Advanced Blockchain Weekly Crypto Insights

Welcome to the first edition of our LinkedIn Newsletter

Blockchain technology continues to revolutionize various industries with its promise of decentralization, security, and transparency. From supply chain to healthcare, blockchain is proving its versatility beyond just finance.

In this week's edition, we explore the latest developments of the DeFi (Decentralized Finance) Sector, showcasing how one of our key portfolio companies, Contango, is innovating within this space. DeFi Market Overview:

The DeFi sector within the blockchain space is thriving, demonstrating resilience against market fluctuations. This resilience can be attributed to the sector's projected robust growth trajectory, evidenced by a compound annual growth rate (CAGR) of 40% from 2024 to 2033, as forecasted by market.us DeFi stands as a beacon of innovation, offering solutions that give users unparalleled control and increased leverage over their financial assets.

In the current landscape, North America maintains a strong leadership position, holding more than a 36% market share with USD 7.6 billion in revenue in 2023.

Developments of last Week

If we are moving away from long term predictions and observing the past week, the market has been moving sideways with eyes on Washington, characterized by a blend of speculation, and strategic developments in the crypto space, setting up the basis for the beginning of 2025:?

• Regulatory and Legal News: The second hearing of Do Kwon's case added to the week's events, with implications for how regulatory frameworks are crucial for the? evolvement for crypto founders and projects, giving investors more understanding how the crypto industry navigates increasing legal and regulatory pressures.
• DeFi and Trading: THORChain's integration with Base Layer 2 (L2) streamlines cross-chain asset trading, making transactions faster, more efficient, and cost-effective. Another key milestone was the January 7 activation of USUAL's fee switch, a mechanism that redistributes collected fees to essential contributors like liquidity providers, stakers, and token holders, turning passive token ownership into a more dynamic and rewarding experience. This innovation represents a potential turning point for DeFi, emphasizing fair value distribution and setting a precedent for future success in the sector. Additionally, ZKSync's incentive program incentivizes developers and users to engage with its Ethereum-scaling technology, driving innovation and expanding access to decentralized financial applications
• Market Dynamics: Despite some decreases in wallet activity for certain tokens like XRP and ADA, overall, there was a mixed but generally positive engagement with blockchain networks that week.

Overall Market Sentiment

The Total Crypto Market Cap over the past three months has shown a mix of fluctuations and growth trends, reflecting the market's reaction to macroeconomic events and evolving investor sentiment. Meanwhile, Bitcoin Dominance—its share of the overall market cap—remains a critical indicator of investor confidence, often serving as a barometer for the performance of Altcoins relative to Bitcoin.

Advanced Blockchain's DeFi Portfolio

Our portfolio reflects our commitment to advancing both DeFi and other blockchain technologies through Contango, Panoptic, Myso ,TLX, Mantis and Picasso, making us exposed to cutting edge DeFi developments.

Contango: What is our Portfolio Company doing ?

Contango is a looping layer enhancing DeFi trading opportunities for fully decentralized increased returns by automating leveraged strategies for higher returns. Using a single transaction, it allows users to borrow assets like ETH via a flash loan, swap it for staked assets (e.g., wstETH), and re-lend to create a leveraged position— in a fully decentralized and efficient manner.

Through this novel approach Contango managed to gain traction extremely fast, making it the second largest DEX in volume after Hyperliquid with almost half a billion in Trading Volume last year.

Contango’s newest Version

Contango v3 introduces "Continuous Double Dutch auctions" (CDDA) to enhance on-chain price discovery, aiming to compete with centralized exchanges (CEXs) for trading blue-chip assets like ETH/USD and BTC/USD. CDDA addresses the inherent message volume constraint of blockchains by providing a new market structure that reduces the need for high transaction throughput.?

This mechanism enhances the DeFi trading ecosystem by offering efficient, decentralized trading that rivals the performance of other decentralized exchanges visible in the recorded open interest.

Advanced Blockchain views Contango as a key component of its portfolio, reflecting the company's strategic emphasis on empowering innovative DeFi solutions in this rapidly growing market.?

Last Remarks

We're keen to hear your thoughts on blockchain technology and our recent developments. What trends or challenges do you see emerging? Feel free to share your insights for coverage in our upcoming weekly newsletters through the comment section or direct messages.

Stay Updated

To stay informed on the latest in blockchain and DeFi, follow us on LinkedIn and subscribe to our newsletter for regular updates. Look forward to more frequent, in-depth analyses with our weekly LinkedIn newsletter.

Disclaimer: This newsletter is for informational purposes only and does not constitute financial advice. Always consult a professional financial advisor before making investment decisions.