HBO released a new documentary claiming to discover who the mysterious Satoshi Nakamoto is (HBO), the SEC charges Cumberland DRW with acting as 'unregistered dealer' in crypto transactions (Reuters), while Crypto.com received a Wells Notice (X/kris)
This week, HBO released a new documentary claiming to discover who the mysterious Satoshi Nakamoto is (HBO), the SEC charges Cumberland DRW with acting as 'unregistered dealer' in crypto transactions (Reuters), while Crypto.com received a Wells Notice (X/kris), and Tron founder, Justin Sun, was elected as Prime Minister of Liberland - a micronation located between the borders of Croatia and Serbia (Coindesk).
🌞 Uniswap announces Unichain, new Ethereum rollup
💫 Off The Grid, Avalanche based video game, tops the Epic Store charts
SUI has been crushing the market over the past month, up 118% over the past 30 days, closely followed by APT which is 66% over the past 30 days. In stark contrast, BTC, ETH, and SOL are up 8.7%, 5.5% and 8.8% over the same period. As we wrote 2 weeks ago, not only is SUI price up, but fundamental metrics have, at times, led price. RECRD, the Sui-based video sharing app has maintained about 500k DAUs over the past few weeks. Aside from Sui and Aptos, most other major tokens traded largely sideways last week. The week was filled with uncertainty as Hurricane Milton barreled into Florida, and CPI number printed. In spite of this, markets remained relatively stable.
On Thursday, the Bureau of Labor Statistics announced released Consumer Price Index data for the month of September. On a monthly basis, CPI increased 0.2%, the same as last month, but more than expected by analysts. Coming in at a 2.4% YoY increase, CPI came in hotter than the 2.3% expected, but is still the smallest YoY increase since February 2021. CME’s FedWatch tool indicates that the chance of a 25bps rate cut in November’s meeting has fallen by 8% since last week. With this, crypto markets continue to lag US equity markets. The S&P500 made record highs again on Friday, as did the Dow.
Uniswap Labs, the company behind the eponymous trailblazing DEX started in 2018 by Hayden Adams, has announced Unichain, an Ethereum Layer 2 built using the OP Stack. With the announcement, they also revealed that testnet would be going live as well. This is a big move by Uniswap, as it becomes the first major DeFi application to launch as a rollup. They have chosen to build using the OP Stack, alongside other Superchain members Base, OP Mainnet, Zora, and more (superchain.eco).
Uniswap has historically been the largest driver of fees on Ethereum L1, having generated nearly $3bn since its inception. This prominence raises important questions about the implications of such a significant protocol moving to Layer 2.
The fat protocol thesis, which suggests that value accrues to underlying protocols rather than applications built on top, faces a new test with Uniswap's move. As Uniswap transitions to its own L2, it may retain more of the value it generates, potentially altering the dynamics of value distribution in the Ethereum ecosystem.
Ethereum's revenue model, particularly post-EIP-1559 with its fee-burning mechanism, has relied heavily on activity from protocols like Uniswap. The migration of such a significant fee generator to L2 could impact Ethereum's deflationary characteristics and overall tokenomics. This shift may prompt a reevaluation of Ethereum's long-term value proposition and its role as a settlement layer for L2 networks.
Uniswap's monthly transactions on Ethereum have declined from a peak of 6.7 million in May 2023 to just under 3 million last month, indicating a broader trend of activity moving to L2 solutions.
Notably, Base has emerged as a dominant force, now accounting for about 90% of Uniswap transactions at the contract level. This shift highlights the rapid adoption of L2 solutions and the changing landscape of DeFi infrastructure. The rise of Base and its unique DEX ecosystem, particularly Aerodrome, presents both challenges and opportunities for Uniswap. As Unichain launches, it will need to compete not only with other L2s but also with established DEXs on those networks. The question remains whether liquidity will migrate from Base to Unichain, or if Uniswap will face increased competition on its new home turf.
As part of the Optimism Superchain, Uniswap will partner with OP Labs to implement native interoperability, enabling single-block, cross-chain message passing among Superchain L2s like Base, Zora, Unichain, and more. Additionally, Uniswap worked with Flashbots to create Rollup Boost, “a verifiable block building platform for rollups, enabled by Trusted Execution Environments (TEE) technology… enabling fast confirmation times, strong user guarantees, and MEV internalization.”
Here is @QwQiao on what this means for blockchains and applications as they try to maximize value capture:
Uniswap's launch of Unichain represents a pivotal moment in DeFi's evolution, potentially reshaping the dynamics of the Ethereum ecosystem and setting a precedent for other major protocols. As the project progresses from testnet to mainnet, its impact on liquidity distribution, user adoption, and the broader L2 landscape will be critical areas for investors to watch.
One blockchain vertical that has less mindshare than you would expect by now is gaming. Back in 2021 there were Play-to-Earn games like Axie Infinity that captivated the imaginations of people around the world as it created a global labor market (if ponzi-esque). People in the Philippines, for example, were quitting their jobs to play Axie Infinity full time. That did not end well.
Since then, blockchain gaming has come a long way. One of the most notable trends has been the emergence of high-quality, AAA-type blockchain games. Titles like Illuvium, Guild of Guardians, and Big Time have raised the bar for blockchain gaming experiences, rivaling traditional PC, console, and mobile games. This shift represents a maturation of the market and a focus on creating engaging gameplay beyond just financial incentives.
Having recently launched in early access, Off The Grid has taken the gaming community by storm, and ranks at the top of the Epic Store for free games. What most gamers do not know, however, is that it is a blockchain based game. The game will allow users to collect valuable items such as guns, cosmetics, and more as NFTs minted on the GUNZ blockchain. The GUNZ blockchain was deployed a blockchain on an Avalanche Subnet.
Avalanche C-Chain’s daily transactions and daily active addresses are down since the highs of mid/late 2021.
TVL data shows a similar trend in onchain activity. Avalanche’s first AAA gaming launch is showing signs of early success, with the potential to rekindle the ecosystem, and demonstrate the value of blockchains in gaming and beyond. The fusion of AAA gaming with blockchain functionality opens up exciting possibilities for true digital ownership and potential interoperability of assets. The game's creators have wisely chosen to keep the blockchain aspects subtle, allowing players to enjoy the core gaming experience without being overwhelmed by crypto complexities. The game's success could pave the way for more blockchain-integrated gaming experiences, potentially driving a new wave of users to the Avalanche network. Moreover, it serves as a compelling proof-of-concept for how blockchain can enhance digital ownership and asset interoperability in virtual worlds
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