Casey Wagner

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



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Shares of Donald Trump’s social media company, Trump Media &amp; Technology, continued to fluctuate Tuesday following a rally spurred by reports that the president-elect is furthering his crypto business interests.&nbsp;



The Financial Times <a href="https://www.ft.com/content/d7f921d5-3668-4b6b-a98d-2681ad73610f">reported</a> Tuesday that Trump Media is in “advanced talks” to acquire crypto exchange Bakkt — a company founded and owned by New York Stock Exchange parent company Intercontinental Exchange (ICE).



The news pushed Bakkt shares 162% higher Monday and Trump Media (ticker DJT) posted a 17% gain. Bakkt sustained its rally into Tuesday (trading 7% higher midway through the session), while DJT lost more than 8%.&nbsp;



The social media company began trading on the Nasdaq last spring after a merger with Digital World Acquisition Corp. Currently hovering around $30, DTJ shares are up almost 150% from their September low, but are still trading about 40% off of their IPO price of $50.&nbsp;



Trump Media’s recent gains have not been linear, though. Shares rose 65% at the end of October, a rally attributed to increased optimism at the time that Trump <a href="https://blockworks.co/news/prediction-markets-election-odds">would win</a> the election. The share price since Trump’s victory however has been flat, posting a modest increase the day after the election before erasing gains.&nbsp;



The market is, presumably, confused about what a Trump win means for the social media company. Yesterday’s rise shows that investors are decently certain that acquiring Bakkt would be a good move. But the subsequent retreat shows shareholders aren’t exactly sure why.&nbsp;



We’ll be following the acquisition story and will be writing a lot more about what it means when the majority shareholder of a public company moves into the White House. Stay tuned.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Bakkt

Trump Media shares ride post-election, potential crypto acquisition wave 

Katherine Ross

Bakkt will be delisting native tokens for prominent blockchains Solana, Polygon and Cardano in light of the regulatory environment in the US.



A Bakkt spokesperson confirmed the delistings to Blockworks, saying, “We are taking proactive action to delist three coins that could be deemed securities until there is further clarity on how to compliantly offer a more extensive list of coins.”



While the spokesperson did not outright confirm that the delistings are due to the SEC’s lawsuits against Binance and Coinbase — in which the SEC claims all three tokens are unregistered securities — Bakkt confirmed that through the coin policy review, “we look at a number of factors including the regulatory landscape.” Fortune first reported the delistings.



The Intercontinental Exchange-owned firm, which supports crypto trade and custody for institutional clients, also confirmed that dogecoin (<a href="https://blockworks.co/price/doge">DOGE</a>) and its rival shiba inu (<a href="https://blockworks.co/price/shib">SHIB</a>) will continue to be offered through the platform, as well as <a href="https://blockworks.co/price/usdc">USDC</a>, ether (<a href="https://blockworks.co/price/eth">ETH</a>) and bitcoin (<a href="https://blockworks.co/price/btc" target="_blank" rel="noreferrer noopener">BTC</a>). US regulators have <a href="https://blockworks.co/news/bitcoin-and-ether-are-commodities-says-cftc-in-binance-lawsuit" target="_blank" rel="noreferrer noopener">previously suggested</a> BTC and ETH are commodities, rather than securities.



At the time of writing, polygon (<a href="https://blockworks.co/price/matic">MATIC</a>) was tumbling — down around 4% — however, SOL was swinging up slightly and Cardano was ticking lower. The tokens are some of the top 20 most valuable cryptocurrencies by market cap.



Bakkt’s move <a href="https://blockworks.co/news/robinhood-nixes-ada-matic-sol" target="_blank" rel="noreferrer noopener">comes after Robinhood also delisted</a> cardano (<a href="https://blockworks.co/price/ada">ADA</a>), MATIC and solana (<a href="https://blockworks.co/price/sol">SOL</a>) last week. Blockworks has asked for confirmation of when the delistings will occur.



“Earlier this week the SEC sued crypto companies Binance and Coinbase and alleged that a number of cryptocurrencies are unregistered securities. This includes Solana, Polygon, and Cardano…” Robinhood said in an email to Blockworks.



eToro <a href="https://blockworks.co/news/etoro-curtails-crypto-securities" target="_blank" rel="noreferrer noopener">also took action to delist tokens</a>, though it delisted algorand (<a href="https://blockworks.co/price/algo" target="_blank" rel="noreferrer noopener">ALGO</a>), decentraland (<a href="https://blockworks.co/price/mana">MANA</a>) and <a href="https://blockworks.co/price/dash">DASH</a>, as well as MATIC.



<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">eToro has a framework in place which reviews the cryptoassets we offer in light of the rapidly evolving regulatory landscape. Due to recent developments, we will be making some changes to our crypto offering for US customers. (1/5)&mdash; eToro US (@eToroUS) <a href="https://twitter.com/eToroUS/status/1668323755435622405?ref_src=twsrc%5Etfw">June 12, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



In the SEC’s lawsuit against Binance it <a href="https://blockworks.co/news/sec-10-tokens-securities" target="_blank" rel="noreferrer noopener">claimed that 10 listed tokens</a> were securities under the US law, including SOL, ADA, MATIC, filecoin (<a href="https://blockworks.co/price/fil">FIL</a>), cosmos (<a href="https://blockworks.co/price/atom">ATOM</a>), the sandbox (<a href="https://blockworks.co/price/sand">SAND</a>), MANA, ALGO, axie infinity (<a href="https://blockworks.co/price/axs">AXS</a>) and <a href="https://blockworks.co/price/btc" target="_blank" rel="noreferrer noopener">COTI</a>.



In the <a href="https://blockworks.co/news/the-sec-says-these-crypto-assets-are-securities-their-reasoning-is-wrong" target="_blank" rel="noreferrer noopener">Coinbase lawsuit, the SEC alleged</a> ADA, chiliz (<a href="https://blockworks.co/price/chz">CHZ</a>), SOL, AXS, FIL, internet computer (<a href="https://blockworks.co/price/ICP" target="_blank" rel="noreferrer noopener">ICP</a>), <a href="https://blockworks.co/price/flow">FLOW</a>, <a href="https://blockworks.co/price/near">NEAR</a>, MATIC, voyager (<a href="https://blockworks.co/price/vgx">VGX</a>), SAND and DASH were all securities.



Updated Jun. 21, 2023 at 9:55 am ET: Added Fortune attribution.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Polygon, Cardano, Solana delisted from Bakkt, 1 week after Robinhood

Ben Strack

Crypto marketplace Bakkt posted a net loss of roughly $45 million during the first quarter, but company executives expect its latest acquisition to help its profitability.&nbsp;



Bakkt closed its acquisition of Apex Crypto on April 1 and is focused on integrating the business as soon as possible, Bakkt CEO Gavin Michael said during a Wednesday webinar.&nbsp;&nbsp;&nbsp;



The company has said the deal helps offer deeper liquidity, coin transfers and advanced order capabilities to customers.



“It fast tracks our ability to bring new crypto capabilities to market, as well as bolstering our path to profitability and giving us a pool of some incredibly talented employees across product engineering and operations,” Michael said.&nbsp;



Bakkt Chief Financial Officer Karen Alexander said that the lower-than-expected first quarter net revenue of $13 million was driven by volume-based service revenue. She attributed this to the activity levels at its customer call center and the technology development work carried out on behalf of clients.



Alexander added that &#8220;the deal with Apex Crypto will offer a great lift to Bakkt&#8217;s revenue base going forward.&#8221; She anticipates Apex Crypto&#8217;s financial results for the remainder of 2023 to be &#8220;free cash flow breakeven&#8221; in relation to the company&#8217;s combined results.



Bakkt agreed to acquire the trading platform from Apex Fintech Solutions in November.&nbsp;



Arjun Mehra, a financial analyst at advisory firm Architect Partners, said in a research note at the time that the deal would allow Bakkt to grow its crypto offering to corporate clients.&nbsp;



Bakkt’s deal with Apex Crypto has opened it up to clients including Webull, Stash and Public.com, Michael said Wednesday.&nbsp;



The deal closure came as the company <a href="https://blockworks.co/news/bakkt-discontinues-consumer-app">shifted its focus</a> to offering crypto capabilities for its partners, rather than the customers of the brands it works with.&nbsp;



Mark Elliot, Bakkt’s chief of sales and marketing, told Blockworks in February the company was set to discontinue its consumer-facing app, noting that Apex Crypto doesn’t have one.&nbsp;&nbsp;



The firm works behind the scenes to help clients create a good trading experience, which the executive noted is the model Bakkt seeks to replicate.



<h2 class="wp-block-heading">Coin delistings, international expansion, custody</h2>



Following the close of its deal to acquire Apex Crypto, Bakkt chose to delist 25 coins as part of its “regular coin listing review process.”



“This decision was largely based on the rapidly evolving US regulatory climate,” Alexander said, noting the <a href="https://blockworks.co/news/sec-names-other-tokens-bittrex-lawsuit">SEC’s enforcement action against crypto exchange Bittrex</a> last month. “We don’t publicly share our coin listing policy, but we have always certainly described it as taking into account a number of factors, and that includes regulatory policy, security, reliability and customer demand.”&nbsp;



While delisting 25 coins “sounds like a lot,” the CFO noted, the bulk of Bakkt’s revenue is generated from the coins with a large market capitalization, such as bitcoin.



The company continues to offer bitcoin (<a href="https://blockworks.co/price/btc">BTC</a>), as well as ether (<a href="https://blockworks.co/price/eth">ETH</a>), litecoin (LTC), cardano (ADA), solana (SOL), bitcoin cash (BCH), dogecoin (DOGE), ethereum classic (ETC), polygon (MATIC), shiba inu (SHIB) and USD Coin (USDC).&nbsp;



Amid the regulatory certainty in the US, Michael stated that Bakkt has plans to expand its presence in additional markets. These markets include the UK, parts of the EU, and Southeast Asia, due to progress being made in terms of crypto legislation in those regions.



“Given our clients are already present in some of these regions, it really does lower the barrier for entry for us in some cases — and in others, to enter these new markets,” the CEO said. “It’s a near-term focus for us.”



Michael also called crypto custody “a great anchor product,” adding that Bakkt’s custody offering is protected by $125 million of insurance coverage. He noted the firm would look to continue building upon what he labeled as a “critically important business.”&nbsp;



Specifically, the company seeks to upgrade its architecture to better service its partners and institutional clients. Such enhancements include automated hot wallets to allow consumer deposits and withdrawals, as well as yield-generating offerings such as staking.&nbsp;



“We feel really good about the green shoots that we’re seeing here, and we expect custody to continue to ramp up as the year progresses.”



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Apex Crypto

Bakkt Execs: Apex Crypto Acquisition ‘Fast Tracks’ Path to Profitability

Crypto marketplace Bakkt is shifting its focus toward embedding digital asset capabilities for partners — rather than catering directly to the customers of those brands.



The company is set to discontinue its consumer-facing app on March 16. Its users will retain access to their crypto and cash on the Bakkt platform through a new web experience.



Launched in March 2021, the Bakkt app is a digital wallet allowing consumers to use digital assets in a number of ways, such as converting rewards points to cash or using bitcoin for payments.&nbsp;



The company disclosed partnerships with brands — including Best Buy, Choice Hotels and Fiserv — when the app launched.&nbsp;



Bakkt had sought to build a marketplace where digital assets were fungible, tradeable and liquid. But the company is now pivoting, according to Mark Elliot, Bakkt’s chief of sales and marketing.



“What we started to see more and more of was adoption for one specific crypto use case inside a bank or inside a rewards company or inside payroll, and less so this notion of wide-open, full-sum liquidity,” Elliot told Blockworks. “We see those platform opportunities with established brands looking to do something in crypto that fit their strategy much more appealing than trying to, in some ways, force-fit those partners into our strategy.”



Bakkt has continued its talks with banks about enabling crypto trading inside their own apps. It is also working with companies such as Mastercard to create crypto rewards and pay-out options.



Some partners, though, have not been interested in other use cases, such as giving their customers the opportunity to engage in crypto transactions, according to Elliot.&nbsp;



“It’s a little bit more leaning into their strategy and engaging with their customers versus trying to have those direct relationships with our customers themselves,” he said. “So we’re focused on embedding those experiences inside partner environments and bringing crypto to brands that customers already know, trust and have some brand love for.”



<h2 class="wp-block-heading">Brands still see crypto opportunity 2023</h2>



Bakkt’s move to discontinue its consumer app comes after the company agreed to acquire crypto trading platform Apex Crypto from Apex Fintech Solutions in November.&nbsp;&nbsp;&nbsp;



Arjun Mehra, a financial analyst at merger and acquisition advisory firm Architect Partners, said in a research note at the time that Bakkt had stated its desire to grow its crypto offering to corporate clients.&nbsp;



“Currently, they have some segments but do not have the product to serve the most active end users,” Mehra said. “By acquiring Apex Crypto, they fill this gap with crypto trading, regulatory frameworks, and clients in the fintech, crypto exchange and neo-bank segments.”



Apex Crypto doesn’t have a consumer-facing app, Elliot said. Rather, the firm works behind the scenes to help clients create a good trading experience, which the executive said is the model Bakkt is looking to replicate.&nbsp;



Bakkt is not the first company to shift its strategy amid a tough market backdrop.



Alongside staff cuts last month, <a href="https://blockworks.co/tag/coinbase">Coinbase</a> said it would be <a href="https://blockworks.co/news/coinbase-layoffs-shift-in-focus">shutting down “several projects</a> where the company has a lower probability of success.”



An <a href="https://blockworks.co/tag/amber-group">Amber Group</a> spokesperson told Blockworks last month it had “gone back to the drawing board” to refocus efforts on its institutional and high net worth clients, which it called the company’s “core engines of growth.”&nbsp;



Elliot argued that while certain partners, such as those in traditional finance, have more questions around safety and security after the crash of FTX, consumer interest in crypto has not materially changed.&nbsp;



“Everybody knows they’re going to have to do something in the crypto space at some point,” he said. “I think the more forward-thinking brands are starting to view 2023 as an opportunity to be more aggressive and attack and build in this moment rather than wait for crypto demand, excitement and energy to come back and then be on their heels.”



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Bakkt Set To Discontinue Consumer App in B2B Push

Sebastian Sinclair

<div id="highlights-block_61e7749870c40" class="highlights">
 <ul>
 <li>Nexo will use Bakkt&#8217;s Warehouse to safeguard its user&#8217;s crypto</li>
 <li>The custodian joins Nexo&#8217;s growing list including BitGo and Fidelity Digital Assets</li>
 </ul>
 
</div>



Cryptocurrency loans, lending and exchange platform Nexo has tapped Bakkt&#8217;s custodial services to safeguard its customer&#8217;s ether and bitcoin holdings.



The digital assets are to be held in the Bakkt Warehouse, the company&#8217;s custody platform, according to a statement on Wednesday. Bakkt was founded by the&nbsp;Intercontinental Exchange, the parent company of the New York Stock Exchange.



Bakkt said its warehouse comprises both online (warm) and offline (cold), &#8220;air-gapped&#8221; digital asset storage and acts to rebalance between warm and cold storage tiers to minimize the risks associated with holding assets online.



&#8220;We recognized that Bakkt’s infrastructure and regulation-first approach to crypto was a natural fit,&#8221; said George Manolov, Nexo&#8217;s business development executive. &#8220;We’re confident that this partnership will benefit all our clients and expand Nexo’s ability to service the unprecedented institutional demand for cryptocurrencies.&#8221;



According to data by <a href="https://www.blockdata.tech/blog/general/crypto-custody-providers-compared-2021" target="_blank" rel="noreferrer noopener">provider Blockdata</a>, 8-10% of all crypto, roughly $250 billion out of $2.1 trillion are now held by compliant custodians.



Crypto exchanges including Nexo, Bitstamp and Crypto.com rely heavily on third-party custodians to safeguard their user&#8217;s digital assets. Hedge funds, institutional investors and corporates trading or investing in millions also use custodians in order to offset the risk associated with storing large amounts of crypto, as they are typically insured by the provider.



Nexo already relies on Galaxy Digital&#8217;s BitGo for custodial services as well as Fidelity Digital Assets, which <a href="https://cms.blockworks.co/nexo-partners-with-fidelity-digital-assets/" target="_blank" rel="noreferrer noopener">partnered with Nexo</a> in December to develop compliant infrastructure for institutional investors seeking exposure to crypto.



“The cryptocurrency market continues to expand at a robust pace leading reputable crypto companies to diversify custody of assets,&#8221; said Dan O’Prey, Chief Product Officer of Crypto at Bakkt in the statement. &#8220;We are pleased that Nexo has chosen the Bakkt Warehouse as a trusted solution.”



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Nexo Taps Bakkt to Custody Customers’ Ether and Bitcoin

Sam Martin

<div id="highlights-block_617725d07bf3f" class="highlights">
 <ul>
 <li>The total number of DeFi users sits north of 3.631 million users, which in the grand scheme of things is only scratching the surface of its total addressable market</li>
 <li>Digital asset investment products saw inflows of $1.47 billion last week, which represented the largest inflows on record by a long shot</li>
 </ul>
 
</div>



Total value locked (TVL) across all chains hit an all-time high today when denominated in US dollars.



Uniswap surpasses $500 billion in lifetime trading volume. 



Shares of Bakkt surge over 230% on news that it will partner with Mastercard in rolling out crypto credit and debit cards. 



Digital asset investment products saw record inflows for the week ended on October 22 due to newly launched ETF&#8217;s. 



Solana and Chainlink posted the strongest gains today among major altcoins. 



<h3 class="wp-block-heading">Latest in Macro:</h3>



<ul class="wp-block-list"><li>S&amp;P 500: 4,566, +.47%</li><li>NASDAQ: 15,226, +.90%</li><li>Gold: $1,807, +.87%</li><li>WTI Crude Oil: $83.71, -.66%</li><li>10-Year Treasury: 1.633%, -.022%</li></ul>



<h3 class="wp-block-heading">Latest in Crypto:</h3>



<ul class="wp-block-list"><li>BTC: $62,985, +3.17%</li><li>ETH: $4,191, +3.84%</li><li>ETH/BTC: .0665, -.88%</li><li>BTC.D: 45.18%, +.45%</li></ul>



<h3 class="wp-block-heading">TVL in Crypto Continues its Growth</h3>



Total Value Locked (TVL) across all chains has reached all-time highs when denominated in US dollars. As of reporting, TVL sits at $247.09 billion, with Ethereum leading the way with a 66.51% market share. A breakdown of leading chains can be seen below, although the numbers were taken first thing this morning.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1012" height="506" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/TVL.jpg" alt="" class="wp-image-9848" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/TVL.jpg?w=1012 1012w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/TVL.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/TVL.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/TVL.jpg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/TVL.jpg?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/TVL.jpg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/TVL.jpg?w=80 80w" sizes="auto, (max-width: 1012px) 100vw, 1012px" /><figcaption>Source: DefiLlama</figcaption></figure>



The total number of DeFi users sits north of <a href="https://dune.xyz/rchen8/defi-users-over-time" target="_blank" rel="noreferrer noopener">3.631 million users</a>, which in the grand scheme of things is only scratching the surface of its total addressable market. Goldman Sachs released a <a href="https://cms.blockworks.co/goldman-sachs-defi-has-its-advantages-over-traditional-finance/" target="_blank" rel="noreferrer noopener">report</a> on Friday highlighting that DeFi has many advantages over traditional finance, but it remains a work in progress. 



&#8220;DeFi is easier to access for underbanked populations and provides faster settlements for users, but it’s still a work in progress with flaws like hacks, bugs and outright scams,&#8221; the report by Zach Pandl, co-head of foreign exchange strategy for Goldman Sachs Research, and Isabella Rosenberg, a foreign exchange analyst at Goldman Sachs, said.&nbsp;



Over the weekend, Uniswap (UNI), the most popular decentralized exchange built on top of Ethereum, crossed $500 billion of total volume traded since its launch in November of 2018. <a href="https://coinmarketcap.com/currencies/uniswap/" target="_blank" rel="noreferrer noopener">UNI</a> was trading at $26.63, up 3.51% over the last 24 hours. 



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="546" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/uni-trading-volume-1-1024x546.jpg" alt="" class="wp-image-9854" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/uni-trading-volume-1-1024x546.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/uni-trading-volume-1-1024x546.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/uni-trading-volume-1-1024x546.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/uni-trading-volume-1-1024x546.jpg?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/uni-trading-volume-1-1024x546.jpg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/uni-trading-volume-1-1024x546.jpg?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/uni-trading-volume-1-1024x546.jpg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/uni-trading-volume-1-1024x546.jpg?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/uni-trading-volume-1-1024x546.jpg?w=1967 1967w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Source: @Uniswap</figcaption></figure>



Every day more large companies are trying to integrate various crypto networks to avoid getting left behind. Some highlights from today include:



<ul class="wp-block-list"><li>Citi CEO, Jane Fraser, says they are working on connecting clients to crypto wallets and enabling corporate clients to accept crypto for payments, Blockworks <a href="https://cms.blockworks.co/citi-ceo-fraser-were-building-the-infrastructure-for-retail-real-time-payments/" target="_blank" rel="noreferrer noopener">reported</a> earlier. </li><li>One River CEO, Eric Peters, <a href="https://cms.blockworks.co/one-river-ceo-eric-peters-crypto-is-most-interesting-macro-opportunity-and-investment/" target="_blank" rel="noreferrer noopener">calls</a> digital assets the most interesting macro opportunity and most disruptive technology he has seen in his career. </li><li>Mastercard <a href="https://cms.blockworks.co/mastercard-to-offer-crypto-credit-debit-cards/" target="_blank" rel="noreferrer noopener">announced</a> plans to offer crypto credit and debit cards in a partnership with Bakkt, <a href="https://www.businesswire.com/news/home/20211025005487/en/Mastercard-and-Bakkt-Partner-to-Offer-Innovative-Crypto-and-Loyalty-Solutions" target="_blank" rel="noreferrer noopener">according</a> to a company press release.</li><li>Bankman-Fried, founder of FTX, says that financial institutions have a &#8216;mandate&#8217; to invest in digital assets, Blockworks <a href="https://cms.blockworks.co/ftxs-bankman-fried-financial-institutions-have-mandate-to-invest-in-digital-assets/" target="_blank" rel="noreferrer noopener">previously</a> reported. </li></ul>



<h3 class="wp-block-heading">Bakkt Explodes</h3>



Shares of Bakkt, which trades on the NYSE under the ticker BKKT, surged over 230% during trading hours on the news. The yellow and blue shaded areas on the chart below represent pre-market and post-market trading activity. 



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="970" height="677" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/BKKT_2021-10-25_16-41-16-1.png" alt="" class="wp-image-9856" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/BKKT_2021-10-25_16-41-16-1.png?w=970 970w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/BKKT_2021-10-25_16-41-16-1.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/BKKT_2021-10-25_16-41-16-1.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/BKKT_2021-10-25_16-41-16-1.png?w=368 368w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/BKKT_2021-10-25_16-41-16-1.png?w=374 374w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/BKKT_2021-10-25_16-41-16-1.png?w=314 314w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/BKKT_2021-10-25_16-41-16-1.png?w=80 80w" sizes="auto, (max-width: 970px) 100vw, 970px" /></figure>



<h4 class="wp-block-heading">Asset Flows Notch Record Inflows on ETF Approval Last Week</h4>



Digital asset investment products saw inflows of $1.47 billion last week, which represented the largest inflows on record by a long shot. 



&#8220;The record inflows were a direct result of the US Securities &amp; Exchange Commission allowing a Bitcoin ETF investing in futures and the consequent listing of two Bitcoin investment products with inflows totalling US$1.24bn.&#8221; <a href="https://coinshares.com/research/digital-asset-fund-flows" target="_blank" rel="noreferrer noopener">according</a> to a CoinShares report. 



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="554" height="1024" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-4.49.47-PM-554x1024.png" alt="" class="wp-image-9858" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-4.49.47-PM-554x1024.png?w=554 554w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-4.49.47-PM-554x1024.png?w=162 162w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-4.49.47-PM-554x1024.png?w=139 139w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-4.49.47-PM-554x1024.png?w=141 141w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-4.49.47-PM-554x1024.png?w=118 118w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-4.49.47-PM-554x1024.png?w=43 43w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-4.49.47-PM-554x1024.png?w=674 674w" sizes="auto, (max-width: 554px) 100vw, 554px" /><figcaption>Source: CoinShares</figcaption></figure></div>



<h3 class="wp-block-heading">Solana and Chainlink Outperform the Market</h3>



Solana (SOL) and Chainlink (LINK) were the top movers among major altcoins today, last trading at $211.73 and $32.49 respectively. 



<ul class="wp-block-list"><li>Investment products related to SOL saw $8.1 million of inflows last week, the most among altcoin products, <a href="https://coinshares.com/research/digital-asset-fund-flows" target="_blank" rel="noreferrer noopener">according</a> to a CoinShares report. </li><li>Chainlink, a blockchain abstraction layer that enables universally connected smart contracts through its network of oracles, is now live on the Terra testnet. This could be contributing to LINK&#8217;s bullish price action. </li><li>Solana hosted its <a href="https://ignition.devpost.com/project-gallery" target="_blank" rel="noreferrer noopener">Ignition</a> hackathon, an event that incentivizes builders to join their ecosystem, and saw a record number of project submittals. This implies that more projects are coming to Solana and could be the catalyst behind SOL&#8217;s rally. </li></ul>



The top altcoin movers can be seen below:



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="566" height="148" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-5.04.27-PM.png" alt="" class="wp-image-9862" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-5.04.27-PM.png?w=566 566w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-5.04.27-PM.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-5.04.27-PM.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-5.04.27-PM.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-5.04.27-PM.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-5.04.27-PM.png?w=80 80w" sizes="auto, (max-width: 566px) 100vw, 566px" /><figcaption>Source: laevitas.ch</figcaption></figure></div>



Solana now ranks <a href="https://defillama.com/chain/Solana" target="_blank" rel="noreferrer noopener">third</a> in TVL among major chains, with over $13.6 billion locked in smart contracts. 



<figure class="wp-block-image size-large"><img decoding="async" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-5.07.38-PM-1024x356-1.jpg" alt="" class="wp-image-9864"/><figcaption>Source: DefiLlama</figcaption></figure>



<h3 class="wp-block-heading">Non-Fungible Tokens (NFTs)</h3>



Trading data from <a href="https://opensea.io/rankings" target="_blank" rel="noreferrer noopener">OpenSea</a> and <a href="https://solanalysis.com" target="_blank" rel="noreferrer noopener">Solanalysis</a> of some of the top Solana and Ethereum projects can be found in the photos below:



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="339" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-5.11.52-PM-1024x339.png" alt="" class="wp-image-9865" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-5.11.52-PM-1024x339.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-5.11.52-PM-1024x339.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-5.11.52-PM-1024x339.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-5.11.52-PM-1024x339.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-5.11.52-PM-1024x339.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-5.11.52-PM-1024x339.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-5.11.52-PM-1024x339.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-5.11.52-PM-1024x339.png?w=1229 1229w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Top Ethereum Projects</figcaption></figure></div>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="357" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-5.11.41-PM-1024x357.png" alt="" class="wp-image-9866" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-5.11.41-PM-1024x357.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-5.11.41-PM-1024x357.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-5.11.41-PM-1024x357.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-5.11.41-PM-1024x357.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-5.11.41-PM-1024x357.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-5.11.41-PM-1024x357.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-5.11.41-PM-1024x357.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-25-at-5.11.41-PM-1024x357.png?w=1039 1039w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Top Solana Projects </figcaption></figure></div>



That is all for today, folks. Looking forward to catching tomorrow! 



<hr class="wp-block-separator"/>



Are you a UK or EU reader that can&#8217;t get enough investor-focused content on digital assets? <a target="_blank" href="https://cms.blockworks.co/events/das-london/" rel="noreferrer noopener">Join us</a>&nbsp;in London on November 15th and 16th for the Digital Asset Summit (DAS) London. Use code ARTICLE for £75 off your ticket.&nbsp;<a target="_blank" href="https://cms.blockworks.co/events/das-london/" rel="noreferrer noopener">Buy it now</a>.



<hr class="wp-block-separator"/>

TVL Across All Chains Hits All-time High, SOL and LINK Outperform: Markets Wrap

Morgan Chittum

<div id="highlights-block_6176dacc8e28e" class="highlights">
 <ul>
 <li>Mastercard’s Ajay Bhalla previously described digital assets as having the potential to “[transform] economies, making them more inclusive and efficient”</li>
 <li>Bakkt shares skyrocketed on the news, up 72.95% </li>
 </ul>
 
</div>



One of the largest banking merchants in the world will soon offer its customers cryptocurrency-based credit cards and debit cards, according to a <a href="https://www.businesswire.com/news/home/20211025005487/en/Mastercard-and-Bakkt-Partner-to-Offer-Innovative-Crypto-and-Loyalty-Solutions" target="_blank" rel="noreferrer noopener">press release</a> on Monday. 



“We want to offer all of our partners the ability to more easily add crypto services to whatever it is they’re doing,” Sherri Haymond, Mastercard’s executive vice president of digital partnerships, said in an <a href="https://www.cnbc.com/2021/10/25/mastercard-says-any-bank-or-merchant-on-its-vast-network-can-soon-offer-crypto-services.html" target="_blank" rel="noreferrer noopener">interview</a>. “Our partners, be they banks, fintechs or merchants can offer their customers the ability to buy, sell and hold cryptocurrency through an integration with the Baktt platform.”



Mastercard will partner with publicly traded digital asset firm Bakkt to offer crypto as part of their loyalty rewards program, CNBC first <a href="https://www.cnbc.com/2021/10/25/mastercard-says-any-bank-or-merchant-on-its-vast-network-can-soon-offer-crypto-services.html" target="_blank" rel="noreferrer noopener">reported</a>. This means customers who use their cards at hotels or restaurants can convert their points from spending into crypto in the future. Mastercard customers will also be able to buy, sell and hold digital assets through custodial wallets powered by Bakkt.



Bakkt Holdings Inc. (BKKT) went public last week on the New York Stock Exchange (NYSE) via special-purpose acquisition company (SPAC). The company’s shares skyrocketed on the news Monday, jumping 72.95% at $15.63. Mastercard Inc. (MA) is trading at $361.17 a share, advancing 0.72%, as of press time.&nbsp;



<h3 class="wp-block-heading">Not Mastercard’s first foray into crypto</h3>



However, this is not the payment network’s first foray into digital assets.&nbsp;



In recent months, Mastercard announced that it would acquire crypto intelligence company, Ciphertrace, later in the year. This was to “enhance” its crypto capabilities and access insight into over 900 cryptocurrencies monitored by the company, Blockworks <a href="https://cms.blockworks.co/mastercard-to-acquire-crypto-intelligence-company-ciphertrace/" target="_blank" rel="noreferrer noopener">reported</a> in September. 



“Digital assets have the potential to reimagine commerce, from everyday acts like paying and getting paid to transforming economies, making them more inclusive and efficient,” Ajay Bhalla, president of Cyber and Intelligence at Mastercard, previously told <a href="https://cms.blockworks.co/mastercard-to-acquire-crypto-intelligence-company-ciphertrace/" target="_blank" rel="noreferrer noopener">Blockworks</a>. 



Bakkt and Mastercard did not immediately respond to Blockworks’ requests for comment.