3 weeks ago
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Happy Monday, Observers!
The summit that leads from “asset light” to “asset heavy” feels more like a roller coaster than ever. With President Trump at the helm, calling and firing what sometimes feels like rather random shots, markets are losing it.
The White House’s announcement that it would establish a national crypto reserve of mainly U.S.-made tokens — Ripple, Solana, and Cardano — led to the fastest rise of crypto prices ever, which was followed, in a matter of hours, by the second largest price drop ever.
Trump’s Crypto Reserve Plan Sparks Brief Market Surge, Then Drop
Trump’s government continued to release market-shifting news and updates all throughout the week, including the imposition of tariffs on two of U.S. largest trading partners and the official establishment of a Strategic Bitcoin Reserve with the funds provided by forfeiture and civil arrests.
Some proponents of the Reserve believe that Trump’s decision will force other economic institutions to introduce similar funds in their geographies.
This idea seems to stem more from the U.S.’ national myth of “leadership” than in reality, as several countries have rejected plans for a BTC reserve, with Switzerland being the latest.
On Friday, Trump hosted its first crypto summit in the White House for which key industry leaders were invited. Yet, despite it being the sort of event that less than a year ago would have featured only in the wildest dreams of the crypto community, now it failed to arouse anybody -when it ended, Bitcoin was trading at only $86,000 and crypto ETFs registered outflows of around $370 million.
How Morpho is Becoming the Next Big DeFi Lending Protocol
The lending protocol Morpho is quickly becoming one of the most significant projects in DeFi. In the two years since its inception, it has amassed an active loan portfolio of over $2 billion.
Morpho’s success is largely due to its feature, which allows users to create custom lending markets, which leads to greater efficiencies in capital allocation.
Paul Frambot, the protocol’s CEO, explained that rather than operating as a bank, “Morpho is an infrastructure for banks.”
As Morpho rises, its biggest competitors are stepping up their game.
Aave has introduced a new proposal for its tokenomics that upgrades the Aave Safety Module to a new Umbrella safety protection system. This system will use Aave tokens and directly burn them to cover the bad debt, reducing selling pressure on the protocol’s token in the case of any adverse event.
Furthermore, the proposal plans to implement significant buybacks. For the first six months, a $1m/week buyback will be conducted, totaling $24 million.
Aave Revamps Tokenomics with $1 Million Weekly Buybacks for AAVE Token
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