Bestla VC Friday: The Crypto Surge and Venture Moves
Welcome to another edition of Bestla VC’s weekly market recap! Venture capitalists and project leaders, fasten your seatbelts, because the crypto space is firing on all cylinders. Here’s the rundown of the latest trends, insights, and game-changing news you need to know.

Market Performance Overview:

• Bitcoin: Trading at $60,169, up 0.41% in the last 24 hours.
• Ethereum: Valued at $2,407.21, down 0.61%.
• BNB: Priced at $558.76, with a 1.19% pump.
• Solana: Trading at $135.91, down 1.95%.
• XRP: At $0.588, up 0.43%.

1. TON Network’s Unexpected Boom

• Telegram Founder Arrest Aftermath: Since Pavel Durov’s arrest on August 24, 2024, the TON network has been on fire. Daily transactions have skyrocketed by 160%, hitting a new all-time high of 10 million transactions on September 6. But here’s the twist: while activity is spiking, TON’s token price is down by over 30%. The volatility around news-driven events continues to offer both caution and opportunity for VCs eyeing this space.

2. Stablecoins – The New Kingpins of DeFi

• Ethereum’s Record Stablecoin Volume: Stablecoin volumes on Ethereum have reached a staggering $1.46 trillion, marking a massive leap from $650 billion at the beginning of the year. DAI leads the charge with $960 billion, reflecting growing trust in decentralized finance (DeFi). For VCs, this reinforces the narrative of DeFi as a strong contender for the future of finance.
• PYUSD Growth: PayPal’s PYUSD has soared from $500 million to $2.4 billion, offering a clear signal that traditional finance is expanding deeper into crypto. The fusion of fintech and DeFi is where innovation is brewing, and the opportunities for VC investment are multiplying.

3. Aptos: The Rising Star in Blockchain

• Transaction Surge: Aptos is pulling impressive numbers with 5.4 million active addresses and 578 million transactions in the last month. The APT token has climbed by 4.9% over the past year. While these metrics are promising, VCs should remain vigilant about potential bot-driven inflation and the true sustainability of this ecosystem.

Market News for VCs and Projects

1. U.S. Presidential Debate Fallout: The recent U.S. presidential debate led to a “sell-the-news” reaction in the crypto market. Analysts noted a risk-off sentiment after Donald Trump’s performance, prompting many investors to pull back. VCs should take note of the political sensitivity of markets as elections draw closer.
2. Indodax Breach: Indonesian exchange Indodax suffered a $20.5 million security breach, involving the theft of 660 ETH. This incident raises concerns about the safety of centralized exchanges, highlighting the need for investment in secure decentralized solutions.
3. New Leadership at Matter Labs: Matter Labs, creators of ZKsync, have recruited Meghan Hughes, ex-Solana Foundation VP, to lead their marketing efforts. Her experience at Google and Facebook will likely boost ZKsync’s scaling solutions for Ethereum, making it a project to watch for those looking to back L2 technologies.
4. Bitcoin Mining Hits New High: Bitcoin mining difficulty has climbed by 3.6%, hitting a new all-time high. This spike is attributed to an increasing network hash rate, despite lower miner revenues post-halving. Public miners are scaling up their operations, presenting fresh opportunities for investment in infrastructure and related technologies.
5. Caroline Ellison’s Legal Battle: Former Alameda Research CEO Caroline Ellison faces sentencing on September 24. Her legal team is pushing for no jail time due to her cooperation in the FTX collapse investigation. This high-profile case continues to influence market sentiment, and VCs should stay alert to the evolving legal landscape.
6. Grayscale’s XRP Fund: Grayscale’s launch of an XRP closed-end fund spurred an 8% increase in XRP’s price. With a focus on cross-border payments, this fund presents an exciting new avenue for projects eyeing frictionless international transactions.

Web3 and Gaming – On the Radar

1. Web3 Gaming Ups and Downs: Despite a rocky start, Web3 gaming projects are showing potential, especially with seasoned teams preparing for big launches. The success of Q4 2024 will hinge on these launches and how well they can capture market interest. For VCs, it’s a sector worth watching closely, with significant upside for early movers.
2. Tether vs. BlackRock: In a surprising twist, Tether outperformed BlackRock in profits, raking in $6.2 billion compared to BlackRock’s $5.5 billion. With a market cap of $118 billion, USDT’s dominance in the stablecoin market makes it a stronghold for projects needing liquidity and stable on-chain solutions.
3. Coinbase’s Market Control: Coinbase now holds 11% of circulating BTC and staked ETH, totaling $129 billion in BTC and nearly $9 billion in staked ETH. As Coinbase’s influence continues to grow, it’s becoming a central force in the crypto landscape, shaping market dynamics and presenting opportunities for partnerships or investments.
4. Wrapped Bitcoin Expansions: Wrapped Bitcoin is expanding to Avalanche and BNB Chain, integrating LayerZero’s Omnichain Fungible Token standard. This move further solidifies WBTC as a versatile asset within DeFi, offering broader network reach and liquidity options.

Looking Ahead for VCs

As the market continues to evolve, political developments, security concerns, and major technological innovations will influence future trends. VCs should stay informed and agile, capitalizing on opportunities in DeFi, Layer 2 scaling solutions, Web3 gaming, and blockchain infrastructure. These spaces are showing potential for exponential growth, making them key areas for investment and strategic partnerships.

This wraps up Bestla VC’s Friday recap. Keep pushing the envelope, and we’ll be back next week with more insights to guide your investment strategies!