Good morning Here’s what happens:
Prices: A bitcoin ETF might be a controversial idea for some in the industry, but that’s all the market thinks about.
Insights: Charles d’Haussy from the dYdX Foundation talks about the future of the platform after Ethereum and what he thinks the regulatory trends are evolving.
Bitcoin opens the week and defends the $30,000 support level
A bitcoin ETF is the only thing the market thinks about.
BlackRock CEO Larry Fink’s acceptance of Bitcoin — a reversal for the finance executive — is dividing analysts and the industry at large.
“So-called mainstream adoption will bring waves of newcomers to Bitcoin, and the risk is that they don’t care and don’t protect the decentralized characteristics that make it valuable in the first place over centralized alternatives,” Alex Thorn, Research Lead at Galaxy wrote in its report last week.
But the market at large doesn’t seem to mind, as it doesn’t care about the nuances of decentralization.
The world’s largest digital asset continues to defend $30,000 and opens the trading week in Asia at $30,171. Ether is also holding above $1,800, trading at $1,863.
“In a largely uneventful week, we saw Bitcoin trend down to test support levels near $30,000,” BitBull Capital’s Joe DiPasquale said in a note to CoinDesk. “However, the market leader managed to defend the key level, despite news that the SEC called the ETF filings insufficient.”
BlackRock has resubmitted its filing and DiPasquale says the market is waiting for more clarity on this development.
“We remain of the view that sustained trading above $30,000 will prompt more attempts to move higher. Meanwhile, $27,000 remains strong support for now,” he said.
Later in the week, the market will keep an eye on inflation numbers and jobless claims, two numbers the Fed will consider when making its next rate hike. Expect crypto to be traded accordingly.
The CEO of the DYdX Foundation describes the transition to Ethereum’s own blockchain as a prelude
In a recent interview with CoinDesk at the IVS Crypto Conference in Japan, Charles d’Haussy, the CEO of the dYdX Foundation, explained the move by equating it with technical sovereignty. He explained that dYdX can control its entire technology stack via its own blockchain and is not dependent on the speed and trade-offs of Ethereum’s roadmap.
“If you’re sitting on someone else’s blockchain, you’re dependent on their roadmap. It’s not yours,” he told CoinDesk. “By having our own chain, we’re able to work much faster by moving away from a general-purpose blockchain.”
DYdX isn’t a new platform, but there is renewed interest in it as the Securities and Exchange Commission (SEC) pursues its centralized counterparts. The platform isn’t without its growth challenges, and the question at the end of the day will be whether its new technology stack is the cure. Its token is down about 6% over the past month, while Ether’s price is up 1.3%, meaning the market is watching cautiously as the stock market prepares for the next chapter.
D’Haussy views dYdX’s ownership of its own blockchain as part of a broader trend in which large crypto applications are optimized for specific uses, making general-purpose blockchains less suitable.
“In the beginning you start with a Swiss Army knife and do everything, but at some point you want to be a craftsman and have special tools,” he said. “So I think we’re going to see a lot of application chains and more interconnectivity between blockchains.”
However, this does not mean that dYdX will be centralized in its own chain. D’Haussy also emphasized that dYdX is “blockchain-agnostic” and continually evolving and updating its technology. He believes this type of adaptability is a key feature of successful decentralized finance applications.
DYdX’s new blockchain will be open to other platforms to build on, but D’Haussy noted that it was built specifically for its own purposes, likening it to a “Formula 1 for decentralized finance.”
To prevent centralized failures, dYdX strives for diversity in its validators in terms of regions, underlying service providers and provider types. D’Haussy predicts an increase in domestic validators due to a lack of regulatory clarity in certain regions.
“We’re working to ensure that we have a variety of regions, a variety of underlying service providers, a mix of cloud providers, and a mix of so-called bare metal providers,” he said.
D’Haussy predicts that financial institutions may be required to access public networks through domestic nodes in the coming years to ensure on-chain activity falls within the purview of local regulators, which will significantly increase demand for domestic validators.
That means regulated crypto derivatives trading – if you are in the right part of the world.
Fortune reports that at least three executives have left Binance as the company prepares to defend itself on multiple fronts. Fairlead Strategies founder Katie Stockton shared her analysis of the crypto markets after the US jobs report for June was released. Bitwise CIO Matt Hougan and Ether Capital CEO Brian Mosoff participated in the Bitcoin ETF contest at the venue. And Rob Viglione, CEO of Horizen, explained why the self-described Layer 0 blockchain is losing its privacy coin nickname.
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