Bonfida DEX Restricts Access to US-based Users

Serum-based, Bonfida decentralized digital asset exchange (DEX) is the latest decentralized finance (DeFi) project to put the US in its restrictive region list.

According to Bonfida’s terms of use, the Bonfida DEX is not available to residents of the USA. With this, the US has joined the Democratic People’s Republic of Korea, Belarus, the Central African Republic, the Democratic Republic of Congo, the Crimea region of Ukraine, Cuba, Iran, Libya, Somalia, Sudan, South Sudan, Syria, Yemen, and Zimbabwe.

“If you intend to enter into any transactions involving derivatives, you also confirm that you are not located in, incorporated or otherwise established in, or a citizen or resident of, a Derivatives Restricted Jurisdiction,” said the exchange.

Last month, the decentralized exchange aggregator 1Inch also started geofencing US IP addresses.

As we reported, 1Inch also includes the US in its list of restricted territories and blocks people from these regions from using a Virtual Private Network (VPN) to access the website. The platform said that it had been planning to launch a new product in the US in compliance with the regulatory requirements.

DEX dYdX has also updated its terms of service to mention that if the user is a US citizen or resident, they are required to physically settle all trades made using dYdX and fully close and physically settle all open margin positions within 28 days.

US-based users are also not permitted to access or trade any of the platform’s advanced features, including Bitcoin trading and perpetual contracts on dYdX. They are also not to use a VPN to modify your internet protocol address or otherwise circumvent or attempt to circumvent this prohibition.

Earlier last month, dYdX users celebrated a massive DYDX token airdrop worth thousands of dollars for many people. However, those who traded on the platform using an IP address within the United States were not eligible for the airdrop or to participate in its staking program.

“This has become almost standard now. People don’t need the US market to win anymore, so US regulators no longer have leverage with truly global founders. The future has already escaped their grasp,” commented Balaji Srinivasan, former CTO of Coinbase and General Partner at Andreessen Horowitz.

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Author: AnTy

New Non-Custodial, Cross-Chain Browser Wallet to Compete with MetaMask by Focusing on DeFi and NFTs

New Non-Custodial, Cross-Chain Browser Wallet to Compete with MetaMask by Focusing on DeFi and NFTs

XDEFI has released its rival to the popular crypto wallet MetaMask which reported more than 10 million active users in August.

Last month, XDEFI Wallet raised $6 million led by Mechanism Capital and Defiance Capital, with other investors including Alameda Research, Sino Global, and Animoca Brands.

Now it has announced the public release of its non-custodial, cross-chain wallet built with a focus on decentralized finance (DeFi) and non-fungible tokens (NFTs).

This week, the team unveiled XDEFI Wallet 7.0 and introduced the Ape Mode for the apes and degens of crypto.

The wallet uses a proprietary gas algorithm to ensure that even during times of congestion, transactions get into the next block timely, says the team.

It is also optimized for EIP-1559 allowing “users the maximum benefit from Ethereum’s London hard fork while still maintaining an accessible interface.” By adding a network activity section in-app, it reduces reliance on third-party sites. ETH 3.35% Ethereum / USD ETHUSD $ 3,608.86
$120.903.35%
Volume 16.15 b Change $120.90 Open $3,608.86 Circulating 117.91 m Market Cap 425.53 b
7 h New Non-Custodial, Cross-Chain Browser Wallet to Compete with MetaMask by Focusing on DeFi and NFTs 11 h US Dollar Hits One-Year High But Bitcoin No Longer Holds an Inverse Correlation with it 1 d BSC Is Back in the Game as Binance Announces $1 Billion Incentives Program to Pump the Ecosystem

While the wallet already offers access to chains like Terra (LUNA) and THORChain (RUNE), which are not available on MetaMask, support for other popular blockchains like Solana (SOL) and Avalanche (AVAX) along with layer 2 solutions like Arbitrum will be added along the way. LUNA 2.38% Luna Coin / USD LUNAUSD $ 0.01
$0.002.38%
Volume 0 Change $0.00 Open $0.01 Circulating 1.71 m Market Cap 12.73 K
7 h New Non-Custodial, Cross-Chain Browser Wallet to Compete with MetaMask by Focusing on DeFi and NFTs 5 d AnySwap and Aave Fork Geist Finance Send Fantom TVL Past $9 Billion, FTM Makes a New ATH 1 w Shift to Risk-on: Bitcoin Is Up 12% Already in Uptober Amidst Stock Market Weakness
RUNE 1.10% THORChain / USD RUNEUSD $ 7.33
$0.081.10%
Volume 47.74 m Change $0.08 Open $7.33 Circulating 224.41 m Market Cap 1.65 b
7 h New Non-Custodial, Cross-Chain Browser Wallet to Compete with MetaMask by Focusing on DeFi and NFTs 3 w DeFi Autumn after Solana Summer? Traders Still Short as Bitcoin Jumps to $48k and Ether to Nearly $3,700 1 mon DeFi Rallies Towards New Highs As Multiple Layer 1 Blockchains Amaas $50 Billion in TVL
SOL -2.60% Solana / USD SOLUSD $ 148.26
-$3.85-2.60%
Volume 2.07 b Change -$3.85 Open $148.26 Circulating 299.9 m Market Cap 44.46 b
7 h New Non-Custodial, Cross-Chain Browser Wallet to Compete with MetaMask by Focusing on DeFi and NFTs 1 d NFT Deposits and Withdrawals are Now Live on FTX US for Institutional Favorite Solana (SOL) 1 d Institutions Are Back to Pouring Money into Bitcoin as a “Perfect Storm” Brews for the King
AVAX 1.39% Avalanche / USD AVAXUSD $ 55.04
$0.771.39%
Volume 651.96 m Change $0.77 Open $55.04 Circulating 220.29 m Market Cap 12.12 b
7 h New Non-Custodial, Cross-Chain Browser Wallet to Compete with MetaMask by Focusing on DeFi and NFTs 1 d BSC Is Back in the Game as Binance Announces $1 Billion Incentives Program to Pump the Ecosystem 5 d AnySwap and Aave Fork Geist Finance Send Fantom TVL Past $9 Billion, FTM Makes a New ATH

As for NFTs, the wallet offers automatic detection and a drag-and-drop NFT display grid.

Users can also buy crypto directly within the XDEFI Wallet, for which it claims not to charge a fee.

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Author: AnTy

IMF Warns of DeFi & Stablecoin Risks, Biden Administration Taking ‘Aggressive’ Approach to Crypto

IMF Warns of DeFi and Stablecoin Risks, Biden Administration Taking ‘Aggressive’ Approach to Crypto

A senior White House official says the administration ensures a “smart and effective regulatory system” for crypto. Meanwhile, for the IMF, because DeFi is one of the main drivers of the rapid growth of stablecoins, it “warrants close attention.”

The Biden administration is ramping its regulatory scrutiny of cryptocurrency and will make a move to address a range of risks, reported the Wall Street Journal, citing a senior White House official.

Peter Harrell, senior director for international economics and competitiveness with the National Security Council at the WSJ Risk & Compliance Forum on Tuesday, said,

“You’re really seeing the administration at the beginning of what we expect will be an ongoing, quite aggressive effort to make sure we understand and address the whole range of risks that we see in the cryptocurrency space.”

At the same time, the administration seeks to position the U.S. as a leader in digital asset innovation.

According to Harrel, the agencies do think the cryptocurrency industry has “some potential benefits,” such as financial inclusion, but added, “there are clearly a whole range of risks.”

“I think you’re really seeing the administration kind of moving out on a number of different lines of work to make sure that we have a smart and effective regulatory system in place for cryptocurrency.”

A Sound Regulatory Framework

Elsewhere, the International Monetary Fund warned that the rapid growth of cryptocurrencies poses several risks to both investors and policymakers.

While the “crypto ecosystem offers an exciting new world of opportunities,” it also has its challenges in the form of risks to consumers from lack of operational or cyber resilience and anonymity and limited global standards creating data gaps for regulators, which in turn pose a threat to financial integrity, it said.

Moreover, “the advent of crypto assets and stablecoins in emerging markets and developing economies may accelerate dollarization risks,” said the IMF adding these markets can face “destabilizing capital flows” because cryptos are used to circumvent capital controls.

The report also mentions investor protection risks for DeFi, which it says is “gaining momentum by offering new services to users,” and inadequate reserves and limited disclosure for some stablecoins.

Decentralized finance (DeFi), according to the IMF, is actually one of the main drivers of the rapid growth of stablecoins as such “warrants close attention.”

“A sound regulatory framework for crypto assets, and decentralized finance markets more generally, must be a priority on the global policy agenda.”

When it comes to stablecoins, the IMF says regulations should correspond to the risks they pose and the economic functions they perform.

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Author: AnTy

AnySwap and Aave Fork Geist Finance Send Fantom TVL Past $9 Billion, FTM Makes a New ATH

The total value locked (TVL) in the decentralized finance (DeFi) sector continues to hit a new all-time high, the latest being $209.8 billion, according to DeFi Llama. This growth reflects the growing world of multi-chains.

While Ethereum remains the king, accounting for about 68% of this TVL with $142.58 billion coming from the second-largest network, other chains like BSC ($$17.4 bln), Terra ($8.85 bln), Avalanche ($4.93 bln), and Polygon ($4.56 bln) are also growing.

Solana is currently the most popular one with a $10.6 bln TVL. While Fantom comes in third place with $9 billion in TVL, it had seen explosive growth in the past 24 hours when its TVL was at just $3.25 bln.

This growth is also reflected in FTM price, up 85% in less than two days to make a new all-time high at $2.43 on Friday. As of writing, FTM is trading at $2.34.

The majority of Fantom’s growth comes from AnySwap, a trustless MPC protocol to cross-chain any assets and data between chains. With 43.6% dominance in the Fantom ecosystem, AnySwap is responsible for almost $4 billion of Fantom’s TVL.

Decentralized non-custodial liquidity market protocol Geist Finance is another significant contributor with $3.19 billion of TVL. Geist Finance, a fork of popular lending protocol AaveAave, has been “giving LPs ridiculous incentives.”

Together, AnySwap and Geist Finance account for almost 78% of Fantom’s total TVL.

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Flows from Ethereum to FantomFDN have also been averaging $10-25 million per day over September. But it was over the last two days that it “increased by an unprecedented amount on the back of a new yield farm,” noted Delphi Digital.

Some notable mentions include SpookySwap, SpiritSwap, Beefy Finance, Curve, Scream, Tarot, Abracadabra, and Yearn Finance.

Abracadabra Money has launched a new stablecoin, Magic Internet Money, or MIM, which taps into yield tokens allowing people to borrow stables against them.

“Yearn alone has over $5B in TVL, meaning there were a lot of idle tokens to loan against,” said Delphi Digital.

On Thursday, Yearn Finance finally launched on Fantom as well, tweeting,

“Today, we go multichain with the launch of Iron Bank Fantom and the first Fantom vaults on http://beta.yearn.finance.”

The first vaults on Fantom include yvWFTM, yvUSDC, yvDAI, and yvMIM.

Yearn decided to go multichain because they need specific infrastructure to function safely and efficiently, both externally and internally.

“Our v2 vault codebase has hardened over the past few months, and the new beta website is a vast improvement, allowing us to switch chains relatively easily, something we simply could not have done in the past.”

As for choosing Fantom, it is fast and simple to use, not to mention easy to bridge thanks to Anyswap Network. “It doesn’t hurt that @AndreCronjeTech is a big fan,” it added.

Fantom, however, is just the beginning for Yearn as they plan to add support for other chains as well.

“The Realm expands, and we go with it. We want to meet people where they are, including new users and users with smaller deposits. Multichain expansion is a natural way to do this.”

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Author: AnTy

Permissioned Aave Arc Is “Simply A Gateway Into Permissionless DeFi,” Says Aave Founder

Permissioned Aave Arc Is “Simply A Gateway Into Permissionless DeFi,” Says Aave Founder On Adding Fireblocks As A Whitelister

While the Aave community is clear on onboarding institutions, with 89.67% votes in Fireblocks favor, others find it a “bad precedent.”

Aave’s institutional-focused product, the permissioned DeFi lending platform Aave Arc is inching closer to its release.

As a significant step towards this, a new proposal to “Add Fireblocks as a whitelister on Aave Arc” has been made to the Aave’s governance forum.

With more than 600 customers and over $1.25 trillion in digital assets, Fireblocks says it is on a mission to bring more institutional participants into DeFi. Fireblocks R&D, compliance, and legal teams have already developed a new whitelister framework for permissioned DeFi.

Fireblocks LLC is a registered “money services business” licensed to offer money transmission services in the United States.

According to the proposal, the institutional custody firm wanted to become a “whitelister” that would allow it to onboard institutions to the platform. The “permissioned” version of Aave protocol actually adds a smart contract layer to only allow “whitelisted” or “permissioned” users to engage with Aave Arc.

“Each Aave Arc deployment will launch with one or more whitelister,” says the proposal. As a whitelister, the regulated entity will conduct KYC/KYB checks in accordance with FATF guidelines on the user, onboard users with appropriate disclosures, terms, and conditions, and grant permissions to borrow, supply, and liquidity to the Ethereum wallet address(es) provided by the user.

Through this proposal, the Aave community is being asked to evaluate and vote on whether Fireblocks should be approved as a whitelister and begin the process of whitelisting users of an Aave Arc deployment.

While Aave believes Fireblocks “satisfies all the qualification requirements to be a whitelister,” not everyone in the crypto community is happy with this move, and Yearn Finance core developer Banteg is one of them.

As Jake Chervinsky, general counsel at Compound, believes, “this will just be a stepping stone for risk-averse institutions to ease their way into real DeFi,” Banteg also sees this to be the “optimal outcome” but said this would then be applied to other projects which will be asked to add KYC contracts as it has done by one DeFi protocol.

Chervinsky also agrees with this being a “bad precedent,” saying while there is institutional demand for these products, “I’d rather we work on convincing them to use DeFi.”

“Let someone else build walled gardens, or at least don’t call it “permissioned DeFi,” an oxymoron if I’ve ever heard one.”

According to Stani Kulechov, “It’s a private pool for institutions that are still practicing before aping into DeFi,” and on Wednesday this week, he tried to assuage some concerns.

“Aave Protocol is permissionless anyways, I don’t think there is a way to rely on permissioned DeFi long term – anything permissioned build on top is simply a gateway into permissionless DeFi sooner or later.”

Aave community, however, is leaning towards making Fireblocks a “whiteliser,” with 89.67% votes in its favor. The voting for the proposal ends on Oct. 2.

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Author: AnTy

Bug in DeFi Protocol Compound Mistakenly Sends $82 Million In COMP Rewards to Users

Bug in DeFi Protocol Compound Mistakenly Sends $82 Million In COMP Rewards to Users

Robert Leshner, the founder of the DeFi project, which has the fifth-largest TVL at $9.63 billion, says the mistaken claims have been at worst 280k COMP tokens worth about $82 million.

Decentralized finance protocol (DeFi) Compound encountered a bug in its code that resulted in erroneously giving an unusual amount of COMP tokens worth millions of dollars in liquidity mining rewards.

“Unusual activity has been reported regarding the distribution of COMP following the execution of Proposal 062,” tweeted the team late on Wednesday.

But the team assured that no supplied or borrowed funds are at risk, and the team is investigating discrepancies in the COMP distribution.

Proposal 62, which went into effect on Wednesday, intended to have two different COMP distribution rates for each market, borrow-side and supply-side rates, instead of the previous 50/50 share model.

But the updated Comptroller Contract contained a new bug that allowed some users to claim thousands of COMP tokens. According to Robert Leshner, founder of Compound Labs, the mistaken claims have been at worst 280k COMP tokens worth about $82 million.

“Exploiters were people that had borrowed some time ago, borrowing now and trying to exploit doesn’t work,” said 0xngmi of DeFiLlama.

In a series of tweets, Leshner shared that the new Comptroller contract ended up distributing far too many COMP tokens to users of the protocol. The proposal and the contract, he further shared, were written by a community member.

“All supplied assets, borrowed assets, and positions are completely unaffected. Users don’t have to worry about their funds; the only risk is that you (or another user) receives an unfairly large quantity of COMP.”

Leshner went on to explain that there are no tools or admin controls to disable this COMP distribution. Moreover, any changes to the protocol require a 7-day governance process to make their way into production.

Compound Labs and community members are now “evaluating potential steps to patch the COMP distribution.”

Compound Finance is the fifth largest DeFi project with $9.63 billion in total value locked (TVL), down from almost $13 billion ATH earlier this month.

The project token has a market cap of $1.73 billion and is down 12% in the past 24 hours to trade at $293.69, down 68% from the mid-May peak of $910.5.

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Author: AnTy

Amplify Files for a Crypto and DeFi ETF; Invesco and Galaxy Digital Goes for a Physical Bitcoin ETF

Amplify Files for a Crypto and DeFi ETF, While Invesco Galaxy Digital Goes for a Physical Bitcoin ETF

Bloomberg analyst Mike McGlone expects a futures-backed Bitcoin ETF to be approved first, and it could be as soon as “the end of October,” which he said would open a “window for a massive amount of money inflow.”

While the US Securities and Exchange Commission (SEC) refuses to approve a Bitcoin ETF at this point, companies remain as hopeful as ever and continue to file for the same.

This week, Invesco and Galaxy Digital filed a joint registration statement for a physically-backed Bitcoin ETF.

Invesco already has its application for a futures-backed Bitcoin ETF before the SEC, for which ruling is expected in October.

In fact, with SEC Chair Gary Gensler signaling his openness to a futures-linked ETF that offers more investor protection, the market is hoping for approval on such an ETF this year.

According to Bloomberg Intelligence Commodity Strategist Mike McGlone, it’s only a matter of time that the first Bitcoin ETF gets approved.

In an interview, McGlone talked about Canada extending its lead over the US by approving Bitcoin and Ether ETFs and that capital is flowing from the US to Canada’s institutional crypto products.

But he doesn’t expect the US lawmakers to miss this out for much longer, and this could happen “potentially by the end of October.” According to him, it is likely to be a futures-backed product first, adding that it would still open a “legitimization window for a massive amount of money inflow.”

Meanwhile, Amplify is going after the broad crypto market and decentralized finance (DeFi) sector. The Amplify Decentralized Finance & Crypto Exposure ETF (the “Fund”) application wants approval for the fund to invest in Bitcoin futures, Canadian Bitcoin funds, and companies that hold more than 50% of their net assets in BTC, Ether, or any other “liquid” cryptocurrency.

“Initially, the Fund expects to directly invest up to 15% of its total assets in Grayscale Bitcoin Trust (‘GBTC’) and Canadian bitcoin ETFs investing in bitcoin.”

The Fund also seeks to invest at least 40% of their net assets in the DeFi marketplace that includes Decentralized Finance Blockchain Miners, Digital Asset & Decentralized Finance Integrators, Decentralized Finance Applications, and Pre-Revenue Decentralized Finance Companies.

However, the prospectus isn’t completed yet, with key roles still to be filled, such as a bitcoin custodian.

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Author: AnTy

AVAX Hits A New ATH as 3AC and Polychain Lead $230M Investment to Accelerate DeFi on Avalanche

AVAX Hits A New ATH as 3AC and Polychain Lead $230M Investment to Accelerate DeFi on Avalanche

“I consider AVAX to be crucial in turbocharging EVM DeFi for both builders and users,” said Su Zhu, CEO of Three Arrows Capital.

Avalanche blockchain has raised $230 million in a private sale, sending the AVAX token surging.

In response, the $14.2 bln market cap coin AVAX hit a new all-time high on Thursday at $68.34 and, as of writing, is trading around $64.5, up 1,650% YTD

The private sale, which was completed in June, was led by Three Arrows Capital and Polychain. Other participants in the investment included CMS Holdings, Dragonfly, R/Crypto Fund, Collab+Currency, Lvna Capital, and a group of angel investors and family offices.

Emin Gün Sirer, founder and CEO of Ava Labs, described this as the “largest investment” into the Avalanche ecosystem to date.

“I’m thrilled to see so many people realizing the power of Avalanche’s technology and community, and the opportunities for exponential growth.”

Su Zhu, co-founder, and CEO of Three Arrows Capital, shared his excitement to co-lead the $230 million investment in Avalanche, saying,

“I consider AVAX to be crucial in turbocharging EVM DeFi for both builders and users, the Ava Labs team to be incredibly innovative and passionate, and the community to be the fastest-growing.”

The Avalanche Foundation, which is behind the Avalanche blockchain, will be using the proceeds from the token sale to support and accelerate the rapid growth of decentralized finance (DeFi), enterprise applications, and other use cases on the public blockchain.

Focused on speed and low transaction cost, this layer 1 blockchain is an Ethereum competitor much like Solana (SOL) and is also EVM (Ethereum Virtual Machine) compatible.

As we reported recently, to allow the transfer of assets from Ethereum (ETH) to the Avalanche blockchain, the team launched a bridge, and $1.3 billion has already been transferred to Avalanche using this.

It also supports several popular blockchains such as Tether (USDT), USDC, SushiSwap (SUSHI), Chainlink (LINK), and The Graph (GRT).

“Just a year after mainnet launch in Sept. 2020, and Avalanche is still just getting started with countless live projects organically flourishing and Avalanche Rush on the way. There’s no signs of slowing down progress toward fast, low-cost, and easy-to-use DeFi applications.”

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Author: AnTy

Algorand Foundation Assigns 150 Million ALGO to Support DeFi Innovation on the Blockchain

Algorand Foundation Assigns 150 Million ALGO to Support DeFi Innovation on the Blockchain

The launch of the $300 million ‘Viridis Fund’ will be allocating $200 mln for liquidity — the fundamental driver of DeFi and DApp adoption, and $5 mln each for integration of oracle networks and to build bridges from Ethereum and other chains.

Algorand Foundation, the organization behind the decentralized digital currency and transactions platform Algorand, has announced the launch of a $300 million ‘Viridis Fund’ to support decentralized finance (DeFi) innovation.

$300 million funding is in the form of 150 million ALGO, which are re-allocated from the AlgoGrant fund.

ALGO is over a $10.8 billion market cap coin trading at $2.06 as of writing. In the past week, the token is up more than 80% and 386% YTD but is still down more than 41% from its all-time high of $3.56 about two years back.

The funds will be used to fuel the growth of the DeFi ecosystem, including decentralized exchanges, money markets, options markets, synthetic asset applications, and NFT platforms on Algorand, which it defines as sustainable, carbon negative, and high-performance blockchain.

“Creating the right infrastructure, application ecosystem, and liquidity will be key to ensuring that DeFi on Algorand is regarded as the world’s most energy-efficient, scalable, and low-cost DeFi ecosystem,” said Sean Lee, CEO of the Algorand Foundation.

For liquidity, which is a fundamental driver of DeFi and DApp adoption, 100 million ALGO worth about $200 mln are assigned so that quality DeFi projects get access to liquidity easily.

With this launch, the Foundation also announced two ‘SupaGrants’ — $5 million Oracle SupaGrant and the $5 million Bridge SupaGrant.

Oracle SupaGrant seeks proposals for the integration of oracle networks with associated price feeds, while Bridge SupaGrant calls for proposals to build bi-directional bridges from Ethereum and other chains.

Founded in 2017, Algorand claims to be used by nearly 1,000 global organizations.

Recently, El Salvador became the world’s first nation to adopt Bitcoin as legal tender alongside the US dollar, also selected Algorand’s blockchain to develop its own blockchain infrastructure.

To capitalize on the ongoing NFT mania, the developers are meanwhile working on new non-fungible token applications to attract the new mainstream crowd, especially those who might be priced out on the Ethereum network.

The project also hosts the two popular and leading stablecoin Tether (USDT) and USDC.

Moreover, it is launching governance features for its token holders, which are set to go live on October 1st.

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Author: AnTy

DeFi Stablecoins Record a Surge in Interest Rates, Total Stablecoin Supply Grows 4x in 8 Months

Lending and borrowing rates on DeFi stablecoins keep trending up.

The rates first started going up in late July when the crypto asset prices bottomed and began their recovery.

As crypto-assets started their uptrend, funding rates also gradually increased as traders joined in on the action. This, in turn, helped the interest rates climb up.

Not to mention, ever since the March 2020 crash, the crypto market has skewed towards fiat or stablecoin margin perpetual contracts rather than coin margin ones, amplifying the demand for stablecoins.

Currently, the lending rate for USDT is 5.58% on Compound, 11.53% on Aave, and 3.01% on Cream Finance, while the borrowing rate is 7.41%, 14.52%, and 8.51%, respectively, according to Skew.

Meanwhile, Compound pays a lender 5.39%, Aave 7.87%, Cream Finance 10.53%, and dYdX 1.97% for USDC while to borrow USDC, one is charged an interest rate of 7.18%, 9.72%, 15.49%, and 6.62% respectively.

Meanwhile, the total stablecoin supply has now reached $120 billion, up from less than $30 billion at the beginning of this year.

Tether continues to lead, accounting for just 58.4% of the stablecoin market, followed by USDC’s 23.4%. While USDC has gained a 9% market share, USDT has lost a whopping 16.58% of its market share in 2021.

Besides USDC, BUSD also captured this lost market share from USDT, currently at 10.48%, gaining a 6.77% share. Maker’s DAI also saw some increase, but it wasn’t much as at the beginning of 2021, it was sitting at 4.14%, and about eight months later, it is at about 5.4%.

While USDT is losing its market share, it accounts for the highest volume. In the last 24 hours, USDT did nearly $91.4 billion in trading volume, more than double of Bitcoin’s.

After USDT, Binance’s BUSD has the second-highest trading volume of any stablecoin at $9.6 billion, followed by USDC at $2.86 billion.

USDC, which is developed by Circle – a consortium of Coinbase and Center, is particularly used in the decentralized finance (DeFi)

Recently, Circle said that from September, all the reserves backing USDC would be shifted into cash and short-term U.S. Treasuries, forgoing riskier investments. Back in July, Coinbase ran into criticism over its claim that every USDC was “backed by a dollar in a bank account” when Circle revealed in its report that since May, its reserves had included commercial paper and corporate bonds.

With stablecoins becoming an integral part of the crypto market, it is gaining the attention of regulators.

Stablecoins are at the target of SEC, as explicitly stated by Chairman Gary Gensler several times in the past few months. Gensler had said that stablecoins are embedded in centralized and decentralized exchanges crypto trading and lending platforms and may be used to

“facilitate those seeking to sidestep a host of public policy goals connected to our traditional banking and financial system: anti-money laundering, sanctions, and more.”

Amidst this, the Federal Reserve is considering a digital dollar, but according to Ryan Selkis of Messari, the US should be adopting the stablecoins rather than a “Fedcoin” as central bank digital currencies (CBDCs) will face red tape, poor execution, endless committee meetings, and vague deliverables with untracked results.

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Author: AnTy