Like sports crypto, crypto holds a lot of potential for the new year. With 2023 underway, the crypto market has already experienced a few positive results despite the crisis that rocked it last here. Here are some of those latest happenings.
The DeFi Solution
DeFi is maturing due to developing novel financial instruments optimal for a decentralized setting.
Incredible progress has been made in the DeFi industry during the past few years. Thanks in large part to funding from various forward-thinking blockchain groups, programmers worldwide have created some very innovative and accessible tools and platforms to bring a diverse array of financial services to the cryptocurrency space.
Still, much more effort is needed if DeFi is to reach its full potential. Despite the progress made, DeFi customers still need help with the same challenges as TradFI users, particularly regarding efficient collateral management.
Mero is a service that optimizes the use of your assets while also automating the management of your debt. It guarantees that your liquid assets are yielding something until the exact moment they are needed elsewhere. In the early days of decentralized finance, Mero was formed by a group of dedicated Ph.D. students with a common interest in studying the efficiency of DeFi capital. They started designing rules and software to fix the many ineffective parts of the current system.
The fact that the cryptocurrency market never sleeps can be both a benefit and a drawback. Users need to keep an eye on their accounts constantly because the market never closes. If you need to borrow money in DeFi, you should know this.
The Mero group has begun working on a solution to this problem by launching a liquidation-protection mechanism on the Ethereum main net that pays interest to DeFi users. Any DeFi user may secure loans on algorithms like Aave and Compound while earning auto-compounded yield using Curve and Convex. Aave and Curve saw the potential in this technology early on and provided funding for ecosystem development to help it flourish.
Metaverse: Advantage for Tech Companies
According to Virtual Brand Group (VBG) CEO Justin Hochberg, the metaverse presents a unique opportunity for large corporations to grow and strengthen their commercial footprint. This Los Angeles, California firm acts as a go-between for multinational corporations with aspirations of expanding their operations into the metaverse. It collaborated with brands, including Forever 21, NBC’s “The Voice” series, and Mattel’s Barbie.
According to Hochberg, the company’s primary goal is to provide “a whole new set of possibilities” for companies to interact with customers and make money. VBG “makes several millions of dollars in key product categories,” he added, though he did not specify how much money the company has made for its partners.
According to Hochberg, the company plans to create token-based marketplaces, brand partnerships, and incentive systems for “The Voice,” a popular American television singing competition.
Hochberg mentioned that the online game site Roblox had begun creating and selling physical things. Roblox, working with VBG, gave Forever 21’s retail operations a new lease on life. He went on to say that VBG has allied with Barbie as well.
Solana Peaks With BONK
Even in the face of a stagnant market and the threat of contagion, crypto investors are looking for the next big story to produce returns, and the Solana (SOL) ecosystem has a meme coin at its center.
In the previous seven days, investors in the Shiba Inu-themed coin Bonk have seen a return of 2,220%, including a 150% increase in the last twenty-four hours. According to a report from CoinDesk published on Tuesday, the token was airdropped to the communities and producers of the Solana NFT (non-fungible token), which quickly generated interest and trade volumes.
While early backers benefit, that’s only some of what’s happening. Over $20 million in traffic for trading pairs, including BONK, have been drawn to liquidity pools on Solana-based DEXs like Orca, generating several thousand dollars in commissions for payment processors.
Keep in mind that crypto-assets’ value might rapidly rise or fall. Anyone considering putting money into crypto-assets must fully understand the risks and base their decision on that.
