Trump Wins: What It Means for Crypto

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Good Morning.

The US election results are in → Donald Trump won.

Whether you like him or not that’s above the pay grade of this newsletter, but one thing is clear — BTC also broke its ATH and the Twitter timeline is on full-blown mania now. In the next few days, we’ll hear from the Fed as well as China's stimulus data. LFG!

Check out our latest pod episode with Aiko from MyShell!

In Today's Email:

• What Matters: USDG Stablecoin Launch 💵 

• Case Study: Polymarket Likely to Retain Users Post-Election 📈 

• Governance & Features: Solayer Launches sUSD 💵 

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WHAT MATTERS

Major Crypto Firms Launch USDG Stablecoin

State of play: A consortium of major crypto firms, including Robinhood, Kraken, and Paxos, has launched the USDG stablecoin under the Global Dollar Network.

• USDG is issued by Paxos in Singapore.

• USDG aligns with Singapore’s forthcoming stablecoin regulations and introduces a unique yield-sharing model.

• Income from USDG’s reserves, primarily in US Treasuries, will be distributed among network partners based on their contributions to its adoption.

• Unlike Tether and Circle’s USDC, USDG’s rewards structure focuses on network participants.

• DBS Bank will manage cash and custody for USDG reserves.

What’s next: Other stablecoin issuers might introduce similar yield-sharing structures, distributing reserve income to stay competitive.

Why it matters: USDG introduces a fresh approach to stablecoins by sharing reserve income with network participants rather than retaining it. This model could redefine how stablecoin ecosystems reward contributors, challenging dominant players like Tether.

Our take: USDG may appeal to both institutional and retail partners seeking a compliant, yield-generating stablecoin alternative.

For builders and investors: Builders may find USDG’s network appealing for liquidity and yield-focused applications, while investors could benefit from the stability and structured returns on US Treasury-backed reserves.

CASE STUDY

Polymarket Likely to Retain Users Post-Election

Animoca Brands Research indicates that Polymarket, an on-chain prediction platform, is likely to maintain a strong user base following the U.S. presidential election, despite it being the platform’s largest event to date.

• According to the report, Polymarket’s trading volume skyrocketed from $40M to $2.5B from April to October.

• Polymarket’s open interest climbed from $20M to $400M from April to October.

• In October alone, the platform drew 35M visits.

• Notably, about 75% of users with positions traded on non-election topics, signaling continued engagement across diverse subjects.

• The report notes that Polymarket’s ability to grow will rely on its strategic approach to content and market positioning.

• Particularly as it navigates regulatory challenges and faces competition from both traditional and Web3 platforms.

• Polymarket’s future could be further enhanced by decisions around potential token offerings and airdrop incentives, which could help sustain engagement.

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INSIGHTS

Bitcoin Mining Difficulty Surpasses 100T

Bitcoin's mining difficulty reached a record 101.65T, increasing the pressure on smaller miners who may struggle to afford operational costs compared to larger, publicly traded firms.

• Mining difficulty adjusts every two weeks based on the network’s hashrate

• In 2024, there have been 23 difficulty adjustments, with most being upward.

• Last week, Bitcoin’s hashrate hit an all-time high of 755 EH/s.

• Miners are spending 100% of their daily production, averaging 450 BTC.

• Miners face significant sell-side pressure, amounting to around $31.5M daily if fully sold.

• Despite these challenges, miners are in a relatively healthy position, though the high difficulty continues to strain the industry.

FEATURES & GOVERNANCE UPDATE

Solayer Launches Synthetic Stablecoins “sUSD”

Solayer has unveiled sUSD, the first synthetic stablecoin backed by real-world assets (RWAs), starting with US Treasury Bills.

• Users can mint sUSD with as little as $5, offering access to tokenized RWAs on the Solana blockchain.

• In partnership with OpenEden Labs, sUSD aims to democratize access to low-risk assets, providing users with 4.33% interest from US Treasury Bills.

• The protocol is a non-custodial Request-For-Quote (RFQ) marketplace, designed to bring real-world financial systems onto the blockchain.

• The protocol also allows instant redemption into USDC.

• With the launch capped at $20M, the platform offers additional boosts for early participants.

Other notable feature updates:

• Morph Mainnet is live.

• Swell is migrating to Optimism.

• Phi V2 has launched on mainnet.

• Orca is now available on Eclipse.

• Lido has integrated Chainlink’s CCIP.

• Movement launches V2 testnet Porto.

• Skate Network has launched its Shadow Mainnet.

• Space and Time has launched SXT Chain testnet.

• Lido has launched its Community Staking Module (CSM) on the mainnet.

QUICK BITES

• Spot Bitcoin ETFs saw $541M in outflows.

• ETH-to-BTC market cap ratio declines to 24.52%.

• Mt. Gox moves $2.2B worth of BTC to unmarked wallets.

• Bitcoin mining difficulty breaks through 100T for the first time.

• Bitcoin breaks new ATH above $74,000 amid Trump's early lead.

• Binance lawyers seek to dismiss SEC’s amended securities complaint.

• ZachXBT’s unintentionally created token reaches a $3.4M market cap.

NOTEWORTHY READS & MEME

• Flashbots’ read on parallel block building.

• Yetta’s read on Tether and the new global monetary system.

• Coinmetrics’ read on crypto market & Polymarket heading into elections.

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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.