DeFi & L1L2 Weekly (05/07/2023)

The new Ethereum token standard, ERC-223, has been added to ETH documentation. Polygon Labs proposes a four-layer architecture for Polygon 2.0. TRON network is gearing up for its Periander upgrade.

Jul 05, 2023
DeFi Weekly

Weekly DeFi Index

This week’s market cap and volume indices were positive at +11.33% and +24.57%,  respectively, while volatility index was negative at -32.52%.

DeFi Index 5 Jul
Check the latest prices on Crypto.com/Price

Chart of the Week

LayerZero, an omni-chain interoperability protocol, has seen a significant surge in activity in the past few months, reaching a record of nearly 500,000 daily transactions on 30 June. The protocol, launched in March 2022, has surpassed 31 million cumulative transactions. 

Read our research report on Layer-0s and interoperability solutions, including a deep dive on LayerZero: Layer-0: Infrastructure for Customised Blockchains

Image9 1

DeFi Index Token Performance 5 Jul

TVL of Top Chains 5 Jul

Top DEX by Chain 5 Jul

News Highlights

  • A new token standard called ERC-223 has been officially added to Ethereum documentation and token standards. The new standard aims to rectify the flaws present in its predecessor, ERC-20, and enhance security measures.
  • A modified version of the BRC-20 token standard called BRC-69 was released by Luminex, a launchpad for Bitcoin Ordinals. BRC-69 requires only a single line of text to be inscribed to the blockchain (rather than a full image) and claims a 90% reduction in minting costs.
  • The circulating supply of the USDC stablecoin dipped by over 2% over the weekend, dropping from US$27.9 billion to $27.3 billion. Its total supply has also reportedly been in decline, decreasing by over 38% since 1 January.
  • Polygon Labs proposed a new four-layer infrastructure as part of its recently released plans for Polygon 2.0. The firm said that this design will utilise a shared zero-knowledge infrastructure to power all networks within the ecosystem, which will be unified using new staking and interoperability layers.
  • The TRON network is scheduled for a major upgrade this month, gearing up for its Great Voyage (Periander) upgrade set for 11 July. This upgrade aims to bring significant enhancements across four key areas within the TRON mainnet: an advanced Stake 2.0 mechanism, compatibility with EIP-3855, a more streamlined smart contract interface calling, and a revamp of its P2P network module.
  • Cross-chain bridging protocol Poly Network experienced another exploit on 2 July, affecting 57 crypto assets on 10 blockchains. The attack was reportedly caused by compromised private keys, and the network has temporarily suspended its services as it works with authorities.

Recent Research Reports

   
Jun 2023 Zk RollupsJune 2023 Layer 0Image2 7
The Development of ZK Rollups: Zero-knowledge rollups (ZK rollups) are still in their nascent stage. However, as the technology evolves, various methods to achieve compatibility with the Ethereum Virtual Machine (EVM) have emerged.Layer-0: Infrastructure for Customised Blockchains: Layer-0 protocols are the infrastructure that customised Layer-1 blockchains can be built on. We explore notable projects like Cosmos, Polkadot, Avalanche, LayerZero, and zkLink.Research Roundup Newsletter [May 2023]: In our latest issue of Research Roundup, we feature trending market insights, charts of the month, and our latest research reports exploring memes — what makes them successful, their role in crypto and Web3, and the resurgence of meme mania.
 Jun 2023 Zk Rollups
 June 2023 Layer 0
 Image2 7
 The Development of ZK Rollups: Zero-knowledge rollups (ZK rollups) are still in their nascent stage. However, as the technology evolves, various methods to achieve compatibility with the Ethereum Virtual Machine (EVM) have emerged.
 Layer-0: Infrastructure for Customised Blockchains: Layer-0 protocols are the infrastructure that customised Layer-1 blockchains can be built on. We explore notable projects like Cosmos, Polkadot, Avalanche, LayerZero, and zkLink.
 Research Roundup Newsletter [May 2023]: In our latest issue of Research Roundup, we feature trending market insights, charts of the month, and our latest research reports exploring memes — what makes them successful, their role in crypto and Web3, and the resurgence of meme mania.

Recent University Articles

   
What Is ShardingBitcoin's Scalability Problem Solutions And ChallengesCryptocurrency Futures And Derivatives A Growing Market
What Is Sharding? Sharding can improve transaction speed and scalability. Learn what the term means and how sharding works.Bitcoin Scalability: Challenges and Solutions: This article explores the various challenges associated with Bitcoin’s scalability problem, with potential solutions while maintaining network security.Cryptocurrency Futures and Derivatives: A Growing Market: Explore the rapidly expanding world of crypto futures and derivatives, and learn about their impact on the digital asset market.
 What Is Sharding
 Bitcoin's Scalability Problem Solutions And Challenges
 Cryptocurrency Futures And Derivatives A Growing Market
 What Is Sharding? Sharding can improve transaction speed and scalability. Learn what the term means and how sharding works.
 Bitcoin Scalability: Challenges and Solutions: This article explores the various challenges associated with Bitcoin’s scalability problem, with potential solutions while maintaining network security.
 Cryptocurrency Futures and Derivatives: A Growing Market: Explore the rapidly expanding world of crypto futures and derivatives, and learn about their impact on the digital asset market.

We’re all ears.

Your feedback has always helped us provide insightful crypto market trends. Tell us how we can improve this newsletter further by taking a quick survey below (it will only take less than a minute). Thank you!


Author

Research and Insights Team

Disclaimer

The information in this report is provided as general market commentary by Crypto.com and its affiliates, and does not constitute any financial, investment, legal, tax, or any other advice. This report is not intended to offer or recommend any access to products and/or services. While we endeavour to publish and maintain accurate information, we do not guarantee the accuracy, completeness, or usefulness of any information in this report nor do we adopt nor endorse, nor are we responsible for, the accuracy or reliability of any information submitted by other parties.

This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of, or located in a jurisdiction, where such distribution or use would be contrary to applicable law or that would subject Crypto.com and/or its affiliates to any registration or licensing requirement.

The brands and the logos appearing in this report are registered trademarks of their respective owners.

Tags

crypto research

DeFi

layer 1

layer 2

Share with Friends

Ready to start your crypto journey?

Get your step-by-step guide to setting up an account with Crypto.com

By clicking the Get Started button you acknowledge having read the Privacy Notice of Crypto.com where we explain how we use and protect your personal data.
Mobile phone screen displaying total balance with Crypto.com App

Common Keywords: 

Ethereum / Dogecoin / Dapp / Tokens