Bitlayer Becomes Leading Bitcoin Layer 2 Solution Amid Broader DeFi Slump

Daily Top Performer — Aave (AAVE)

The SPX index was down by 1.37% due to concerns about US manufacturing and labor market health despite the Federal Reserve's indication of potential lower borrowing costs. The broader cryptocurrency market was also down, with Bitcoin and Ether dropping by 2.85% and 1.71%, respectively, in the past 24 hours.

Today's top performer is AAVE, which surged 8.2% after Aave V3.1 went live across all networks with enhanced security and usability.

Aave (AAVE), founded in 2017, is a decentralized lending platform on Ethereum, allowing users to lend, borrow, and earn interest on 17 cryptocurrencies without intermediaries. It uses smart contracts, requires collateral for loans, and issues interest-accruing aTokens. Aave also offers features like instant loans. Aave V3.1 has been launched across all networks featuring active Aave V3 instances. The update, developed by bgdlabs and sanctioned by the Aave DAO, enhances the protocol by boosting its security, operational efficiency, and usability.

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Talk of the Town:

Bitlayer, a Bitoin Layer 2 solution, has overtaken Merlin to become the leader in the Bitcoin scaling network rankings with a total value locked (TVL) of $391 million, representing 31% of the sector’s TVL. This rapid growth is attributed to the launch of multiple decentralized applications (dapps) on its network and a successful $11 million Series A funding round. Despite Bitlayer's success, the overall Bitcoin Decentralized Finance (DeFi) ecosystem is experiencing a slump, with TVL dropping 40% from a June peak of $1.1 billion to $680 million. However, developments like the Ordinals protocol and potential Bitcoin script enhancements continue to attract developers and drive interest in Bitcoin's evolving ecosystem.

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Bitcoin Spot ETF Flows:

Yesterday, Bitcoin Spot ETFs experienced notable outflows from GBTC totaling $71.3 million, while non-GBTC funds recorded inflows of $96.0 million, resulting in a total net inflow of $24.7 million.

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Airdrop to Watch:

Initia has launched "Initia VIP," a part of its ecosystem aimed at promoting economic growth among its interwoven rollups, known as Minitias. The program, officially called the Initia Vested Interest Program, allocates 10% of the INIT token supply to users. Participation involves voting for the most utilized project among the listed ones such as Civitia, Tucana, Noon, and Blackwing on the Initia testnet website. Votes influence the token distribution to projects. Rewards are given as esINIT (Escrowed INIT), which are locked and can be accessed by maintaining a VIP Score through multiple epochs. More details are available on Initia's Medium blog.