Notional is a decentralized protocol enabling fixed-rate lending and borrowing of crypto-assets on Ethereum via on-chain liquidity pools. Users can lend or borrow a broad set of Ethereum-based assets at fixed rates of interest for durations up to one year.

Notional Finance

Jeff Albus

This is a segment from the Lightspeed newsletter. To read full editions, <a href="https://blockworks.co/newsletter/lightspeed" target="_blank" rel="noreferrer noopener">subscribe</a>.



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The DeFi trading experience is a balancing act.&nbsp;



Market makers juggle cost and efficiency, while traders deal with delays, slippage, and the ever-present reality of MEV extraction. Onchain execution can be slow, liquidity is often scattered across different venues, and gas fees — even on Solana — still exist.



These are just a few of the problems that Drift — the largest derivatives platform on Solana — set out to solve with Swift Protocol. Its new trading standard is designed to maximize execution speed, minimize slippage, and make trading truly gasless across perpetuals and spot markets.&nbsp;



Most onchain trades today are scattered across AMMs, order books, and private market makers, leading to suboptimal execution. Swift Protocol consolidates these sources into a single execution layer. Instead of waiting for confirmations, Swift broadcasts orders to market makers, who compete to fill them in milliseconds, ensuring better prices and deeper liquidity. Not too shabby.



For Swift Protocol to work, it needs liquidity providers to be active participants. Traditionally, market makers on Solana manage order book quotes, a process that can be inefficient. JIT market making improves this by only submitting fills when needed, reducing unnecessary gas costs. Swift further enhances this by introducing a WebSocket-based system that simplifies market maker integration, allowing them to react to orders instantly and efficiently.



Swift also removes gas fees for traders, and does not impose additional costs on market makers, according to Chris Heaney, co-founder of Drift and lead on Swift Protocol. “JIT makers already pay gas to submit their fills. They don’t have to pay any additional gas fees vis-a-vis what they&#8217;re currently paying,&#8221; he told Lightspeed. This minimizes unnecessary gas expenses and ensures capital efficiency. Heaney explained that one reason market makers appreciate this system is &#8220;because they pay less gas providing JIT fills than they do placing and canceling quotes on an order book.&#8221;



Swift&#8217;s model also addresses one of the biggest challenges in onchain trading: MEV, or maximal extractable value. In simple terms, MEV occurs when transactions are reordered, inserted, or censored within a block, to create profit opportunities for arbitrage bots or validators at the expense of traders. One common way this happens is through slippage. Traders set a maximum slippage limit to ensure their trade still goes through if prices move, but in many systems, market makers can immediately fill the trade at that limit to extract extra profit.



Swift Protocol removes this risk by using a Dutch auction system, &#8220;which means a user can’t instantly pay their max slippage. It works similar to Uniswap X and other intent protocols,&#8221; Heaney explained. Instead of letting market makers instantly fill an order at the worst possible price a trader is willing to accept, Swift forces them to compete for the best price.



As good as all of this sounds, I still had to flag the protocol&#8217;s championing of staking-based order prioritization — or the idea that orders could be prioritized based on how much of the platform&#8217;s governance token a user has staked. My issue was the possibility that deep-pocketed traders and firms would get an unfair advantage in terms of execution priority. I’m no fan of plutocratic systems.



Heaney clarified that there will be no staking-based prioritization at launch, though the team is still considering how to best implement it.&nbsp;



“Proposed designs only provide a ‘first look’ to staked market makers, so normal market makers can still fill users as well,” he said. He went on to explain that “in combination with the Dutch auction, a staked market maker can only fill a user first if they&#8217;re willing to give them a great price.”



By collapsing execution times, removing gas fees for traders, and structuring orders to minimize MEV, Swift offers a new take on how high-performance trading can work in DeFi. If the protocol delivers on its promises, it could set the standard for how fast, efficient, and fair decentralized trading should be.&nbsp;



The Swift Protocol is now live for perpetuals trading, with spot markets coming soon.



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Swift Protocol takes on DeFi’s execution problem

Ben Strack

This is a segment from the Forward Guidance newsletter. To read full editions, <a href="https://blockworks.co/newsletter/forwardguidance">subscribe</a>.



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As we try to make sense of bitcoin price movements, sometimes there isn’t logic to be found — a tension that gives certain investors pause when mulling exposure.&nbsp;



That was BlackRock Digital Assets Head Robbie Mitchnick’s take during yesterday’s Blockworks <a href="https://blockworks.co/roundtable/tradfi-is-ready-to-embrace-crypto">roundtable</a>.&nbsp;



Bitcoin fundamentally looks like digital gold, given its global, scarce properties. “But then some days it doesn’t trade like that,” Mitchnick said, adding that some of BlackRock’s institutional clients have a hard time with this discrepancy.



“It seems like it should be this, but tariffs got announced and it went down like equities, and that’s confusing to me because I don’t understand why tariffs impact [bitcoin],” he noted. “And the answer is they don’t.”&nbsp;



He went on: “The market has sort of pre-programmed this idea that you should trade bitcoin like a risk-on asset, despite the fact that [this approach] doesn&#8217;t make any sense based on fundamentals. And so that can become, at least in the short-term, somewhat reflexive and self-fulfilling.”



Bitcoin’s gold-like properties would seem to make it appealing in 2025, Mitchnick said. BlackRock CEO Larry Fink has previously said crypto could play a <a href="https://blockworks.co/news/blackrock-spot-bitcoin-etf-rumors">“flight to quality”</a> role.



But as gold hit a <a href="https://www.reuters.com/markets/commodities/gold-rises-tariff-uncertainty-cooler-inflation-data-lend-support-2025-03-13/">record high</a> Thursday, bitcoin price is roughly 26% off the peak it hit in January. Blockworks’ Byron Gilliam has <a href="https://blockworks.co/newsletter/daily/issue/post_c357fbc1-690b-488d-9ae1-8d72d7f1193e">previously questioned</a> why bitcoin often isn’t viewed as a risk-off asset.



Big fund groups offering crypto ETFs (like BlackRock) do a lot of work educating clients on the investment thesis behind assets like BTC and ETH.&nbsp;



But beyond being told, investors might just have to experience it for themselves over time.



Aside from bitcoin’s dip alongside equities amid tariff developments, Mitchnick argued there was “no fundamental basis” for bitcoin’s “nosedive” last summer during the Japanese yen <a href="https://blockworks.co/news/on-the-margin-newsletter-macro-chart-analysis">carry trade unwind</a>. BTC price would double five or so months later.



“When you see more episodes where, short-term, [bitcoin behaves] a certain way that seems counter-logical, but then medium-term and long-term it behaves more like you’d expect — consistent with its history — then people start to train themselves to ignore that short-term noise,” Mitchnick said. 



That noise, he added, “is more driven by leveraged speculators and hot-money traders and not really thoughtful, long-term, buy-and-hold investors.”



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BlackRock exec: Confusion around bitcoin narrative remains

Casey Wagner

This is a segment from the Forward Guidance newsletter. To read full editions, <a href="https://blockworks.co/newsletter/forwardguidance" target="_blank" rel="noreferrer noopener">subscribe</a>.



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Senator Bill Hagerty’s GENIUS Act — aiming to establish <a href="https://blockworks.co/news/stablecoin-legislation-update">regulatory guidelines</a> for stablecoin issuers — advanced to the Senate floor today after a Banking Committee markup.&nbsp;



If there’s bipartisan support for the legislation, it was not apparent during today’s debate. Democrats put forth a number of amendments to the bill, urging lawmakers to adopt further protections against money laundering and consider more strict guidelines for issuers to receive licenses.&nbsp;



Republican Committee members voted against all of Sen. Elizabeth Warren’s proposed amendments, often with little debate. Hagerty and Sen. Cynthia Lummis, the Act’s main champions, argued the current bill includes AML provisions, robust reserve guidelines, and a strict registration process for issuers.



Democrat proposals would only increase regulatory oversight without increasing consumer protection, Lummis added.



At one point Sen. Warren criticized her Republican colleagues and accused them of “steamrolling” Democrats to advance the bill.&nbsp;



In the end, four Democrats (Sens. Warner, Kim, Blunt-Rochester and Gellego) voted to move the bill out of committee and to the floor.&nbsp;



The GENIUS Act now moves to the full Senate, which will debate the legislation, potentially add amendments, and eventually vote. Should it pass, the legislation will move to the House.&nbsp;



Representatives on the House Financial Services Committee are currently considering a similar bill, the STABLE Act, which they discussed earlier this week in a hearing. The legislation is still in the discussion draft phase and has not formally been introduced.



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Senate advances stablecoin bill with bipartisan support

Felix Jauvin

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The law of unintended consequences is a premise in social sciences that shines a light on the outcomes of a purposeful — but not intended or foreseen — action.



As I think through the second and third order effects of Trump’s policies thus far, this notion feels increasingly crucial to consider.



In <a href="https://www.wsj.com/opinion/the-trade-war-will-pound-stocks-trump-market-effect-bd4bc8d6">a recent op-ed</a> in the Wall Street Journal, Bridgewater Associates CIO Greg Jensen claimed that “it’s a dangerous time to be overexposed to US assets, and almost everyone is.”&nbsp;



Jensen is right. Heading into 2025, nearly all of Wall Street was on board for the US exceptionalism trade and the idea of hiding out in Mag 7 stocks:



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcF4JDV5b6yJqneC2koT8Pv9Lz4ecU2sSaH0qAmhMl_xCHQIZcYyyfS8ATfkzQWhsQJtjmqPoPrWQfgJ_dVsMf_vBYScUe6TsJ7kwvVrrt2SbsMbkr2Ye6By9KqRIvqssfTbVtH?key=07HQOY4kAJtCDjoSRjJ7tPAC" alt=""/></figure>



As we begin to unpack the effects of Trump’s <a href="https://blockworks.co/news/tariffs-impact-equities-volatility">trade policies</a>, I’m starting to see a major recalibration of global capital flows unfold that I don’t think was fully anticipated by the president and his team.&nbsp;



If you compare the MSCI USA index to MSCI World, we can see how, over the past couple of years, the US surged higher — driven by outsized fiscal deficits —&nbsp;while the rest of the world was experiencing a despondent economy. However, since Trump began his trade policy dealmaking and pursuit of lower deficits, this ratio has been falling apart:



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcenwewzFIX8nAVUMZY5Ev3iOBA5cOmqFUurvTi6xLvjQuedUL4CeYUhu-4UbZvQGrFTSPbWFIkI_7DSSsiTWso0wM6Xinr4-nvtvR4UhP1r38Dkei8B2pxK5ZMfpGCYvR12PZzqg?key=07HQOY4kAJtCDjoSRjJ7tPAC" alt=""/></figure>



Let’s unpack what’s driving this by looking at some of the major economies and how they’re evolving.&nbsp;



Comparing cross-border economic surprise indexes is a great way to examine which direction economies are trending, as they measure in real-time whether economic data is surprising to the upside/downside.&nbsp;



For the past couple of years, most economies have been in sync. But a major divergence is unfolding, with the US surprising lower and other countries surprising higher:



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdZzc8PUu5_1P8FQkmD3YMpB5pt6AVbwkATExDNU8bXZuQLv0IE2axXBULbhuECBW090nZvErKTASkv1IHT0E1TWhpacB9ktUN1wwr9lVCJUDIaQT6t0vOXNlegqBdALJ_6Xb_U9g?key=07HQOY4kAJtCDjoSRjJ7tPAC" alt=""/></figure>



Adding to that, Trump’s threats of tariffs have awoken the fiscal beast in many countries, namely across Europe.&nbsp;



As seen in this chart from my recent interview with Vincent Deluard, in the face of Trump’s threats to stop supporting the NATO security apparatus, Germany now plans to invest $500 billion into its defence and infrastructure —&nbsp;a development that sent Bund yields soaring:



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdE9Xwj0q-pyG0XV4hkUBH_dQAgbTiMUXp0CUzEuJ6moi5XJeQaq99x46nzYmSY6yNpbrvAVqONNJ_nf59qCHihEPZhZQ2yElAIWCDraQs4pkoviE94jtmYgvkNaXptqIrfuhdQ?key=07HQOY4kAJtCDjoSRjJ7tPAC" alt=""/></figure>



This led to a surge in the euro/USD to 1.088 and a mirrored decline in the USD.&nbsp;



This was a fiscal unshackling moment by the country that has been at the forefront of pursuing austerity. This reversal has sent Europe stocks soaring as capital flows out of US stocks and into European equities.&nbsp;



In Japan, the theme of surging yields is similar. The Japanese 30-year bond yield just surged to a 20 year high:



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXf-FuwXSgThSuQxlZ5sQrRh9241Ub_MxFWzJg8px_w-pDfkxra90-v4yulwHq37M91zd2jTopo1okpdCS4tB-QVF73j-QB7twDIub0POkEPAV8VjTcGpZAQbdO-AU363-fA5VWS-Q?key=07HQOY4kAJtCDjoSRjJ7tPAC" alt=""/></figure>



As yields in countries that have predominantly moved capital into US bonds and equities continue to rise, it puts pressure on the calculus that makes owning US assets worth it —&nbsp;turning them into net-sellers as global capital flows back home.



This is why Jensen, as CIO of the world’s largest hedge fund, says it’s a dangerous time to be overexposed to US assets. The marginal buyers of the last 30 years are becoming marginal sellers as capital becomes more attractive back home, largely catalyzed by Trump’s policies.



I believe this trend in global capital flows is only just beginning. Yes, a lot of big moves have already occurred across the board, but the big money cannot shift in just a few weeks. Those megaships take years to turn.



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Unpacking ‘the great recalibration’ in global markets

Kate Irwin

This is a segment from The Drop newsletter. To read full editions, <a href="https://blockworks.co/newsletter/thedrop">subscribe</a>.



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A new Arbitrum-based blockchain called Studio Chain is launching to explore what crypto can do in the entertainment sector.



Karrat Foundation worked with Arbitrum Foundation on the project. Karrat Foundation is behind the KARRAT token used by AMGI Studios’ battle royale game My Pet Hooligan, which the team says has seen over 500,000 downloads on the Epic Games Store so far in early access. KARRAT will also become the native token for Studio Chain, and My Pet Hooligan will launch on Studio Chain.



Quick sidenote: A couple years ago, I got to <a href="https://decrypt.co/videos/live-events/eQ71oapI/behind-the-scenes-with-amgi-studios-and-my-pet-hooligan">check out</a> AMGI’s studio in California where My Pet Hooligan is being made IRL. The team was incredibly passionate not only about their video game and their quirky rabbit-based IP, but also about their plans for animated films. They’re next door to Hollywood, after all.



Studio Chain ties into that vision.&nbsp;



Abitrum Orbit is tech that lets others launch their own chains, and they’re all connected to create “a universe of chains.” Arbitrum One, on the other hand, is the main <a href="https://blockworks.co/tag/arbitrum">Arbitrum</a> chain that’s an EVM-compatible L2 on Ethereum, using <a href="https://docs.arbitrum.io/how-arbitrum-works/optimistic-rollup">optimistic rollups</a> to reduce network costs. So Studio Chain will be its own chain within the Arbitrum network of chains.



<figure class="wp-block-image"><img loading="lazy" decoding="async" width="1062" height="528" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdcMp3FYZDlb9v7Hlv6qDbupjT6dRrtK2XdbFID8i578R4GbeVTz0h2FBgjm8Jbj7Ogoy77YFbdr69kLGJnWUWbv6DIKJkBNhcEzDS8hL44YqPDfOcm4Y8_IU12YderSg7-Q_8I9g.png" alt="" class="wp-image-98813" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdcMp3FYZDlb9v7Hlv6qDbupjT6dRrtK2XdbFID8i578R4GbeVTz0h2FBgjm8Jbj7Ogoy77YFbdr69kLGJnWUWbv6DIKJkBNhcEzDS8hL44YqPDfOcm4Y8_IU12YderSg7-Q_8I9g.png?w=1062 1062w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdcMp3FYZDlb9v7Hlv6qDbupjT6dRrtK2XdbFID8i578R4GbeVTz0h2FBgjm8Jbj7Ogoy77YFbdr69kLGJnWUWbv6DIKJkBNhcEzDS8hL44YqPDfOcm4Y8_IU12YderSg7-Q_8I9g.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdcMp3FYZDlb9v7Hlv6qDbupjT6dRrtK2XdbFID8i578R4GbeVTz0h2FBgjm8Jbj7Ogoy77YFbdr69kLGJnWUWbv6DIKJkBNhcEzDS8hL44YqPDfOcm4Y8_IU12YderSg7-Q_8I9g.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdcMp3FYZDlb9v7Hlv6qDbupjT6dRrtK2XdbFID8i578R4GbeVTz0h2FBgjm8Jbj7Ogoy77YFbdr69kLGJnWUWbv6DIKJkBNhcEzDS8hL44YqPDfOcm4Y8_IU12YderSg7-Q_8I9g.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdcMp3FYZDlb9v7Hlv6qDbupjT6dRrtK2XdbFID8i578R4GbeVTz0h2FBgjm8Jbj7Ogoy77YFbdr69kLGJnWUWbv6DIKJkBNhcEzDS8hL44YqPDfOcm4Y8_IU12YderSg7-Q_8I9g.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdcMp3FYZDlb9v7Hlv6qDbupjT6dRrtK2XdbFID8i578R4GbeVTz0h2FBgjm8Jbj7Ogoy77YFbdr69kLGJnWUWbv6DIKJkBNhcEzDS8hL44YqPDfOcm4Y8_IU12YderSg7-Q_8I9g.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdcMp3FYZDlb9v7Hlv6qDbupjT6dRrtK2XdbFID8i578R4GbeVTz0h2FBgjm8Jbj7Ogoy77YFbdr69kLGJnWUWbv6DIKJkBNhcEzDS8hL44YqPDfOcm4Y8_IU12YderSg7-Q_8I9g.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdcMp3FYZDlb9v7Hlv6qDbupjT6dRrtK2XdbFID8i578R4GbeVTz0h2FBgjm8Jbj7Ogoy77YFbdr69kLGJnWUWbv6DIKJkBNhcEzDS8hL44YqPDfOcm4Y8_IU12YderSg7-Q_8I9g.png?w=80 80w" sizes="auto, (max-width: 1062px) 100vw, 1062px" /><figcaption class="wp-element-caption">KARRAT price action, sitting at $0.08 at time of writing</figcaption></figure>



“By leveraging Arbitrum&#8217;s powerful infrastructure, we&#8217;re able to create gaming experiences that were previously impossible,” said Luke Paglia, COO and co-founder of AMGI Studios, in a statement. “My Pet Hooligan is just the beginning — this collaboration enables seamless in-game asset ownership, true player-driven interactive extensions, and enhanced interoperability that will transform how audiences engage with entertainment.”



In the statement, an unnamed Karrat Foundation rep hinted that the chain could change how “entertainment IP is created and distributed.”



This is ambitious for sure, though we don’t really know more specifics on their plans just yet.&nbsp;



Studio Chain will have to compete with the many existing gaming chains out there, like Ronin, Sui, Immutable, and Abstract, as well as chains that launched to just support one game.&nbsp;



<a href="https://thedrop.beehiiv.com/p/betting-on-bitcoin">Off The Grid</a> from Gunzilla Games is an ambitious game with its own chain, Gunz, using Avalanche, and has seen <a href="https://dappradar.com/blog/january-kicks-off-with-3x-increase-in-on-chain-gaming-compared-to-2024">4.9 million</a> monthly active wallets as of January 2025. <a href="https://thedrop.beehiiv.com/p/another-one-bites-the-dust">MapleStory</a>’s upcoming crypto version is also planning to launch its own Avalanche chain, too.



Gala has touted its crypto-powered film vision for years, but we haven’t seen that venture take off (Gala launched a FILM token last year, and that’s down 93% from its all-time high).&nbsp;



<figure class="wp-block-image"><img loading="lazy" decoding="async" width="766" height="459" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXcYkpakLKeC84qsMdPSU_qieQ-3UANhzSaBm2CyCGN-grwkBFfa5yV6Bied9JNizLOu9eZF8UuscCdSNrdPawkD2BfwOeZdL_oKX5bFYVd7HThzo-FBb8OfPygQOh8ykD135powwA.png" alt="" class="wp-image-98812" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXcYkpakLKeC84qsMdPSU_qieQ-3UANhzSaBm2CyCGN-grwkBFfa5yV6Bied9JNizLOu9eZF8UuscCdSNrdPawkD2BfwOeZdL_oKX5bFYVd7HThzo-FBb8OfPygQOh8ykD135powwA.png?w=766 766w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXcYkpakLKeC84qsMdPSU_qieQ-3UANhzSaBm2CyCGN-grwkBFfa5yV6Bied9JNizLOu9eZF8UuscCdSNrdPawkD2BfwOeZdL_oKX5bFYVd7HThzo-FBb8OfPygQOh8ykD135powwA.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXcYkpakLKeC84qsMdPSU_qieQ-3UANhzSaBm2CyCGN-grwkBFfa5yV6Bied9JNizLOu9eZF8UuscCdSNrdPawkD2BfwOeZdL_oKX5bFYVd7HThzo-FBb8OfPygQOh8ykD135powwA.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXcYkpakLKeC84qsMdPSU_qieQ-3UANhzSaBm2CyCGN-grwkBFfa5yV6Bied9JNizLOu9eZF8UuscCdSNrdPawkD2BfwOeZdL_oKX5bFYVd7HThzo-FBb8OfPygQOh8ykD135powwA.png?w=436 436w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXcYkpakLKeC84qsMdPSU_qieQ-3UANhzSaBm2CyCGN-grwkBFfa5yV6Bied9JNizLOu9eZF8UuscCdSNrdPawkD2BfwOeZdL_oKX5bFYVd7HThzo-FBb8OfPygQOh8ykD135powwA.png?w=365 365w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXcYkpakLKeC84qsMdPSU_qieQ-3UANhzSaBm2CyCGN-grwkBFfa5yV6Bied9JNizLOu9eZF8UuscCdSNrdPawkD2BfwOeZdL_oKX5bFYVd7HThzo-FBb8OfPygQOh8ykD135powwA.png?w=80 80w" sizes="auto, (max-width: 766px) 100vw, 766px" /><figcaption class="wp-element-caption">Gala FILM price over time on CoinStats</figcaption></figure>



Ultimately, we just haven’t seen any major blockchain film or television projects, or blockchain-based film platforms, skyrocket into the mainstream yet. Recently, niche plays have been making a splash, like <a href="https://thedrop.beehiiv.com/p/this-mfer-is-normal">The Normal Mfer</a>, an animated short that heavily references meme culture, crypto culture, and the Mfers NFT collection.



More broadly, it seems we’re still in this era of crypto where projects want to launch their own chains. We saw 104 gaming-related networks announced last year, according to data from crypto gaming platform Game7.&nbsp;



Starting a dedicated chain can give studios more control and independence, but I don’t know whether all of these chains will have significant staying power long-term.&nbsp;



I think it mostly depends on whether these games get enough consistent players — and revenue — to keep the lights on.



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An Arbitrum-based blockchain is exploring what crypto can do for the entertainment industry

Donovan Choy

This is a segment from the 0xResearch newsletter. To read full editions, <a href="https://blockworks.co/newsletter/research">subscribe</a>.



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The current mood on Crypto Twitter: Speculation is dead and fundamental revenue drivers are back in.



“Speculation is dead” points to the increasing <a href="https://x.com/cryptobeastreal/status/1898666872091894169">consensus</a> that memecoins are a dying meta.&nbsp;



The straw that broke the camel’s back was of course the <a href="https://blockworks.co/news/libra-latest-solana-memecoin-episode">controversial LIBRA memecoin</a> launch last month.



LIBRA peeled back the curtain on the explicitly extractive <a href="https://blockworks.co/news/libra-memecoin-sausage-gross">practices</a> that memecoin projects exercise, such as sniping one’s own token quickly on launch.



Are memecoins dying though? Activity certainly isn&#8217;t at its all-time highs but the data suggests they’re far from death. Pump.fun launched 187k new tokens over the last week, while making $8.1 million in revenue.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfrzXJSKOTtufJJ5DHy4IhJwS3Z09wly2aknTfh_2P3z1vHVdWg5_a_-1YEoWDv4_Ho9Hh-o3ysmxUbAwAjY6t4sNdnCeMYs_2MgNH8pY1d455BhJ4Hb_i2QtRT8QJ9Iq-Sl6XG?key=hKnssSAgC3Q2N_Pl0HX9lxG8" alt=""/></figure>



Base memecoin launchpad Clanker even saw an all-time high in memecoin launches (10.8k) yesterday. It’s perhaps an anomaly, but it does cast some doubt on the idea that memecoins are a dying meta.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfbe5dAN-nDtUYOxirwxUJlSnt6K1L-26SlCxrnQPvImmzcszb_qdx9PfGSkgxyI_h9oqGHNnJLdjSY8BA4B_iX46FbR_kiMNSvJUz3UrNgLcz09qNHrdgFZ2Pln7jgwVSaPhIU?key=hKnssSAgC3Q2N_Pl0HX9lxG8" alt=""/><figcaption class="wp-element-caption">h/t: <a href="https://x.com/0xSharples/status/1899860339958616481">@0xSharples</a></figcaption></figure>



Besides, why would memecoins die?



Recall that memecoins were thought of as a casino game, what Dragonfly’s Haseeb Qureshi <a href="https://x.com/hosseeb/status/1864715648255074709">likened</a> to a video game “simulacrum of crypto trading.”&nbsp;



It was a high-risk bet with very low guarantees of a return, but so long as blockchains are still permissionlessly accessible and human greed is a variable, the <a href="https://blockworks.co/news/game-studio-betting-pivot">appetite for gambling</a> will persist.



The case for fundamentals being back in play is perhaps more persuasive.



A great piece from Decentralised.co <a href="https://x.com/Decentralisedco/status/1899791625468903626">argues</a> that revenue-generating apps/protocols will swing back in favor as capital allocators tighten their pursestrings and token attention is continually diluted.



With a glut of tokens on the market and no guarantee of the “rising tide lifts all boats” dynamic of past crypto cycles, investors need to be more selective about what tokens they purchase. So, they look to fundamental drivers.



Many prominent crypto companies are signaling the pivot back to “fundamentals” — to name a few, Jupiter, Hyperliquid, Raydium, Sky — by announcing token buybacks over the last few months.



Token buybacks are the TradFi-equivalent of “stock buybacks,” what is typically considered a more tax-efficient way than dividends to return value to shareholders. Some of the most successful companies in the 1970s and 1980s engaged in massive stock buyback campaigns, in a time where buybacks were considered extremely unpopular.



The canonical example is Teledyne. From 1972 to 1984, Teledyne’s CEO Henry Singleton bought back approximately 90% of the company’s outstanding shares.



The result: Teledyne’s stock massively outperformed the S&amp;P 500 twelvefold by 1990.



But what worked for TradFi may not for DeFi.



Unlike most traditional businesses, some crypto products enjoy a relatively high ceiling for growth and expansion. Products like Aave or Uniswap, for instance, have had fairly sustainable revenue streams. Reinvesting capital into product expansion and user acquisition may yield greater returns than buybacks.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXf1E1H3HJTlTuDCoF_tJD_q8BpilLjofKmqWqBnVOlpUyIZbrhxW8XlsDkMXjSgnjDMCqT7F8ogxEoWSMNQVmOCEj0JplUsc7kJp7oBKYwie90111qmA--de7PG274Kkb9cjMHzow?key=hKnssSAgC3Q2N_Pl0HX9lxG8" alt=""/><figcaption class="wp-element-caption">Source: <a href="http://decentralised.co">Decentralised.co</a></figcaption></figure>



In that event, token buybacks don’t justify their costs, given easier routes to grow the business and create tokenholder value.



Not only is it a poor spend of capital, it signals that the business has no other avenues for growth.



Fundamentals may be back in, but don’t assume token buybacks are a one-size-fits-all solution.



Updated March 13, 2025 at 2:20 pm ET: Removed mention of Jito. While community members in Jito have <a href="https://forum.jito.network/t/jto-utility-and-tokenomics/646" target="_blank" rel="noreferrer noopener">proposed</a> buybacks, Jito has not officially conducted any buybacks.



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Speculative assets are paving the way for fundamental drivers

Katherine Ross

This is a segment from the Empire newsletter. To read full editions,&nbsp;<a href="https://blockworks.co/newsletter/empire" target="_blank" rel="noreferrer noopener">subscribe</a>.



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Bitcoin’s had some strong sell-side pressure since the start of the year.&nbsp;



I know, not shocking. But bear with me, yeah?



Glassnode tracked bitcoin’s cyclical behavior, finding that the latest “distribution phase” (aka selling) started back in January.&nbsp;



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcbcGRUhwRsmjYFberauXU6W_wwz9mqT_BI0DuxG0spPqJQ3baWwTCAmyFZSbgw4iv0hp08oTxsRCEkIYLIfJ1JKDIxxO6DcI-DbKzPJdc3skZroxCbClok1-f8iBi3aLpEd6DHxw?key=nvxiCPzcE3z16bb68z_Z6G_6" alt=""/><figcaption class="wp-element-caption">Chart showing bitcoin accumulation trends in the past 2 years</figcaption></figure>



The Accumulation Trend Score, which “measures the relative change in aggregate onchain balances,” is still signaling that there’ll be more sell-side pressure. Unfortunately, the score is also influenced by the moves of larger entities.&nbsp;



Prior to late February, there was a pattern of adding to bitcoin positions in the $95,000 to $98,000 range, but that fell off as liquidity conditions changed (thanks, macro).&nbsp;



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdpwmpOmmge6zxvZYwOndoTjJvLvh8aZbPmaLeVCa4v1r3EZqfx6CsncSeWgPb2zvK9LmKP0BNFU5bpZRNualltGocMjSuiXuguBMTCC-B2bU9HZhSTEmuHK6P0g7m91m-DRiXk3Q?key=nvxiCPzcE3z16bb68z_Z6G_6" alt=""/><figcaption class="wp-element-caption">A look at the accumulation range and its subsequent dip</figcaption></figure>



Now the accumulation range sits between $78,000 and $92,000, which Glassnode labeled as “weak.”&nbsp;



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdL41EUHnkvbU1ErU90_Vq-gZRw75sEKL2Dq0GGRepULHoI3xhK964E7J6UVewKI4gShBDYIi6ktu841BduIiTMOYWQsHbfSUS7f6Q9DynAKWPGiy4R3kghZd-RwruTyohNM4x0Kg?key=nvxiCPzcE3z16bb68z_Z6G_6" alt=""/><figcaption class="wp-element-caption">See? Glassnote chart of &#8220;Weak Accumulation&#8221; period, from Feb. 23-Mar. 9</figcaption></figure>



So it’s starting to look like we’re not getting as many folks interested in buying the dip right now.&nbsp;



“Using the cost-basis of Short-Term Holders, we can see that market momentum and capital flows have turned negative, signaling a decline in demand strength, and investor uncertainty is affecting sentiment and confidence,” Glassnode wrote.&nbsp;



Reading into this: I’m not all that surprised, especially given the headlines around a potential US recession and some weaker-than-we-wanted economic data.&nbsp;



And I know what you’re thinking: “Investing in bitcoin diversifies your portfolio away from the macro of it all!”&nbsp;



You’re not wrong. But you’re also not entirely right. Glassnode’s note ー that a lot of this is coming from bigger entities ー means that the institutions who are getting exposure to bitcoin will also be more likely to offload it as a risk asset when the environment becomes a bit too risk-on.&nbsp;



We’re just not there yet in the whole “bitcoin’s digital gold” argument. But hey, we’re making strides every single cycle.



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Why the market isn’t buying the bitcoin dip

This is a segment from the Empire newsletter. To read full editions,&nbsp;<a href="https://blockworks.co/newsletter/empire" target="_blank" rel="noreferrer noopener">subscribe</a>.



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Mesh CEO Bam Azizi won’t be going back to the normal way of raising venture capital. And by that I mean, he won’t be waiting on a wire transfer to settle in Mesh’s bank account.&nbsp;



Instead, he prefers to receive it in stablecoins.



Earlier this week, Mesh announced that it raised $82 million in a Series B led by Paradigm. The money was then sent over to Mesh using PayPal’s stablecoin PYUSD, using his own firm’s technology.&nbsp;



Pretty fitting if you ask me, given that PayPal Ventures participated in their Series A.



Binance recently announced that Abu Dhabi’s MGX also sent over its investment via stablecoins, though the sum was just a smidge bigger — a cool $2 billion.&nbsp;



“It kind of makes sense,” Azizi told me. Why wait a week or so for a wire transfer when you can immediately settle with stablecoins? Perhaps both Azizi and Binance will be trendsetters here.



Any further raises Azizi does will also be stablecoin-exclusive.&nbsp;



“I’m tired of calling banks and manually confirming,” he griped. “Is it the 1990s? Come on, you can do better.”



Azizi told me the round happened rather quickly — a matter of weeks instead of months. He sent out an update to the investors he was talking to back in January, and then suddenly, he was preparing data to finalize the firm&#8217;s newest round.&nbsp;



(Azizi even admitted that he had even pushed back on some of the initial terms “to buy some time,” and then they were ready to finalize the funding.)



Mesh last raised $22 million in a Series A back in 2023, so it’s not a surprise that their business update — coming on the heels of success around stablecoins — would pick up interest from VCs like Consensys, QuantumLight, Paradigm, etc.&nbsp;



Oh, wait, let me back up a second: Mesh is a crypto payments firm. Azizi’s goal is to simplify payments so that they pass the “Grandma test” — which should be pretty obvious, but basically just means that anyone can make payments with crypto.&nbsp;



The firm’s been working to develop itself as a bridge for roughly five years now, with a special focus on stablecoins starting around two years ago.&nbsp;



Mesh takes an agnostic approach to the space. They don’t have direct interaction with consumers, unlike some of the firms we’ve spoken to in this newsletter, but their technology instead connects the networks and allows the consumer to then make a payment.&nbsp;



“That&#8217;s how we stand out: by building that network versus competing with all these players. They are competing with each other. We [&#8230;] want to be the connection layer, connecting and bridging all the gaps between these two,” he explained.



As Mesh solves for the payments experience, the belief is that folks will start actually using crypto for payments rather than sitting on a portfolio of memecoins.



“Last year, we had $27 trillion in transactions on stablecoins. That&#8217;s more than Visa and Mastercard combined. And if that&#8217;s not enough, plus 7% on top. So if you combine these two numbers, our projection is [that] at some point you will have more crypto holders than credit card holders,” Azizi told me.



Mesh will use the freshly raised $82 million to expand globally, which means not only going to new markets but also hiring in those areas.&nbsp;



After all, “you have to be global from the get-go,” Azizi said.



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How crypto payments firm Mesh raised $82M in a month

In the ever-expanding onchain economy, WalletConnect has solidified itself as the universal connection layer, enabling seamless interactions between users, wallets, apps and blockchains. As new connection methods and technologies emerge, does this threaten WalletConnect’s relevance? The answer is clear: WalletConnect remains indispensable. Rather than being overshadowed, it continues to adapt, ensuring a seamless, secure and decentralized user experience. Much like HTML standards were foundational to the internet, WalletConnect remains the bedrock for onchain interoperability.



<h3 class="wp-block-heading">The Challenges of Fragmentation</h3>



WalletConnect initially provided a much-needed solution for secure wallet-app interactions. However, as the onchain economy matures, numerous connection formats have emerged, offering users various authentication and signing methods. While this innovation signals progress, it also introduces complexity.



Developers and users must now navigate an array of options, including embedded wallets, smart contract wallets, and alternative connection layers. Though each has its advantages, the lack of a unified infrastructure can lead to inefficiencies, security risks, and a poor user experience. Many of these solutions still require a robust, decentralized infrastructure, exactly what WalletConnect provides.



Fragmentation also creates challenges for developers, who must integrate multiple connection standards to ensure compatibility. WalletConnect resolves this by acting as an adaptable bridge, ensuring interoperability regardless of how connection methods evolve.



<h3 class="wp-block-heading">WalletConnect: A Universal Connection Layer</h3>



Unlike single-purpose connection standards, WalletConnect functions as a bridge, supporting multiple authentication and interaction methods. This adaptability ensures developers can future-proof their applications, integrating emerging technologies without overhauling existing systems.



Projects like Reown AppKit, RainbowKit, and Privy leverage WalletConnect’s infrastructure to enhance wallet interactions, proving its continued relevance. Apps and exchanges such as Zealy, Nansen, Kraken Exchange, ChainGPT, and over 56,000 others rely on WalletConnect for seamless integration. Wallet providers, including TrustWallet, MetaMask, Binance Wallet, BitGet Wallet, and OKX Wallet, also use WalletConnect technology.



Additionally, users can switch between desktop and mobile effortlessly, making onchain experiences more intuitive. As new formats emerge, WalletConnect evolves to ensure a frictionless connection across the expanding onchain ecosystem.



Smart Sessions removes the need for users to approve every action while maintaining security. Soon, users will be able to &#8220;connect and forget,&#8221; immersing themselves in the onchain experience without friction. By reducing transaction approval fatigue while maintaining security, Smart Sessions further establishes WalletConnect as the foundational connection layer.



<h3 class="wp-block-heading">Future-Proofing Through Decentralization</h3>



A core differentiator of WalletConnect is its decentralized infrastructure, ensuring resilience and scalability. Unlike proprietary solutions, WalletConnect operates under a governance model that empowers its community and a robust network of node operators, including industry leaders such as Ledger, Kiln, Luga Nodes, Sensei Nodes, Consensys, 1kx, Figment, Everstake, Arc Community, Nansen, Chain Safe, HexTrust, NodeMonster, QuantNode, and CryptoMind. This community-driven model ensures WalletConnect evolves based on real-world needs rather than centralized decisions.



Decentralization also eliminates single points of failure. Many authentication solutions today rely on third-party providers, which can introduce security vulnerabilities. WalletConnect’s decentralized nature removes this dependency, reinforcing trust in its infrastructure.



As governance mechanisms evolve, WalletConnect’s community-led approach ensures adaptability to future technological and regulatory shifts. Through onchain voting, protocol upgrades, and open-source collaboration, the network continues refining its capabilities to serve users and developers alike.



<h3 class="wp-block-heading">Expanding WalletConnect’s Role</h3>



Looking ahead, WalletConnect is set to deepen its role by integrating with emerging standards and expanding its utility across different onchain sectors. Its infrastructure supports diverse use cases, from DeFi and gaming to enterprise applications.



By remaining community-led and responsive to technological advancements, WalletConnect ensures users always have access to the most efficient, secure, and seamless connection experience. Future developments may include extended support for new blockchain networks and Layer 2 solutions, further strengthening its role as a universal connector.



As the onchain economy grows, WalletConnect remains the adaptable, user-governed infrastructure enabling seamless, decentralized connectivity. Rather than competing with new connection methods, it enhances them, ensuring interoperability across the ecosystem.



The future of onchain interactions is not about one dominant connection method, but rather a cohesive framework uniting them all. By upholding decentralization, user choice, and interoperability, WalletConnect remains the essential foundation for the next generation of onchain experiences.



Stake your claim in the future of decentralized connectivity. Be a part of the next evolution of WalletConnect.



This content is sponsored and does not serve as an endorsement by Blockworks. The veracity of this content has not been verified and should not serve as financial advice. We encourage readers to conduct their own research before making financial decisions.



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WalletConnect: The Key to the Future of Onchain Connectivity

Jack Kubinec

This is a segment from the Lightspeed newsletter. To read full editions, <a href="https://blockworks.co/newsletter/lightspeed">subscribe</a>.



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Solana-based perpetual futures exchange Zeta Markets has shipped testnet for Bullet, a low-latency “network extension,” the team told Lightspeed exclusively. The platform’s mainnet launch is planned for early Q2 of this year.



The move comes as Solana perps developers face competition from Hyperliquid, a new perps DEX operating as a layer-1. The chain is currently secured by four validator nodes all co-located in Tokyo, which has raised some centralization concerns. However, Hyperliquid has still vaulted past other perps DEXs. It processed roughly 6x as much perps volume as every Solana perps DEX combined last week, <a href="https://defillama.com/perps/chains">according</a> to DeFiLlama.&nbsp;



“Solana has simply lacked a reliable and performant perps DEX,” Zeta Markets co-founder Anmol Singh said in an email. “[Hyperliquid] has shown where the bar is, Bullet pushes this bar further.”



Bullet plans to pull this off with a network extension, which is kind of a Solana version of an Ethereum layer-2. Like a layer-2, Bullet will process transactions with a sequencer before batching and settling the transactions to Solana. Bullet’s zero-knowledge virtual machine lets transactions be verified with fraud proofs.



So, is it really fair not to call this thing a layer-2? Perhaps not. In the past, Bullet co-founder Tristan Frizza <a href="https://blockworks.co/news/lightspeed-newsletter-solana-network-extension">told me</a> network extensions were mostly a Solana marketing term. I would think Zeta morphing into a form that looks a whole lot like an ETH L2 will ruffle some feathers in Solana land.&nbsp;



Still, Hyperliquid’s launch made it seem apparent that users care about performance and UX above all else. Bullet claims it can achieve 2ms latency, which would be much faster than Hyperliquid’s median of 200ms. Of course, take such claims with a grain of salt for now, given that Bullet is still in testnet and has yet to operate in a real-world environment.&nbsp;



Bullet will roll out lending and spot trading and hopes to become a foundation for DeFi apps. This diversification looks like a growing trend among perps DEXs, which may be realizing that a single perps product does not a thriving business make.  The Solana perps DEX Drift also rolled out lending, and the rest of the sector has alternate business lines as well. Jupiter is popular for its swap aggregator, and Raydium gets a lot of volume from pump.fun graduations (<a href="https://blockworks.co/news/pumpdotfun-ditching-raydium-rumor">for now</a>).



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Solana DEX ships network extension testnet as competition grows

This is a segment from the Forward Guidance newsletter. To read full editions, <a href="https://blockworks.co/newsletter/forwardguidance" target="_blank" rel="noreferrer noopener">subscribe</a>.



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House representatives <a href="https://blockworks.co/news/house-debates-irs-crypto-exchange-rule">voted yesterday</a> to overturn the IRS’s <a href="https://blockworks.co/news/senate-vote-defi-broker-rule">“DeFi broker” rule</a>, which was passed in the final days of the Biden administration. 



The resolution — introduced under the Congressional Review Act — passed in a 292-131 vote. 76 Democrats voted in favor of abolishing the rule.&nbsp;



The IRS’s rule required DeFi brokers to file 1099-DA forms, which are the newly approved tax forms that crypto exchanges must use starting in tax year 2025. Given that DeFi companies are not centralized, the requirements were unrealistic, industry advocates have argued.&nbsp;



During yesterday’s floor debate, Missouri Republican Jason Smith said that the crypto firms being targeted with these IRS guidelines are not capable of supplying the kind of data being requested.&nbsp;



&#8220;DeFi exchanges are not the same as centralized crypto exchanges or traditional banks or brokers,” he said, adding that most of these DeFi platforms “do not and cannot” collect certain user information.&nbsp;



The resolution <a href="https://blockworks.co/news/senate-vote-defi-broker-rule">passed in the Senate</a> last week in a 70-27 vote and will now be heading to the president’s desk. Trump’s advisers have recommended he sign the resolution.&nbsp;



The last time both chambers of Congress agreed to nix a federal agency policy was late last session, when a resolution seeking to overturn the SEC’s SAB 121 guidance received <a href="https://blockworks.co/news/senators-oppose-sec-accounting-standards">bipartisan support</a>. Biden eventually <a href="https://blockworks.co/news/house-fails-to-override-anti-sab121-veto">vetoed</a> the matter, but the SEC quickly <a href="https://blockworks.co/news/hester-peirce-reveals-sab-121-rescission">overturned SAB 121</a> after Trump took office.&nbsp;



There’s a new sheriff in town indeed.



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House overturns IRS DeFi broker rule with bipartisan resolution

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Franklin Templeton’s XRP ETF proposal yesterday is just one of several the SEC is weighing. Still, it marks the first filing from a traditional finance giant.&nbsp;



Crypto and ETF investors alike wait to see what type of spot crypto product the <a href="https://blockworks.co/news/new-sec-crypto-task-force">new-look securities regulator</a> could choose to allow through next.&nbsp;



Bloomberg Intelligence analysts last month put <a href="https://blockworks.co/news/litecoin-etf-approval-odds-2025">the highest odds</a> (90%) on litecoin ETFs seeing the light of day by the end of the year. That was ahead of dogecoin (75%), solana (70%) and XRP products (65%). The lower odds for XRP was due to the SEC’s <a href="https://blockworks.co/news/sec-advances-ripple-appeal">lawsuit against Ripple</a> (one that, unlike others, <a href="https://blockworks.co/news/sec-actions-timeline">hasn’t yet been dropped</a>).&nbsp;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">It&#39;s our view. That until that WHOLE mess of litigation between Ripple/XRP and the SEC is settled and/or finished or has some sort of expected outcome etc etc &#8212; you likely won&#39;t see an ETF. The SEC needs to untangle that mess.&mdash; James Seyffart (@JSeyff) <a href="https://twitter.com/JSeyff/status/1889043370233970821?ref_src=twsrc%5Etfw">February 10, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Franklin Templeton’s Tuesday XRP ETF <a href="https://www.sec.gov/Archives/edgar/data/2059438/000113743925000181/s1.htm">filing</a> joins those of Grayscale, Bitwise, WisdomTree and others. The SEC is reviewing them, <a href="https://www.sec.gov/files/rules/sro/nysearca/2025/34-102584.pdf">delaying</a> its decision on Grayscale’s proposal yesterday. Franklin manages roughly $1.5 trillion in assets. Yes, “illion” with a “tr.” When a fund group of that size seeks a product, people take notice.



Remember when BlackRock jumped into the bitcoin ETF race in June 2023? It turned heads, spurred optimism and left some wondering if the firm’s <a href="https://blockworks.co/news/blackrock-clout-bitcoin-etf-approval">clout was enough</a> to get US BTC funds past the SEC.&nbsp;



What played the larger role was <a href="https://blockworks.co/news/sec-grayscale-spot-bitcoin-etf">Grayscale’s court victory</a> against the regulator. And Franklin Templeton isn’t exactly BlackRock. But you get the point.&nbsp;



Franklin Templeton’s Roger Bayston <a href="https://blockworks.co/news/franklin-templeton-etfs-tokenization-2025">correctly predicted</a> in December that ETF legal staffs would be busy in the first part of 2025. Franklin Templeton last month launched a crypto index fund (so far limited to holding BTC and ETH) and filed for a solana ETF.



BlackRock has not yet entered the altcoin ETF proposal fray. Comments from execs signal the firm is focused on BTC and ETH for now (Rachel Aguirre didn’t exactly give a direct <a href="https://www.bloomberg.com/news/videos/2025-02-24/blackrock-s-aguirre-on-potential-for-solana-etf-video">answer</a> to Bloomberg on possibly proposing a SOL ETF).&nbsp;



The SEC has another seven or so months before it would have to issue a decision on any of the crypto ETFs it’s so far acknowledged. It’ll be interesting to see who could be the next big firm to add to that proposal pile in the meantime.



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After a TradFi giant joins the XRP ETF fray, who’s next?

This is a segment from the Forward Guidance newsletter. To read full editions, <a href="https://blockworks.co/newsletter/forwardguidance">subscribe</a>.



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After a tough several weeks, today is a happier day on Wall Street.&nbsp;



February’s inflation print gave stocks a surprising but welcome boost this morning after prices last month rose less than expected.&nbsp;



The Consumer Price Index showed prices increased 2.8% year over year — still above the Fed’s 2% target but a decline from the 3% annual increase recorded in January. Economists had projected CPI to come in at 2.9% for the 12 months ended February.&nbsp;



Month over month, consumer prices were up 0.2% in February, a decline from January’s 0.5% gain. That was just under projections, which called for a 0.3% rise last month. Core CPI (excludes volatile food and energy prices) came in at 3.1% annually last month, the lowest yearly increase in almost four years.&nbsp;



A key sector pushing inflation lower is housing, which historically tends to be one of the more stubborn components of the print. Easing housing costs have significantly contributed to the slowdown in inflation for the past two years.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1400" height="1040" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/03/unnamed.jpg?w=1024&amp;h=1024" alt="" class="wp-image-98712" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/03/unnamed.jpg?w=1400 1400w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/unnamed.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/unnamed.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/unnamed.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/unnamed.jpg?w=346 346w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/unnamed.jpg?w=351 351w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/unnamed.jpg?w=295 295w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/unnamed.jpg?w=80 80w" sizes="auto, (max-width: 1400px) 100vw, 1400px" /></figure>



Non-housing costs, on the other hand, have eased less consistently. While Core inflation is slowing for now, this sector includes goods likely to be impacted by tariffs. Food and energy costs are also expected to rise, especially given Trump’s new tariff plans for steel and aluminum, which experts <a href="https://www.reuters.com/business/energy/trumps-tariffs-steel-aluminum-raise-costs-us-energy-firms-experts-say-2025-03-11/">say</a> will increase OCTG costs by 15% annually.



US equities rallied Wednesday morning on the inflation print. The S&amp;P 500 gained as much as 0.8% while the Nasdaq Composite surged almost 1.5% early in the session. At 2 pm ET they were trading 0.4% and 0.9% higher, respectively.&nbsp;



Still, fears over an escalating <a href="https://blockworks.co/news/trump-tariffs-trade-war">trade war</a> are <a href="https://blockworks.co/news/tariffs-impact-equities-volatility">weighing</a> on <a href="https://blockworks.co/news/crypto-markets-tariff-reaction">markets</a>. By our estimate, the “tariff trade” is the dominant factor contributing to US equity prices right now, even if a positive inflation print provides short-term relief.&nbsp;



So far, the Fed seems comfortable continuing its <a href="https://blockworks.co/news/the-fed-committed-to-pausing-rate-cuts-why">interest rate cut pause</a>. Powell last week said the economy is “fine.”&nbsp;



“It doesn’t need us to do anything,” he added.&nbsp;



The latest on the tariff front is more retaliatory efforts against the US. Canada hit the US with a 25% levy on steel while the EU announced additional duties on items including denim, bourbon and poultry.&nbsp;



Companies are faced with two options: Take the loss or charge higher prices. Although if you ask <a href="https://www.foxnews.com/video/6369894923112">Karoline Leavitt</a>, the latter is out of the question. We’ve written before about how US firms increased their inventories at the start of the year. So it could take some time to see higher prices reflected on consumers, should companies go that route at all.&nbsp;



Donald Trump has warned Americans of “short-term pain” but has so far refrained from saying just how high the administration’s pain threshold is. We’ve seen cabinet members attempt what I can only describe as damage control in the past, but today they took a different approach entirely. 



Commerce Secretary Howard Lutnick this morning said tariffs are <a href="https://www.thetimes.com/us/business/article/trumps-tariffs-are-worth-a-recession-us-commerce-chief-says-d0p72ff02">“worth it”</a> even if they plunge the US economy into recession territory. I guess their pain threshold is pretty high. Sounds like a “<a href="https://blockworks.co/news/strike-price-trump-put">Trump put</a>” is out of the question.



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Inflation print calms markets, but tariffs still loom

This is a segment from The Drop newsletter. To read full editions,&nbsp;<a href="https://blockworks.co/newsletter/thedrop" target="_blank" rel="noreferrer noopener">subscribe</a>.



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Another blockchain gaming studio is shutting down — Battlebound is closing its doors.



The studio was overseeing two games, including the metaverse game Evaverse and an in-development RPG dubbed Anterris.



Battlebound previously raised $4.8 million in seed funding back in 2022 from investors including a16z and Dapper Labs. It gained another $3 million by selling NFTs.



The company had the budget for what’s often called an “AA game” or the equivalent of two indie games, but it did not have the means for more ambitious projects (“AAA” games can have budgets of over $100 million each).



<figure class="wp-block-image"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXcXPNs2x7iRDgtCG_y0ygGeS1Eb0T8e1_vQzljdLVis5Im92diqVG3NEN9sueHxBeUj-CKYng9CNZguhIouEcpXvhV7EaxMSduBx7qu2rjP6GshjhVtSIUqOP13319rwfHGvqEoQ.jpg" alt="" class="wp-image-98723" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXcXPNs2x7iRDgtCG_y0ygGeS1Eb0T8e1_vQzljdLVis5Im92diqVG3NEN9sueHxBeUj-CKYng9CNZguhIouEcpXvhV7EaxMSduBx7qu2rjP6GshjhVtSIUqOP13319rwfHGvqEoQ.jpg?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXcXPNs2x7iRDgtCG_y0ygGeS1Eb0T8e1_vQzljdLVis5Im92diqVG3NEN9sueHxBeUj-CKYng9CNZguhIouEcpXvhV7EaxMSduBx7qu2rjP6GshjhVtSIUqOP13319rwfHGvqEoQ.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXcXPNs2x7iRDgtCG_y0ygGeS1Eb0T8e1_vQzljdLVis5Im92diqVG3NEN9sueHxBeUj-CKYng9CNZguhIouEcpXvhV7EaxMSduBx7qu2rjP6GshjhVtSIUqOP13319rwfHGvqEoQ.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXcXPNs2x7iRDgtCG_y0ygGeS1Eb0T8e1_vQzljdLVis5Im92diqVG3NEN9sueHxBeUj-CKYng9CNZguhIouEcpXvhV7EaxMSduBx7qu2rjP6GshjhVtSIUqOP13319rwfHGvqEoQ.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXcXPNs2x7iRDgtCG_y0ygGeS1Eb0T8e1_vQzljdLVis5Im92diqVG3NEN9sueHxBeUj-CKYng9CNZguhIouEcpXvhV7EaxMSduBx7qu2rjP6GshjhVtSIUqOP13319rwfHGvqEoQ.jpg?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXcXPNs2x7iRDgtCG_y0ygGeS1Eb0T8e1_vQzljdLVis5Im92diqVG3NEN9sueHxBeUj-CKYng9CNZguhIouEcpXvhV7EaxMSduBx7qu2rjP6GshjhVtSIUqOP13319rwfHGvqEoQ.jpg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXcXPNs2x7iRDgtCG_y0ygGeS1Eb0T8e1_vQzljdLVis5Im92diqVG3NEN9sueHxBeUj-CKYng9CNZguhIouEcpXvhV7EaxMSduBx7qu2rjP6GshjhVtSIUqOP13319rwfHGvqEoQ.jpg?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXcXPNs2x7iRDgtCG_y0ygGeS1Eb0T8e1_vQzljdLVis5Im92diqVG3NEN9sueHxBeUj-CKYng9CNZguhIouEcpXvhV7EaxMSduBx7qu2rjP6GshjhVtSIUqOP13319rwfHGvqEoQ.jpg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXcXPNs2x7iRDgtCG_y0ygGeS1Eb0T8e1_vQzljdLVis5Im92diqVG3NEN9sueHxBeUj-CKYng9CNZguhIouEcpXvhV7EaxMSduBx7qu2rjP6GshjhVtSIUqOP13319rwfHGvqEoQ.jpg?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /><figcaption class="wp-element-caption">Evaverse screenshot</figcaption></figure>



The closure comes “despite the recent traction we&#8217;ve been building for four years with a lean, scrappy team, extending our runway as far as possible while trying to secure our next funding round,” Battlebound wrote in a <a href="https://x.com/battlebound/status/1899505059547041949">post</a>.



“We excelled at doing more with less and staying afloat while developing above our weight. Ultimately, we&#8217;re in the same position as many studios before us, closing our doors due to remarkably challenging market dynamics,” the post continued.



<figure class="wp-block-image"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXd9zzCeGTg-3rZ4_9IWzXyKohzvwS4Uyx4k3xKbIJk9zB7v7NIDwzJRnRIf_ohEygGJIsxRcb_RaN_Sqwa_3nEf7gM-MWbheJPF2jtmrMExIgYMRgRSOkC2WwNjcVVPUiTwisr3qQ.jpg" alt="" class="wp-image-98724" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXd9zzCeGTg-3rZ4_9IWzXyKohzvwS4Uyx4k3xKbIJk9zB7v7NIDwzJRnRIf_ohEygGJIsxRcb_RaN_Sqwa_3nEf7gM-MWbheJPF2jtmrMExIgYMRgRSOkC2WwNjcVVPUiTwisr3qQ.jpg?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXd9zzCeGTg-3rZ4_9IWzXyKohzvwS4Uyx4k3xKbIJk9zB7v7NIDwzJRnRIf_ohEygGJIsxRcb_RaN_Sqwa_3nEf7gM-MWbheJPF2jtmrMExIgYMRgRSOkC2WwNjcVVPUiTwisr3qQ.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXd9zzCeGTg-3rZ4_9IWzXyKohzvwS4Uyx4k3xKbIJk9zB7v7NIDwzJRnRIf_ohEygGJIsxRcb_RaN_Sqwa_3nEf7gM-MWbheJPF2jtmrMExIgYMRgRSOkC2WwNjcVVPUiTwisr3qQ.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXd9zzCeGTg-3rZ4_9IWzXyKohzvwS4Uyx4k3xKbIJk9zB7v7NIDwzJRnRIf_ohEygGJIsxRcb_RaN_Sqwa_3nEf7gM-MWbheJPF2jtmrMExIgYMRgRSOkC2WwNjcVVPUiTwisr3qQ.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXd9zzCeGTg-3rZ4_9IWzXyKohzvwS4Uyx4k3xKbIJk9zB7v7NIDwzJRnRIf_ohEygGJIsxRcb_RaN_Sqwa_3nEf7gM-MWbheJPF2jtmrMExIgYMRgRSOkC2WwNjcVVPUiTwisr3qQ.jpg?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXd9zzCeGTg-3rZ4_9IWzXyKohzvwS4Uyx4k3xKbIJk9zB7v7NIDwzJRnRIf_ohEygGJIsxRcb_RaN_Sqwa_3nEf7gM-MWbheJPF2jtmrMExIgYMRgRSOkC2WwNjcVVPUiTwisr3qQ.jpg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXd9zzCeGTg-3rZ4_9IWzXyKohzvwS4Uyx4k3xKbIJk9zB7v7NIDwzJRnRIf_ohEygGJIsxRcb_RaN_Sqwa_3nEf7gM-MWbheJPF2jtmrMExIgYMRgRSOkC2WwNjcVVPUiTwisr3qQ.jpg?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXd9zzCeGTg-3rZ4_9IWzXyKohzvwS4Uyx4k3xKbIJk9zB7v7NIDwzJRnRIf_ohEygGJIsxRcb_RaN_Sqwa_3nEf7gM-MWbheJPF2jtmrMExIgYMRgRSOkC2WwNjcVVPUiTwisr3qQ.jpg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXd9zzCeGTg-3rZ4_9IWzXyKohzvwS4Uyx4k3xKbIJk9zB7v7NIDwzJRnRIf_ohEygGJIsxRcb_RaN_Sqwa_3nEf7gM-MWbheJPF2jtmrMExIgYMRgRSOkC2WwNjcVVPUiTwisr3qQ.jpg?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /><figcaption class="wp-element-caption">Screenshot from Anterris game in development</figcaption></figure>



On LinkedIn, Battlebound CEO and founder Adam Hensel said: “Thousands of players participated in our final playtest, and watching them enjoy years of hard work makes everything worth it.”



Hensel had previously worked at League of Legends publisher Riot Games for four years, most recently as a senior technical artist.



It really sucks to see yet another ambitious game studio unable to raise funds to continue a project. Other blockchain-powered or crypto-optional games like Dauntless and Eternal Dragons have also been cancelled in the past year. Blockchain game tracker BigBlockchainGameList found that 60 crypto games were discontinued in Q1 of 2024, but admits that tracking this can be “imprecise and [a] lagging indicator” for “general ecosystem trends.”



Midnight Society, the studio behind the ambitious (yet ultimately unreleased) NFT-optional shooter Deadrop, announced its shutdown in January after severing ties with its co-founder following public controversy and struggling to raise further funds.



Metaverse games aren’t really my thing, but Anterris looked like it was shaping up to be a cozy fantasy RPG.



<figure class="wp-block-image"><img loading="lazy" decoding="async" width="1600" height="918" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdKQK3cRLmwDPlzuWx2QSfE3PpOtjyC2CNfZoeFM_tJdCtDUIz3C3Tm5E9gOMF26HDTGEJOwGv2jrXd8Qsu_P4mX2aZVo6mDBgyWNE2WVabwAf66IJ_HCIXyk4O4dQwOwdbCiVFvA.png" alt="" class="wp-image-98726" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdKQK3cRLmwDPlzuWx2QSfE3PpOtjyC2CNfZoeFM_tJdCtDUIz3C3Tm5E9gOMF26HDTGEJOwGv2jrXd8Qsu_P4mX2aZVo6mDBgyWNE2WVabwAf66IJ_HCIXyk4O4dQwOwdbCiVFvA.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdKQK3cRLmwDPlzuWx2QSfE3PpOtjyC2CNfZoeFM_tJdCtDUIz3C3Tm5E9gOMF26HDTGEJOwGv2jrXd8Qsu_P4mX2aZVo6mDBgyWNE2WVabwAf66IJ_HCIXyk4O4dQwOwdbCiVFvA.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdKQK3cRLmwDPlzuWx2QSfE3PpOtjyC2CNfZoeFM_tJdCtDUIz3C3Tm5E9gOMF26HDTGEJOwGv2jrXd8Qsu_P4mX2aZVo6mDBgyWNE2WVabwAf66IJ_HCIXyk4O4dQwOwdbCiVFvA.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdKQK3cRLmwDPlzuWx2QSfE3PpOtjyC2CNfZoeFM_tJdCtDUIz3C3Tm5E9gOMF26HDTGEJOwGv2jrXd8Qsu_P4mX2aZVo6mDBgyWNE2WVabwAf66IJ_HCIXyk4O4dQwOwdbCiVFvA.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdKQK3cRLmwDPlzuWx2QSfE3PpOtjyC2CNfZoeFM_tJdCtDUIz3C3Tm5E9gOMF26HDTGEJOwGv2jrXd8Qsu_P4mX2aZVo6mDBgyWNE2WVabwAf66IJ_HCIXyk4O4dQwOwdbCiVFvA.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdKQK3cRLmwDPlzuWx2QSfE3PpOtjyC2CNfZoeFM_tJdCtDUIz3C3Tm5E9gOMF26HDTGEJOwGv2jrXd8Qsu_P4mX2aZVo6mDBgyWNE2WVabwAf66IJ_HCIXyk4O4dQwOwdbCiVFvA.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdKQK3cRLmwDPlzuWx2QSfE3PpOtjyC2CNfZoeFM_tJdCtDUIz3C3Tm5E9gOMF26HDTGEJOwGv2jrXd8Qsu_P4mX2aZVo6mDBgyWNE2WVabwAf66IJ_HCIXyk4O4dQwOwdbCiVFvA.png?w=455 455w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdKQK3cRLmwDPlzuWx2QSfE3PpOtjyC2CNfZoeFM_tJdCtDUIz3C3Tm5E9gOMF26HDTGEJOwGv2jrXd8Qsu_P4mX2aZVo6mDBgyWNE2WVabwAf66IJ_HCIXyk4O4dQwOwdbCiVFvA.png?w=382 382w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdKQK3cRLmwDPlzuWx2QSfE3PpOtjyC2CNfZoeFM_tJdCtDUIz3C3Tm5E9gOMF26HDTGEJOwGv2jrXd8Qsu_P4mX2aZVo6mDBgyWNE2WVabwAf66IJ_HCIXyk4O4dQwOwdbCiVFvA.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /><figcaption class="wp-element-caption">Funding round sizes for Web3 gaming over time, from Game7</figcaption></figure>



New blockchain game announcements decreased 36% last year compared to 2023, according to Game7, a research-from-crypto gaming group and research firm. That means things are slowing down, but that’s not necessarily a bad thing for crypto gaming.



I’d take a handful of quality games from dedicated teams over a wide array of shovelware any day of the week.



<figure class="wp-block-image"><img loading="lazy" decoding="async" width="1600" height="876" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXfeuC2p0bthx3IXAcdp3z3cFIIs1YO0vZfYu4mSTa_5-Ja4o_5ECCKj6OxfYv87syUuOecY4mOjuRJJ2vR02xdy7Mg_vVPYohNTo7yWBceEF0yeu_AK7S5vVPS3efRDEMxoJ1MnWA.png" alt="" class="wp-image-98725" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXfeuC2p0bthx3IXAcdp3z3cFIIs1YO0vZfYu4mSTa_5-Ja4o_5ECCKj6OxfYv87syUuOecY4mOjuRJJ2vR02xdy7Mg_vVPYohNTo7yWBceEF0yeu_AK7S5vVPS3efRDEMxoJ1MnWA.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXfeuC2p0bthx3IXAcdp3z3cFIIs1YO0vZfYu4mSTa_5-Ja4o_5ECCKj6OxfYv87syUuOecY4mOjuRJJ2vR02xdy7Mg_vVPYohNTo7yWBceEF0yeu_AK7S5vVPS3efRDEMxoJ1MnWA.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXfeuC2p0bthx3IXAcdp3z3cFIIs1YO0vZfYu4mSTa_5-Ja4o_5ECCKj6OxfYv87syUuOecY4mOjuRJJ2vR02xdy7Mg_vVPYohNTo7yWBceEF0yeu_AK7S5vVPS3efRDEMxoJ1MnWA.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXfeuC2p0bthx3IXAcdp3z3cFIIs1YO0vZfYu4mSTa_5-Ja4o_5ECCKj6OxfYv87syUuOecY4mOjuRJJ2vR02xdy7Mg_vVPYohNTo7yWBceEF0yeu_AK7S5vVPS3efRDEMxoJ1MnWA.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXfeuC2p0bthx3IXAcdp3z3cFIIs1YO0vZfYu4mSTa_5-Ja4o_5ECCKj6OxfYv87syUuOecY4mOjuRJJ2vR02xdy7Mg_vVPYohNTo7yWBceEF0yeu_AK7S5vVPS3efRDEMxoJ1MnWA.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXfeuC2p0bthx3IXAcdp3z3cFIIs1YO0vZfYu4mSTa_5-Ja4o_5ECCKj6OxfYv87syUuOecY4mOjuRJJ2vR02xdy7Mg_vVPYohNTo7yWBceEF0yeu_AK7S5vVPS3efRDEMxoJ1MnWA.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXfeuC2p0bthx3IXAcdp3z3cFIIs1YO0vZfYu4mSTa_5-Ja4o_5ECCKj6OxfYv87syUuOecY4mOjuRJJ2vR02xdy7Mg_vVPYohNTo7yWBceEF0yeu_AK7S5vVPS3efRDEMxoJ1MnWA.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXfeuC2p0bthx3IXAcdp3z3cFIIs1YO0vZfYu4mSTa_5-Ja4o_5ECCKj6OxfYv87syUuOecY4mOjuRJJ2vR02xdy7Mg_vVPYohNTo7yWBceEF0yeu_AK7S5vVPS3efRDEMxoJ1MnWA.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXfeuC2p0bthx3IXAcdp3z3cFIIs1YO0vZfYu4mSTa_5-Ja4o_5ECCKj6OxfYv87syUuOecY4mOjuRJJ2vR02xdy7Mg_vVPYohNTo7yWBceEF0yeu_AK7S5vVPS3efRDEMxoJ1MnWA.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /><figcaption class="wp-element-caption">Chart of Web3 gaming funding from Game7</figcaption></figure>



Game7 also found that only 45% of crypto games are in a playable state, meaning the majority of known blockchain games are still in development.



Aaaaaaand now we wait.



Updated March 13, 2025 at 4:04 pm ET: Removed mention of EVA token. Battlebound clarified there is no EVA token and any existing ones are fake.



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Blockchain game studio Battlebound shuts down

This is a segment from the 0xResearch newsletter. To read full editions, <a href="https://blockworks.co/newsletter/research">subscribe</a>.



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Movement finally <a href="https://www.movementnetwork.xyz/article/movement-network-public-mainnet-beta">launched</a> its mainnet (beta) yesterday.



It’s another Ethereum L2 in the sea of L2s. Who cares?



I can think of at least five reasons why Movement is standing out in the crowded field of layer-2 blockchains.



Number #1: Movement’s founders are Gen-Z-young and have raised a lot of money.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdRLZ-ogFIRDcxgSygMWQLw0IndBbddB1ZCPn0BlYDApM-PjlCWUqn1_A6B2oGmGOXadkGFZC8RfvdRZkEa0W9E4xNpxT9xxRbKI8R_4ZrBA-IhXf8apGfgCPC5Lqs-BO8s8DpXag?key=FS8FTiFXC0GJ_ffi_JwBLjJv" alt=""/></figure>



Number #2: Movement is brazenly open about the fact that its “go-to-market” strategy involves cozying up with DC policymakers to build “<a href="https://x.com/rushimanche/status/1888991485498183796">political and enterprise relationships</a>.”



Movement co-founder Rushi Manche is publicly posting pictures with <a href="https://x.com/rushimanche/status/1887629688949915871">Donald Trump Jr.</a> and crypto czar <a href="https://x.com/rushimanche/status/1880484467451846784/photo/1">David Sacks</a>, and has somehow sold more than two million MOVE to the Trump-affiliated World Liberty Financial <a href="https://blockworks.co/news/trump-backed-project-token-swaps">(WLFI) project</a> since January, which was valued at ~$1.9 million at the time.



All without even a live mainnet.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfYTQTw6xGeavKROGTV-W7fY9OmzsomA-5dIQbbPvTR-I7ktvc1sfmcwBKxUyAm3DfPtosG6-MztTZoqYU3xmMT-KD2kb1p4LWlpZhBe3LCe8ARpZdbukJ534vk5kgJQz4dzcg7DQ?key=FS8FTiFXC0GJ_ffi_JwBLjJv" alt=""/></figure>



Number #3: Movement’s tech has some novelty.&nbsp;



It’s the third blockchain project, after Aptos and Sui, to leverage the Move Virtual Machine from Meta’s deceased Diem project as its execution environment. Unlike Aptos and Sui, though, Movement is a L2 chain that settles on Ethereum, though it <a href="https://blockworks.co/news/movement-labs-mainnet-beta">doesn’t necessarily inherit</a> Ethereum’s security.



Number #4: Movement made the unusual decision to airdrop its MOVE token back in December 2024, long before its mainnet was live. The token launched at a market cap valuation of $1.5 billion, and has held up rather well at $1.2 billion today despite the recent market crash.&nbsp;



This is a striking departure from the norm. The well-worn playbook for most projects is to dangle the lure of a token before airdrop farmers to pump TVL numbers.



Berachain teased its token and mainnet for so long that a “Q5 launch” became a running joke. The Solana lending app MarginFi did the same with its token in 2024, resulting in backlash against what was perceived as an airdrop that was never going to arrive. MarginFi eventually lost more than 50% of its TVL.



Number #5: In a recent development, Movement is vying for a MOVE ETF after a <a href="https://www.prnewswire.com/apac/news-releases/movement-network-foundation-announces-rex-osprey-funds-files-for-first-us-movement-etf-as-public-mainnet-beta-launches-302397063.html">public filing</a> with the SEC yesterday under the REX-Opsrey funds. Crypto VCs counsel that “the token is a product,” and Movement really took that literally.



For a pre-launch project, Movement has done exceptionally well to stand out.



How is Movement doing after one day since launching? I realize it’s unfair to evaluate a project one day after mainnet launch, but let’s check in on it anyway.



Based on its <a href="https://explorer.movementlabs.xyz/?network=mainnet">block explorer</a>, there are at least 1.5k unique addresses which generated 233k transactions, in sharp contrast to its testnet performance of nearly 1 million active addresses and 15.5 million transactions.



The chain has about $250 million in TVL, according to a <a href="https://www.prnewswire.com/apac/news-releases/movement-network-foundation-announces-rex-osprey-funds-files-for-first-us-movement-etf-as-public-mainnet-beta-launches-302397063.html">press release</a>.



Got questions? Hop onto the 0xResearch X Space with Movement co-founder Rushi Manche on Friday to ask him anything.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">Save the date! Movement co-founder <a href="https://twitter.com/rushimanche?ref_src=twsrc%5Etfw">@rushimanche</a> joins <a href="https://twitter.com/0xResearch?ref_src=twsrc%5Etfw">@0xResearch</a>&#39;s <a href="https://twitter.com/yeluacaM?ref_src=twsrc%5Etfw">@yeluacaM</a> and <a href="https://twitter.com/donovanchoy?ref_src=twsrc%5Etfw">@donovanchoy</a> to talk everything Movement<a href="https://t.co/gEm0Sjx9YU">https://t.co/gEm0Sjx9YU</a>&mdash; Blockworks (@Blockworks_) <a href="https://twitter.com/Blockworks_/status/1899831742078374229?ref_src=twsrc%5Etfw">March 12, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Disclosure: Blockworks co-founder Jason Yanowitz is an angel investor in Movement Labs.



Updated March 13, 2025 at 10:16 am ET: Added disclosure.



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How Movement is winning the pre-launch marketing game

This is a segment from the Empire newsletter. To read full editions,&nbsp;<a href="https://blockworks.co/newsletter/empire" target="_blank" rel="noreferrer noopener">subscribe</a>.



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$1.9 to $2.64 billion.&nbsp;



That’s the amount of potential revenue that Dragonfly thinks US users have missed out on thanks to geoblocking.&nbsp;



Okay, really, it’s more because of the regulatory environment — or should I say former environment.&nbsp;



“As of 2024, we estimate that 22-24% of all active crypto addresses worldwide belonged to US residents. Our sample of 11 projects generated a total value of approximately $7.16 billion to date, during which approximately 1.9 million claimers participated worldwide with an average median claim value of around $4.6 thousand per eligible address,” Dragonfly wrote.



As we’re all aware, projects have had to protect themselves by excluding US users from the party. Sad.&nbsp;



If we want to look outside the box, it’s not just crypto folks who have lost out on potential bags.&nbsp;



<figure class="wp-block-image"><img loading="lazy" decoding="async" width="1220" height="1026" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdzhT6Qrr7Of8h5Quh1xOcRTiSlRIR5FXCvMSRRJSg7p5NJZKXGX0lflsA0_j8apVbRI5HkGlMzbZpRvvXjF2soaN4u9L6bTP5dTlylpBWXr_x85UvvUBYyHoSS32Kh2t50QFTvyg.png" alt="" class="wp-image-98676" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdzhT6Qrr7Of8h5Quh1xOcRTiSlRIR5FXCvMSRRJSg7p5NJZKXGX0lflsA0_j8apVbRI5HkGlMzbZpRvvXjF2soaN4u9L6bTP5dTlylpBWXr_x85UvvUBYyHoSS32Kh2t50QFTvyg.png?w=1220 1220w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdzhT6Qrr7Of8h5Quh1xOcRTiSlRIR5FXCvMSRRJSg7p5NJZKXGX0lflsA0_j8apVbRI5HkGlMzbZpRvvXjF2soaN4u9L6bTP5dTlylpBWXr_x85UvvUBYyHoSS32Kh2t50QFTvyg.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdzhT6Qrr7Of8h5Quh1xOcRTiSlRIR5FXCvMSRRJSg7p5NJZKXGX0lflsA0_j8apVbRI5HkGlMzbZpRvvXjF2soaN4u9L6bTP5dTlylpBWXr_x85UvvUBYyHoSS32Kh2t50QFTvyg.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdzhT6Qrr7Of8h5Quh1xOcRTiSlRIR5FXCvMSRRJSg7p5NJZKXGX0lflsA0_j8apVbRI5HkGlMzbZpRvvXjF2soaN4u9L6bTP5dTlylpBWXr_x85UvvUBYyHoSS32Kh2t50QFTvyg.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdzhT6Qrr7Of8h5Quh1xOcRTiSlRIR5FXCvMSRRJSg7p5NJZKXGX0lflsA0_j8apVbRI5HkGlMzbZpRvvXjF2soaN4u9L6bTP5dTlylpBWXr_x85UvvUBYyHoSS32Kh2t50QFTvyg.png?w=306 306w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdzhT6Qrr7Of8h5Quh1xOcRTiSlRIR5FXCvMSRRJSg7p5NJZKXGX0lflsA0_j8apVbRI5HkGlMzbZpRvvXjF2soaN4u9L6bTP5dTlylpBWXr_x85UvvUBYyHoSS32Kh2t50QFTvyg.png?w=310 310w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdzhT6Qrr7Of8h5Quh1xOcRTiSlRIR5FXCvMSRRJSg7p5NJZKXGX0lflsA0_j8apVbRI5HkGlMzbZpRvvXjF2soaN4u9L6bTP5dTlylpBWXr_x85UvvUBYyHoSS32Kh2t50QFTvyg.png?w=260 260w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdzhT6Qrr7Of8h5Quh1xOcRTiSlRIR5FXCvMSRRJSg7p5NJZKXGX0lflsA0_j8apVbRI5HkGlMzbZpRvvXjF2soaN4u9L6bTP5dTlylpBWXr_x85UvvUBYyHoSS32Kh2t50QFTvyg.png?w=80 80w" sizes="auto, (max-width: 1220px) 100vw, 1220px" /><figcaption class="wp-element-caption">Source: Dragonfly</figcaption></figure>



“The federal tax revenue loss from these geoblocked airdrops ranges between $418 million and $1.1 billion, with an additional $107 million to $284 million in state tax revenue foregone,” Dragonfly wrote. “These figures do not account for further tax revenue that could have been generated from the capital gains taxes upon the eventual sale of these tokens.”



Oof.&nbsp;



Unless you’re a total contrarian — or anti-crypto — the consensus is that the last couple of years have not given us the regulatory clarity that crypto needs to survive and thrive.&nbsp;



Clearly, the data points to that. It also begs the question: Wen regulatory clarity on airdrops?&nbsp;



Right now, that’s not clear, though <a href="https://airdropreport2025.dragonfly.xyz/Dragonfly-s-State-of-Airdrops-Report-2025-1b1af13b644180c8aff9c2bd0d222e14">Dragonfly used its study</a> to present a case that argues airdropped tokens aren’t securities under the Howey test.



As for recommendations, the report suggests that non-fundraising airdrops include a safe harbor that would protect them. This harbor would include issuer disclosures, insider lock-up, consideration, functional platform and token post-launch and, finally, strict rules to target manipulation.&nbsp;



A safe harbor could be grandfathered into previous airdrops, too. Bonus points if the projects have to hand over data that demonstrates they’ve complied with the standards set forth.&nbsp;



I know we have a lot going on when it comes to trying to figure things out from a regulatory perspective at the moment. But clarifying and protecting both the firms behind airdrops and their users could give crypto a much-needed boost. Just saying.



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