Hey Edge readers,

It’s official: Bitcoin has crossed six figures! BTC is trading over $100K for the first time in history, marking a major milestone in the adoption of the first cryptocurrency. Meanwhile, ETH has quietly passed $4K, benefiting from a pick up in ETF inflows over the past week. Are all-time highs (ATHs) next?

Here’s what we got for you this week:

• The endgame for Ethereum 💎

  We explore the exciting enhancements that will bring Ethereum to its peak potential.

• Celebrating BTC’s $100K milestone 🎉

  Dive into the significance of Bitcoin’s historic six-figure run and how you can earn ~7% APY on Exponential.fi with ExtraFi’s cbBTC pool.

• Spot ETH ETF inflows outpaces BTC 🗞️

  Stablecoin borrowing rates skyrocket, Curve sees a revenue surge, and more.

Stay sharp. 🫡

-The Exponential team

The future of Ethereum: Part 6

In the final installment of Ethereum co-founder Vitalik Buterin’s six-part vision for Ethereum (Possible futures of the Ethereum protocol), The Splurge, he highlights the exciting enhancements that could push Ethereum to its peak potential.

Part 1: The Merge ⛘
Part 2: The Surge 📈
Part 3: The Scourge ⚔️
Part 4: The Verge 🧩
Part 5: The Purge 🧹
Part 6: The Splurge 💎

Part 6: The Splurge 💎

The Splurge focuses on the “little things” in Ethereum that bring the network to a performant and stable “endgame state”.

This final phase emphasizes optimizing the Ethereum Virtual Machine (EVM), the engine that powers smart contracts and decentralized applications (dApps). Improvements like account abstraction aim to simplify how users interact with Ethereum, enabling more flexible and user-friendly account options. Another key focus is transaction fee optimization. By refining fee mechanics, Ethereum aims to maintain fair and stable costs for users, even as network demand fluctuates during periods of high activity.

The Splurge also looks ahead to Ethereum’s long-term future. Advanced cryptographic upgrades, including preparations for quantum-resistant technologies, are part of the plan to ensure Ethereum remains future-proof against new technological advances.

Overall, these six upgrade phases together form a cohesive strategy to ensure Ethereum scales effectively while staying true to its core principles. By addressing both current demands and future possibilities, Ethereum is paving the way for a new era of global dApp usage—cementing its role as the backbone of the decentralized web.

Celebrating BTC’s $100K milestone 🎉

Bitcoin has finally done it—crossing the six-figure mark and breaking $100,000 ($2 trillion market cap!) for the first time. This milestone is a testament to Bitcoin’s growing adoption, utility, and recognition as a store of value. For early adopters and believers, this moment validates years of patience.

Reaching $2 trillion market cap solidifies Bitcoin’s position as a major global asset. Institutional adoption, regulatory clarity, and innovative use cases are driving demand, and as Bitcoin continues to cement itself as digital gold, its role in portfolios worldwide is only growing.

As Bitcoin continues to gain prominence, its utility is expanding beyond just HODLing. Savvy investors on Exponential.fi are finding ways to make their BTC work for them without sacrificing price exposure. This is where innovative DeFi platforms like ExtraFi come into play, offering opportunities to earn yield on Bitcoin while keeping full exposure to its upside.

ExtraFi’s lending platform enables Bitcoin holders to earn high yields through leveraged yield farmers. Here’s how it works:

• Where does the yield come from? Lenders supply cbBTC, a wrapped version of BTC issued by Coinbase, and earn yield generated from leverage farming activities by borrowers. Borrowers use the liquidity provided by lenders to amplify yields across DeFi protocols.

• How much can you earn? As a lender, you can earn an attractive 7% APY on cbBTC. The APY depends on utilization—the percentage of total supplied assets being borrowed. Higher utilization means more of the asset is in demand, pushing up APY, while lower utilization results in lower returns.

• What are the risks? ExtraFi uses a robust risk management system to protect lenders. Borrowers’ leveraged positions are monitored in real time, and if a position’s Debt-to-Value (DTV) ratio exceeds ~83%, ExtraFi’s automated bots liquidate it to repay the loan. This system prioritizes repaying lenders first and includes a ~17% buffer to minimize the risk of bad debt.

As Bitcoin breaks through $100,000, don’t let your holdings continue to sit idle.

In the news 🗞️

• Bitcoin reshaping the economy. As Bitcoin solidifies its role as digital gold, institutional interest is skyrocketing, driving a shift in how value is stored and exchanged. The ripple effects are clear: Bitcoin’s ascent is ushering in a new era of economic transformation.

• Spot ETH ETFs outpace BTC. Spot Ether ETFs recorded their highest-ever daily inflows this week, surpassing Bitcoin ETFs in a surprising twist. While BTC ETFs dominated early adoption, ETH’s growing institutional demand suggests the tide is turning.

• Curve enjoys DeFi revival. Curve’s monthly revenues jumped 20% as trading volumes surged, fueled by DeFi’s revival. As liquidity flows back into the ecosystem, Curve’s position as a stablecoin and liquidity hub has made it a key player in this resurgence.

• Stablecoin rates are on fire. Borrowing costs for USDC and USDT on Aave have blasted past 20%, hitting their highest levels in over a year. With over 90% of reserves tapped, it’s a leverage lover’s market as everyone piles on for the next big move.

Trending 📈