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DeFi Weekly Update: Price Plunge, China Cryptocurrency Ban, US Tightens Cryptocurrency Taxation, Vitalik Buterin's Opinion on Elon Musk

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DeFi Weekly Update: Price Plunge, China Cryptocurrency Ban, US Tightens Cryptocurrency Taxation, Vitalik Buterin

Dear DeFi enthusiasts,

This week can be said to be the most panic-inducing week in the market since the "Black Swan Event on March 12th" last year. Ethereum once dropped to $1700. Did you panic and sell? If we try to clarify the factors behind the drop, they are nothing more than a tweet from Elon Musk stating "Bitcoin is not environmentally friendly," Tesla's suspension of Bitcoin purchases, followed by the U.S. Treasury Department proposing that transfers of enterprise-level cryptocurrencies over $10,000 must be reported to China's continuous crackdown on Bitcoin and mining. The bull market was never meant to last forever, and while the correction in price was significant, it was still within expectations. The development trend of DeFi that we are concerned about has not been directly affected.

Headlines this week include: Did retail investors sell off during the big drop while institutions took the opportunity to buy in? How do professional investors view the market crash? Ethereum founder Vitalik Buterin: Elon Musk will not always have this kind of influence, and the energy consumption issue of Bitcoin is real; U.S. Treasury Department proposal: Transfers of cryptocurrencies exceeding $10,000 by enterprises must be reported to the IRS; Uniswap V3 version of the general liquidity mining smart contract is about to be released, etc. Zapper completes a $15 million financing.

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This week, we have selected insights from industry leaders: Why did Tesla CEO Elon Musk say the real war is between fiat currency and cryptocurrency? Why did Dharma founder Brendan Forster discover that DeFi's performance is so much better than last year's March 12th, and Binance founder Zhao Changpeng reminds everyone that this is not the first time, nor will it be the last.

This week, Coinsight has compiled three cryptocurrencies that have remained stable in this recent major downturn!

1. Major Events this Week

✨ Headlines of the Week

During the market plunge, retail investors sell off while institutions take advantage to buy in? How do professional investors view the market crash

A research report by Chainalysis shows that unlike retail investors, institutional investors seem to be using this market crash to buy chips at low prices, thereby laying a foundation in the market. According to Chainalysis' research results, large investors bought a total of 34,000 bitcoins on Tuesday and Wednesday. Charles Erith, CEO of ByteTree, pointed out that the speculative bubble has dissipated this week, and they also bought bitcoins during the crash. "At the $35,000 price level, we think this is a reasonable level. It is obviously unregulated, a very young asset, but I don't think the trend of 2018 will reappear."

Ethereum Founder Vitalik Buterin: Musk Will Not Always Have This Influence, Bitcoin's Energy Consumption Issue Is Real

Ethereum founder Vitalik Buterin discussed the recent developments in cryptocurrency last Tuesday, stating that Tesla founder Elon Musk drove the market frenzy, but he will not always have this influence. In addition, Vitalik also admitted that Bitcoin's PoW energy consumption issue is real, and although he cannot be sure, Ethereum may eventually catch up with and surpass Bitcoin's market value.

U.S. Treasury Department Proposal: Companies Transferring Cryptocurrencies Over $10,000 Must Report to the IRS

The U.S. Treasury Department stated that in the proposal to strengthen tax supervision under the Biden administration, companies transferring over $10,000 in cryptocurrencies need to report to the U.S. Internal Revenue Service (IRS). The report mentioned that although cryptocurrencies account for only a small part of current business transactions, they still need to be reported comprehensively. "Cryptocurrencies have facilitated many illegal activities, including tax evasion, and have posed significant investigative problems."

Uniswap V3 Generic Liquidity Mining Smart Contract to be Released Soon

The Uniswap V3 generic liquidity mining smart contract is set to be released soon. According to Uniswap founder Hayden Adams, this is not a contract specifically for UNI liquidity mining, but a generic mining contract that any project can use to incentivize liquidity on any trading pair.

Zapper.Fi Completes $15 Million Series A Financing, Led by Framework

Decentralized asset management platform Zapper completed its Series A financing amidst market fluctuations, with prominent crypto investor Framework Ventures leading the round. Zapper.fi provides users with a one-stop solution to manage their DeFi assets on Ethereum and BSC, and also offers the latest Polygon bridge service.

🚀 DeFi Protocols

🖼NFT

⛓Blockchain

🏛 Exchanges, Regulation, Institutions

2. Insights from Industry Leaders

Tesla CEO Elon Musk: The real battle is between fiat currency and cryptocurrency, and I support the latter.

Dharma Founder Brendan Forster: Why is DeFi performing so much better this year than last year?

Binance Founder Changpeng Zhao: This is not the first time, nor will it be the last time.

3. Data Indicators

This week's data is sourced from: DeFi Pulse 2021/5/24.

DeFi Market Data Overview

Top Ten TVL DeFi Projects

4. Weekly Coin Recommendations

Amidst a significant market downturn, this week's coin recommendations feature the three most resilient mainstream cryptocurrencies!

USDCoin USDC: USDC is a USD stablecoin issued by Circle. Unlike the largest stablecoin USDT, its USD reserves are audited monthly by accounting firms, making it a trusted choice for investors.

Dai DAI: Dai is the first stablecoin in history with no USD collateral, introduced by DeFi lending leader MakerDAO, seen as a significant milestone in decentralized finance. Users collateralize assets like ETH to borrow Dai, with the risk of liquidation when collateral drops significantly. DAI maintains its peg to $1 by this mechanism, and aside from the Black Thursday event last year, has not experienced severe price deviations from the USD.

USDT Tether USDT: As the largest market cap and longest-standing stablecoin, USDT is an influential stablecoin that impacts the trends of mainstream cryptocurrencies. Many gauge market activity through USDT issuance or burning to determine whether the market is active or tightening. Public reports suggest insufficient cash reserves backing USDT, but in recent years, there have been no severe USD decoupling incidents. Its high liquidity makes it the preferred choice for traders.

5. Weekly Memes