Dispatch #110: Is Aptos this Cycle’s Layer 1 Star?

Oct 22, 2022 4 min read

Dispatch

In this patch of your weekly Dispatch:

Aptos: loved and feared
Crypto-related legal proceedings
Mastercard moves more aggressively into crypto

The Big Idea

Aptos Launches Highly Anticipated Mainnet

Every crypto cycle has at least one thing in common: a new layer 1 blockchain launches that loudly and boldly claims to solve the problems of the past and help blaze the sector into the mainstream. Many of those fail, but some go on to be the Ethereums or Solanas of their cycle.

This time around, all eyes are focused on a couple of blockchain projects by teams spun out of Meta’s Diem project (aka Facebook’s Libra project): Sui and Aptos. Both projects have generated a significant amount of attention, excitement, and funding ($300M and $150M, respectively) but it was all eyes on Aptos this week.

On Monday, the company launched its mainnet to much fanfare…and some challenges. The blockchain claims speeds of up to 130,000 transactions per second in testing, while a tiny fraction of that was seen upon launch. There have also been debates and discussions on crypto Twitter about the network’s tokenomics. Following the blowback, the Aptos Foundation retroactively airdropped 20 million APT tokens to 110,000 addresses, rewarding early testnet users.

While there may always be some growing and launching pains – to be expected in the depth of a bear market – we have full confidence that if Aptos can get builders excited to build, it will be a powerful part of the next bull market as well. The asset is now available to buy on Nexo's crypto exchange and for Spot and Futures trading on Nexo Pro and Nexo Prime.

The Latest In…

Crypto Gets Legal

As regulatory engagement with crypto increased, so did the industry’s willingness to avail themselves of legal means to press the issues that matter to them. This week, Paradigm filed an amicus brief in the case of the CFTC vs Ooki DAO. Their main argument is that by going after the DAO itself (and not individual members) the CFTC is trying to set up a situation where there is actually no party that can defend itself. Speaking of amicus briefs, the Blockchain Association and Coinbase are now supporting Grayscale’s case against the ETF that it should have been allowed to convert the Grayscale Bitcoin Trust to a Bitcoin Spot ETF. Finally, with Coin Center’s help, David Hoffman of Bankless has filed a suit against the US Treasury after being dusted after the Tornado Cash sanctions. Where’s our popcorn?

The Latest In…

The Biggies Still Like the Crypto

We’ve seen throughout this bear market that prices going down haven’t stopped the big institutional players from building out crypto infrastructure. It’s not just banks and traditional investment firms that remain bullish though, it’s also corporate America. After our joint launch of the Nexo Card in April, Mastercard this week announced that they were launching a platform that would help other financial institutions offer crypto to their customers in a compliant way. The CTO of Walmart also discussed crypto at the Yahoo Finance All Markets Summit, saying “I think a lot of the disruption is going to start happening in terms of different payment methods, different payment options…crypto is going to continue to play a very important role in that.” Probably nothing.

The Latest In…

These Yields Are Made for Earning

Yes, new blockchains like Aptos are cool but have you tried earning big on the crypto OGs and the key metaverse players? To commemorate both our long-standing partnerships and hottest additions like AXS, as well as to reward these assets’ ever-growing communities on our platform, we’ve increased the yields you can earn on them using Fixed Terms for three and six months. You’ve got until November 4 only to take advantage of rates of up to 12% on XRP, 9% on BNB, and 42% on AXS. How? Go to the Wallet tab on Nexo, select one (or all of these assets), tap “Manage Wallets,” and select “Fixed Terms”. Read more on how to start accruing our higher XRP, BNB, and AXS yields right away.

The Week’s Most Interesting Data Story

The Changing Stablecoin Landscape

It wasn’t long ago that when you said “stablecoin” you really meant “Tether.” Over the last few years, however, the market has expanded. Since 2020, USDT’s share of the stablecoin market has dropped from 88% to 48%. At the same time, USDC has more than tripled its market share from 10% to 32%. Meanwhile, insurgent Binance-issued stablecoin BUSD has grown the most in relative terms – from 0.5% to 15%. On top of that, there has been a massive shift in collateral, with Tether completely eliminating commercial paper on its balance sheets and significantly focusing on US Treasuries. This is what industry maturation looks like.