Welcome to the latest edition of Cointelegraph's decentralized finance newsletter.
As the market tried to rebound from last week's beating, decentralized finance (DeFi) was once again the subject of discussion in high-profile US government offices. Read on to learn more about this news and much more from the world of decentralized finance.
What you are about to read is the smaller version of this newsletter designed to be brief. For the full version of DeFi developments during the last week, please send your email below.
Sen. Elizabeth Warren Publicly Examined Decentralized Finance sector this week in a hearing with the Senate Banking Committee. Speaking on the topic of "Stablecoins: How They Work, How They Are Used, And What Are Their Risks", Warren spoke with Alexis Goldstein, a regulatory expert in financial affairs, about the complexities of stablecoin transactions, including Tether (USDT) and USD Coin (USDC) and if the former has a genuine backing of one to one dollar. Following this, the former Democratic presidential candidate questioned Hilary Allen, a professor at the American University of Washington School of Law, about whether a race in stablecoins could jeopardize the country's financial system. In response, Allen argued that stablecoin executions, in which asset speculators sell in droves, would be similar to those seen in money market mutual funds and currency markets and therefore could have consequences for broad reach for the DeFi ecosystem. In closing, Warren stated, "DeFi is the most dangerous part of the crypto world," adding: โI don't think DeFi can grow without stablecoins. I think I would have problems. Right now, I think DeFi is contained to the point where it won't affect financial stability, but if it grows, I think there is a real threat there, particularly if it intertwines with our traditional financial system. " Warren's track record in commenting on the crypto space follows a consistently predictable pattern that largely hints at illicit activity within the market, along with advocating for strong consumer safety in light of scant regulation. In June of this year, he spoke dramatically about the rise of central bank digital currencies (CBDC), stating that cryptocurrencies have "created opportunities to scam investors, aid criminals, and make the climate crisis worse" and that a solution A positive could be a centralized solution, at the federal level. -U.S. Digital dollar backed. Around the same time as the hearing, Warren became embroiled in an argument with tech titan Elon Musk, accusing the nonconformist CEO of "preying on" the general public after reports emerged of tax contributions among the country's top winners. Verbal insults were exchanged between the couple in various media, even Twitter. Please don't call me the manager, Senator Karen - Elon Musk (@elonmusk) December 14, 2021 Related: Elizabeth Warren Compares 'Fake' Cryptocurrencies To 'Legitimate' CBDCs At Senate Hearing An Ethereum Beacon Chain Participation Agreement containing 8,641,954 ether (ETH), equivalent to $ 33.5 billion, was discovered inaccessible this week without the action of a hard fork, an event in which the details have yet to be finalized. Beacon Chain is the inaugural development in Ethereum's transition to a proof-of-stake mining consensus. One of the prerequisites for becoming a validator on Ethereum 2.0 is to stake at least 32 ETH on the contract. Therefore, a short-term situation has arisen in which large sums of capital are stored in a contract that cannot be spent or transferred. Upon completion of the Beacon Chain merger on the Ethereum mainnet, the transition to Eth2 will be completed. After this, the details of the fork are expected to be worked out, creating a solution to what is currently a dormant contract. Related: Small Ethereum Investors Increase Exposure As ETH Loses $ 4K Level A survey reported by the US news broadcaster CNBC has revealed fascinating information about the financial portfolios of millennial millionaires, concluding that a vast majority of people have invested in nascent cryptocurrency markets and hope to continue to do so for the foreseeable future. Conducted by Spectrem Group, the survey surveyed investors with assets over $ 1 million and found that 83% of them had made cryptocurrency investments in their lifetime and that 53% of respondents have 50% or more of their portfolio. in the digital asset market. George Walper, president of the Spectrem Group, noted that traditional organizations have largely failed to recognize Millennials' interest in the digital economy, stating: โI'm not sure the wealth management industry has recognized that they need to think of them as completely different generations. Most companies hoped to ignore it. But millennial millionaires won't just grow out of crypto. " Related: Cryptocurrencies could save millennials from the economy that failed them Analytical data reveals that the total locked value of DeFi has decreased 13.51% during the week to a figure of $ 122.89 billion. Data of Cointelegraph Markets Pro Y TradingView Reveals Top 100 DeFi Tokens By Market Cap Are Mostly Bearish the last seven days. Financing year (AND FI) grew a healthy 33.56%. Avalanche (AVAX) was up 22.03%, while Curve DAO Token (CRV) posted gains of 11%. PancakeSwap (CAKE) and Oasis Network (ROSE) ranked fourth and fifth this week with 8.48% and 5.6%, respectively. Interviews, reports and other interesting things Thanks for reading our roundup of this week's most impactful DeFi developments. Join us again next Friday for more stories, ideas, and education in this dynamically moving space.
Senator Warren warns of alleged dangers of DeFi
$ 33.5 Billion Trapped in Ethereum Beacon Chain Contract
New Study Finds 83% of Millennial Millionaires Own Crypto
Token performances
Post navigation
