Latest DeFi News and Insights | Yellow.com

Base, Coinbase's Layer 2 solution, has surpassed $2 billion in Total Value Locked (TVL). This milestone positions it as the second-largest optimistic rollup in the cryptocurrency market. The achievement signals growing confidence in Base as an Ethereum scaling solution. Data from DeFiLlama shows Base's TVL at $2.116 billion. This marks a 370% increase from $430 million at the start of 2024. The TVL includes $3.63 billion in stablecoins and comprises $671.21 million in 24-hour trading volume. Base now trails only Arbitrum among optimistic rollups on Ethereum. It leads in user activity with the highest number of active addresses and also tops daily transactions among its peers. Recent data reveals 1.1 million interacting users on Base in a single day. The platform registered 8,335 new wallet addresses during the same period, this growth is largely attributed to other protocols on the network. Coinbase launched Base in August 2023. The aim was to expand into the decentralized finance (DeFi) ecosystem. Base processes transactions off-chain as an optimistic rollup and then submits periodic summaries to the Ethereum mainnet. This approach reduces congestion and lowers transaction costs. High user activity has driven Base's recent growth. Its TVL jumped from $1.6 billion on August 24, 2024, to over $2 billion in weeks. Analysts predict further growth for Base. Some suggest its TVL could exceed $3 billion by year-end. This projection assumes current momentum continues. Key protocols have contributed to Base's success. Aerodrome surpassed $1 billion in total deposits by September 26. Uniswap has also played a significant role, adding over $220 million in deposits over the past year. Base's rapid growth underscores Coinbase's strategic DeFi expansion. The platform's user-friendly interface attracts users with its low transaction costs further boost its appeal. The surge in Base's TVL reflects broader trends in the Layer 2 market. It highlights growing demand for scalable blockchain solutions. As competition intensifies, Base's performance will be closely watched by industry observers.

Andrew Saunders, chief marketing officer at Skale Labs, has voiced concerns over celebrity involvement in memecoins. He spoke at the Token2049 event in Singapore. Saunders, a former Hollywood executive, now works in the Web3 space. "I come from Hollywood, and I would never touch a celebrity memecoin," Saunders told Cointelegraph. He criticized the current state of celebrity memecoins. The executive advised staying away from such projects. Saunders highlighted key issues with celebrity tokens. He noted their similarities to most meme-based tokens. These projects often have key holders with large token supplies. This remains true even when distributed across multiple wallets. He likened memecoins to a player-versus-player game. Early investors stand to gain the most. "You're rolling the dice, right? And the longer you hold, the more likely it is you're gonna get dumped on," Saunders explained. The executive anticipates changes as regulatory clarity improves. He predicts a shift in perception of crypto in the United States. This could lead to what he terms an "arm in" model for celebrities. Saunders envisions celebrities leveraging blockchain to connect with fans. This approach could offer access to data unavailable through Web2 technologies. He proposes decentralized applications (DApps) as an alternative to celebrity tokens. A DApp could allow fans to earn points for interacting with a celebrity's social posts. These points could be exchanged for various benefits. Examples include meet-and-greets, autographed posters, or music video cameos. "I think that's where it's going to ultimately go," Saunders stated. He sees no current justification for celebrities to launch tokens. However, he believes blockchain technology will eventually see widespread celebrity adoption. Regulatory developments may influence this transition. As understanding of the technology grows, more celebrities might explore blockchain-based fan engagement. This could mark a shift away from risky memecoin ventures. The executive's insights suggest a potential evolution in celebrity Web3 involvement. DApps could offer a more sustainable and fan-friendly approach. This contrasts with the current trend of celebrity-backed tokens.

A popular crypto analyst is bullish on two decentralized finance (DeFi) tokens. The pseudonymous trader, known as The Crypto Dog, has his eye on AAVE and Curve DAO (CRV). Both have gained not too much attention in the recent weeks, being completely overshadowed by scandalous meme coins, XRP vs SEC case, Bitcoin ups and downs, Ethereum useless efforts to rise again, and other hurdles. AAVE, the governance token of a DeFi lending protocol, is looking primed for a rally. The Crypto Dog shared a chart with his 809,500 X followers. He showed AAVE retesting $107 as support. "Think that's gonna moon," he quipped. AAVE was trading at $111.62 at press time. It's down slightly over 24 hours. But it's up over 46% since its August 5th low of about $75. The analyst reckons CRV might follow AAVE's lead. He's watching the AAVE/BTC pair for clues. "Finally, CRV comes to life," he noted. "BTC near resistance, strong alts break out." He advised traders to focus on altcoins showing strength against Bitcoin. "Pay attention to ratio pair strength," he said. "Ignore alts that can't pump against BTC." CRV was trading at $0.313 when we checked. It's down over 3% in a day. But it's up more than 70% from its August 5th low of around $0.18. Despite his optimism, The Crypto Dog isn't all sunshine and rainbows. He warns that altcoins look shaky right now. "About to rebuy alts because if they don't bounce here, I think they're going to hades," he said. The DeFi market is known for its volatility. These predictions should be taken with a pinch of salt. As always, do your own research before diving in.

Decentralized Exchange (DEX) volume is on the rise, showing the increasing shift in crypto trading from Centralized Exchanges (CEX) to on-chain trading. DEXs saw a 15.7% quarter-on-quarter increase in spot trading volume, while CEX experienced a 12.2% decline, according to CoinGecko’s second quarter report. The ratio of DEX to CEX trading is at an all time high, indicating changing users habits and preferences. So, DEXs are gaining ground, reshaping the landscape of cryptocurrency trading. This shift isn't just a passing trend—it's a seismic change in how traders engage with the market. While CEXs like Binance and Coinbase have long dominated the crypto space, the appeal of DEXs is becoming harder to ignore. Data from recent reports highlights a marked increase in DEX trading volumes, while CEXs face mounting challenges. Why is that happening and where does it lead to? Let’s find out why DEXs are overcoming CEXs, focusing on the core distinctions and the five critical factors driving this shift. Understanding the Differences: CEXs vs. DEXs First, why don’t we clear the basic terms. It is essential to understand what sets CEXs and DEXs apart. Centralized Exchanges are managed by a single entity that controls the platform, often acting as an intermediary between buyers and sellers. This model, while offering certain conveniences like high liquidity and ease of use, also introduces significant risks, such as security breaches and loss of funds. You might even have some painful memories of your own that illustrate this, like from the FTX collapse in 2022. Decentralized Exchanges operate on blockchain networks, allowing users to trade directly with each other without intermediaries. Transactions are facilitated by smart contracts. Transparency and security are the obvious and default options here. The decentralized nature of DEXs means that there is no single point of failure, and users retain full control over their assets. However, this also means that DEXs can be more complex to use. That might be a problem for novice users. Transaction costs are typically higher. And speeds are often slower. And yet, something drives users to DEXs. Let’s see what it is. Screenshot 2024-08-09 at 12.57.57.png TOP-5 Reasons Why DEXs Are Overcoming Enhanced Security and Self-Custody One of the most compelling reasons traders are flocking to DEXs is the enhanced security they offer. In CEXs, users must trust the exchange with their funds, which can be vulnerable to hacks or mismanagement. The infamous hack of Mt. Gox and the more recent collapse of FTX highlight these risks. In contrast, DEXs allow users to maintain custody of their assets at all times, reducing the risk of losing funds due to an exchange's failure or malicious attacks. This shift towards self-custody is significant. As more traders become aware of the risks associated with centralization, the appeal of DEXs—where users' assets remain under their control—is growing. The decentralized model eliminates the need for trust in a central entity, making it inherently more secure against threats such as hacking and fraud. Regulatory Pressures and Censorship Resistance CEXs have increasingly come under the scrutiny of regulators worldwide. The push for tighter regulations and compliance measures, including Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols, has added a layer of complexity and cost to their operations. For users, this often translates into reduced privacy and the risk of account freezes or asset seizures. In contrast, DEXs operate in a decentralized environment, which makes them more resistant to censorship and regulatory overreach. Users can trade with greater anonymity, as DEXs typically do not require extensive personal information. This privacy aspect is particularly appealing to users in regions with strict financial controls or where access to traditional financial systems is limited. Lower Costs and Zero Intermediary Fees Another factor driving the popularity of DEXs is the lower cost of trading. CEXs charge fees not only for transactions but also for deposit and withdrawal operations, and they often include hidden costs related to the exchange’s profit margins. DEXs, however, cut out the intermediaries, allowing users to trade directly with each other. The fees on DEXs are typically lower since they are based on the cost of executing smart contracts on the blockchain, with no added margin for a central operator. This cost efficiency is particularly noticeable in high-volume trading, where the savings can be substantial. As a result, many traders are turning to DEXs to maximize their profits by minimizing the fees they pay on each transaction. Innovation and Access to New Markets The decentralized finance (DeFi) boom has spurred innovation in the DEX space, bringing about new trading mechanisms and financial products that are unavailable on traditional CEXs. Automated Market Makers (AMMs) have revolutionized the way liquidity is provided, allowing users to earn fees by contributing to liquidity pools. Moreover, DEXs often list assets that are not available on CEXs, providing access to a broader range of tokens and investment opportunities. This includes emerging tokens and those that are not listed due to regulatory constraints on CEXs. As more projects and tokens launch in the DeFi space, DEXs are becoming the go-to platforms for accessing new and innovative markets. The bridge between traditional finance (TradFi) and decentralized finance (DeFi) is increasingly becoming a focal point for institutional investors looking to capitalize on the benefits of both worlds. According to Louis Bellet, CEO of Yellow Network, as institutions seek greater transparency, security, and efficiency in their trading operations, they are progressively exploring on-chain trading and innovative solutions in DeFi. This transition is facilitated by advancements in blockchain technology and regulatory frameworks that aim to integrate DeFi features with established financial systems. By leveraging DeFi's decentralized infrastructure, institutions can access new opportunities and optimize their trading strategies in a rapidly evolving market landscape. “A market featuring 24/7 trading of digital assets is set to become a nonstop parallel trading environment”, says Louis Bellet. The Rise of Institutional Adoption and Meme coins Institutional interest in decentralized finance is another factor contributing to the rise of DEXs. Major financial institutions, once hesitant to enter the crypto space, are now exploring DeFi as a way to enhance transparency, security, and efficiency in their operations. The creation of funds on the Ethereum network by giants like BlackRock is a testament to the growing confidence in decentralized financial systems. As institutional players seek exposure to DeFi, they are increasingly turning to DEXs for their trading needs. This shift is further accelerated by advancements in blockchain technology, which are making it easier for institutions to integrate DeFi solutions into their existing systems. The result is a growing bridge between traditional finance and decentralized finance, with DEXs at the forefront of this integration. Now, let’s not forget about the meme coins. There is a new hysteria that seems to be only growing with time. No signs of fading or losing momentum even despite the fact that 97% of meme coins fail miserably. The remaining 3% help people make fortunes. And some of those appear on DEXs ages before they find their way to CEXs. The above-mentioned fortunes are more likely to happen on early stages with DEXs, then much later when a behemoth like Coinbase or Binance finally get their paws on those coins. That keeps driving more and more attention to DEXs. Conclusion The rise of DEXs over CEXs marks a significant evolution in the cryptocurrency landscape. Driven by the desire for greater security, privacy, cost efficiency, and access to new markets, traders are increasingly moving away from centralized platforms. The picture is not perfect for DEXs yet. There are significant problems with scalability and user experience. Sometimes users are simply more comfortable in the CEXs simple and effective environment. Ongoing innovations in blockchain technology are poised to address these issues. Nothing can stop evolution. And DEXs are likely to play an increasingly central role, not just for retail traders but also for institutional investors seeking to tap into the benefits of decentralized finance. The shift towards DEXs is more than a trend—it’s a fundamental transformation that could redefine the future of trading in the digital age.

The Web3 ecosystem is bucking the trend. Despite crypto and economic doldrums, decentralized applications (DApps) are booming. AI-based DApps have taken the lead. They've captured 28% of daily activity in the sector. This shift is massive. It's reshaping the DApp landscape. DappRadar's latest report spills all the details. Blockchain gaming has lost its crown. For over a year, it dominated the DApp scene. Not anymore. Gaming's share has dropped to 26%. The "Other" category, mostly AI DApps, now rules the roost. DIN and Alaya AI are leading the charge. These platforms are pushing the boundaries of what's possible in Web3. Blockchain gaming isn't dead, though. It's still a big deal. These games offer something unique. Players actually own their in-game assets. Characters, items, and currencies are NFTs. Gamers can trade or sell them as they please. The DApp industry is on fire. Daily unique active wallets have hit a whopping 15.9 million. That's a 78% jump from June. People are flocking to DApps like never before. AI DApps are the new cool kids on the block. They're not just riding the AI hype train. These apps are bringing real innovation to Web3. From AI-powered financial tools to prediction markets, they're pushing the envelope. Some even have autonomous agents cruising around the blockchain. Social DApps are also having a moment. They now make up 20% of the industry. With 3.1 million daily active wallets, they're no small fry. These platforms are all about user privacy and data ownership. It's social media, but not as we know it. This surge in activity is telling. More people are getting hip to blockchain's potential. They're drawn to its promises of better security and transparency. The idea of cutting out middlemen is pretty appealing too. The Web3 world is changing fast. AI is leading the charge, gaming is adapting, and social platforms are rising. It's a wild time to be in this space. Who knows what'll happen next? One thing's for sure: the DApp revolution is just getting started.