GizmoLab Report: Cutting-Edge Developments in Web3📈

A Quick TL;DR:

- Ethereum Launches Mekong Testnet for Pectra Fork Preview

- Avalanche Buys Back $53M AVAX Tokens from Terra’s LFG

- Bitcoin Surges with Record Volume on BlackRock’s ETF

- Tether Moves 2B+ USDt to Ethereum Network in Cross-Chain Swap

- WazirX to Launch Decentralized Exchange, Introduce Staking

- Trump Win Sparks $100K Bitcoin Prediction by 2024 End

Ethereum Foundation Introduces Mekong Testnet to Preview Features of Pectra Fork, Offering Developers Early Access to UX and Staking Changes

The Ethereum Foundation has launched the Mekong testnet, a short-term test environment aimed at preparing developers and stakers for the upcoming "Pectra" upgrade, also known as the Prague-Electra fork. Announced on November 7, this testnet provides an opportunity to explore new user experience (UX) features, updates to staking workflows, and various Ethereum Improvement Proposals (EIPs) ahead of their mainnet deployment. Named after Southeast Asia’s Mekong River, the testnet is designed to offer a “playground” for wallet developers and stakers to experiment with changes expected in Pectra.

The Ethereum Foundation emphasizes that while Mekong will run independently from other networks like Holesky and Sepolia, its feedback will be pivotal for refining Pectra’s mainnet implementation. Tim Beiko, protocol support lead at Ethereum, described Mekong as a “pre-Devcon treat” for developers preparing for the Ethereum conference in Bangkok. The Foundation encourages active developer testing on Mekong, particularly regarding UX modifications and staking updates, which include changes to deposits and exit mechanisms. This testnet phase marks a crucial step in ensuring the Pectra upgrade operates smoothly once integrated into Ethereum’s mainnet, reinforcing the Foundation's commitment to advancing Ethereum's scalability and usability.

Avalanche Repurchases $53M Worth of AVAX Tokens from Terra's Defunct Luna Foundation Guard in Strategic Ecosystem Move

The Avalanche Foundation has successfully repurchased 1.97 million AVAX tokens, valued at approximately $53 million, from the now-defunct Luna Foundation Guard (LFG). Originally bought by LFG for $100 million just before Terra’s collapse in 2022, the tokens had been part of Terra’s strategy to support the TerraUSD (UST) stablecoin and stabilize its ecosystem. However, the Terra network’s collapse led to a significant devaluation of UST and widespread disruption in the crypto markets.

The buyback agreement, finalized on October 12, allowed Avalanche to regain control of these tokens, ensuring compliance with the original restrictions set on their use. By preventing the tokens from entering a complex bankruptcy liquidation process, Avalanche aims to secure their value and leverage them to strengthen its ecosystem. Avalanche noted that the repurchased tokens would now be directed toward initiatives supporting ecosystem sustainability, including grants, events, and incubation projects. This move is seen as a proactive step to fortify the Avalanche network’s growth and resilience in the evolving blockchain space, highlighting Avalanche’s commitment to ecosystem stability and innovation.

Bitcoin Records Fourth-Best Day of 2024 as BlackRock's iShares Bitcoin Trust Hits $4.1B in Trading Volume

Bitcoin experienced its fourth-best trading day of the year, climbing over 9% to reach a new all-time high of $76,481. This surge was partially fueled by record-breaking volume in BlackRock's iShares Bitcoin Trust (IBIT), which saw $4.1 billion in trades, surpassing prominent stocks like Netflix and Visa in daily trading volume. The jump also coincided with $621.9 million in net inflows into U.S.-listed spot Bitcoin ETFs, reversing three days of outflows and bringing total inflows to a cumulative $24.2 billion. This milestone underscores growing institutional interest in Bitcoin as ETFs continue to attract substantial inflows.

Grayscale's Bitcoin Mini Trust and Bitwise’s Bitcoin ETF also posted notable performances, with inflows of $108.8 million and $100.9 million, respectively. However, IBIT saw net outflows over the two days despite its record trading volume. Bitcoin's dominance in the market is evident, with a year-to-date gain of 77%, while Ethereum lags behind with a 20% rise. The day’s trading volume for ETFs across platforms reached a robust $6 billion, further highlighting the increasing role of ETFs in the crypto ecosystem. As Bitcoin gains institutional traction, industry analysts continue to monitor ETF performance and trading volumes as key indicators of long-term demand for digital assets.

Tether Transfers Over 2 Billion USDt to Ethereum Network Amid Large Cross-Chain Swap for Major Exchange

Tether, the issuer of the USDt stablecoin, announced a substantial cross-chain swap, transferring over 2 billion USDt from various blockchain networks to Ethereum on behalf of a major, unnamed exchange. The transfer includes 1 billion USDt from the Tron network, 600 million from Avalanche's C-Chain, 300 million from Near Protocol, and 60 million from EOS, aiming to centralize these holdings on Ethereum. Despite Tether’s move, the company emphasized that the swap will not impact USDt's total supply. This shift reflects Tether’s response to market preferences, as most USDt volume traditionally resides on Tron, which offers lower fees and quicker transaction speeds.

The swap follows recent scrutiny of Tether’s operations, including reports of a U.S. government investigation into alleged money laundering activities, which led to a brief market downturn. In response, Tether’s CEO, Paolo Ardoino, outlined the reserves backing USDt, including $100 billion in U.S. Treasury bills, 82,000 Bitcoin (worth $6.2 billion), and 48 tons of gold. Currently, USDt has a market capitalization of $120 billion, underscoring its significant role as a fiat substitute in volatile economies. Amid these developments, analysts observe that stablecoins like USDt are increasingly used as stores of value rather than merely for trading, reflecting their growing importance in global markets.

WazirX Plans Launch of Decentralized Exchange Following Hack, Adds Staking Services to Improve User Asset Control

Indian cryptocurrency exchange WazirX, led by founder Nischal Shetty, announced plans to launch a decentralized exchange (DEX) and introduce staking services on its centralised platform. The DEX will enable users to maintain self-custody of assets, minimising counter-party risk—a move inspired by WazirX's July 2024 hack, where $235 million was stolen, allegedly by the North Korean Lazarus Group. The DEX will feature a native token to facilitate transaction fees and governance. The July hack, which exploited WazirX's multi-signature wallet, led to a public backlash when the exchange proposed limiting trading capital and locking 45% of users' funds as Tether (USDT).

Following criticism, WazirX reversed all trades and restored account balances, aiming to create a fair outcome for affected users. Disputes over the hack's responsibility between WazirX and its former custody partner Liminal further complicated fund recovery efforts. Amid heightened security concerns, WazirX’s DEX initiative seeks to give users greater control and autonomy over their assets. The planned DEX is expected to operate separately from the centralized exchange, providing an alternative trading environment for users looking to avoid centralized risks. This expansion signifies WazirX’s commitment to fortifying asset protection and regaining user trust after the breach.

Trump Victory Fuels Predictions of $100K Bitcoin by Year-End Amid Expectations for Pro-Crypto Policies and Market Volatility

Following Donald Trump’s recent presidential election victory, market analysts predict a potential surge in Bitcoin (BTC) prices, potentially reaching $100,000 before 2025. Trump’s win on Nov. 5, achieved by capturing key states like Pennsylvania, North Carolina, and Georgia, has raised hopes for a more crypto-friendly regulatory environment. Bitget Research’s chief analyst, Ryan Lee, highlighted that heightened derivatives market volatility and increased open interest in Bitcoin futures suggest traders are preparing for a major BTC price movement. The crypto market’s optimism was further bolstered by the Republican Party’s control of Congress, which analysts believe could support favorable regulations for digital assets.

This prospect of regulatory clarity could be advantageous for blockchain innovation and the broader crypto market. Following Trump’s election, Bitcoin reached a new all-time high of $76,400, while U.S. Bitcoin ETFs recorded a notable inflow of $621 million, signaling Wall Street’s increasing confidence in the asset. With an uptick in institutional support and an ETF inflow surge, market sentiment around Bitcoin remains bullish. Experts suggest BTC prices may stabilize above $60,000, influenced by the Republican sweep’s perceived pro-business stance and the potential for leveraged trading activity in a favorable regulatory climate.

Don’t forget to hit the button that you see below!