Charles d'Haussy of the dYdX Foundation adds that the company's departure from Ethereum may signal the start of a wider trend.
Prices:
The market is just thinking about a bitcoin ETF,
which may be controversial for some in the business.
Insights:
Charles d'Haussy of the dYdX Foundation discusses
the platform's post-Ethereum future and emerging legislative trends.
Bitcoin Starts Week By Protecting the $30K Support Level
The market is solely thinking about a bitcoin ETF.
The acceptance of bitcoin by BlackRock CEO Larry Fink, a
180-degree turn for the financial chief, has caused controversy among experts
and the wider sector.
"So-called mainstream adoption will bring waves of new
entrants to bitcoin, and the risk is that they won't care, and they won't
protect the decentralization properties that make it valuable over centralized
alternatives in the first place," Alex Thorn, head of research at Galaxy,
wrote last week in his report.
The market, as a whole, does not appear to care about the
specifics of decentralization, though.
The biggest digital asset in the world opened the Asian
trading week at $30,171 as it continues to defend the $30,000 level. With a
price of $1,863, ether is also staying above $1,800.
"In a largely uneventful week, we saw bitcoin trending
downward to test support levels near $30K," BitBull Capital's Joe
DiPasquale wrote in a note to "However, despite news that the
SEC found the ETF filings to be inadequate, the market leader was able to
defend the key level."
According to DiPasquale, the market is awaiting further
explanation of BlackRock's revised application.
"We continue to believe that additional attempts to
move higher will occur if trade stays above $30K. While $27K continues to be a
solid support for until then," he remarked.
Looking ahead to later this week, the market will be
watching inflation data and unemployment claims, two statistics that the Fed
will take into account when deciding how to move interest rates in the future.
As such, anticipate cryptocurrency trading.
Insights
DYdX Foundation CEO Sees Ethereum's Move to Own Blockchain
as a Prelude
Due to issues with scalability, DYdX announced last year
that it was departing Ethereum in favor of its own exclusive blockchain, on
Cosmos. The exchange made the important announcement that it has started a V4
of its private testnet at the beginning of April.
The CEO of the dYdX Foundation compared the action to tech
sovereignty in order to justify it. He added that by having its own blockchain,
dYdX is able to control its entire technology stack and is not constrained by
Ethereum's roadmap's speed or trade-offs.
"You depend on the roadmap of the person whose blockchain
you are using. He informed "It's not yours. "By moving away
from a general purpose blockchain, we are able to execute much faster by having
our own chain."
Even though DYdX is not a new platform, interest in it has
grown as the Securities and Exchange Commission (SEC) pursues its centralized
competitors. The platform has some growing pains, and at the end of the day,
the question will be whether its new technology stack is the solution. The
market is watching this carefully as the exchange gets ready for its next
chapter because the price of its token has fallen by almost 6% in the past
month while the price of ether has increased by 1.3%.
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