GizmoLab Report: Cutting-Edge Developments in Web3📈

A Quick TL;DR:

- Chainlink Debuts Framework for Bridging Legacy Finance with Blockchain

- Polymarket Whale Suffers $3.6M Loss Betting on Tyson

- Bitcoin Depot Posts $135.3M Q3 Revenue, 25% Decline

- Goldman Sachs Owns $710M in Bitcoin ETFs

- Ethena Approves Fee Sharing for ENA Stakers

- Mantra Hits All-Time High Amid Bullish Momentum

Chainlink Launches "Chainlink Runtime Environment" to Integrate Traditional Finance with Blockchain 

Oracle provider Chainlink has unveiled the "Chainlink Runtime Environment" (CRE), a unified framework designed to connect legacy financial systems, payment networks, and blockchain protocols. This system aims to streamline integration between traditional finance and decentralized technologies. The CRE incorporates features from the Common Business-Oriented Language (COBOL) standard, which powers 95% of ATM transactions, and the Java Runtime Environment (JRE), crucial for online banking. By abstracting complexities across thousands of financial systems, the CRE promises an efficient user experience for traditional institutions transitioning to blockchain. Chainlink’s push to bring finance onchain aligns with its earlier initiatives, including a partnership with SWIFT. At the 2024 SIBOS conference, Chainlink demonstrated how SWIFT messages could enable financial institutions to interact with blockchain systems seamlessly. Privacy enhancements are another focus.

Chainlink introduced tools like the Blockchain Privacy Manager and the CCIP Private Transactions option, addressing enterprise concerns about sensitive data exposure on public networks. These features aim to enable businesses to adopt blockchain without compromising trade secrets or privacy. Chainlink is also exploring synergies between oracles and artificial intelligence, ensuring real-time, tamper-proof data for corporate use cases like proof-of-reserves. In November 2024, Chainlink concluded a pilot with SWIFT and UBS, testing tokenized fund settlements. This pilot allowed legacy systems to interact with blockchain-based solutions without relying on cryptocurrencies, showcasing a bridge between traditional and digital finance. As Chainlink continues to innovate, its CRE framework could accelerate the adoption of blockchain in mainstream financial systems, unifying disparate technologies into a cohesive ecosystem.

Polymarket Whale Loses $3.6M on Tyson Bet After Scoring $11M from Trump Win

A Polymarket whale, known by the alias "zxgngl," experienced a $3.6 million loss after betting on 58-year-old boxing legend Mike Tyson to defeat 27-year-old Jake Paul in a highly anticipated bout. The loss represents nearly a third of the $11 million they recently gained from correctly betting on Donald Trump's re-election victory. Jake Paul secured a unanimous decision after eight two-minute rounds. Utilizing his youth and stamina, Paul delivered consistent blows, while Tyson visibly struggled to maintain energy as the fight progressed. Going into the bout, Polymarket odds gave Paul a 63.5% chance of winning, Tyson a 29.5% chance, and a draw at 8.5%. The whale's bet consisted of over $3.6 million, buying 11 million shares at an average of 33¢, representing one-third odds on Tyson’s victory.

Unfortunately for them, their prediction fell through, erasing a significant portion of their Trump bet earnings. The fight's prediction market on Polymarket saw $63 million in trading volume, underlining its massive popularity among users. Despite the loss, "zxgngl" remains Polymarket's fourth-highest earner, demonstrating resilience in the high-stakes world of prediction markets. The bout between Tyson and Paul drew widespread attention, pitting a seasoned boxing legend against a younger social media personality turned boxer. While Tyson’s legacy remains intact, the fight showcased the shifting dynamics of the sport and the growing influence of influencer-driven matches. Polymarket's role in this high-profile betting underscores the increasing prevalence of prediction markets in blending entertainment, sports, and financial speculation.

Crypto ATM Operator Bitcoin Depot Reports Q3 Revenue of $135.3 Million, Down 25% from 2023

Bitcoin Depot, a leading Atlanta-based crypto ATM operator, announced its Q3 2024 revenue at $135.3 million, marking a 25% decline from the $179.5 million reported during the same period in 2023. The results were disclosed in a November 14 filing with the U.S. Securities and Exchange Commission (SEC). The firm attributed its performance to a challenging market but highlighted achievements in expanding its Bitcoin ATM network. Brandon Mintz, CEO and Founder, stated, “We made significant strides in expanding our Bitcoin ATM network while optimizing existing machines for greater profitability.” By the quarter's close, Bitcoin Depot had surpassed its target with 8,300 machines operational. Bitcoin Depot has also retained over $1.31 million in cryptocurrencies, reflecting its continued presence in the digital asset ecosystem. The company operates in 16,700 locations across the U.S., Canada, and Australia, further solidifying its reach.

The firm went public in August 2022 at an $885 million valuation. Currently trading on NASDAQ under the ticker BTM, its Class A Common Stock closed at $1.99 on November 15, bringing its market capitalization to approximately $118.2 million. Bitcoin Depot’s CEO remains optimistic, emphasizing the company’s focus on enhancing Bitcoin accessibility. Despite the revenue drop, the expansion of its ATM network showcases its commitment to long-term growth and adaptation to evolving market dynamics. With a network spanning multiple continents, Bitcoin Depot continues to play a crucial role in bridging traditional financial systems with the cryptocurrency economy. The company’s efforts to refine operations and expand its infrastructure are expected to bolster its standing in the competitive crypto ATM industry.

Goldman Sachs Holds Over $710 Million in Bitcoin ETFs, Signaling Shift in Crypto Strategy

Goldman Sachs, once hesitant about cryptocurrency investments, now holds over $710 million in Bitcoin ETFs, according to its latest 13F filing with the U.S. Securities and Exchange Commission (SEC) on November 14, 2024. The investment giant owns shares in eight Bitcoin ETFs, with notable stakes including 12.7 million shares in BlackRock’s iShares Bitcoin Trust, valued at over $461 million, and 1.7 million shares in Fidelity Wise Origin Bitcoin ETF, worth $95.5 million. Other significant holdings include $72 million in Grayscale Bitcoin Trust ETF shares and nearly $60 million in the Invesco Galaxy Bitcoin ETF. Additional investments include $22.5 million in Bitwise Bitcoin ETF, $3.8 million in ARK 21Shares Bitcoin ETF, $4 million in Grayscale Bitcoin Mini Trust ETF, and $791,852 in the WisdomTree Bitcoin Fund. Goldman Sachs has also ventured into Ethereum ETFs, holding $22 million across various funds, including the Grayscale Ethereum Mini Trust and Fidelity Ethereum Fund. Since its Q2 filing in August 2024, Goldman Sachs has increased its Bitcoin ETF holdings by $300 million, signaling growing confidence in the sector.

Previously, the bank held around $238 million in Bitcoin ETF shares, demonstrating a significant rise in its digital asset investments. This marks a notable turnaround for Goldman Sachs, which once viewed cryptocurrencies skeptically. In past statements, Chief Investment Officer Sharmin Mossavar-Rahmani dismissed crypto as a viable investment. However, the rise of regulated crypto ETFs has spurred the bank to embrace digital assets. Beyond ETFs, Goldman Sachs is advancing its blockchain initiatives. In July 2024, the firm announced plans for three tokenization projects, further integrating digital assets into its offerings. The bank has also supported blockchain infrastructure provider Blockdaemon through funding rounds. Goldman Sachs’ substantial Bitcoin ETF investments and blockchain initiatives reflect a strategic pivot, aligning its operations with the evolving digital economy.

Ethena Adopts Fee-Sharing Proposal to Boost Value for ENA Token Stakers

The Ethena Foundation has approved Wintermute's proposal to introduce fee sharing for ENA tokenholders, marking a significant step in aligning token stakers with the protocol's revenue. The decision, announced on November 15, will allow stakers of ENA to receive a portion of the decentralized finance (DeFi) protocol's earnings. Wintermute, a leading cryptocurrency market maker, initially proposed the fee-sharing mechanism on November 6. The Ethena Foundation confirmed that its Risk Committee has endorsed the plan and is now working to finalize parameters for activation by November 30. Implementation details will follow. This move addresses a gap in ENA’s value accrual model. Previously, stakers who converted ENA into sENA lacked a direct connection to the protocol's substantial revenue, generated by its stablecoin, USDe. Launched in February 2024, USDe has reached a circulating supply of $3.2 billion, reflecting strong market adoption.

Ethena hedges against portfolio volatility using off-chain financial derivatives, which has contributed to the protocol's financial success. Despite this, sENA holders were disconnected from revenue growth, prompting Wintermute's proposal to better align token stakers with the platform's performance. In addition to governance changes, Wintermute has expanded its acceptance of USDe for collateral in various trading instruments, including options, credit default swaps, and spot trades. This positions USDe as a versatile asset in crypto trading markets. The fee-sharing initiative is part of Ethena’s broader strategy to solidify product-market fit for its offerings and strengthen the value proposition for ENA tokenholders, fostering long-term growth and engagement.

Mantra Reaches Record High of $2.71, with Technical Indicators Pointing to Further Gains

Mantra (OM), a tokenization platform for real-world assets, surged over 40% in 24 hours, hitting a new all-time high of $2.71 on November 16, 2024. The token has risen by an astonishing 10,000% over the past year, making it the only cryptocurrency in its sector to achieve a 100x return in 2024. At present, Mantra’s market capitalization stands at $2.03 billion, with 97.1% of OM held by long-term investors. Open interest in OM's futures market has soared by 78.22% in a day, reaching $115.64 million, reflecting increased investor activity and potential optimism for further price gains. Key drivers of the rally include the recent launch of Mantra's mainnet, which offers low transaction costs, enhanced network security, and multi-chain asset transfer through its integration with the Cosmos network.

Additionally, Google Cloud joined as a primary validator, boosting confidence in the platform's scalability and security. Whale activity has also intensified. A significant holder accumulated $2.62 million worth of OM on November 16, pushing large-holder net inflows from 716,040 OM on November 13 to 2.39 million OM, valued at $5.75 million, by November 15. Community engagement is surging, with daily active OM addresses up 573% in three days, partially fueled by an upcoming airdrop. These developments are seen as bullish signals by traders. Technically, OM is trading above its upper Bollinger Band at $2.0857, signaling continued bullish momentum. Its Average Directional Index (ADX) reading of 35.96 confirms a strong uptrend, with analysts eyeing the psychological resistance level of $2.50 as the next target. While a brief correction is possible, analysts like "Scofield" suggest it could create buying opportunities for both retail and institutional investors before OM resumes its upward trajectory. At press time, OM was trading at $2.29.

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