Finovation's Weekly Crypto Roundup - 23-29 Sep24

Another week, another set of fascinating developments in the crypto space. For Web3 enthusiasts and marketers, these events represent both growth opportunities and important reminders of the ever-evolving nature of this industry. In this roundup, we’ll cover the top five crypto updates that had the most significant impact in the past week.

1. Base Surpasses $2B in TVL

Base, Coinbase’s Layer-2 solution, has achieved a significant milestone by surpassing $2 billion in total value locked (TVL). This growth underscores the success of Layer-2 solutions in addressing Ethereum's scalability issues. Base's rapid rise has shown how quickly liquidity can flow into a new chain if the ecosystem, tools, and community engagement are strong.

Why It Matters: For Web3 marketers, the growth of Base represents a signal to focus on Layer-2 solutions and projects building atop them. These ecosystems offer scalable, cost-effective platforms for dApps and are becoming increasingly attractive for developers and users alike. Engaging with these emerging communities can provide significant marketing opportunities.

2. Core Blockchain Surpasses $400M TVL

Core blockchain has been making waves, surpassing $400 million in TVL. This milestone highlights Core’s increasing popularity and growing competitive position in the DeFi ecosystem. As more liquidity moves into Core, it’s clear that developers and users are finding value in its offerings, such as speed, lower fees, or specific DeFi products.

Why It Matters: This trend provides Web3 projects and marketers a new space to consider for partnerships and community-building initiatives. The growth of smaller blockchains like Core suggests new avenues for marketers to explore beyond established players, allowing them to capitalise on community-driven liquidity.

3. Crypto Hack and Scam Losses Reach $413M in Q3

The total value lost to crypto hacks and scams reached a worrying $413 million in Q3 2024. The persistence of hacks and fraudulent activity underscores the importance of security in the crypto space. Despite advances in technology, the industry remains vulnerable to sophisticated attacks.

Why It Matters: For marketers, this highlights the necessity of emphasising security in their messaging. It’s vital to convey how projects prioritise user safety, whether through audits, insurance, or other mechanisms to build trust and stand out. Educational campaigns that focus on teaching users about secure crypto practices are also key to mitigating these risks.

4. Robinhood Considers Stablecoin Launch

Robinhood has announced its interest in potentially launching its own stablecoin. This move would bring Robinhood into direct competition with established stablecoin players such as Tether (USDT) and Circle’s USDC. For Robinhood, adding a stablecoin would extend their crypto ecosystem, possibly offering more options for payments, remittances, and staking for their large user base.

Why It Matters: This presents a significant shift in the stablecoin market. Web3 marketers should keep an eye on how the presence of a large brand like Robinhood could influence adoption and integration of stablecoins into the mainstream. New entrants from well-known brands could boost the credibility of crypto payments, giving marketers more options to promote crypto-based financial solutions.

5. Polymarket’s U.S. Election Bet Crosses $1B

Prediction markets are gaining traction, as Polymarket saw the value of bets on the upcoming U.S. election cross $1 billion. This massive volume suggests strong interest in decentralised prediction markets and their role in gauging public sentiment. It’s also an indicator of how blockchain technology is making its way into various forms of data aggregation and speculation.

Why It Matters: Decentralised prediction markets are a great case study for showcasing the power of blockchain in enabling transparency and user-driven data. Marketers can leverage this trend by positioning decentralised solutions as more transparent and community-driven alternatives compared to traditional platforms. The high levels of engagement in betting markets show how deeply people are getting involved, a trend that can translate into broader interest in other forms of blockchain participation.

Key Takeaway for Web3 Marketers

These five developments, from new liquidity records in Base and Core, to security risks, and the entry of a big name like Robinhood into stablecoins highlight key trends shaping the crypto ecosystem.

For Web3 marketers:

• Adapting Messaging: Emphasise security and trust in light of ongoing scam losses.
• Seize New Opportunities: Emerging chains like Core represent opportunities for early community engagement and partnership.
• Monitor Major Players: Watch for how larger institutions, like Robinhood, influence broader crypto adoption.

Staying informed about these shifts is essential for positioning your brand effectively in the market.

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