Monat: Oktober 2023

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Ethereum’s validator queue clears out amid staking demand decline

  • Ethereum validator queue at an all-time low.
  • Staking demand wanes as wait times plummet.
  • At press time, the entry queue for Ethereum only had 377 validators.

The Ethereum network’s validator queue once jam-packed with applicants eager to participate in the blockchain’s proof-of-stake system, has reached an all-time low. Data reveals that the queue has dwindled to just 598 validators, a stark contrast to the staggering peak of over 96,000 seen in early June.

This significant reduction in the validator queue marks a remarkable development in the Ethereum ecosystem, as it has not been this empty since the major “Shapella” upgrade in April, which finalized Ethereum’s transition to a fully functioning proof-of-stake network.

Staking demand declines

The shrinking validator queue is indicative of the diminishing staking demand on the Ethereum network. At its peak, individuals seeking to become validators faced a daunting 45-day wait, driven by pent-up demand to stake Ethereum’s native token, ETH.

However, as of Thursday, the expected waiting time to add a new validator to the network has plummeted to less than four hours according to data on Validator Queue. This swift decline reflects a change in the staking landscape following the Shapella upgrade, which allowed for the withdrawal of staked ETH for the first time, reducing the risk for investors.

The Shapella upgrade had initially sparked a surge in staking activity on the Ethereum network, with ETH staking growth described as “exceptionally strong” following Ethereum’s transition to proof-of-stake in September 2022. However, the initial fervour seems to have cooled in recent times.

The decline in staking demand has resulted in a decrease in staking rewards, which have fallen from 5%-6% earlier in the year to around 3.5%. This is partly due to lower network activity generating fees and an increasing number of stakers.

In comparison to other prominent proof-of-stake networks, Ethereum’s staking ratio, measuring the share of tokens staked relative to the total supply, has grown to over 22% since April. Nevertheless, it still lags behind competitors like Solana, Cardano, and Avalanche, with their staking ratios ranging from 53% to 69%.

The post Ethereum’s validator queue clears out amid staking demand decline appeared first on CoinJournal.

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USDR liquidity crisis costs a trader 131,350 stablecoins

  • USDR suffered a liquidity crisis, revealing its illiquid assets.
  • A trader lost everything swapping USDR for USDC during the crisis.
  • An MEV bot profited $107,002 from the arbitrage opportunity.

The Real USD (USDR) stablecoin recently found itself in the eye of a storm, revealing the pitfalls of the DeFi space.

A liquidity crunch on October 11 led to a trader swapping 131,350 USDR for 0 USDC, incurring a complete loss. Here’s what transpired:

The USDR liquidity crunch

USDR, a real-estate-backed US dollar stablecoin, faced a liquidity crisis when users requested over 10 million stablecoins in redemptions.

Although it was advertised as 100% backed, a shocking revelation emerged: less than 15% of its $45 million in assets were backed by liquid TNGBL tokens, with the majority relying on illiquid tokenized real-estate assets.

The illiquidity of these real-estate assets stemmed from their tokenization under the ERC-721 standard. This unique standard made it nearly impossible to fractionalize these assets, creating a liquidity conundrum for investor redemptions. Furthermore, the underlying real estate properties could not be swiftly sold to meet withdrawal requests. Consequently, the USDR treasury was incapable of honouring these redemptions, resulting in a crisis of confidence among investors.

The costly DEX swap

During the USDR liquidity crisis, a trader attempted to withdraw their USDR holdings by executing a swap on the BNB Chain via the decentralized exchange (DEX) OpenOcean. The catch was the severe depegging of USDR, which had plummeted nearly 50% from its par value due to the liquidity crunch.

In a disastrous turn of events, the trader received a grand total of 0 USDC in return for their 131,350 USDR. This meant a complete and crippling loss on their initial investment. In the volatile world of DeFi, where slippage rates on DEXs can reach up to 100% during periods of poor liquidity, such incidents serve as a stark reminder of the risks at play.

The story took an interesting twist as a maximal extractable value (MEV) bot swooped in to seize an arbitrage opportunity. Recognizing the substantial price discrepancy, this automated trading algorithm profited handsomely, netting a staggering $107,002 in gains through a well-timed arbitrage trade.

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Memeinator vs. Sushi price prediction: Buy MMTR or SUSHI?

  • Sushi price is near the key support level of $0.50 while Memeinator is set to jump to $0.0118.
  • But what’s the price prediction for SUSHI and MMTR?
  • What makes Memeinator stand out among meme coins?

Sushi is a top DeFi protocol, whose governance token SUSHI reached a high of $23.38 in May 2021. Memeinator on the other hand is a new meme cryptocurrency that recently launched its presale. The project’s approach in the quest to disrupt the meme world is attracting enthusiasts, with over $680k raised just days after it went live.

But what’s the outlook for these two projects? Let’s dive in for more.

What is Memeinator?

Memeinator is the “Terminator” of the crypto meme world. It comes with a mission – marshalled from the future of memesphere to bring order and clarity to the market by taking down weak meme tokens. To achieve this mission, the Memeinator has tapped into artificial intelligence to create a Memescanner that will identify and bring into view worthless memes for judgement. A target of $1 billion market cap means many will fall.

This is expected to start after the final presale stage, with the roadmap including the launch of the Meme Warfare game. Expanding on meme utility in this way adds to the unique value proposition of Memeinator that has the crypto community excited and looking to make an early kill via the presale.

Other than the game, other enticing aspects of the Memeinator that add to MMTR’s utility is the support for staking and NFTs. There’s more in an advertised $250k Virgin Galactic trip to space, more of which can be gleaned from the presale page and via the project’s social media channels.

What is Sushi?

SushiSwap is a community-driven DeFi protocol that offers opportunities such as yield farming, staking and liquidity providing. It’s an automated market maker (AMM) powered by smart contracts.

The project was announced in September of 2020, with the native governance token SUSHI giving holders the right to vote on ecosystem initiatives. Holders also earn from the fees collected.

Sushi price prediction

SUSHI traded to lows of $0.47 in 2020 before skyrocketing during the last bull market to break above $23 in May 2021. However, it’s edged lower amid the crypto winter and has lost 97% of that value given the current price. Negative sentiment remains, but if bulls hold the long-term support zone at $0.50, a rebound to $1 might signal fresh momentum.

With several innovative products, SushiSwap has become one of the key DeFi platforms in the market. As part of the latest development plans, the Sushi team has organised an AMA on X. The event is scheduled for October 16 at 10 pm UTC and will feature Origin DeFi, Boba Network, PopcornDAO, and others in a discussion centred on continued building even as the bear market drags.

Memeinator price prediction

Memeinator will be in presale for 29 stages, a period that will see the price of MMTR rise to $0.049. Currently, the token sale is at $0.0112 with the presale at stage three. Over $687k has been raised so far and with the price set to jump to $0.0118 at the next stage, gem hunters might yet get this at what looks like a mighty bargain. If the token launches as expected during the next bull market, it could target $1 in 2024.

Why Memeinator?

While Sushi remains one of the altcoins to watch in the market, the potential for far more gains starting from the presale suggests Memeinator could be a stand out buy between these two.

The Memeinator is quickly progressing through its initial development phase, with a strong community set to grow with the launch of MMTR across the market in phase two of the project. That will also include partnerships, staking and NFTs launch, with weaker meme tokens annihilated as MMTR targets the $1 billion market cap. The roadmap lists this as phase three of the project.

Learn more here.

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Mastercard’s successful CBDC wrapping trial for NFTs

  • The trial involved wrapping CBDCs for use in purchasing NFTs on blockchains.
  • Mastercard’s Multi Token Network played a pivotal role in the trial.
  • There is a growing importance of CBDCs and blockchain in the financial industry.

In a groundbreaking development, Mastercard has announced the successful completion of a trial involving wrapping central bank digital currencies (CBDCs) for use in purchasing nonfungible tokens (NFTs) on blockchains, particularly Ethereum.

This milestone experiment demonstrates the fusion of traditional financial systems and blockchain technologies, promising innovative possibilities for commerce.

The CBDC wrapping trial

Mastercard’s trial was executed with the Reserve Bank of Australia (RBA), Australia’s Digital Finance Cooperative Research Centre CBDC, Cuscal, and Mintable. The primary aim was to assess the feasibility of integrating CBDCs into blockchain platforms. The live test involved a CBDC owner buying an NFT listed on Ethereum.

The process was straightforward yet pioneering. It “locked” a predetermined quantity of a pilot CBDC on the RBA’s pilot CBDC platform, creating an equivalent amount of wrapped pilot CBDC tokens on the Ethereum blockchain.

Notably, security measures were in place to ensure the transaction’s legitimacy. The Ethereum wallets of both the buyer and seller, along with the NFT marketplace’s smart contract, were meticulously vetted, permitting only authorized participants. This demonstration showcased the ability to exercise controls, even on public blockchains.

Role of Mastercard’s Multi Token Network

Mastercard’s Multi Token Network, introduced in June 2023, played a pivotal role in enabling this transformative trial. This network seamlessly bridges payment technology with blockchain, offering a dynamic way to link digital currencies and NFTs.

Zack Burcks, CEO and founder of Mintable acknowledged the potential of this collaboration, emphasizing its ability to combat fraud, enhance security, and streamline record-keeping.

In a broader context, the Reserve Bank of Australia has shown keen interest in the potential of an Australian dollar CBDC. It envisions the CBDC facilitating complex payment arrangements and fostering financial innovation that fiat currencies cannot replicate. However, it’s noted that further research is essential to fully comprehend the benefits and implications of such a digital currency.

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