Crypto Crossroads: Fed Pause May Be Upon Us, But Where Do We Go From Here?
Crypto Market Recovery, Velvet Capital's New Look, and Major Developments in Blockchain and DeFi
Frens, we may have survived the worst of the storm. The Crypto Winter is getting thawed out. Rate cuts may (almost) be upon us. Interest rates aren’t sexy but they certainly have a huge impact on all markets and assets — especially ‘riskier’ ones.
The coast isn’t totally clear, however, as Fed Chair Jerome Powell pushed back on this rate cut speculation. While a pause in rate hikes is being considered, Powell opposes the idea of imminent rate cuts. Citing elevated inflation, he emphasizes the need for patience in reaching the 2.0% target. Despite market expectations of rate cuts as early as September, the robust April labor report reduces the likelihood of such cuts. Instead, an extended pause appears to be the Fed’s probable approach.
But talk is cheap. Mr. Market is currently pricing in a series of cuts coming by the end of the year:
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· Nigeria’s government has approved a national blockchain policy to enable the country’s transition to a digital economy.
· Sotheby’s launches a ‘Metaverse Marketplace’ for fine digital art collectors.
The crypto winter is thawing. 2023 is off to a hot start & DeFi looks ripe to propel the sector to new heights. Will…
· Coinbase has launched a new Bermuda-based international derivatives exchange for institutional crypto traders outside the US.
· PancakeSwap DEX launches its v3 on BNB Chain and Ethereum.
· Crypto.com has launched an AI-powered chatbot (named Amy) that will give its users real-time information and insights.
· Twitter founder’s (Jack Dorsey) digital payments company Block has announced that it finished the design of a prototype for a Bitcoin-mining-specific chip.
· Bitcoin Ordinal inscriptions reach $7.6M while gas fees skyrocket.
· New York Attorney General Letitia James proposed the Crypto Regulation, Protection, Transparency, and Oversight Act (CRPTO) to increase state regulators’ jurisdiction over the local crypto industry.
· The Bank of England has argued that stablecoins may need restrictions to avoid disruptions to financial stability.
· MakerDAO recently greenlit a $500M max transfer in $USDC to Coinbase for 2.6% yield.
This helpful explainer on Bankless helps beginners interested in getting started in liquid staking, an innovative way of staking without losing the liquidity of your assets. Two platforms, Rocket Pool and StakeWise, offer unique features that facilitate liquid staking. Rocket Pool utilizes a pool infrastructure and tokenizes deposits while StakeWise allows for the transfer of staking rights and boasts an innovative algorithm. Liquid staking is set to revolutionize blockchain technology and make staking more accessible and efficient. Check out the link for more specifics!
Digital asset derivatives trading platform Bitget, has pledged $10 million in funding for young entrepreneurs in the web3 space. The company aims to support promising projects in the cryptocurrency and blockchain sectors and promote the wider adoption of blockchain technology across different industries. Bitget also plans to partner with existing venture capital firms and incubators to identify and nurture talented young entrepreneurs who are passionate about web3 technologies. We love seeing instances where Web3 firms are beginning to help others grow.
The article explores the challenges that the DeFi sector will have to overcome as regulators seek to create more industry relevant legislation. For example, DeFi will have to focus more on building relationships with regulatory authorities and being more transparent in its day-to-day. It implies a need for a degree of centralization and the need for more coordinated efforts in the DeFi ecosystem. While decentralization is a crucial characteristic of DeFi, regulatory compliance could lead to some level of centralization. The article highlights the need for DeFi to balance regulatory compliance and decentralization to increase the ecosystem’s accessibility and liquidity while preserving users’ privacy, adding that regulatory compliance is likely a necessary step in DeFi’s journey to mainstream adoption.
Sports Illustrated has launched an NFT ticketing platform to enable fans to buy, sell, and trade tickets. Powered by Polygon, the platform aims to provide a more secure and efficient experience using blockchain technology via NFTs. Fans can purchase and hold NFT tickets directly on the platform and trade them with other fans without the need for intermediaries. Sports teams, leagues, and event organizers can also benefit from the platform’s transparency and secure record-keeping functionalities. The platform’s launch reinforces the idea that ticketing is a great blockchain use-case.
Blur has introduced Blend, a lending protocol for NFTs. The platform aims to address illiquidity challenges faced by NFT investors and collectors by enabling them to lend out their assets for a fixed interest rate or borrow NFTs from other users. Blend allows NFT owners to retain ownership of their assets while generating passive income from lending them out. It also provides borrowers with access to rare and valuable NFTs that they may not be able to acquire otherwise. The protocol is compatible with various NFT marketplaces and supports multiple blockchain networks, making it accessible to a broader range of users. This significant development is set to enhance the accessibility and liquidity of NFT investments, creating new opportunities within the NFT ecosystem.
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