This Week on web3 5min recap

Market information, major news, and fundraising status for 10/19~25.

Oct 28, 2024

Good morning.
Mitsui from web3 researcher.

Every Monday is a summary article about the web3 market for the past week.We pick up news from over 20 national and international media outlets and newsletters.Please use it to catch up on information and trends!

💥News Pickup
📊Market &News (L1, L2, DeFi, NFT, GameFi, Other)

💥News Pickup

1,Sky to Consider Returning to MakerDAO Brand

Sky co-founder Rune Christensen announced that the project will soon launch a governance proposal, allowing the Sky community to vote on how to manage the project's future branding
Mr. Christensen noted that there has been feedback from the community indicating confusion regarding the project's protocols, tokens, and front end recently rebranded to Sky
Sky had rebranded from MakerDAO to MakerDAO on August 27 and released the Sky front-end, SKY Governance Token, and USDS Stable Coin on September 18
The vote will consist of the following three items
- Continuation of Sky as a core brand
- Complete U-turn to Maker's original brand identity
- Return to Maker's original brand identity but more consistent with the newly launched USDS Stable Coin and StarDAO ecosystem

2,Farcaster activity is plummeting.

Farcaster's October revenue was only $10,000, followed by weeks of only four figures in daily revenue
Farcaster generated $320,000 in revenue in Q3, down 70% from the previous quarter and down 43% from Q1
User activity is also down from its peak in late June.Reactions and casts dropped from a peak of 71,000 per day to about 33,000 per day

3,80% of Web3 startups launch in Ethereum and Solana.

Cryptocurrency Accelerator Program Alliance Releases Report Examining Which Blockchain New Web3 Startups Choose to Build on in 2021 and Beyond
Report shows that about 62% of startups are participating in the Ethereum ecosystem, of which 59% are based on Optimistic rollups, with Base, Optimism, and Arbitrum being particularly popular
Solana's startup ecosystem has made significant progress in recent years, now accounting for 18% of projects after dropping to 8% in the aftermath of the FTX collapse in late 2022

The majority of startups surveyed operate in the DeFi sector, with about a quarter of new ventures operating in this area since early 2023
In contrast, the market share of NFT projects has declined by more than half since accounting for almost half of new ventures in the first half of 2022

Venture capital funding increased in 2024 after a slowdown last year
But not reaching and far below the $29 billion invested in cryptocurrency startups in 2021

4,South Korea's Cryptocurrency Market Becomes Volatile with 34.9% Delisting Rate

Over the past seven years, 34.9% of virtual currencies on South Korean exchanges have been delisted, with half of those delisted in less than two years
Due to hype and fervor by private investors, coins experience price spikes immediately after listing, and many cryptocurrencies are unable to maintain momentum, often losing value over time and eventually being delisted from exchanges
The problem is further complicated by the fact that in South Korea, as in many other regions, the listing and delisting of virtual currencies remains largely at the discretion of the exchanges
South Korea passed the Virtual Asset User Protection Act in July 2023, which aims to protect investors in the digital asset market, but the Act does not set clear standards for listing and delisting

5,Kraken Announces New Ethereum L2 Built on Optimism's Superchain

Crypto Asset Exchange Kraken Announces Plans to Launch Its Own Ethereum Layer 2 Network, Ink
Ink is expected to go live on the mainnet in early 2025
Ink is a DeFi-centric chain with a 1 second block time from day one of launch and will improve to less than 1 second block time in the future

https://zora.co/collect/oeth:0x5d1e1a5cdd95f68ff18d78242c252f6ceaa4538b/2

Memorial NFT minting now possible on Zora before testnet

📊Market & News

⛓️L1 Blockchain

Overall market capitalization has fallen slightly, as has the number of active users.

⛓️L2 Blockchain

TVL is falling overall.

💰DeFi

The top protocols show a noticeable drop in TVL.

🖼️NFT

Transaction volume is down, but transaction volume is largely unchanged.Looking at each chain, Solana and Blast are growing.

🎮GameFi

A GameFi called MatchQuest took first place.Considering the growth rate, it appears to be a title released this week.

Dapps-related

State, Legal & Regulatory Affairs

Other

Disclaimer：I carefully examine and write the information that I research, but since it is personally operated and there are many parts with English sources, there may be some paraphrasing or incorrect information. Please understand. Also, there may be introductions of Dapps, NFTs, and tokens in the articles, but there is absolutely no solicitation purpose. Please purchase and use them at your own risk.

About us
🇯🇵🇺🇸🇰🇷🇨🇳🇪🇸 The English version of the web3 newsletter, which is available in 5 languages. Based on the concept of ``Learn more about web3 in 5 minutes a day,'' we deliver research articles five times a week, including explanations of popular web3 trends, project explanations, and introductions to the latest news.

Author
mitsui
A web3 researcher. Operating the newsletter "web3 Research" delivered in five languages around the world.

Contact
The author is a web3 researcher based in Japan. If you have a project that is interested in expanding to Japan, please contact the following:

X：@web3researchgl
Telegram：@mitsui0x

*Please note that this newsletter translates articles that are originally in Japanese. There may be translation mistakes such as mistranslations or paraphrasing, so please understand in advance.

web3 Research