Tron Surpasses Ethereum in Revenue as Crypto Funding Grows

Welcome to Finance Redefined, your weekly source for crucial insights into decentralized finance. Here are the key developments from the past week.

This week, optimism returned for crypto investors as Pitchbook data indicated that funding for crypto startups increased by 2.5% to $2.7 billion in the second quarter of 2024, despite a decline in overall investment deals.

Notably, the Tron network has outperformed the Ethereum network in terms of revenue over the last 90 days, positioning itself to potentially exceed $2 billion in revenue by the end of 2024. According to Tron founder Justin Sun, this achievement could establish Tron as the “most profitable blockchain on Earth.”

Growth in Crypto Startup Funding to $2.7 Billion in Q2

In the second quarter, crypto startups secured slightly more venture capital than in the first quarter, even as the total number of deals decreased, according to Pitchbook data.

Pitchbook's report from August 9 noted that total capital invested rose by 2.5%, while the number of deals fell by 12.5% compared to Q1. This trend may indicate a renewed interest from institutional investors in the crypto market.

“With positive investor sentiment returning to crypto and barring any major market downturns, we expect the volume and pace of investments to continue increasing throughout the year,” stated Pitchbook.

Tron Network Surpasses Ethereum in Revenue Over Last 90 Days

The Tron network has achieved higher revenue than Ethereum over the past 90 days, generating approximately $435 million in fees compared to Ethereum’s $364 million, according to data from Token Terminal.

Justin Sun emphasized that Tron’s revenue performance over the last month has exceeded Ethereum's by 50%. He projected that if this trend continues, Tron’s protocol revenue could surpass $2 billion this year, potentially making it the most profitable blockchain globally.

ZK-Powered DEX Raises $10 Million and Launches Mainnet

Vessel, a decentralized exchange (DEX), has successfully raised $10 million in seed funding to develop a comprehensive layer-3 solution for decentralized finance (DeFi). The focus will be on zero-knowledge (ZK) technologies to tackle challenges like liquidity fragmentation and cross-chain compatibility.

The crypto trading industry faces the challenge of balancing efficiency and transparency. Centralized exchanges offer quick transactions but often lack transparency, raising security concerns. Conversely, decentralized exchanges provide better visibility into operations but can involve slower processes, which conflict with the fast-paced nature of the crypto market.

Coinbase Challenges SEC’s Proposed Exchange Definition

Coinbase has submitted a letter to the U.S. Securities and Exchange Commission (SEC) regarding its proposed revisions to the definitions of national securities exchanges. This marks Coinbase's third comment letter, addressing the SEC’s cost-benefit analysis of the changes.

Coinbase argues that the SEC lacks adequate information for a proper cost-benefit analysis and relies on flawed reasoning. Paul Grewal, Coinbase's chief legal officer, suggested that the SEC should withdraw the proposal and conduct thorough research before proceeding.

Ethereum Supply Exceeds 120 Million ETH Amidst Staking Surge

Ethereum has recently reached a significant milestone, with its total supply of Ether surpassing 120 million. This increase coincides with a surge in both staking and restaking of Ether, reinforcing its proof-of-stake consensus mechanism.

Latest data from Ultrasound.money indicates that the total supply has reached approximately 120.28 million ETH, with 77,091 ETH issued in the past 30 days.

DeFi Market Overview

Data from Cointelegraph Markets Pro and TradingView shows that most of the top 100 cryptocurrencies by market capitalization ended the week in the red for the second consecutive week.

Among the biggest losers, the Solana-based memecoin Dogwifhat (WIF) fell over 20%, followed closely by the Brett (BRETT) token, which dropped nearly 17%.

Thank you for reading this week’s summary of the most impactful developments in DeFi. Join us next Friday for more stories, insights, and education in this rapidly evolving space.