as United States President Donald Trump introduced far-reaching sets of retaliatory tariffs to balance trade deficits.

The policy, where there is a baseline tariff of 10% on imports with higher levies on certain goods, shook equities, commodities, and digital assets. Importantly, a tariff of 25% on foreign vehicles may hurt major worldwide automobile producers, creating investors’ uncertainty.

The cryptocurrencies followed suit and went through a sell-off with major assets losing ground as traders responded to the economic turmoil. Bitcoin and Ether each dropped moderately, with the hardest hit asset being Solana (SOL), whose price fell by 11.62% over the last 24 hours.

The immediate reaction of the markets signals investors’ alarm over possible interruptions in international trade and finance flows.

Market analyst Kevin Langford explained that the new tariff model may redefine asset class investments. He added that short-term volatility was anticipated, but long-term effects are based on how worldwide economies react to American trade policy.

Solana’s sharp fall brought it down to $115.12, representing a hefty 17,90% loss over the past week. While it plummeted, analysts are still cautiously optimistic about recovery.

SOL 1D graph coinmarketcap
Source: Coinmarketcap

Solana Faces Bearish Pressure, Analysts See Key Support

Crypto analyst Patel noted that Solana is presently resting in a strong Fibonacci 0.382 support area between $100 and $115. Traditionally, this level has served as a robust bounce point where investors seek early accumulation opportunities.

If this support holds, analysts anticipate a possible reversal to open the door to a gradual recovery. But if this price drops below this zone, according to Patel, the following significant support is in the $50–$72 zone, coincident with the 0.618 Fibonacci retracement level.

This region was very important in the past, setting off a gigantic 2,100% advance in 2020–2021. Strategists who are seeking entry opportunities are paying close attention to these levels.

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Bitcoin, Ether Drop: But Solana Faces the Ultimate Test at $115 3

One more major resistance level to keep an eye on is $186, used by analysts as a confirmation point of a breakout. Breaking above this price level can signal the start of a new upward momentum, with long-term goals reaching over $1,000 based on Fibonacci levels.

Nevertheless, in the short term, sentiment in the markets will probably be shaped by larger macroeconomic trends, such as ongoing trade events and policies of the Federal Reserve.

Related Reading | Crypto Gate Opens? South Korea Signals Global Access Shift

Berachain Surges to $3.26B TVL Overtakes Arbitrum and Base

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  • Berachain’s TVL has surpassed $3.26 billion, making it the sixth-largest DeFi blockchain.
  • The network has outpaced Arbitrum’s $2.9 billion and Base’s $3.24 billion in TVL.
  • Berachain’s native token BERA is trading at $6.75 with a market cap of $715 million.

Berachain has reached a significant milestone, with its total value locked (TVL) exceeding $3.26 billion. This achievement places the Layer-1 blockchain ahead of Arbitrum and Base in the decentralized finance (DeFi) sector. As the sixth-largest DeFi network, Berachain continues to gain traction among users and investors.

Berachain’s TVL Growth and Market Position

According to DefiLlama data, the network’s TVL surpassed Arbitrum’s $2.9 billion and Base’s $3.24 billion. BERA’s expansion highlights its increasing adoption, solidifying its position among the top DeFi blockchains. Its growth reflects strong liquidity, rising protocol engagement, and heightened investor confidence.

At the time of writing, Berachain’s native token (BERA) is priced at $6.75. The market capitalization is $715 million, while the fully diluted valuation (FDV) reaches $3.3 billion. These figures emphasize the network’s increasing relevance in the competitive blockchain landscape.

Key Protocols Driving Berachain’s Expansion

Several DeFi protocols contribute significantly to BERA’s rapid growth. Liquid staking platform Infrared Finance leads with a TVL of $1.52 billion, strengthening network security and liquidity. Decentralized exchange Kodiak follows with $1.12 billion, while yield farming protocol Concrete holds nearly $800 million.

The rising TVL suggests higher user participation in Berachain’s ecosystem. Strong protocol engagement signals robust on-chain activity and improved capital efficiency. These factors enhance the blockchain’s attractiveness for both retail and institutional investors.

Despite Berachain’s surge, Ethereum remains the dominant DeFi network, maintaining a TVL of $58 billion. Solana ranks second with $8 billion in locked assets, controlling a 7.45% market share. BERA’s continued momentum positions it as a rising competitor in the DeFi landscape.

Factors Behind Berachain’s Growing Adoption

BERA has received strong backing from major investors, further fueling its expansion. Framework Ventures co-led its $100 million Series B funding round, signaling confidence in the network’s long-term potential. The blockchain’s proof-of-liquidity consensus model also strengthens its economic framework.

This mechanism requires users to stake BERA and direct liquidity into core DeFi protocols. The model ensures continuous liquidity and incentivizes user participation by keeping transaction fees within the ecosystem. The approach differentiates Berachain from other Layer-1 networks.

A recent token airdrop further increased network activity and adoption. On February 6, the Bera Foundation distributed 80 million BERA tokens to eligible users. Valued at $632 million, the airdrop ranks among the largest in the industry.

DeFi Market Trends and Future Outlook

The overall DeFi market has experienced a resurgence in recent months. Total DeFi deposits reached $60 billion earlier this month, marking the highest level since August 2022. Growing liquidity and higher yields have contributed to this recovery.

Daily trading volumes on DeFi protocols have also increased, surpassing $7.3 billion in early January. The market capitalization of DeFi-related tokens has climbed from $72 billion to $77 billion since December. These trends indicate renewed confidence and capital inflow into the DeFi sector.

Berachain’s rising TVL highlights its growing influence in the DeFi space. Its unique economic model and strong investor support continue to drive adoption. As the network expands, it could challenge larger competitors in the blockchain ecosystem.

Yakovenko’s Flawed Vision: Solana Co-Founder Prioritizes Speed Over Security, Raising Grave Concerns

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In a rece­nt debate in the cryptocurre­ncy community, Solana co-founder Anatoly Yakovenko and Ethere­um researcher Justin Drake­ discussed the crucial issue of e­conomic security within blockchain networks. Kunal Goel, a re­searcher at MessariCrypto, de­tailed the main points, highlighting the diffe­ring views of the two expe­rts.

One of the­ central points of contention was the nature­ of token issuance. Drake argue­d that issuing tokens inherently re­presents a cost to the ne­twork. He likened mine­rs selling tokens to cover ope­rational expenses to use­rs selling tokens to pay taxes, e­mphasizing that both scenarios drain resources from the­ network.

While the­ intricacies of transaction timing difference­s between Solana and Ethe­reum were de­emed overly te­chnical, Goel acknowledged Yakove­nko’s point regarding Solana excee­ding its theoretical 400-millisecond transaction proce­ssing timeframe under curre­nt transaction volumes. This highlights a potential bottlene­ck for Solana’s scalability.

Solana’s Economic Security in Debate

The de­bate truly ignited when the­ topic shifted to economic security. Goe­l challenged Yakovenko’s claims using e­xamples like the Chihuahua chain and Solana’s te­stnet. Since these­ networks lack valuable assets, attacke­rs have little incentive­ to attack, rendering Yakovenko’s argume­nts about security costs less applicable. 

Drake­ countered by emphasizing the­ importance of protecting critical transactions, such as Oracle data fe­eds and trading activity, further solidifying the ne­ed for a robust economic security mode­l.

Yakovenko be­lieved that stablecoins could se­rve as better store­s of value than Bitcoin or Ethereum during time­s of crisis, drawing from his family’s experience­ fleeing the Sovie­t Union, disclosing his perspe­ctive on cryptocurrency’s role. Goe­l interpreted this as Yakove­nko prioritizing technology over the broade­r vision of challenging nation-states’ fiat monopolies, a core­ tenet of Bitcoin and Ethere­um’s aspirations.

The de­­bate also hinted at Yakovenko’s shifting attitude­ towards de­centralization, possibly as a result of the­ recent FTX fiasco. Ethe­re­um’s decentralized structure­, with diverse clie­nt imple­mentations and indepe­nde­nt teams, sharply contrasts Solana’s more ce­ntralize­d model with a smaller group of dominant holde­rs. Goe­l suggests that economic se­curity might be­ less important for Solana due to this ce­ntralization but raise­s concerns about its long-term re­silie­nce.

The re­vived discussion centers on the­ blockchain trilemma—the trade-offs be­tween spee­d, scalability, and security. Solana emphasizes spe­ed and hardware optimization, providing a practical solution for users. Conve­rsely, Ethereum aims for long-te­rm growth by focusing on a strong Layer 2 ecosystem and ne­twork effects. The conflict of philosophie­s shows the complexity of the proble­ms that blockchain technology has to solve to gain wide­r acceptance.

Related Readings | WAVES Wipeout: $500M Lost in Rug-Pull

Ethereum Futures ETFs Make a Splash: The Rise of 9 New Players

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The world of exchange-traded funds [ETFs] based on Ethereum futures received a significant boost with the launch of VanEck’s EFUT fund. VanEck, a global investment manager, activated its EFUT fund for trading, offering investors exposure to Ether-linked investments through an exchange-traded instrument. It’s essential to note that EFUT does not directly invest in ETH or other digital assets; instead, it seeks capital appreciation by investing in Ethereum futures contracts.

EFUT is set to be listed on the Chicago Board Options Exchange [CBOE] and will be managed by Greg Krenzer, VanEck’s Head of Active Trading. Krenzer, with over two decades of experience in trading various asset categories, including futures, brings valuable expertise to the management of EFUT.

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Ethereum Futures ETFs Make a Splash: The Rise of 9 New Players 5

Joining VanEck in this venture, other prominent players in the financial market, including ProShares, Bitwise, and others, are launching their respective Ethereum Futures ETFs on October 2. These launches were made possible through filings with the U.S. Securities and Exchange Commission and official announcements.

VanEck’s commitment to the ETH community is evident through its pledge to donate 10% of EFUT’s profits to the Protocol Guild. This guild serves as a compensation plan for core contributors to the Ethereum network, providing crucial support to approximately 150 individuals responsible for maintaining the core Ethereum protocol, as reported by TronWeekly.

Grayscale, a major player in the cryptocurrency investment space, has also made significant moves. Following the introduction of Ethereum Futures ETFs in the U.S. market, Grayscale aims to convert its Grayscale ETH Trust [ETHE] into a spot ETH ETF. This transition is reflected in the filing of a 19b-4 with the SEC. Notably, regulatory permissions for new crypto ETFs are obtained from the exchange listing the fund’s shares rather than from the sponsor itself.

Ethereum Futures- A Closer Look at the Market Dynamics

As of October 2, a total of nine new ETF products have entered the market, all designed to track futures contracts linked to the value of Ethereum’s native currency. Despite witnessing trading volumes of less than $2 million on the first day, these ETFs have garnered attention.

While this trading volume pales in comparison to that of the ProShares Bitcoin Strategy ETF [BITO], which surpassed $1 billion in trading volume on its debut, experts like Bloomberg ETF analyst Eric Balchunas view this activity as substantial. He noted that although investors typically favor spot ETF products over futures, the volume observed was comparatively significant for this type of financial product launch.

Massive Ethereum Transaction: 10,600 ETH Sold, Resulting in $3 Million Loss

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A large investor recently divested 10,600 units of Ether, totaling a value of $17.2 million. Despite having garnered an overall profit of $10.8 million through their Ether holdings, this particular sale incurred a substantial loss of $2.9 million. Data from Lookonchain highlights that the investor’s success rate stands at 22%, with only four out of the 18 traded tokens yielding positive returns on investment. Notably, two of the tokens resulted in a combined loss of nearly $5 million.

The motive behind the investor’s decision to sell Ether rather than accumulate it raises questions—could this signal an anticipation of a forthcoming price decrease? In the forthcoming discussion, we will explore the prevailing market conditions and conduct an analysis of the potential trajectory of Ether (ETH).

Ethereum Traders’ Enthusiasm Cools Down

Traders are gradually withdrawing from the current Ethereum market landscape. The level of open interest (OI) has reached its lowest point in 13 months, indicating a cautious approach as traders aim to safeguard themselves against potential losses by taking a step back.

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Massive Ethereum Transaction: 10,600 ETH Sold, Resulting in $3 Million Loss 8

The previous instance of such low OI has historically worked in favor of Ether. Illustrated in the accompanying chart, the asset’s price underwent a consolidation phase for several weeks before rebounding and establishing a local peak. This resurgence was facilitated by renewed market interest. Additionally, Ethereum’s Market Value to Realized Value (MVRV) ratio has experienced a consistent decrease over the course of more than a month. At the present moment, it reflects a five-month nadir of 1.145. In the year 2023, this metric has fluctuated within the range of 1 to 1.2 on three separate occasions.

The initial drop occurred in mid-February, after which the MVRV swiftly rebounded, coinciding with a price recovery. Similarly, in mid-March, the MVRV briefly dipped below 1.1 before promptly bouncing back, aiding Ethereum’s price surge from $1368 to $2142 over the ensuing five weeks. The third instance, around mid-June, saw another dip in MVRV, ultimately contributing to Ethereum’s climb from $1626 to $2029 within a month.

Ethereum
Massive Ethereum Transaction: 10,600 ETH Sold, Resulting in $3 Million Loss 9

Throughout history, instances of low Market Value to Realized Value (MVRV) levels have consistently served as a point of rebound for Ethereum’s price. As long as this metric remains within the current range, a price correction can be anticipated. However, once the metric gains momentum and initiates an upward trajectory, Ethereum’s recovery is likely to follow suit. When considering potential price targets, traders should monitor levels around $1550 and $1756. At the present moment, Ethereum’s trading value stands at $1639, reflecting a decrease of 1.4% within the last 24 hours.

Crypto Whale’s Moves Ignite Community Curiosity

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In the volatile world of cryptocurrency markets, significant transactions and movements often raise eyebrows, especially when carried out by large holders known as “whales.” Recent data from Lookonchain has shed light on the intriguing activities of a crypto whale with the wallet address 0x5b…551E. Over the past two days, this whale has executed substantial deposits and withdrawals on two major exchanges, Binance and OKX, following a significant market crash. These transactions, involving the deposit of 10 million USDC and 57 million USDT, as well as the subsequent withdrawal of 17,901 ETH worth around $30 million, have sparked curiosity and speculation within the crypto community.

The timing of the whale’s deposits following a market crash has led to various interpretations. It’s important to consider potential motives behind such actions. Depositing stablecoins, USDC and USDT, might indicate a strategic move to capitalize on price fluctuations. Stablecoins are designed to maintain a stable value, often pegged to a fiat currency like the US Dollar. By depositing these stablecoins, the whale could be seeking to insulate their assets from further market volatility, awaiting a more opportune moment to reinvest.

Furthermore, the choice of Binance and OKX, two prominent cryptocurrency exchanges, suggests the whale’s preference for liquidity and access to a wide range of trading options. Binance, in particular, is known for its extensive selection of cryptocurrencies available for trading, making it an attractive platform for investors seeking diversification.

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Source: Lookonchain

The subsequent withdrawals of 17,901 ETH worth approximately $30 million from both Binance and OKX have raised questions about the whale’s intentions. The large-scale movement of funds could indicate a desire to take profits or strategically reposition assets. Ethereum (ETH), as one of the most widely recognized cryptocurrencies, remains a preferred choice for many traders and investors.

However, the withdrawals might also signal the whale’s anticipation of further market downturns. As history has shown, sudden and significant withdrawals by influential players can trigger market shifts, potentially causing panic selling among retail investors and exacerbating price declines. This potential domino effect underscores the interconnected nature of cryptocurrency markets and the influence of major holders.

Speculation Reigns in Dynamic Crypto Community

In the age of decentralized finance, transparency is a cornerstone of credibility. The visibility of these transactions through blockchain explorers like Lookonchain ensures that market participants and enthusiasts are kept informed about significant moves. The crypto community is abuzz with speculation and hypotheses, ranging from predictions of a market rebound to concerns of potential manipulation.

It’s worth noting that whales are often attributed with the power to sway market sentiment due to their substantial holdings. However, attributing all market movements to individual whales oversimplifies the complex interplay of factors that contribute to cryptocurrency price dynamics. The market crash that preceded these transactions could have been triggered by a multitude of factors, including macroeconomic trends, regulatory developments, and investor sentiment.

The recent activities of the crypto whale with the wallet address 0x5b…551E have captivated the attention of the crypto community. The strategic deposits and subsequent withdrawals raise intriguing questions about the motivations behind such moves. Whether these actions signify attempts to profit from market fluctuations, strategically reposition assets, or anticipate further downturns remains a matter of speculation.

As the cryptocurrency market continues to evolve, regulatory scrutiny and the growing influence of institutional players contribute to an environment of both opportunity and risk. The actions of individual whales, while impactful, are only one facet of a multifaceted landscape. Investors and enthusiasts should approach such events with a balanced perspective, considering the broader context and the multitude of factors that shape the cryptocurrency market.

Ethereum ETF Euphoria: A Potential Catalyst For Soaring All-Time Highs

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The price­ of Ethereum (ETH), the se­cond-largest cryptocurrency by market capitalization, could e­xperience a significant surge­ if the U.S. Securities and Exchange­ Commission (SEC) give their approval for multiple­ futures exchange trade­d funds (ETFs) based on Ether.

The speculation has bee­n gaining traction in the crypto market as the Wall Street Journal (WSJ) indicate­ that the SEC is considering the listing of seve­ral Ethereum futures ETFs simultane­ously. That would be a historic moment for the crypto industry, marking the first time U.S. investors could access Ethereum-based ETFs.

These financial products would track ETH futures contracts, e­nabling individuals to buy or sell ETH at predete­rmined prices and dates in the­ future. One company see­king approval for an Ethereum futures ETF is Volatility Share­s, intending to launch its product on October 12th.

Since July, the­re has been no re­quest from the SEC asking Volatility Shares to withdraw its application—a positive­ sign hinting towards a potentially favorable outcome. However, it’s important to note­ that official approval or rejection of any Ethere­um futures ETF by the SEC is yet to be­ confirmed.

Ethereum Futures ETFs Could Attract More Institutional Investors

The introduction of Ethe­reum futures ETFs in the U.S. could significantly impact the­ demand, supply, and price of ETH. A notable e­xample is the historical rally see­n in Bitcoin’s price after the introduction of Bitcoin future­s in December 2017, which attracte­d more institutional investors to ente­r the market.

A similar scenario may unfold for Ethe­reum, as it would allow investors to gain exposure­ to ETH without directly purchasing or storing it. This increased acce­ssibility could enhance liquidity and bolster ETH’s le­gitimacy as an investment asset across various se­ctors.

Although Ethereum currently stands around $1,668.03, be­low its previous peak of $4,362.35 in May 2021, news surrounding pote­ntial Ethereum futures ETFs has the­ potential to act as a strong bullish catalyst propelling ETH towards new highs.

However, inve­stors must remain aware of associated risks and uncertaintie­s related to investing in Ethe­reum futures ETFs and ETH itself. The­ actual impact these ETFs will have on ETH’s price­ depends on seve­ral factors like market sentime­nt, regulatory developme­nts, launch dates, and their subseque­nt performance.

Related Reading | Cardano’s Hydra Upgrade Boosts Scalability And Security

Ethereum Has Been Flowing From CeFi to DeFi

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The conversations surrounding the decentralized finance [DeFi] realm might have taken a backseat with the rise in prominence of Bitcoin, but when it comes to the second-largest cryptocurrency, Ethereum, deFi continued to hold a special place.

Despite a significant price appreciation, Ethereum investors were found to be with withdrawing their assets from centralized exchanges. Data from the crypto analytic platform, Glassnode revealed that the amount of fees on #thereum spent on ETH deposits to centralized exchanges took a plunge from approximately 25% in 2017 to less than 1% according to the current.

Interestingly, almost all fees spent on transactions involving centralized exchanges in the past several months were used for ETH withdrawals. In short, there has been an overall decline with respect to Ethereum user activity on centralized exchanges.

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Gauging from the receding activity of Ethereum users on CEX over the last couple of months, it can be noted that the trend could have been bolstered due to rising gas fees on Ethereum.

Additionally, Ethereum locked in deFi protocols had hit a major slump when the figure took a dive from 8.867 million ETH to 6.692 million in the last week of November. The TVL began trending upwards as deFi has once again managed to gained momentum.

DEXs have produced a compelling case for the users and developers alike. However, repeated cases of security breaches and loopholes, the community has, time and again, questioned the protocols seeking to take advantage of the growing hype by advertising impressive returns while blatantly neglecting to perform security audits. Due to its contentious nature, decentralized finance space has been touted as either a bubble or the greatest wave of innovation the the world ever seen in finance.

DeFi Grabs Headline

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The number of individual addresses involved with deFi is now greater than 1.046 million, according to data compiled on Dune Analytics. While the rise in addresses does not correspond to rise in the number of individuals or firms, since a person may have more than one address, it, however, depicted a monumental rise as deFi’s popularity rose.