The 0xResearch newsletter has highlighted ongoing valuation challenges in the cryptocurrency sector, focusing on debates surrounding Layer 1 and Layer 2 valuations, Monad’s mainnet launch, and Berachain’s refund terms. Santiago argues that cryptocurrencies are valued as if they possess Facebook-level network effects, despite lacking strong monetization and user retention.
In related developments, Tether is reportedly building a global financial infrastructure with its $135 billion Treasury portfolio, according to Four Pillars. Meanwhile, Coin Metrics notes a rally in Zcash, driven by increased recognition of onchain privacy, as its shielded supply has risen to 30% of circulating ZEC. Additionally, Pine Analytics discusses Solana’s SIMD-0411 proposal, which aims to accelerate disinflation to 30%, potentially reducing emissions by $3 billion. The need for new chains to capture more economic activity through native applications was also emphasized, particularly in light of Monad’s low total value locked (TVL).
Crypto Valuation Challenges Persist Amid Network Effects and Privacy Trends
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