Lido’s decision was approved by 99% of Lido DAO voters, and is very similar to Lido’s previous exit from Solana. Meanwhile, Aave is considering a similar move due to the risk profile of bridged assets and recent proposals to redeploy $1.3 billion in stablecoin reserves into Ethereum vaults. This plan caused some controversy in the crypto community over added risks. In contrast, Eliza Labs partnered with Stanford University to explore the role of AI agents in Web3 systems to improve trust, coordination, and decision-making in decentralized networks. Lido Finance Exits Polygon Lido Finance, the leading liquid staking protocol, announced it is winding down operations on the Polygon network due to limited user adoption, evolving ecosystem dynamics, and a strategic refocus on Ethereum. The decision was made after a request by Lido DAO Token (LDO) holders, extensive DAO forum discussions, and a community vote in November. During this vote, 99% of participants favored the proposal. Two proposals were initially presented: a full transition away from Polygon and a reevaluation of the middleware’s economic model. According to Lido, maintaining operations on Polygon proved resource-intensive with very limited rewards and diminishing demand for liquid staking solutions, especially as the DeFi sector increasingly shifted focus toward zkEVM solutions. Shard Labs, the team responsible for bringing Lido’s staking service to Polygon in 2021, acknowledged that the DeFi migration to zkEVM weakened the role of Polygon’s proof-of-stake (PoS) network as a foundational building block for other protocols. On Dec. 16, Lido stopped accepting staking requests on Polygon, though users will still be able to withdraw their staked MATIC through Lido’s interface until June 16 of 2025. However, rewards have been discontinued, and the protocol will temporarily suspend all withdrawals between Jan. 15 and Jan. 22, 2025. By June 16, front-end support will end entirely, and withdrawals will only be accessible through browser tools. Lido’s exit from Polygon happened after a similar move last year when the protocol stopped operations on Solana due to unsustainable financials and low fees. Lido’s Solana operations launched in September of 2021 but struggled to maintain profitability. Lido holds about $45 million in staked tokens on Polygon, while the network itself retains more than $1.2 billion in total value locked (TVL), according to DefiLlama data . Across all networks, Lido is still the largest liquid staking protocol. Aave Also Considers Exiting Polygon The community is also currently discussing the possibility of stopping operations on the Polygon network due to concerns over the risk profile of bridged assets. A proposal that was initiated on Dec. 13 by Aave chain founder Marc Zeller seeks to revise risk parameters for Aave v2 and v3 on Polygon. Zeller’s proposal was made after a Polygon governance plan to use over $1 billion in stablecoin reserves for yield farming on protocols like Morpho and Yearn. The proposed changes include setting loan-to-value (LTV) ratios to 0%, increasing reserve factors, and freezing certain assets. Marc Zeller’s proposal (Source: Aave ) Setting the LTV to 0% will prevent users from using bridged assets as collateral, which reduces the risk of cascading liquidations in the event of bridge vulnerabilities. Additionally, freezing assets will stop interactions with multiple bridged tokens, including USDC.e, wETH, wstETH, WBTC, AAVE, LINK, GHST, StMATIC, USDT, EURS, and DAI. Zeller believes that vulnerabilities in blockchain bridges pose very serious risks. Incidents like the Multichain and Harmony bridge hacks are perfect examples of this. He argued that revising Aave’s risk parameters will mitigate these risks while still incentivizing users to migrate from the Polygon network. Aave is one of the largest lending protocols on Polygon, with $461 million in total value locked (TVL), according to DefiLlama . Cumulative fees generated on Polygon for the Aave chain stand at about $122 million. The discussion was started by a separate proposal on Dec. 12 from Allez Labs, Morpho Association, and Yearn.finance, which suggested deploying $1.3 billion in idle stablecoins held on the Polygon Portal bridge into yield-generating Ethereum vaults. This strategy will generate an estimated 7% annual yield, unlocking around $81 million in revenue that could be reinvested into Polygon’s DeFi ecosystem to incentivize liquidity and growth. Under the plan, Morpho’s vaults will serve as the liquidity protocol, Allez Labs would handle risk management, and Yearn would oversee rewards. The proposal generated a lot of community debate, and most people seem to be opposing it due to concerns about added risk. Critics argue that stablecoin holders on the Polygon bridge consider it to be a low-risk environment, and reallocating funds into vaults will just add additional risk without offering corresponding rewards. Polygon Labs explained that the proposal is still only in its early days, and that security is a main priority for the ecosystem. Blockchain bridges allow users to transfer tokens between different chains, and have become a major target for decentralized finance exploits. In fact, they accounted for over half of on-chain attacks between 2021 and 2022. Eliza Labs Partners with Stanford Other partnerships might perform a bit better than the ones with Polygon. Eliza Labs, the developer behind the AI-powered decentralized autonomous organization (DAO) ai16z, announced a partnership with Stanford University’s Future of Digital Currency Initiative to explore how artificial intelligence agents can improve Web3 systems. The collaboration was revealed on Dec. 16, and will use Eliza Labs’ open-source AI agent framework, which is known as Eliza, to address critical questions about trust, coordination, and decision-making in decentralized financial networks. The research is set to begin in 2025, and will focus on developing new frameworks to help AI agents establish and verify trust in digital currency networks, as well as investigate how these agents coordinate and interact in economic systems. Professors Dan Boneh and David Mazières from Stanford described the project as a unique opportunity to define the role of AI agents in digital economies. Eliza is the AI agent that powers ai16z, which is a DAO created to automate on-chain trading and investment decisions. Its native token, AI16Z , hit a market cap of approximately $850 million since its launch in October. The DAO currently manages around $15 million, and Eliza-based AI agents are already being used by dozens of projects. Influencers in the crypto space have drawn comparisons between AI16Z and well known DeFi protocols like Aave, which played a pivotal role in the 2021 bull market. The rise of AI-themed meme coins has also been quite impressive over the past few months. Projects like Zerebro (ZEREBRO) and aixbt by Virtuals (AIXBT) achieved market caps of close to $358 million and $202 million, respectively. Collectively, AI-themed meme coins bootstrapped over $3 billion in market capitalization since October of 2024. Analysts believe this fusion of artificial intelligence and blockchain will fundamentally transform Web3, and allow autonomous AI agents to interact seamlessly with humans in decentralized digital economies.
According to recent insights from COINOTAG, as of December 17, Vetle Lunde, the head of research at K33, disclosed a pivotal shift in the financial landscape: the total assets under
The post MicroStrategy’s Bitcoin Bet Pays Off: Surpassed $20bn in Bitcoin profits. appeared first on Coinpedia Fintech News MicroStrategy has surpassed $20 billion in Bitcoin profits as the cryptocurrency’s price hit an all-time high of $108,000. This milestone comes after MicroStrategy revealed on the 16th that it now holds 439,000 BTC, purchased for $27.1 billion. While its Bitcoin strategy has fueled massive gains, the company’s core software business remains unprofitable. Despite this, MicroStrategy’s stock (MSTR) boasts a market cap of $83 billion, showing strong investor confidence. The surge in Bitcoin also coincides with speculation about President-elect Donald Trump’s plans for a U.S. strategic Bitcoin reserve, which could further influence the crypto market.
Spot On Chain’s data revealed that Curve’s founder, Michael Egorov, made a huge repurchase of 1.08M CRV a little over five hours ago. He bought the CRV tokens at $1.114 each for $1.2M, which marked his first major buyback since the June liquidation. CRV’s price dropped ~7.8% in the last 24 hours, but Egorov’s large-scale purchase showed the Curve founder’s confidence in the project’s future development. The huge repurchase could also influence investor sentiment and market dynamics, triggering the token’s bounce back. Curve founder replenishes CRV holdings amid token’s dip #Curvefi founder, Michael Egorov ( @newmichwill ), bought 1.08M $CRV ($1.2M) at an average price of $1.114 in the past 3 hours! Notably, this marks his first significant $CRV buyback since the liquidation on June 13. The price of $CRV has dropped ~7.8% in the past 24 hours.… pic.twitter.com/SIRquKcZWM — Spot On Chain (@spotonchain) December 17, 2024 Curve Finance CEO surprised the crypto industry after spending $1.2M worth of DAI, WETH, and WBTC to buy back 1.08M CRV at an average price of $1.114. The repurchase, which happened nearly five hours ago, came amid CRV’s ~7.8% 24-hour decline. The transaction by Egorov marked his first significant CRV token buyback since he was liquidated for $140 million in CRV on June 13th. He had suffered a huge CRV liquidation after borrowing stablecoins worth $95.7 million against his CRV assets. Egorov’s CRV acquisition revealed his strategy to strengthen his holdings in the DeFi sector even though the price of CRV had dropped recently. The transaction monitored by Spot On Chain highlighted the CRV market’s current activity and interest. The news was important for the DeFi community because it confirmed that a major player in the CRV project still believed in its future success. Egorov’s actions could likely influence CRV investor perceptions. The Curve founder’s buyback also emphasized the fast-changing nature of the crypto market. It showed that opportunities for quick strategic investments occurred when prices fluctuated rapidly. Curve’s week-on-week growth shows positive trajectory Curve’s weekly yield and ecosystem metric updates as of December 17th showed positive growth. The week-on-week TVL increased by more than 7% to approximately $2.437 billion. The ecosystem also offered various ways to profit, with the annual percentage rate of USD-pegged stablecoins exceeding 50%. According to the December 13th metric updates, one pool surpassed 100% APR. scrvUSD’s introduction continued to strengthen crvUSD’s market position. The week’s metrics as of December 13th demonstrated its impact, as crvUSD expanded 1.85% (~$ $78.22M). Borrowing costs also decreased as the peg moved closer to the $1 mark (~$0.9984). Stable growth with improving fundamentals was not achievable before the implementation of scrvUSD. The scrvUSD yield grew by 1.65% to an APY of 13.09%. Pool statistics also showed that the pool TVL surged 8.41% to $2.18 billion, the volume went up 13.85% to $2.63 billion, transactions increased by 4.55% to 392.4K, and total fees climbed 5.34% to $756.3K. The DAO fees similarly shot up 5.34% to $378.1K. Notable pool activity was observed on two Ethereum pools. The highest-volume pool consisted of DAI, USDC, and USDT, recording a volume of $798.6 million with a TVL of $165.7 million. The second pool consisted of ETH and stETH , with a volume of $234 million and a TVL of $195.9 million. Curve’s ecosystem continued to expand rapidly, welcoming new pools and teams weekly. From Zero to Web3 Pro: Your 90-Day Career Launch Plan
Recent trends indicate that Ethereum’s whale dominance could signify strong bullish sentiment, but it also raises concerns over potential liquidity risks. As of now, Ethereum’s rich list includes 104 wallets
XRP Surpasses $2.6666! ————— 💰Coin: XRP ( $XRP ) $2.67 ————— NFA.
Bitcoin has smashed its previous records, soaring to a new all-time high of $107,700 on December 16. This has been fueled by robust spot buying dur...
Bitget, a South Africa-based cryptocurrency exchange, has recently announced that it received a Bitcoin Service Provider (BSP) license in El Salvador, opening the doors to start operating locally. This milestone allows the company to “offer services such as bitcoin-to-fiat currency exchanges, bitcoin payment facilitation, and secure bitcoin custody solutions for its clientele,” according to a
Ethereum’s whale dominance suggests strong bullish sentiment, but could trigger liquidity-driven price corrections.
Bitcoin continues to make significant strides globally, reaching a new all-time high of $107,700 amid growing institutional demand and steady ETF inflows. At the same time, El Salvador, the first country to adopt Bitcoin as legal tender, has authorized crypto exchange Bitget to offer Bitcoin-related services, further solidifying its role as a hub for crypto innovation. Bitget Secures Bitcoin Service Provider License in El Salvador, Strengthening Nation’s Crypto Ecosystem Crypto exchange Bitget has achieved a significant milestone by becoming an authorized Bitcoin service provider in El Salvador, further solidifying the Central American nation’s status as a global leader in Bitcoin adoption. The announcement on Dec. 16 confirms that Bitget has secured a Bitcoin Service Provider (BSP) license from El Salvador’s Central Reserve Bank, marking a crucial step for the exchange’s expansion into Latin America. The newly acquired license enables Bitget to offer a wide range of Bitcoin-related services in El Salvador, including fiat-to-Bitcoin currency exchanges, payment services, and secure custody solutions for its growing user base in the country. This development aligns with El Salvador's broader digital asset strategy as the nation continues to embrace Bitcoin as a cornerstone of its financial innovation. While Bitget now holds the BSP license, the exchange is also pursuing a digital asset service provider license from El Salvador’s National Commission of Digital Assets. This additional regulatory approval would allow Bitget to expand its services beyond Bitcoin, enabling the trading of other digital assets and bolstering the country’s position as a regional crypto hub. Min Lin, Bitget’s Chief Business Officer, emphasized the strategic importance of this move, stating, “Latin America holds immense promise as a hub for crypto innovation, and El Salvador stands out as a pioneer with its bold embrace of Bitcoin as legal tender. [...] As the world’s interest in crypto accelerates, we see El Salvador as a gateway to unlocking crypto’s potential.” Bitget’s foray into El Salvador comes at a time when Latin America is emerging as a fertile ground for crypto innovation. El Salvador, in particular, has played a pioneering role since its historic decision to adopt Bitcoin as legal tender in September 2021. The nation’s progressive stance has attracted global investors and businesses looking to capitalize on its crypto-friendly regulatory environment. Headquartered in Seychelles, Bitget has rapidly scaled its operations, boasting over 45 million users worldwide. The company has successfully secured licenses in Poland and Lithuania as a Virtual Asset Service Provider ( VASP ), demonstrating its commitment to regulatory compliance in key markets. Additionally, Bitget resumed operations in the United Kingdom in November 2023, following a brief restriction period earlier this year due to local regulatory adjustments. The exchange has also made significant inroads into Vietnam, where it recently established a new subsidiary, reflecting its ambition to capture emerging markets in Asia alongside its strategic expansion in Latin America. Bitget’s entry into El Salvador coincides with the country revisiting its landmark Bitcoin law. Reports indicate that El Salvador is in negotiations with the International Monetary Fund (IMF) for a $1.3 billion loan. As part of the deal, El Salvador may amend its Bitcoin law to make Bitcoin acceptance by businesses voluntary rather than mandatory. This adjustment signals a balanced approach to promoting Bitcoin adoption while addressing international financial requirements. Despite these changes, El Salvador’s commitment to Bitcoin remains steadfast. The nation has steadily increased its Bitcoin reserves since making the cryptocurrency legal tender. As of Dec. 16, El Salvador holds 6,189 BTC, currently valued at approximately $602 million, according to data from the Nayib Bukele Tracker . Expanding International Collaboration El Salvador’s strategy extends beyond its domestic policies. The government is actively forging international partnerships to promote cryptocurrency adoption on a global scale. Recently, El Salvador signed a mutual collaboration and training agreement with Argentina, focusing on digital assets and knowledge-sharing. This agreement is part of a broader effort to create a unified global approach to crypto regulations and innovation. El Salvador’s outreach continues with discussions involving over 25 countries to establish similar partnerships. Bitget’s entry into El Salvador marks a pivotal moment for both the crypto exchange and the nation. By securing the Bitcoin Service Provider license, Bitget is positioning itself to play a key role in El Salvador’s evolving Bitcoin ecosystem and Latin America’s broader crypto market. As negotiations with the IMF progress and international collaborations expand, El Salvador continues to shape its identity as a trailblazer in Bitcoin adoption and financial innovation. With its growing global user base and strategic regulatory approvals, Bitget’s success in El Salvador may encourage further investments from other crypto businesses, solidifying the country’s role as a hub for Bitcoin and digital assets. Bitcoin Soars to New All-Time High Above $107,700 Amid Explosive Demand and Institutional Buying Meanwhile, Bitcoin (BTC) continued its meteoric rise over the weekend, hitting a new all-time high of $107,700 on Dec. 16. This latest surge comes amid robust spot trading volumes, increasing institutional inflows, and renewed enthusiasm from both US and global markets. The price action saw Bitcoin break through key sell walls between $103,000 and $104,000, catalyzed by significant spot pushes on Binance and surging perpetual futures trading on KuCoin. Traders seized the opportunity to push BTC to record highs, marking another milestone for the leading cryptocurrency as demand continues to skyrocket. A major driver of Bitcoin’s rally has been the return of the Coinbase Premium during the US trading session. This metric, which reflects a price gap favoring the US-based exchange Coinbase, indicates strong demand from institutional and retail investors in the United States. Historically, the presence of a Coinbase Premium has signaled bullish sentiment and buying momentum, as US investors often pay a premium for Bitcoin during surges. This renewed US buying activity builds on the weekend's explosive momentum, where Binance and KuCoin played central roles in driving BTC’s price action. On Dec. 15, the strong perpetual futures volumes on KuCoin coupled with spot buying on Binance helped BTC push decisively past $104,000, triggering a cascade of buy orders that propelled the price higher. Positive institutional news added further fuel to Bitcoin’s price rally. On Dec. 16, two major corporations made significant Bitcoin purchases, suggesting a growing appetite among institutional investors for BTC as a store of value and hedge against macroeconomic uncertainty. Semler Scientific, a healthcare company, purchased 211 BTC for $21.5 million, at an average price of $101,890 per coin. MicroStrategy, led by Bitcoin advocate Michael Saylor, acquired an additional 15,350 BTC for $1.5 billion, at an average price of $100,386 per coin. These acquisitions point to continued confidence in Bitcoin’s long-term value. MicroStrategy, which now holds a substantial Bitcoin treasury, has been a key proponent of BTC as a reserve asset. The company’s ongoing accumulation reinforces Bitcoin’s role as a critical asset in corporate balance sheets. Massive Inflows Into Bitcoin ETFs The growing adoption of spot Bitcoin exchange-traded funds (ETFs) has also been a major factor driving Bitcoin’s ascent to new highs. According to data from SoSoValue, the week ending Dec. 12 saw $2.17 billion in net inflows into Bitcoin ETFs. These inflows brought the total net assets under management to an impressive $114.97 billion, reflecting a surge in investor demand for regulated Bitcoin investment vehicles. Independent researcher Timothy Peterson attributed Bitcoin’s current trajectory to ETF fund flows, predicting that BTC’s price is on track to hit $115,000 in the near term. According to market analyst Willy Woo, the past month has seen over $3 billion per day flowing into the Bitcoin network. This massive influx highlights the sustained demand for BTC across market participants, driven by institutional adoption, macroeconomic hedging strategies, and investor confidence in Bitcoin as a scarce, deflationary asset. The return of the Bitcoin bull market has reignited enthusiasm among traders and investors, with BTC firmly positioned as a hedge against inflation and economic uncertainty. The current momentum has been formed by a convergence of factors, including: Institutional confidence and corporate adoption. Growing demand for regulated investment products like spot Bitcoin ETFs. The return of strong spot trading volumes on major exchanges. Renewed optimism fueled by Bitcoin’s scarcity and its role as digital gold. With Bitcoin’s recent price surge and the sustained inflows into ETFs, analysts predict further upside for BTC in the coming weeks. The $115,000 price level has emerged as a potential near-term target, with institutional demand and growing global adoption acting as key drivers. Bitcoin’s ability to break through psychological resistance levels like $100,000 and $107,000 demonstrates the strength of its upward trajectory. As market conditions remain favorable, BTC appears poised to set new all-time highs, continuing its role as the world’s premier digital asset.