Ethereum layer 2 networks, Arbitrum, OP Mainnet, and Base, have seen a surge in activity with weekly active users hitting a record 3.7 million in mid-April. Base, a Coinbase-backed layer 2 network, has emerged as the biggest winner with a 400% increase in weekly active users since the start of the year. It also accounts for about 50% of newly listed tokens on decentralized exchanges (DEXs).

Base's total value locked (TVL) has crossed the $5 billion mark, including $1.57 billion of bridged value and $3.7 billion in natively minted assets. The rise in activity on Base is attributed to the growing interest in meme coins, which dominate trading on Base DEXs.

Currently, Ethereum layer 2s have a total valuation of approximately $28 billion. However, a recent report from VanEck predicts that the market cap will surge to $1 trillion by 2030, considering factors like transaction costs, developer and user experience, ecosystem size, and trust assumptions. Despite Ethereum's transition to Proof of Stake (PoS), layer 2s like Arbitrum, OP, and Base are expected to remain relevant due to their higher throughput and improved transaction performance.

Japanese mobile and blockchain gaming company Extra Mile has partnered with Tokyo's TV Asahi Group to launch a Web3 accelerator program focused on blockchain games. The program aims to support Web3 game developers through incubation, publishing, community marketing, and token support. TV Asahi also plans to assist game developers in liaising with licensors and anime production committees owning IP for music, video, and other multimedia. The program will also provide post-launch support through mentorship and advisory services. The first project to benefit from this initiative, Neobred, an NFT horse racing and breeding game, is set to launch soon. More details about the blockchain gaming venture will be revealed at the TEAMZ WEB3 / AI SUMMIT 2024 on April 13-14.

Shiba Inu, the developer of the $SHIB meme coin, is partnering with the Content Distribution and Security Association (CDSA) to address security concerns in the AI sector. This move comes on the heels of SHIB's integration of Fully Homomorphic Encryption (FHE) technology to bolster security and user privacy. Shiba Inu believes that blockchain technology could mitigate issues faced by researchers in AI model training. The collaboration with CDSA, a nonprofit providing best practices for entertainment, software, and IT delivery and storage since 1998, will allow SHIB to extend its ecosystem to a new segment of the media and entertainment industry. Shiba Inu lead developer Shytoshi Kusama expressed anticipation for offering a unique, blockchain-first perspective to CDSA's work.

Shiba Inu, the developer of the second-largest meme coin by market capitalisation, $SHIB , has partnered with the Content Distribution and Security Association (CDSA) to address security issues in the AI sector. This move comes on the heels of SHIB's integration of Fully Homomorphic Encryption (FHE) technology to bolster security and user privacy in its ecosystem. Shiba Inu, initially known for its meme coin $SHIB , has expanded its universe with the addition of $LEASH and $BONE tokens and the launch of an Ethereum-based layer-2, the Shibarium PoS chain. The collaboration with CDSA, a nonprofit providing best practices for the delivery and storage of entertainment and IT since 1998, will enable SHIB to extend its ecosystem to a new segment of the media and entertainment industry.

Blockchain infrastructure firm Alpen Labs has raised $10.6 million in a funding round led by Rabbit Capital, with participation from Castle Island Ventures, Geometry Research, Village Global, Stillmark, Paxos, Robot Ventures, Axiom, and others. The company is developing a programmable layer on Bitcoin using zero-knowledge proofs, a technology that it believes can expand Bitcoin's utility.

Alpen Labs' programmable layer is designed to power applications for on-chain payments, custody, stablecoins, and verifiable credentials. The company has been working on its zk-proofs-based scaling layer for the past two years, aiming to leverage zero-knowledge rollups to introduce new applications on Bitcoin.

The emergence of Alpen Labs comes as Bitcoin is evolving into a more diverse ecosystem, expanding from a simple blockchain supporting the world's largest cryptocurrency into a burgeoning decentralized app (dApp) network. This evolution has been gaining traction since the launch of Ordinals Market, which brought NFTs to Bitcoin, and the subsequent growth of multiple Web3 startups launching DeFi protocols and new token standards like BRC-20 on the Bitcoin Network.

Sapien AI, a firm developing a blockchain infrastructure for AI model training, has secured $5M in a Series A funding round. The round saw participation from Primitive Ventures, Animoca, Ravikant Capital, and Yield Guild Games. The funds will be used to expand the team and accelerate the innovation of its AI training models with gamified data labelling powered by blockchain technology. Sapien's platform allows users to tag text, images, and other data types with labels, enabling machine learning models to learn from the data. The firm's unique approach to data labelling has attracted companies from various sectors, including healthcare, web3, and education.

Thesis, a venture studio focused on the Bitcoin ecosystem, has raised $21 million in a Series A funding round. The round was led by Pantera and included participation from Multicoin Capital, Hack VC, ParaFi Capital, Nascent, Draper Associates, Primitive Ventures, and Asymmetric Ventures. Thesis also announced the launch of its Bitcoin layer-2 platform, Mezo, which allows Bitcoin holders to earn yield from their deposits.

Mezo distinguishes itself from other L2 platforms by promoting a “circular Bitcoin economy” and enabling users to access applications that facilitate the use of Bitcoin tokens. The platform has introduced a points-based program called “Proof of HODL” that rewards Bitcoin holders based on the length of time they hold their deposits.

CEO of Thesis and founder of Mezo, Matt Luongo, stated that the platform aims to benefit both the Bitcoin network and individual Bitcoin holders. Mezo plans to use the funding to expand Bitcoin use cases with applications that bring real-world utility to the cryptocurrency.

Blockchain startup Monad Labs has secured $225 million in a funding round led by Paradigm, with participation from Electric Capital and Greenoaks. The company aims to build a high-performance layer-1 blockchain that rivals Solana and Sui, focusing on enhancing execution speeds to handle up to 10,000 transactions per second. Monad's platform is fully compatible with the Ethereum Virtual Machine (EVM), enabling developers to transfer their projects from Ethereum to Monad. The startup aims to address Ethereum's shortcomings, such as high gas fees during network congestion. The funding comes amid a surge in crypto fundraising, with startups raising over $1.1 billion last month.

Decentralized crypto exchange platform, 1inch Network, has partnered with Baanx to develop a Web3 debit card powered by Mastercard. The card, which will be available both physically and virtually, is part of Mastercard's ongoing efforts to bridge traditional finance with the world of crypto. The 1inch Web3 debit card will allow crypto users to easily convert their crypto assets into fiat, enabling them to shop online or in person and withdraw fiat currency at supported ATMs. Baanx, which has previously worked with Ledger and Tezos to develop similar cards, is on a mission to marry the traditional and crypto world.

Solana-based NFT marketplace, Tensor Trade, experienced a record number of traders on April 3, with over 6,000 active participants, according to SolanaFloor. Despite this, Tensor's trading volume in SOL terms has been on a steady decline since its peak in December 2023. This indicates a decrease in the average cost of NFT collections and individual NFTs on Tensor, making them more accessible to retail traders.

The most traded NFT collection on Tensor, 'Froganas', exemplifies this trend, with a price drop of 72% since January, while trading volumes increased in March. Despite Magic Eden surpassing Tensor in USD volume from March, Tensor remains dominant in the Solana NFT market in terms of trader numbers and executed trades, holding over 90% market share in unique traders at the start of April.

The surge in Tensor activity is likely due to the launch of its governance token, TNSR, on April 8. Users have been incentivized to earn points on Tensor to qualify for the TNSR airdrop, including through NFT trading and bidding. Crypto exchange OKX has announced it will list TNSR from April 8.

Solana-based decentralized exchanges (DEXs) experienced a record-breaking month in March, with trading volumes reaching $60 billion, largely driven by meme coins, according to DeFiLlama data. Orca and Raydium accounted for two-thirds of the total transaction value. Stablecoins like USDC and USDT were the most traded assets on Solana DEXs in the past 30 days, followed by meme coins such as Dogwifihat (WIF), Bul (BUL), Ansem’s Cat (HOBBES), Cat in a Dogs World (MEW), Book of Meme (BOME), and Slerf (SLERF).

Meme coins continue to dominate Solana DEXs, with 16 out of the top 20 tokens by 24-hour trading volume being meme tokens. This surge in meme coin trading has allowed Solana to surpass Binance’s BNB Smart Chain in terms of DEX monthly volume for the second time, making it the second most active chain after Ethereum.

However, the increased activity on Solana could attract bot spam. Dune data shows that a record 76% of all transactions on Solana failed as of April 5. Helius CEO Mert Mumtaz reassured users that the majority of failed non-vote transactions were merely "bot spam," and not a cause for concern.

Sony Bank, part of the Sony Group conglomerate, has announced plans to launch a stablecoin on the Polygon network. The move is part of a wider push to reduce costs associated with payments and remittances within the group. The stablecoin, which will be pegged to fiat currency, is currently undergoing proof-of-concept testing. Sony plans to use the stablecoin as a payment method across its gaming and sports intellectual property.

This announcement follows Sony's recent patent application for "super-fungible tokens", indicating a move towards implementing NFTs in its games. Earlier this year, Sony also announced the development of an in-camera digital signature technology, drawing comparisons to non-fungible tokens.

The stablecoin project is being developed by Belgium-based blockchain firm SettleMint. Testing is expected to continue for several months as Sony navigates the legal implications of transferring Japanese yen-pegged stablecoins.

The move comes amidst a surge in stablecoin-related news in the crypto space, with Ripple recently announcing plans to issue a US dollar-pegged stablecoin, and new venture Agora raising $12 million to issue its own stablecoin.

Japanese automaker Mazda has launched its first-ever NFT collection in partnership with Astar Network as part of the blockchain company's "Yoki Origins" campaign. The collection includes 10 NFTs inspired by Mazda's iconic MX-5 MIATA, along with two additional "Secret NFTs". The NFTs feature a blend of Mazda's brand with Astar, a Japanese season, and the city of Hiroshima.

This collaboration comes a month after the launch of "Yoki Origins", a gamified campaign designed to accelerate user onboarding on Astar zkEVM, Astar Network's Ethereum Layer-2 built powered by Polygon SDK. Mazda's debut NFTs mark "a new era of communication and storytelling for Mazda in the digital realm", potentially paving the way for a captivating series.

The YoPort for the Mazda NFT collection, Astar's version of the popular Japanese Gacha Machines, launched on April 5. Each project participating in the "Yoki Origins" campaign has its own YoPort. Mazda joins other Japanese companies like Candy Girl, Casio, Japan Airlines, and Kyushu Railway Company in the campaign.

Japanese automaker Mazda has launched its first NFT collection as part of the "Yoki Origins" campaign by Astar Network. The campaign is designed to accelerate user onboarding on Astar zkEVM, the company's Ethereum Layer-2 solution powered by Polygon SDK. The collection includes 10 NFTs inspired by Mazda's iconic MX-5 MIATA, two "Secret NFTs", and several others featuring a blend of Mazda, Astar, a Japanese Season, and the city of Hiroshima. This move represents Mazda's foray into the digital realm, potentially starting a captivating series. The Mazda NFT collection launched on April 5 via Astar's YoPort, a version of the popular Japanese Gacha Machines.

Ripple is set to join the stablecoin market, citing the sector's growing popularity and projected worth of $2.8 trillion by 2028. The company's stablecoin will be deployed on Ripple’s institutional-grade XRP Ledger and Ethereum later this year. It will be 100% backed by the US dollar, US short-term treasuries, and cash equivalents. Ripple's entry into the stablecoin market comes as Delaware-based venture firm VanEck also launched Agora to disrupt the sector. Ripple CTO David Schwartz believes the company's focus on stability and long-term market presence will set it apart in the competitive stablecoin market.

Polkadot parachains saw a record surge in new addresses in March, with over 400% growth surpassing 1.5 million. The majority of this increase is attributed to Asset Hub, contributing 1.3 million new addresses. Asset Hub, formerly Statemint, is a system parachain for issuing, managing, and using digital assets, including NFTs.

Several factors contributed to this surge. Circle's addition of Polkadot to its USDC-hosting chains list in late 2023, with the stablecoin generated on the Polkadot Asset Hub, may explain part of the new address increase. The anticipation of the major Polkadot 2.0 upgrade, expected later this year, could also be a factor.

The launch of new tokens on Polkadot via Asset Hub, including two meme coins, PINK and DED, may have had a more direct impact. PINK, the first meme coin on the chain, and DED, airdropped to DOT holders, have garnered significant followings. The Polkadot ecosystem continues to attract crypto users with its new projects, with the impact of the upcoming upgrade yet to be seen.

Ellipsis Labs, a decentralized finance (DeFi) company building on the Solana blockchain, has raised $20 million in a Series A funding round. The round was led by Paradigm, with participation from Electric Capital, which previously led Ellipsis Labs' $3.3 million seed round in August 2023. The funds will be used to expand the engineering team and accelerate the creation of a new financial ecosystem offering competitive financial products on high-throughput blockchains.

Ellipsis Labs' main product, Phoenix, is a decentralized exchange platform described as "the fastest on-chain Orderbook in DeFi," characterized by low protocol and network fees. It addresses the common liquidity issue in decentralized exchanges by allowing market makers to compete on quality of liquidity. Unlike other platforms, Phoenix does not incentivize market makers with extra tokens, instead focusing on proving the exchange system's self-sufficiency.

Co-founder Eugene Chen stated the decision to build on Solana was driven by the need for high throughput and low fees to support active liquidity. He also expressed skepticism towards the sustainability of profit incentives for automated market makers (AMMs), emphasizing the importance of a constant inflow of capital.

Crypto exchange Binance has announced it will cease support for Bitcoin NFTs on its marketplace from May 18, 2024. This decision comes just two months after the exchange enabled the buying, selling, and listing of Bitcoin NFTs. Binance has asked users to withdraw their Bitcoin NFTs from the marketplace before the deadline. From May 18, 2024, users will not be able to buy, deposit, bid on, or list NFTs on the Binance NFT Marketplace via the Bitcoin network. The platform will also stop supporting airdrops, benefits, or utilities associated with Bitcoin NFTs. This move follows asset manager Franklin Templeton's positive sentiment on the impact of Bitcoin NFTs on the Bitcoin ecosystem.

Franklin Templeton's Digital Asset Management Unit has released a report attributing the innovation on the Bitcoin network to Ordinals, nonfungible tokens (NFTs) inscribed on Bitcoin. The report notes the significant strides Ordinals have made since their introduction to the NFT market in February 2023, with a surge in trading volume observed in December 2023, surpassing Ethereum and Solana in NFT transaction volume.

However, the asset manager cautioned investors about the potential risks of investing in Ordinals, emphasizing that they could depreciate in value and are not insured.

In addition to Bitcoin NFTs, the report identifies the emergence of Bitcoin layer-2s and Bitcoin decentralized finance (DeFi) protocols as key drivers of innovation on the Bitcoin blockchain. New fungible token standards, such as BRC-20 and Runes, were also credited for fostering innovation on Bitcoin.

As per Dune Analytics, Bitcoin Ordinals have exceeded $3.1 billion in transaction volume. The Ordinals Marketplace currently boasts over 490k unique users and has facilitated over 2.3 million transactions to date.

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