Bitcoin Breaks 90,000 USD | Decentralized Finance Bi-Weekly Report (Early November)

1. Decentralized Finance Industry Observation

1. Trump was elected as the President of the United States, becoming the first leader to support cryptocurrency.

On November 6, 2024, Trump was successfully elected as the President of the United States, becoming the first leader to support cryptocurrency, in stark contrast to the previous Biden administration. During his campaign, Trump explicitly supported cryptocurrency policies, allowing donations in cryptocurrencies such as Bitcoin, and publicly opposed Biden's anti-crypto policies.

In May, Trump allowed supporters to make donations using cryptocurrencies supported by a certain payment platform. He also personally engaged with crypto assets, such as his NFT collection "Mugshot Edition." Trump's crypto assets have reached $6.25 million, including a significant amount of ETH and the meme coin TRUMP.

Trump plans to fire the chairman of the Securities and Exchange Commission after taking office, strengthen support for Bitcoin and the cryptocurrency industry to ensure that the United States becomes a "superpower" in crypto and Bitcoin, and announced that the U.S. will retain all national-level Bitcoin reserves.

2. Bitcoin broke through 90,000 USD this week

This week, Bitcoin performed strongly, briefly breaking through $90,000, setting a new historical high, and once again refreshing its market capitalization ranking. Since breaking records repeatedly last week, Bitcoin's market cap has surpassed that of a certain tech giant, firmly ranking as the ninth largest asset globally. Market analysis suggests that the recent strong rebound of Bitcoin reflects an increase in demand for crypto assets, while also indicating that U.S. policies are becoming increasingly friendly towards cryptocurrencies, adding momentum to the subsequent price trend.

3. A certain platform has launched a new model for perpetual contracts.

With the expansion of a certain ecosystem, a platform has launched a brand new perpetual contract platform, reducing the entry barriers of the perpetual contract market with its unique "one-stop launcher" model. The platform attracts a large number of on-chain users, especially participants in the Restaking and Meme coin sectors, with its low Gas environment, deep incentives, and efficient liquidity management, and provides a convenient trading pair release channel for new tokens.

The platform aims to simplify the publishing process of perpetual contracts, allowing any token to create trading pairs on the platform without permission. Taking a certain project as an example, its trading pair achieved a trading volume of 260 million USD and a peak TVL of nearly 920,000 USD within 2 months of going live, demonstrating the platform's rapid growth potential. Investors can earn annualized returns by providing liquidity and can also look forward to future token airdrops and rewards.

4. The UK pension fund makes its first direct investment in Bitcoin.

Recently, a pension fund in the UK made its first direct investment in Bitcoin, becoming the first of its kind in the country, with the private keys managed by five independent institutions. With the assistance of a consulting firm, the fund allocated 3% of its assets to Bitcoin and plans to launch a Bitcoin employee benefits program, with several companies expressing interest. This marks a further expansion of pension fund investments in crypto assets, going beyond indirect methods such as ETFs.

Globally, pension funds are gradually entering the crypto space. Certain states in the United States have publicly stated plans to invest in Bitcoin ETFs, while a state's retirement system has purchased a spot Ethereum ETF. This trend reflects that as Bitcoin's status solidifies, more pension funds will consider incorporating crypto assets into their investment portfolios in the future.

5. The neutrality of Ethereum is challenged due to changes in the project advisor.

On November 2, members of the Ethereum Foundation announced their resignation from a certain project advisory position to focus on "more neutral" work. This change has raised community concerns about whether it is a way to profit from the situation. One member stated that the move aims to avoid conflicts of interest, while another member admitted that accepting the advisory role was a wrong decision and that no tokens were received.

The Ethereum Foundation, as a public goods foundation, always emphasizes non-profit and neutrality, but its members often participate in advisory roles for different projects, raising discussions in the community about Ethereum's neutrality. Although Ethereum's founders often advocate for technological neutrality, balancing interests in a rapidly evolving ecosystem remains a significant challenge.

6. The number of active users in a certain game plummeted, and the token crashed by 76%.

A certain game that was once extremely popular is currently facing severe challenges. The latest data shows that the game's monthly active users have sharply declined from 300 million in August to 41 million, a decrease of 86%. In addition, the game's token has also plummeted by 76% in just over a month, raising concerns in the market about its future.

The decline of the game can be attributed to multiple factors. In addition to the impact of the sluggish cryptocurrency market, the game failed to deliver on its promises to the community, coupled with delayed airdrop rewards and returns that did not meet expectations, which caused users to gradually lose confidence and even feel "trapped" by the developers. These issues have sparked widespread skepticism among players regarding the game's integrity and weakened market trust in its tokens.

The game team plans to integrate NFTs as in-game assets in the second season, hoping to enhance user engagement. However, whether this plan can save the game's decline remains to be seen. Analysts believe that in order to regain user trust, the development team must improve the gameplay, increase reward mechanisms, and strengthen communication with the community; otherwise, it will be difficult to regain a foothold in the competitive market.

7. Ethereum launches new testnet in preparation for upgrades

The Ethereum development team recently launched a temporary test network called Mekong for the upcoming upgrade. This testnet is designed to experiment with specific code changes and assess their impact on the network. Although Mekong has a short runtime, it includes all proposed Ethereum Improvement Proposals (EIP), and is regarded as a complete functional testing environment for the upgrade.

Initially, the upgrade plan included about 20 EIPs, but it has now been reduced to around 8, focusing on enhancing user experience and network efficiency. The main changes include:

• Improve the user experience of crypto wallets and account abstraction features
• Increase the maximum staking limit for validators from 32 ETH to 2,048 ETH
• Update deposit and withdrawal mechanisms, etc.

These changes will be tested on the Mekong test network, followed by deployment to other public test networks, and ultimately implemented on the Ethereum mainnet. Developers have stated that while there may be some minor specification changes or small EIP adjustments, the features included in the Mekong test network will gradually enter the public test network and eventually be deployed to the Ethereum mainnet.

8. A certain protocol has launched a standardized Bitcoin staking plan.

As the demand for Bitcoin staking increases, a certain protocol is leading market standardization by launching the staking abstraction layer (SAL). SAL provides a unified technical framework for staking, addressing the challenges of Bitcoin staking decentralization and liquidity management, enabling users to easily participate in cross-chain staking and earn returns. This solution not only enhances asset liquidity but also brings more flexible yield strategies for DeFi users, aiding the Bitcoin staking market's development towards maturity and diversification, becoming an important cornerstone in the future DeFi ecosystem.

9. Exploration of New Layer 2 Solutions

A recently launched Layer2 solution for a certain project, centered around Based Rollup + native AVS verification system, has created a new generation Layer2 architecture. This Rollup As A Service model based on Ethereum mainnet functionality (Proposer + AVS) not only enhances the security and decentralization of Layer2 but also provides Based Rollup and AVS services with broader market potential.

This solution will delegate the sorting function of Layer 2 to the Proposer of the Ethereum mainnet, solving the problem of centralized Sequencers through packaged submitted transactions. At the same time, it introduces AVS decentralized verification services to provide additional security consensus beyond transaction sorting.

The transaction process uses Layer1 Proposer for sorting, followed by AVS verification, to provide pre-confirmation. Unlike traditional Layer2, transactions initiated in this scheme can receive quick confirmation instantly, without long waiting times, which is more user-friendly for demands such as fast withdrawals.

In order to accelerate final confirmation, the scheme adopts TEE secure enclave isolation processing verification, achieving millisecond-level consensus, and establishes a standardized security assurance mechanism, thereby improving the overall verification efficiency and reliability.

Through these innovations, the solution not only addresses the centralization issues of Layer2 but also builds a decentralized interoperability platform that will be able to provide standardized cross-chain services for more Layer2 applications in the future, promoting asset circulation and liquidity sharing.

( 10. The liquidity engine on a certain blockchain is developing rapidly

A certain project is an innovative liquidity engine that combines various decentralized exchange ) DEX ### models. As the main DEX on a certain chain, it allows holders to vote on the fees and emission amounts of the liquidity pools through incentive mechanisms, and utilizes automated market makers to enhance capital efficiency. These mechanisms make it the preferred liquidity platform on that chain.

The project addresses the challenges of traditional DEX in liquidity provision, fee distribution, and sustainable growth. LPs receive 100% of the token emission incentives, while traders benefit from high liquidity, resulting in better execution outcomes. These designs have contributed to the rapid growth of the project, with a market share of 63% on the chain.

With the close cooperation between the chain and a certain exchange, the platform's economic activities have rapidly grown, with DAU and trading volume gradually increasing, greatly promoting the usage rate of the project. An investment from a certain investment institution also demonstrates the project's potential as a major on-chain DEX.

It is expected that as the chain and the project grow steadily, the TVL will reach 4 billion USD within a year, and the monthly trading volume will reach 50 billion USD. As the core liquidity engine of the ecosystem, the project will continue to benefit from the flourishing development of Decentralized Finance and the blockchain market.

2. Decentralized Finance Data Dashboard

( 1. TVL data

The TVL this week has not changed much compared to last week, remaining stable.

( 2. Stablecoin issuance volume

The total market value of stablecoins is currently reported at 178.22 billion USD, with a 7-day increase of 3.04%. Among them, a certain stablecoin accounts for 69.22%, showing a slight decline.

( 3. DEX data

According to the latest data, the decentralized exchange )DEX### still maintains a leading position in the market for a certain project. This week, the performance of DEX on a certain blockchain remains impressive, with an on-chain DEX trading volume of 14.634 billion USD in the past 7 days, ranking first across the entire chain.

( 4. Token Unlock Data

A certain project will unlock approximately 11.31 million tokens on November 11 at 2 PM UTC+8, accounting for 2.18% of the existing circulation, worth about 128 million USD. The unlocking event may have an impact on the market, and investors should pay close attention to relevant developments.

3. DeFi Radar

As Bitcoin has reached a new high of over $90,000, everyone is starting to expect that the overflow of funds can drive other sectors and lead a wave of altcoin season. Understanding the pulse and trends of the market will be very important. The sectors and coins are diverse; which sector will be the leader?

Looking at the current DeFi ecosystem, the originally booming Restaking narrative has completely fallen from grace, and the market has begun to shift towards Meme assets.