Did You Miss These Two Important Altcoin Launches?

Hey LinkedIn,

While all eyes were on Bitcoin, you may have missed two important altcoin launches.

I explain what they are and why they deserve your attention.??

dYdX Chain is here

dYdX is one of the largest DeFi exchanges.

It consistently has a 50% share in the derivatives market, generating over $1T of cumulative volume.

After announcing a departure from Ethereum in June 2022, dYdX has successfully moved to its own Cosmos-based appchain.

As a refresher, appchains are applications that are their own blockchains.

It’s a major test of the Cosmos’ appchain thesis

If dYdX succeeds, more applications may choose to start their own blockchains.

The launch of dYdX Chain allows dYdX to offer a better product, enhance token utility and increase its decentralisation.

We're already seeing how value might accrue to the DYDX token, with dYdX Foundation confirming that 100% of fees on dYdX Chain will go to validators and stakers, paid in USDC.

However, if dYdX Chain flops, appchains would likely become a hard idea to sell.

Can dYdX Chain capture the emerging DeFi opportunity?

The DeFi derivatives markets remain tiny, with 99% of volume still going through centralised exchanges.

After the collapse of centralised crypto companies, I'm excited to see whether a flight to DeFi takes place.

Will dYdX continue to become one of the highest-grossing platforms, and will that result in DYDX becoming one of the top cryptocurrencies in terms of value accrual?

Celestia’s long-awaited blockchains hits mainnet

The other major network launch you may have missed this week was Celestia and its native token, TIA.

Celestia is driving a relatively new narrative (i.e. modular blockchains and data availability) which promises to unlock new ways to scale blockchains.

But what exactly is data availability and modular blockchains?

Modular just means that instead of a blockchain performing all roles (called ‘monolithic’, such as Solana), Celestia splits up core functions.

Celestia's job is to provide data availability. That is, to ensure the data is (or was) there. It's important for security.

As blockchains grow, so too does its data history. Over time, it gets more expensive to verify and hold this data.?

Celestia specialises in providing data guarantees.

Celestia has attracted a lot of attention

The launch represents a shift in how blockchains could scale.

Not to mention it launched with a seriously high fully diluted valuation of ~$2.7B and 7.6% of TIA airdropped to the community.

Is Celestia just another L1 or does it have long-lasting potential?

If I were a betting man, it'd be the latter.?

The TIA token certainly has serious productive utility, and Celestia is addressing the growing needs of data-hungry blockchains and rollups.

The big question will be whether Celestia’s hefty launch valuation can capture sufficient adoption to justify it?

For more on Celestia, see Collective Shift's TIA asset page and Nick's member-only analysis from earlier this week.

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Bitcoin whitepaper turns 15

What happened? Satoshi Nakamoto’s work—"Bitcoin: A Peer-to-Peer Electronic Cash System”—remains one of the most important innovations in digital currency, sparking the crypto industry we know today.

Why does it matter to you? It’s a reminder of how far Bitcoin has come, as the industry awaits a milestone U.S. spot ETF. An approval may very well coincide with the Bitcoin blockchain's 15-year anniversary on Jan. 3, 2024. Once a fringe concept, no more.

Landmark reforms for crypto regulation in the UK

What happened? The final proposal by the UK Treasury outlines how firms undertaking crypto asset activities will need to be authorised by the UK's Financial Conduct Authority.

Why does it matter to you? It’s part of the continued movement towards providing regulatory clarity on cryptocurrency, and we expect Australia and the U.S to follow. A regulated environment could spur greater investment and allow more sophisticated actors to join the space.

Bitcoin interest returns as institutional money flows

What happened? $326M flowed into crypto investment products last week, the most of any week this year and since July 2022. As per CoinShares, 90% flowed into BTC-based products, likely due to the recent growth in speculation over a spot ETF approval in the U.S.

Why does it matter to you? We can see how fast sentiment can change with positive price action. The rally could be a sign of what’s to come as the crowd appears to be awakening, with Bitcoin's Wikipedia page hitting June 2022 highs.

Thanks for reading the Weekly Shift. We hope you've enjoyed it, and look forward to seeing you next week!

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