Happy Friday! Binance Bytes is an initiative by the Research team to provide a quick round-up of the week.
Highlights š§µ:
1/ Uniswap Labs has introduced Unichain, a new Layer-2 network developed using Optimism's OP Stack, designed to enhance transaction speed, cost-efficiency, and liquidity. Scheduled to launch on a private testnet, Unichain will be part of the Superchain, a collective of Optimism-affiliated networks, and will feature one-second block times and 250ms sub-blocks. The network plans to implement a community validation network in 2025 to boost decentralization and minimize the risk of invalid blocks. Uniswap Labs CEO Hayden Adams highlighted that Unichain aims to establish a more user-friendly DeFi hub across multiple chains.
2/ Solana has led in token creation, accounting for 87% of new tokens since September. Out of a total of 110,180 tokens launched across all blockchains, 96,010 were based on Solana. Platforms like Pump.fun have made it easier for developers and influencers to create tokens at low costs, contributing to Solana's dominance. However, the influx of memecoins has faced criticism due to their lack of utility and prevalence of pump-and-dump schemes, causing significant losses for investors. Despite the launch of a competitor on Tron, Solana remains the top platform for new token launches, though it faces potential risks from declining volumes as the memecoin market slows down.
3/ According to a survey by Alternative Investment Management Association (AIMA) and PwC, 47% of traditional hedge funds now have exposure to crypto, up from 29% last year. While most hedge funds initially entered the market by trading spot cryptocurrencies, the study confirms that more sophisticated strategies are now being adopted. In 2024, 58% of active crypto funds traded derivatives, up from 38% in 2023, while spot market trading dropped to 25% from a peak of 69% last year. The increasing involvement of hedge funds may not reflect direct exposure, as popular strategies often use a "delta-neutral" approach to minimize or eliminate market volatility. Among those already invested, 67% plan to maintain their current holdings, while the rest intend to increase their investments by year-end.
Check out our latest publications from this week š: Monthly Market Insights - October 2024
