Rumors surfaced late Sunday night that some Binance users were unable to withdraw from the exchange.
A big GM to all.
Some rumors were floating around late last night on CT that Binance was restricting some users from withdrawing funds. However, there is nothing occurring onchain that signals panic, and Binance has processed numerous large withdrawal requests from Jump, QCP, and others over the past 7 days. There is nothing to be too concerned about right now, but the situation is worth monitoring closely.
In other news, CitiGroup announced its pilot program for a private blockchain that aims to give clients access to tokenized deposits, cross-border payments, and financial services available 24/7. The initiative is being referred to as ‘Citi Token Services’ and represents an important step forward for institutional crypto adoption, albeit in a walled garden environment.
As crypto natives and financial inclusion enthusiasts, we hate the ethos of ‘private blockchains’. However, with crypto custody and general OpSec for users still a major concern, maybe it’s not such a terrible idea to test crypto use cases across public and private networks. One would need to look no further than last Friday when Mark Cuban’s wallet was drained for ~$870K for the latest (widely known) crypto hack victim.
I want to shout out those who made it to Permissionless II last week - it was fantastic to meet many of our daily readers in person. There are a lot of takeaways from last week, but one thing is for certain; between September 10-13, it was a very bad day to be a beer.
All jokes aside, the energy at Permissionless II was absolutely electric. It was a very high-signal, low-noise crowd with thoughtful conversations taking place throughout every corner of the venue in Austin, TX. The primary takeaway for me was that we still aren’t sure about the best way to scale blockchains despite the narrative of L2s and Ethereum being the clear-cut way forward.
We will have videos of all the panels that took place either later today or tomorrow, so I will be sure to highlight those in a newsletter this week. Have a great Monday, all. Let’s get after it this week.
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Blockworks Research Analytics breaks down ETH validators’ staking yield into its three components: issuance, priority fees, and MEV payments. Staking yield has been trending lower, mainly as a result of decreasing issuance to each validator. This is largely the outcome of more ETH being staked and the pro rata share of new ETH issuance per validator declining.
Staking yields have declined from over 5% to around 4%. In times of congestion (resulting in greater priority fees) and larger MEV opportunities, the staking yield sees a large boost. While we can expect with confidence the issuance share continues to decline, if we see more activity onchain on mainnet, it will be interesting to watch how it impacts total validator yield as the MEV and priority fee components presumably increase.
We at Blockworks Research propose changing ATOM's monetary policy from a dynamic inflation schedule to a more static supply curve. With the advent of liquid staking, the dynamic mechanism is outdated, since market participants that liquid stake can now receive both staking rewards and DeFi yield. PoS networks no longer need to compete with DeFi by inflating its supply, ultimately creating larger supply overhangs. Additionally, the relatively high inflation compared to its peers has hurt ATOM's monetary characteristics. This new inflation schedule would cut the total outstanding supply of ATOM by ~100M ATOM (~16% decrease) by the end of the decade. We would love any feedback on our proposal and are excited to see it progress through the governance process.
This past month had a flurry of highly important governance votes across the crypto landscape. We leverage GovHub, our powerful governance aggregator, to provide deep insights into the most important proposals in crypto.
The insights, views and outlooks presented in the report are not to be taken as financial advice. Blockworks Research analysts are not registered broker/dealers or financial advisors. Blockworks Research analysts may hold assets mentioned in this report, further outlined in the Firm’s Financial Disclosures.
Base has doubled-down on its commitment to the Superchain vision, has shown early signs of success with nearly $400M in TVL, and has become home to novel dapps such as friend.tech which has seen significant traction.