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Schwartz Clarifies Ripple Position on XRP Ledger Smart Contracts Via EVM Sidechain Amid Concerns

Sam Wisdom Raphael
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Schwartz Clarifies Ripple Position on XRP Ledger Smart Contracts Via EVM Sidechain Amid Concerns

Ripple’s plans to introduce smart contract functionality to the XRP Ledger (XRPL) have triggered discussions within the community. 

Interestingly, Ripple CTO David Schwartz has addressed some of the emerging concerns, essentially providing clarity on the company’s stance and future intentions.

Ripple’s Vision for XRPL Smart Contracts

Recall that yesterday, The Crypto Basic confirmed that Ripple announced plans to enhance the XRPL by adding smart contract functionality through two primary avenues. 

The first involves an EVM Sidechain currently in development in collaboration with Peersyst. Meanwhile, the second option will involve an XLS proposal to enable smart contracts directly on the XRPL Mainnet. Ripple confirmed it will seek community support on this.

However, the announcement made no mention of trying out Hooks, a protocol designed by XRPL Labs specifically for native smart contracts on the Mainnet. The XRPL Labs team has consistently pushed for Hooks in the past, but the Ripple CTO expressed security concerns.

The omission of Hooks from the possible options in the latest announcement triggered questions, particularly from Wietse Wind, who felt that Hooks deserved consideration, especially given its successful implementation on Xahau, a new chain.

Ripple CTO Responds

Amid the ensuing backlash, David Schwartz took to X to clarify Ripple’s position. He emphasized that Ripple neither intends nor has the authority to alter the XRPL unilaterally. 

Instead, the company’s recent announcement was meant to communicate Ripple’s recognition of the value of bringing programmability to the XRPL Mainnet. 

Schwartz stressed that Ripple commits to transparency and community involvement, and the announcement was an early step in a process that would include community feedback and design reviews.

He explained that, until recently, he did not see a feasible way to implement smart contracts on the Mainnet without fundamentally changing the XRPL. 

However, after discussions with various community members, including those at Orchestra Finance, he realized that it might be possible to introduce programmability to the Mainnet while addressing key challenges such as ledger bloat, transaction speed reduction, and potential security vulnerabilities. 

He acknowledged that others in the community had reached this conclusion earlier and emphasized that Ripple intends to take a cautious, step-by-step approach to mitigate any risks associated with such changes.

The Role of the XRP Community

One of the important points Schwartz highlighted was the importance of the XRP community in the decision-making process. He reassured community members that Ripple’s goal is to collaborate with them rather than impose changes. 

The Ripple CTO also addressed the timing of the announcement, noting that it coincided with upcoming XRP community gatherings in Korea and Japan. Schwartz saw these in-person events as valuable opportunities for open discussions about the future of XRPL programmability.

Emerging Concerns About Decentralization

In response to Schwartz’s clarifications, some community members raised questions about the decentralization of the XRPL. 

A prominent community figure, MetaManX, questioned whether smart contracts could be added to the XRPL without Ripple’s approval, suggesting that bypassing Ripple should be possible if the blockchain is truly decentralized.

At the reporting time, Schwartz has not yet responded to this question. However, the Ripple CTO has persistently emphasized in the past that Ripple is merely just another builder on the XRPL. As such, it does not unilaterally impose or block changes to the network.

Solana Downside Risks To $100: Can $125 Support Hold?

Albert Brown
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Solana Downside Risks To $100: Can $125 Support Hold?

With the $125 support zone under pressure, will Solana manage to bounce back despite the fall in active addresses?

As the broader market falls, the Solana price drops under the $130 mark, prolonging the bear cycle. Amid the growing sell-off, will Solana pull off a reversal from the $125 support zone?

Solana Under $130 Warns a Slip to $100

The Solana price trend continues on the bearish part, with a 20% drop in the past 11 days. With a single bullish candle in between, the intense selloff has finally broken under the $130 mark. 

Currently, the Solana price is trading at $127 following last night’s massive 5.53% drop. This puts additional pressure on the $125 support zone, which remains a crucial reversal spot. 

However, the recent selloff and the increasing chances of a death cross between the 50- and 200-day EMA warn of a breakdown rally. 

Solana Price Chart
Solana Price Chart

Multiple lower-priced rejection candles from this zone have led to a bullish reversal. However, a recurring pattern of double-top reversals prolongs the lower-high formations. 

This reflects the massive overhead supply in the Solana charts. Hence, despite the absence of a resistance trend line, the price trend acts similarly within a descending triangle. 

Meanwhile, the daily RSI line supports the idea of a double-bottom reversal with a bullish divergence in the last two depths. 

The Massive Addresses Drop

Over the last month, the active addresses quickly fall with the increased bearish activity in the Solana price trend and the broader market. 

Solana Active Addresses
Solana Active Addresses

The number of active addresses on the Solana Network dropped from 33.15 million in July to just 11.1 million in August. Moreover, the daily active addresses dropped under 1 million last month. 

Will Solana Sustain Above $125?

The breakdown rally in Solana can find support at $110 and the $100 psychological mark. 

The support zone has provided multiple support since early 2024 and has provided six reversal entries before. In case of a bullish reversal, the upside resistances are the 200-day EMA at $140 and the 50-day EMA at $147. 

Furthermore, the previous double-top peaks at $163 remain a crucial breakout spot to signal a trend reversal in Solana. As the past three double-top formations have yet to be broken, a breakout rally will result in a massive upside move.  

XRP to $100: Expert Explains Where the Money Will Come to Fuel the Surge

Abdulkarim Abdulwahab
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XRP to $100: Expert Explains Where the Money Will Come to Fuel the Surge

Crypto analyst Zain Haider recently sparked a discussion on X, asking XRP enthusiasts to elaborate on how XRP could attain $100.

“What makes you think XRP will reach $100? Partnerships, utility, or market demand?” Haider asked. Among the myriad responses to this question, veteran trader Jay Grissom’s analysis stood out.

Grissom provided a detailed breakdown of the factors that could propel XRP to this significant milestone, focusing on where the money to drive XRP to $100 would come from.

Source of Money To Drive XRP to $100

Grissom highlighted that a key driver for XRP’s potential price surge is the trillions of dollars locked in Nostro/Vostro accounts. He believes these accounts, which banks use to manage cross-border transactions, could shift toward XRP for liquidity solutions. According to Grissom, this transition would significantly boost demand and, consequently, XRP’s price.

Additionally, Grissom pointed out the increasing adoption of XRP by large corporations and financial institutions for international payments. He speculated that the use of XRP in these transactions generates foreign exchange (FX) swaps, a process XRP is well-suited to handle.

In parallel, Grissom noted several advantages XRP offers to banks and financial institutions, including solutions for treasury operations, account management, liquidity, network security, and low transaction fees. He emphasized that Ripple has made it easier for banks to integrate XRP into their payment platforms.

Essentially, XRP’s design facilitates peer-to-peer transactions between financial institutions, providing a more streamlined solution than traditional Nostro/Vostro systems. Moreover, the legal clarity surrounding XRP further incentivizes banks and financial institutions, as it ensures regulatory compliance.

Retail and Institutional Investors Boosting XRP

Regarding retail investors, Grissom stated that they generally provide only a modest boost to XRP’s price, often entering markets at peaks. He believes that the major price increases will come from institutional investors.

Supporting this view, he highlighted scenarios where hedge funds and retirement funds invest in exchange-traded products (ETPs) backed by physical XRP, offering substantial support for the XRP price.

According to Grissom, the combination of institutional investment, the shift from traditional banking systems, and XRP’s strategic advantages creates a robust foundation for its potential price increase to $100.

Notably, XRP is currently trading at $0.5712, up by 13% over the past year. For XRP to reach the $100 price target, it would need to experience an aggressive price surge of 17,407%. While some analysts believe this price point could be achievable within the next year, others have projected a timeline of several decades.

PAW Chain’s New Layer 3 Blockchain: Moving Beyond Layer 2

Esra Zuhal
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PAW Chain’s New Layer 3 Blockchain: Moving Beyond Layer 2

The blockchain industry has seen rapid advancements, with developers constantly pushing for better scalability, security, and efficiency. A significant step forward is the introduction of Layer 3 (L3) blockchains, designed to address some limitations of Layer 2 (L2) solutions. PAW Chain is leading this evolution with its new L3 blockchain.

Understanding Blockchain Layers

  • Layer 1 (L1): The base layer or main blockchain, like Bitcoin or Ethereum, handles core functions such as consensus, security, and data storage.
  • Layer 2 (L2): Built on top of L1 to improve scalability and transaction speeds. L2 protocols, such as the Lightning Network for Bitcoin or Optimistic Rollups for Ethereum, operate off-chain and interact with L1 only when necessary.
  • Layer 3 (L3): L3 adds on top of L2 and L1, offering further abstraction and specialization. L3 is designed to optimize specific functionalities like privacy, interoperability, and specialized use cases that L2 solutions may not adequately address.

Layer 2’s Role and Limitations

L2 blockchains were developed to tackle the issues of L1 blockchains. As networks like Ethereum grew, they became congested, leading to slower transactions and higher fees. L2s reduce this load by processing transactions off-chain.

  • Scalability: By moving transactions off-chain, L2 solutions can handle more transactions per second (TPS), improving scalability.
  • Lower Costs: Since L2 solutions reduce the number of transactions that need to be processed on-chain, they lower the transaction fees.
  • Faster Transactions: L2 solutions enable near-instant transactions as they bypass the slower L1 consensus mechanisms.

However, Layer 2 solutions still depend on Layer 1 for final settlement and may not address issues like interoperability or specialized functionalities.

PAW Chain Layer 3: The Next Step

Layer 3 blockchains, like PAW Chain’s, go beyond L2s. Offering more efficient task handling, better interoperability between blockchains, and enhanced privacy features.

Key Differences Between L2 and L3:

  • Specialization: L3 blockchains are tailored for specific industries, offering customized features. For example, an L3 for gaming might optimize for fast, microtransactions.
  • Interoperability: L3 blockchains can connect multiple L1 and L2 networks, facilitating smooth communication and transfers across different blockchains.
  • Privacy: L3 blockchains can implement advanced privacy features, crucial for industries where data confidentiality is essential.

Advantages of PAW Chain’s Layer 3 Blockchain

  • Enhanced Scalability: 

While Layer 3 blockchains help by handling transactions off the main chain, they still need to rely on Layer 1 for finalizing those transactions. PAW Chain’s Layer 3 takes this further by focusing on specific tasks, reducing the need to go back to the primary chain as much. This makes transactions cheaper and faster, which is perfect for apps that need to process a lot of data quickly. In fact, PAW recently recorded an incredibly fast block time of just 0.004 milliseconds, making it one of the quickest networks out there.

  • Greater Interoperability:

One problem with blockchains is that they don’t easily communicate with each other. PAW Chain’s Layer 3 solves this by acting as a bridge between different networks, making it easy to move assets and data across chains. Developers can also easily expand their projects to multiple chains with PAW, using just one liquidity pool that works across networks like BASE, Polygon, and BNB. This setup cuts down on the costs and time usually required to operate on multiple chains.

  • Improved Privacy:

Privacy is always a concern in blockchain, especially for businesses and individuals who need to keep their transactions confidential. PAW Chain’s L3 uses advanced encryption to enhance privacy, letting users make transactions without exposing sensitive information.

  • Tailored Solutions: 

Most Layer 3 solutions are made to be flexible across various uses. But, with Layer 3 blockchains like PAW Chain, you can tailor the system for specific industries or needs. For example, an L3 blockchain focused on gaming could be optimized for fast, small transactions and integrate smoothly with existing gaming platforms.

Preventing the Multichain Hack: How PAW Chain’s Layer 3 Could Have Made a Difference:

After highlighting PAW Chain’s Layer 3 features, it’s essential to consider how this technology could have impacted real-world events. A prime example is the Multichain hack in July 2024, where over $120 million in assets were stolen due to vulnerabilities in the bridge’s smart contracts.

PAW’s L3 ledger could have played a crucial role in preventing such an incident with its advanced verification processes, multi-signature protocols, and automated audit trails. As one of CertiK’s top 10 audited projects, and unlike typical L1 and L2 solutions, PAW’s L3 introduces an extra level of security by isolating high-risk transactions and applying advanced cryptographic techniques to ensure each tx is thoroughly verified before execution.

Preventing the Uniswap v3 MEV Bot exploit: How PAW Chain’s Layer 3 Could Have Made a Difference:

In June 2024, Uniswap v3 fell victim to a Maximal Extractable Value (MEV) bot exploit. The bot took advantage of the mempool to front-run transactions, profiting from price differences and causing significant losses. The bot monitored pending transactions and strategically placed its own, exploiting Uniswap’s reliance on gas fees to determine transaction order.

How PAW Chain’s L3 could have prevented this:

Private Mempool

PAW Chain’s Layer 3 architecture conceals transaction details, making them visible only to the sender until completion. MEV bots are unable to access or manipulate pending transactions, which stops front-running attacks and keeps transactions secure.

Interchain Operability

PAW Chain enables smart contracts to operate across multiple blockchains. By reducing reliance on multiple liquidity pools, the system complicates efforts by bots to exploit transactions on individual networks, enhancing overall security.

Triple Accounting Ledger and Cross-Stitching Methodology

PAW Chain records each transaction across three separate ledgers to ensure data accuracy. The cross-stitching methodology interlinks blocks, making unauthorized manipulation extremely difficult. These techniques ensure the integrity and security of the blockchain.

In summary

PAW’s new Layer 3 blockchain is a significant advancement. It offers enhanced scalability, interoperability, privacy, and specialization. As the industry grows, PAW will play a key role in addressing the limitations of earlier layers and unlocking new possibilities.

Visit the PAW Chain website, and their social media.

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Please note that The Crypto Basic does not endorse or support any content or product on this page. We strongly advise readers to conduct their own research before acting on any information presented here and assume full responsibility for their decisions. This article should not be considered investment advice.

Ethereum Layer-1 Revenue Drops 99% Despite Growing Layer-2, Here’s Why

Albert Brown
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Ethereum Layer-1 Revenue Drops 99% Despite Growing Layer-2, Here’s Why

The revenue of the layer-1 network of Ethereum has experienced a sharp decline, plummeting by 99% since March 2024. 

This significant drop comes despite an increase in monthly users and rising daily transaction costs on Ethereum’s layer-2 solutions.

According to data from Token Terminal, the network fees reached their peak for the year on March 5, at over $35 million, shortly before the Dencun upgrade. This upgrade notably reduced fees for layer-2 transactions, altering the revenue structure for Ethereum’s base layer.

Impact of Blobs on Layer-1 Revenue

The introduction of “blobs” in March has been a major factor in the declining revenue. Blobs, a scaling and efficiency update, allowed layer-2 solutions to process transactions more cheaply without relying heavily on Ethereum’s base layer for data availability (DA). 

This efficiency has enabled layer-2 networks to offer reduced transaction costs, resulting in fewer fees being funneled back to the layer-1 network. Consequently, Ethereum’s layer-1 has seen a steep reduction in revenue as the use of its DA services has decreased significantly.

Shifts in Ethereum’s Fee Structure

In addition to reduced revenue, Ethereum’s fee structure has also undergone notable changes. The higher gas usage earlier in the year had led to an increased burn rate for ETH tokens, which kept the crypto deflationary.

However, following the introduction of blobs, the burn rate has declined, flipping ETH into an inflationary state. 

This shift has raised concerns about the potential impact on ETH’s price, with some market observers calling for adjustments to blob fees. One Abstract Chain contributor suggested increasing blob fees to rebalance the relationship between layer-1 and layer-2 networks and to enhance ETH’s deflationary status.

Community Response and Staking Growth

The Ethereum community has responded to these developments with varying perspectives. Ryan Berckmans, an Ethereum validator, expressed support for the current state of layer-1 fees. He argued that the success of layer-2 solutions has made Ethereum’s base layer more accessible for larger entities. 

Despite the revenue drop, Berckmans emphasized that fees are not the primary goal of Ethereum; instead, they are a byproduct of the network’s utility. 

In related news, Ethereum’s staking ecosystem continues to grow, with 34 million ETH staked and over 1 million active validators by August 26, demonstrating strong participation in the network’s proof-of-stake model.

Tensions Rise in XRP Community as Ripple Reverses Stance on XRPL Smart Contracts

Abdulkarim Abdulwahab
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0
Tensions Rise in XRP Community as Ripple Reverses Stance on XRPL Smart Contracts

The latest move from Ripple to introduce native smart contracts on the XRP Ledger (XRPL) has stirred significant discontent within the XRP community, particularly from independent developers. 

Notably, Ripple’s announcement marks a significant shift in its earlier stance regarding smart contracts on XRPL. As a result, it has drawn a mixed response, particularly from XRPL Labs, a key contributor to the XRPL ecosystem.

Ripple’s Smart Contract Strategy

Per the announcement on Monday, Ripple seeks to enhance XRPL utility with smart contracts leveraging a dual approach. It includes developing an Ethereum Virtual Machine (EVM) sidechain and implementing native smart contracts directly on XRPL Mainnet. 

The aim is to expand the XRPL’s developer ecosystem and provide new functionalities for builders, enabling the creation of more versatile decentralized applications.

Meanwhile, just three months ago, at the XRP Ledger Apex event, Ripple’s CTO, David Schwartz, described the XRPL Mainnet as a “fixed function ledger.” This suggests that smart contracts were better suited for networks like the EVM sidechain or the Xahau network, an XRPL sidechain developed to support Hooks.

XRPL Labs Responds, Calling for Recognition and Collaboration

In response, Wietse Wind, Director of XRPL Labs, published an open letter expressing both frustration and disappointment over Ripple’s change in direction. 

XRPL Labs has been advocating for a native smart contract solution on the XRPL Mainnet for the past four years through the development of “Hooks,” a Layer 1 smart contract solution designed specifically for the XRPL.

“Despite initial skepticism and limited support, we persevered, transforming this concept into a fully-fledged, battle-tested implementation,” Wind wrote. 

Furthermore, Wind highlighted the challenges faced, including political hurdles and pushback. Regardless of these, he emphasized XRPL Labs’ commitment to the eventual launch of Hooks on the Xahau network, providing developers with a production environment to build and innovate.

Wind expressed mixed emotions over Ripple’s recent embrace of Layer 1 smart contracts, feeling that this recognition has come too late and at the expense of those who have been driving innovation within the ecosystem. 

He criticized Ripple’s lack of direct communication regarding this pivot, which he believes undermines the spirit of collaboration and respect for the contributions of community developers.

Concerns Over XRP Ecosystem Fragmentation

Wind’s letter also raises concerns about the potential fragmentation of the XRPL ecosystem. He urged Ripple to support the existing Hooks technology on the mainnet, warning that pursuing a separate path could alienate dedicated developers and fracture the community. 

The letter calls for Ripple to present a comprehensive proposal that demonstrates a genuine commitment to supporting community-driven innovation rather than attempting to “reinvent the wheel.”

“The sudden change in opinion and narrative is surprising,” Wind noted, pointing out the inconsistency in Ripple’s messaging. He also questioned Ripple’s decision to explore alternative technologies or “iterations of Hooks” without involving the original developers, describing it as “perplexing and concerning.”

XRP Army Reacts

Ripple CTO Schwartz addressed Wind’s concerns by clarifying that Ripple had communicated with XRPL Labs before their announcement. He noted that Ripple had consistently supported the Hooks initiative. 

He acknowledged that while Hooks has potential, it might benefit from further updates to better suit the XRPL mainnet. Schwartz emphasized that Ripple is still exploring the best approach for smart contracts and seeks community collaboration.

However, Wind disagreed with Schwartz’s account. He stated that there was no formal discussion, only a brief message about a shift in Ripple’s stance on smart contracts. He expressed his readiness to support any progress on XRPL, whether it involves Hooks or not.

Adding to the debate, Yassin Mobarak, founder of Dizercapital, backed Wind’s position. He highlighted that Ripple’s primary obligation is to its shareholders, which might not always align with the broader XRP community’s interests.

He cautioned the community to be aware of potential divergences between Ripple’s goals and those of the XRP ecosystem.

Analyst Reveals the Only Barrier Preventing XRP From Reaching $11-$27.5

Sam Wisdom Raphael
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Analyst Reveals the Only Barrier Preventing XRP From Reaching $11-$27.5

CryptoInsightUK, a prominent market analyst, shares a unique perspective to the possible factor behind the XRP underperformance.

According to his observation, the main barrier to XRP reaching a two-digit price is not the market cap but the drastic decline in attention and investor interest over the years.

XRP’s Historical Market Cap Comparison 

CryptoInsightUK pointed out that back in January 2018, XRP achieved its all-time high of $3.37 amid a market dominance of approximately 15.5% within the total cryptocurrency market. At the time, the crypto market had a valuation of $691 billion. 

Crypto Market Cap CryptoInsightUK
Crypto Market Cap | CryptoInsightUK

However, since then, XRP’s circulating supply has expanded by roughly 69%, significantly diluting its value. This expansion is due to Ripple’s monthly escrow releases. Notably, the escrow unlocks 1 billion XRP each month, with Ripple typically leaving 200 million in the market. 

CryptoInsightUK suggests that amid the inflation, if XRP’s market dominance returned to 15% in the current market, XRP’s market cap could potentially rise to $330 billion—an increase that would only be about 2.5 times greater than its 2017 level. 

In this scenario, XRP’s price could hover around $5.50 without any further expansion in the overall cryptocurrency market. This price scenario, which puts XRP at an all-time high, is readily feasible.

The global crypto market has grown substantially since XRP’s peak in 2018. The global crypto market cap is now $2.05 trillion, which is about 3.2 times larger than it was in 2017. Presently, XRP’s market cap stands at around $31.6 billion, giving it a market dominance of just 1.54%. 

XRP Could Potentially Hit $11-$27.5

CryptoInsightUK posits that if the overall crypto market cap increased to a range of $4 trillion and $5 trillion—or even up to $9 trillion to $10 trillion—this would represent a growth of 2 to 5 times. In such a case, XRP’s value could theoretically rise to a range of $11 to $27.5.

Recall that Ripple CEO Brad Garlinghouse previously projected that the total crypto market cap could reach $5 trillion by the end of the year. This is capable of having a positive effect on XRP’s price if it increases at an equal pace.

Amid these promising figures, the analyst stresses that the true challenge for XRP’s growth to new heights is not a potentially over bloated market cap, as many suggest. However, he believes it is the rekindling of the kind of attention and enthusiasm it garnered during its peak years. 

This perspective has resonated with members of the XRP community. One member, identified as JL, observed that the crypto market in 2017 had fewer projects competing for attention, making it easier for XRP to stand out. 

Today’s market is far more saturated, and JL believes that the recently concluded lawsuit involving Ripple may have held back significant developments. With the lawsuit now over, he expects the development to set the stage for a renewed surge in interest and activity around XRP.

CryptoInsightUK agreed with JL’s sentiment, emphasizing that the critical question now is whether XRP can capture the same level of attention it once did. 

What the Crypto Market Could Experience as FTX Prepares to Repay Creditors $16B

Lele Jima
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What the Crypto Market Could Experience as FTX Prepares to Repay Creditors $16B

Crypto investors express mixed reactions as popular defunct exchange FTX prepares to repay $16 billion to creditors by next quarter. 

As investors anticipate FTX’s repayment of $16 billion to creditors in the fourth quarter of 2024, several crypto experts have been deliberating on how this development could impact the market. 

For context, FTX is set to repay its creditors $16 billion in cash by November and December 2024. While many pundits expect the move to impact the broader market positively, others think otherwise. 

Bearish Case 

In particular, pseudonymous trader “Kaz The Shadow” is among those who believe FTX’s upcoming repayment could negatively impact the market. 

Kaz noted that if FTX is required to pay its creditors in cash, the bankrupt exchange will likely sell most of its crypto holdings to raise the $16 billion. According to Kaz, this action could trigger a massive collapse in crypto prices amid the large-scale selloff.

The trader stated that even though FTX repays creditors in cryptos, people might sell their assets, causing a similar effect. As a result, Kaz urged investors to exercise caution, indicating that the market might face significant volatility due to FTX’s upcoming repayment. 

Bullish Case 

However, the research arm of blockchain analytics company Cryptonary recently emphasized that FTX will repay the entire $16 billion in stablecoins. 

Even though the research team speculated that most of the funds could be reinvested into cryptos, it suggested that some could be used to acquire Christmas gifts, given the period of the repayments.

Additionally, veteran crypto trader Sensei shares a similar sentiment, suggesting that the upcoming repayment is bullish for the market. He speculated that many FTX creditors will reinvest the cash into cryptos. This move could bolster crypto prices, potentially paving the way for the highly anticipated bull run. 

Can FTX Repayment Revitalize the Crypto Market?

Meanwhile, the performance of the broader crypto market, led by Bitcoin (BTC), has been discouraging in recent times.

Specifically, Bitcoin, which soared to an all-time high of $73,750 in March, is currently down 19.65% to $59,180. The premier asset has dropped 5.15% in the last seven days and 4.79% over the past month. Bitcoin’s massive plunge has impacted the broader market, causing a significant crash in crypto prices. 

With several market observers expecting FTX creditors to reinvest some funds into crypto assets, like Bitcoin, this influx of capital could revitalize the market. 

Long-Term Cardano Critic Revises Stance, Praises ADA’s New On-Chain Governance Following Chang

Albert Brown
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Long-Term Cardano Critic Revises Stance, Praises ADA’s New On-Chain Governance Following Chang

Cardano recently marked a significant development with the introduction of on-chain governance through the Chang Hard Fork. 

This milestone has influenced some long-standing critics within the crypto community, leading to a reevaluation of their stance. Notably, Justin Bons, a prominent figure in the industry who has been critical of Cardano in the past, has now acknowledged the platform’s progress.

Perspectives on Decentralized Governance

In his recent post on X, the critic commended the Cardano community for achieving on-chain governance, highlighting its importance in preventing centralization. He emphasized that true decentralization at scale cannot be realized without governance mechanisms in place. Bons further stated that many projects claiming decentralization are still controlled centrally. 

The critic’s remarks extended to a broader comparison within the top 20 cryptocurrencies. He noted that, aside from Cardano and Polkadot, other major cryptocurrencies like Solana, Avalanche, and Near Protocol have only rudimentary forms of on-chain governance.

This distinction, according to him, places Cardano and Polkadot in a unique position within the industry, particularly in terms of governance.

Governance as a Precursor to Scalability

In his recent comments, the critic expressed hope that Cardano would prioritize Layer 1 scalability improvements next, suggesting that governance should have been secondary to scaling efforts.

He argued that without significant improvements in scalability, Cardano might struggle to attract broader usage and developer interest. Despite these concerns, he acknowledged the importance of establishing on-chain governance to prevent centralized control, as seen in other major blockchains like Bitcoin and Ethereum.

Evolution of Criticism

The latest remarks represent an evolution of Bons’ stance, which has been primarily critical of Cardano. In a post dated May 20, he described Cardano as highly centralized due to its “genesis keys,” a mechanism allowing for unilateral changes by a few key holders. 

This centralization, he argued, was in direct contradiction to Cardano’s claims of being the “most decentralized” blockchain. He acknowledged, however, that Cardano has made efforts to move away from this model with the introduction of on-chain governance as part of the Voltaire era. Now, these Genesis Keys are no longer needed in Voltaire, triggering Bons’ change of stance.

Solana’s Pump.Fun Crosses $100M Revenue in 217 Days, Becomes Fastest Growing Crypto App

Mark Brennan
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Solana’s Pump.Fun Crosses $100M Revenue in 217 Days, Becomes Fastest Growing Crypto App

Pump.Fun became the first platform to cross $100 million in revenue in less than 35 weeks, despite a recent dwindle in activity.

Solana-based Memecoin deployer Pump.Fun has hit a staggering $100 million in revenue in 217 days, becoming the quickest platform to achieve this feat. The protocol’s growth saw it overtake Ethena (ENA)-who achieved a similar height in 251 days.

Pump.Fun’s rise to success sprung from increased platform adoption following the memecoin frenzy on the Solana network. The protocol gained massive traction, reaching its peak of 20,465 tokens deployed on August 13.

Data shows that other protocols that reached $100 million in revenue took at least 35 weeks, compared to Pump.Fun’s 21 weeks. An analysis from Token Terminal and Syncracy shows that Civic (CVC), Pancakeswap (CAKE), and Aerodrone Finance (AERO), who occupied the top five alongside Pump.Fun and ENA, reached the milestone in 306, 325, and 338 days, respectively.

Fastest Growing Platform

Pump.Fun launched in January with just seven tokens created. The platform continued in this mediocre run till March, when it saw a significant nudge following a renewed memecoin season on Solana. A sensational growth in Solana-based memecoins like Dogwifhat (WIF) and Book of Meme (BOME) saw retail investors flock to Pump.Fun.

Pump.Fun benefited from the user influx, as data from Dune showed it deployed an average of 9,000 tokens daily on the Solana network through April. Degens used the protocol to create memecoins despite having the highest fees compared to other DeFi platforms. For instance, the transaction fee on Pump.Fun is 1%, while that on Pancakeswap is 0.17%.

With these outrageous fees, Pump.Fun generated 687,215 SOL (now worth $92.5 million) in revenues, having launched 1.94 million tokens on the Solana network since launch. The platform saw its highest single-day revenue of 35,075 SOL on August 12.

Hype Wearing Off

With the hype around the Solana network and Pump.Fun fizzling, users have turned their attention elsewhere. The platform’s average token deployment hit 6,547 early in September, the lowest since late March.

Pump.Fun faced criticism for saturating the Solana network with tokens without utility and took the blame for Solana’s congestion. Memecoins on the Solana network were also notorious for promotions through dubious means, like hacking the social media accounts of celebrities and famous firms.

Despite efforts to revitalize activities on the protocol, they seemed to be yielding less fruit. Pump.Fun tried to encourage creators by removing creation fees and rewarding 0.5 SOL to those whose tokens passed the bonding curve. To pass the bonding curve, a token would have to reach a liquidity of $69,000.

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