Velvet.Capital blog

This Week in Crypto (Dec 19th – 26th)

Happy Holidays from the team at Velvet.Capital. Whether it’s Christmas, Hannukah, Kwanzaa, or Festivus, we couldn’t think of a better group to celebrate with! While you’re hopefully unwinding with friends and family, we figured we would put together some of the latest and greatest news in the world of DeFi. The crypto world never stops moving, after all. Let's jump in and see some of the biggest stories of the week!

Top News of the Week

Ava Labs Launches Core Mobile Wallet

Ava Labs, the team behind Avalanche Protocol, recently announced their foray into crypto wallets. Introducing Core Mobile – a free, multichain mobile wallet with robust features for experts, and ease of use for novices. The intention is to integrate among the growing Avalanche Ecosystem of DeFi, NFTs, and gaming. It will initially be available on Android devices, with plans to support iOS in 2023. In addition to supporting Avalanche, Core mobile also has compatibility with Bitcoin, Ethereum, and other EVM-compatible blockchains. Many existing crypto wallets are difficult to use and lack features desired by traders and dApp users, but Core mobile aims to address these issues and provide a more seamless experience.

Bermuda Digital Bank Jewel Issues ‘Fully-Backed’ Stablecoin
Bermuda-based Jewel Bank announced it is issuing its own stablecoin called Jewel USD. It will be fully backed (1:1 with USD) and accessed through the Polygon network.  This move seems to correlate to a broader theme in the space to stabilize the market through the issuance of bank-issued stablecoins. It is encouraging to see Bermuda businesses continuing to lead the charge & see the value in cryptocurrencies. 

Yuga Labs announces new C-suite Appointment

Yuga Labs, the company behind Bored Ape Yacht Club and Crypto Punks, recently hired Daniel Alegre to be their CEO. Previously the President of Activision Blizzard, this move comes as the NFT juggernaut tries to add leadership from more established spaces.  As NFTs and their role in the metaverse continue to be scrutinized, plenty of C-suite veterans still continue to put their money where their mouth is. Like all emerging technologies, patience is key. It takes time to mature - akin to the early days of the internet where many of the use cases were not always obvious to early adopters but clearly emerged over time.

Trump Drops Self-Styled NFT Trading Cards

CNN Breaking News: He who will not be named launched an NFT series. For better or worse, Donald Trump launched his debut NFT series “Trump Cards”. Despite his previous apprehension towards crypto, The Donald couldn’t appear to miss an opportunity to immortalize himself by diving head first into the web3 space. To his credit, the 45,000-piece collection, priced at $99 each, sold out in less than a day. Love him or hate him, the man certainly has staying power! This is a testament to the strong loyalty he still commands from his supporters. Time will only tell if this move is a success or yet another celeb-style rug-pull. 

Stablecoin Volume Hits Record High of $7.4T in 2022

For all the negatives surrounding crypto, let’s look at the positives: stablecoins set a record total settlement volume for 2022 at $7.4T. This settlement figure outpaces every major credit card provider except for Visa. Policy, current events, and normie sentiment aside, it is tough to deny the utility that key stablecoins provide. So tough to deny that the US Congress has been working on a bill for stables for months now. Pundits expect a vote on the legislation sometime in the new year. This could be a catalyst for the space as most people have come to terms with the fact that legislation and regulation are necessary for further adoption. 

 In case you're not familiar with or need a reminder of some of the many benefits of using stablecoins in the crypto market:
  1. Price stability: Because stablecoins are pegged to a stable asset, they are generally less volatile than other cryptocurrencies, which can make them a more stable and reliable store of value.
  2. Ease of use: Stablecoins can be used to easily buy and sell other cryptocurrencies, as well as to make purchases or payments.
  3. Greater accessibility: Stablecoins can make it easier for people in countries with unstable currencies or limited access to traditional financial systems to access the benefits of cryptocurrency.
  4. Increased liquidity: Stablecoins can help increase liquidity in the crypto market by allowing users to easily convert their assets into a more stable form.
  5. Reduced risk: Because stablecoins are less volatile than other cryptocurrencies, they can help reduce the risk for investors and traders.
  6. Increased adoption: Stablecoins can help increase the adoption of cryptocurrency by making it more accessible and user-friendly for a wider range of people.

At this pace, it stands to reason that their use cases and adoption will only continue to grow! 

Prepare for the next bull-market today!

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