Crypto VC Funding Reaches $2.7 Billion in Q2, Tron Emerges as Potential Leading Blockchain

Funding for crypto startups has seen an increase of over 2.5% in the second quarter of the year, with Tron on pace to become the most profitable blockchain based on revenue, as suggested by Justin Sun.

Welcome to your essential update on decentralized finance developments from the past week.

Growth in Crypto Startup Funding Despite Decline in Total Deals

According to recent data, crypto startups managed to secure slightly higher venture capital in Q2 compared to Q1, despite a downturn in the overall number of deals.

Reports indicate that the total capital invested rose by 2.5%, while the number of deals decreased by 12.5%. This trend may point to renewed interest from institutional investors.

“With improved sentiment towards crypto, barring significant market downturns, we anticipate an increase in the volume and rate of investments throughout the year,” analysts stated.

Tron Surpasses Ethereum in Revenue Over Recent Quarter

The Tron network achieved greater revenues than Ethereum over the previous 90 days, accumulating approximately $435 million in fees compared to Ethereum’s $364 million, according to Token Terminal data.

Justin Sun emphasized that Tron’s 30-day revenue performance exceeded Ethereum’s by 50%, which paves the way for potential revenues surpassing $2 billion this year, making it the most profitable blockchain.

ZK-Powered DEX Secures $10 Million for Development

Vessel, with $10 million in seed funding, aims to create a comprehensive layer-3 solution for decentralized finance, emphasizing zero-knowledge (ZK) technologies. This initiative targets key challenges in DeFi, such as liquidity fragmentation and compatibility across chains.

The crypto trading space faces a major challenge in balancing efficiency with transparency. Centralized exchanges provide quicker transactions but may lack adequate transparency, raising concerns about security. Conversely, decentralized exchanges (DEXs) enhance visibility at the cost of speed.

Coinbase Challenges SEC’s Proposed Exchange Definition

Coinbase has filed a new letter to the U.S. Securities and Exchange Commission regarding the agency’s proposed changes to define national securities exchanges. This marks Coinbase’s third response on this matter, addressing the SEC’s cost-benefit analysis.

Coinbase contends that the SEC lacks sufficient data for a productive analysis and relies on flawed reasoning. The organization argues that the SEC should retract the proposal and conduct proper research before moving forward.

Ethereum Supply Exceeds 120 Million ETH Amidst Staking Boom

Ethereum has reached a key milestone as its total supply surpassed 120 million ETH, coinciding with a surge in both staking and restaking activities. Latest data indicates that the supply stands at approximately 120.28 million ETH, with 77,091 ETH issued in the last month.

Overview of the DeFi Market

Recent data suggests that most of the top 100 cryptocurrencies by market capitalization experienced declines during the week. Notably, the Solana-based memecoin Dogwifhat suffered a loss of over 20%, making it the largest loser, followed closely by the Brett token, which dropped nearly 17%.

Thank you for reviewing this week’s most significant developments in DeFi. Stay tuned for further updates and insights in the upcoming weeks.