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Good Morning.

BlackRock just doesn’t stop. Daily inflows are at the high 9-figure. We’re slowly death marching to $100k BTC. Do nothing, don’t overexpose yourself to leverage, and relax.

In Today's Email:

• What Matters: Monad’s $200M raise 💰️ 

• Case Study: Ether ETF rejection? 🚫 

• Governance & Features: Ethereum’s Dencun upgrade 🔧

You read and share. We listen and improve. Send us feedback at [email protected].

TOGETHER WITH

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WHAT MATTERS

Monad Labs Targets $200 Million in Funding

State of play: According to Fortune, Paradigm is in talks to lead a funding round of over $200M for Monad Labs. Monad is developing a faster blockchain alternative to Ethereum.

• The $200M round values Monad at $3B.

• Paradigm plans to invest $150M in Monad Labs and has been seeking more investors since late 2023.

Why it matters: If successful, Monad Labs' raise of over $200M would be 2024's biggest crypto fundraising yet.

For builders and investors: Despite a global crypto market cap nearing its all-time high, early 2024 has seen a slowdown in venture investments compared to the previous year.

• The global cryptocurrency market cap has reached over $2.8T, close to its late 2021 peak of $3T.

• There are only 219 fundraises in early 2024 compared to 571 fundraises in the same period last year.

• However, notable investments like EigenLayer's $100M raise and Monad Labs' anticipated $3B valuation hint at a resurgence in investor interest in the crypto sector.

CASE STUDY

BBG Analyst Lowers Ethereum ETF Chance

State of play: Bloomberg's Eric Balchunas lowered the May Ethereum ETF approval odds to 35% from 70%, citing missing signs present before the Bitcoin ETF approval despite sufficient reasons for approval.

• James Seyffart of Bloomberg noted the Ethereum ETF cycle shows little progress compared to Bitcoin's with ~73 days to the deadline.

• The past couple of months have lowered expectations for an imminent approval, primarily due to the absence of filing changes that preceded Bitcoin ETF approvals.

• Coinbase and Grayscale discussed converting Grayscale's Ethereum Trust into an ETF on March 8. Eric Balchunas noted this would typically be positive, but mentioned the SEC had yet to comment on the issuers.

Others also show their skepticism that the Ethereum ETF will be approved in May but argue that the approval is more likely than not.

• In January, crypto market-making firm GSR estimated a 70% chance of approval. However, analyst Brian Rudick indicated their estimates might soon change.

• JPMorgan and TD Cowen also predict spot Ethereum ETFs won't get approval by May.

• Rudick mentioned GSR views Ethereum ETF applications as similar to Bitcoin's due to the need for equal treatment of spot and futures-based applications.

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INSIGHTS

Why Maker is Raising Rates

In response to recent market volatility, an Accelerated Proposal has been initiated for an Executive Vote within the Maker Protocol.

Maker stated that the proposal aims to prepare for potential excessive demand for DAI due to bullish sentiment while ensuring the stability of DAI's price at $1.

• The proposed changes include adjustments to Maker Vaults, SparkLend DAI Borrow Rate, the Peg Stability Module, DAI Savings Rate (DSR), and the Governance Security Module Pause Delay.

• Stability fees for various collateral assets will increase, the SparkLend DAI Borrow APY will rise, cooldown for PSM debt ceiling increases will decrease, DSR will be increased, and GSM Pause Delay will be reduced.

• These changes are intended to address a decrease in Peg Stability Module reserves and potential delays in processing Real-World Asset (RWA) redemptions.

@llamaonthebrink is summarizing the reasons why Maker is proposing to raise the rates:

• DAI facing a selloff as DeFi rates exceed T- bill rates, making DSR ineffective.

• Vault owners borrow DAI to chase high-yield opportunities like Ethena.

• PSM reserves off-chain, causing delays in meeting redemption demands.

FEATURES & GOVERNANCE UPDATE

Ethereum’s Dencun Upgrade

Credits to Coindesk and Wilfred Daye for the original piece.

The upcoming Ethereum Cancun-Deneb ("Dencun") hard fork upgrade is scheduled for March 13. The upgrade is focusing on scalability, efficiency, and security.

• The Dencun upgrade will incorporate Ethereum Improvement Proposals (EIPs), notably EIP-4844 for Proto-Danksharding, aimed at optimizing gas fees and enhancing network scalability.

• The Dencun upgrade initiates "The Surge" era in Ethereum's roadmap, focusing on achieving mass scalability through L2 rollups.

• These enhancements aim to make Ethereum more accessible and user-friendly, driving adoption and utility in sectors like DeFi 2.0.

• L2 rollups boost Ethereum's scalability and efficiency by processing transactions off-chain while maintaining security from the main Ethereum blockchain.

• EIP-4844, also known as Proto-Danksharding, aims to enhance Ethereum's scalability by introducing temporary data blobs attached to blocks.

Other notable feature updates:

• Pac Finance goes live.

• Astar zkEVM goes live.

• Fraxtal Bridge goes live.

• ZKX launches Paymaster.

• Polymer Testnet goes live.

• IVX launches Diem Testnet.

• Kwentia launches Perps v3.

• Tokemak autopilot goes live.

• Avalanche launches Teleporter.

• Sushiswap v3 & v3 AMM goes live.

QUICK BITES

• Coinbase plans $1B bond sale.

• VanEck lowers Bitcoin ETF fees to zero.

• OKX gets in-principle license approval in Singapore.

• Tensor Marketplace to issue TNSR governance token.

• Bitcoin’s market cap jumps to $1.4T, surpassing silver.

• Grayscale files S-1 form to launch ‘mini’ GBTC spin-off.

• Bitcoin CME Futures' OI reaches a record high of $10B.

• MetaMask tests the blockchain payment card with Mastercard.

• EU approves new sanction violation rules for freezing crypto assets.

• Crypto mixer Bitcoin Fog operator convicted of money laundering.

• MakerDAO Founder announces two new tokens in “endgame” plan.

NOTEWORTHY READS & MEME

• Our Network’s read on DePIN.

• James Butterfill’s read on the Bitcoin demand shock.

• Archetype’s read on shifting tides and new age of exploration.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.