The Bored Ape Yacht Club NFTs Sold for $24 Million

Almost all of the Bored Yacht Ape NFT collection – a popular collection of cartoon drawings featuring over 107 monkeys – has now sold for more than 24 million dollars.

The 24 Million Dollar Monkey-Deal

According to a recent tweet from Sotheby’s, the art merchant hosting the meme-inspiring NFT collection, 101 of 107 Bored Yacht Club NFTs have now sold for roughly $24.4 million. Similarly, 101 Bored Ape Kennel Club NFTs sold for another $1.8 million in their “Ape in!” auction. This marks the largest sale of their ape NFTs until now.

CryptoPotato reported on this NFT collection just days ago, at which time the entire set was bidding for $19 million. Minted this year, each NFT represents an ERC-721 token and was minted for as low as 0.08 ETH (now $281) each.

The collection is fairly straightforward. Each image features the same monkey in the same position, but with a varying combination of backgrounds, accessories, and facial expressions each time.

One of these apes was even purchased by NBA superstar Stephen Curry, and he featured it as his Twitter profile picture, doing more to boost the hype around the collection.


While some Twitter users consider the sale to be “embarassing” or outright dumbfounded that such images would be bought at an exorbitant price, most have shown ecstatic support for Sotheby’s sale. Many of such supportive commenters are using images of these apes in their own Twitter bios, calling this a “historical moment for the whole NFT space.”

The NFT Hype Does Not Stop

Despite the opinions of naysayers, NFTs have repeatedly demonstrated the ability to draw people’s interest – and their money.

Recently, simple NFTs of randomized numbers on a black background began selling with a starting bid of $6.5k each. Even simple images of rocks have proven that they can sell for over $100K when in the form of an NFT.

However, the question remains of whether the current NFT craze is a truly game-changing cultural phenomenon or simply a market bubble.

On the one hand, it is understandable that people would be willing to pay any price to purchase certain NFTs that reach cultural fame, either through spreading as a meme or being promoted by a famous influencer.

Alternatively, many may be buying simply out of price speculation, and some NFTs may be outright scams. Data even suggests that there could be wash-trading within the NFT space in order to create the illusion of high demand for certain projects.


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Serious Bitcoin ‘Collapse’ Alert Issued After $300 Billion Crypto Price Crash Sends Ethereum, Cardano, BNB, Solana, XRP And Dogecoin Sharply Lower

Bitcoin and cryptocurrencies saw a sharp sell-off this week, despite an audacious plan to bolster the bitcoin price.

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The bitcoin price has lost around 10% over the past week—with ethereum, cardano, Binance’s BNB, Ripple’s XRP and the meme-based dogecoin recording even sharper falls—even as the country of El Salvador formerly adopted bitcoin as legal tender and banking giant Standard Chartered predicted the bitcoin and ethereum price could be about to explode.

Now, two high-profile central bankers have warned bitcoin and other cryptocurrencies are at risk of collapsing and are not “a good safeguard of value.”

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MORE FROM FORBESCrypto Price Prediction: Bitcoin Could Hit $100,000 In 2021 But This Bank Sees Ethereum Soaring 10-Fold


“Private money usually collapses sooner or later,” Riksbank governor Stefan Ingves said at a banking conference in Stockholm, it was first reported by Bloomberg. “And sure, you can get rich by trading in bitcoin, but it’s comparable to trading in stamps.”

Meanwhile, Bank of Mexico governor Alejandro Diaz de Leon said bitcoin is more like a means of barter than “evolved” fiat money, calling it a high-risk investment and a poor store of value due to its wild price swings.

The bitcoin price has added a massive 350% over the last 12 months but investors have needed strong stomachs—bitcoin on Tuesday alone dropped by almost 20% before rebounding. Combined, the entire cryptocurrency market has surged around 170% since January, with much of that coming from rises seen in ethereum, cardano, solana, BNB, XRP and dogecoin.

“Whoever receives bitcoin in exchange for a good or service, we believe that is more akin to bartering because that person is exchanging a good for a good, but not really money for a good,” Reuters quoted Diaz de Leon as saying, with his comments pouring cold water on suggestions Mexico could follow El Salvador in adopting bitcoin as an official currency.

“People will not want their purchasing power, their salary to go up or down 10% from one day to another. You don’t want that volatility for purchasing power. In that sense, it is not a good safeguard of value.”

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MORE FROM FORBESJPMorgan Issued A Stark Warning Over The Price Of Solana, Binance’s BNB And Cardano As The Ethereum Rivals Roar Back

The duel central banker alert comes after analysts at banking giant JPMorgan JPM warned over “froth and retail investor mania” currently coursing through the crypto market—singling out buzzy ethereum rivals solana, Binance’s BNB and cardano as particularly prone to a sell-off.

“The previous phase of retail investors’ mania into cryptocurrency markets was between the beginning of January and mid-May… and retail investors are making cryptocurrency markets look frothy again,” wrote JPMorgan researchers led by managing director Nikolaos Panigirtzoglou.


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Every $1 The Fed Spends On Bitcoin Could Produce $100 In Wealth

Quantitative easing (QE) is a term used to describe when the Federal Reserve buys assets from private markets. Typically, the Fed purchases longer-dated bonds, including Treasury notes and mortgage-backed securities (MBS), but during the pandemic, it has even purchased corporate junk bonds. It does this for a variety of reasons, including (but not limited to) lowering interest rates, liquifying the banking system, ensuring proper functioning markets, and inducing a wealth effect. Academics and market participants have debated both the merits and effectiveness of QE since the Global Financial Crisis. Whether one believes in the effectiveness of QE or not, the goal is ultimately to support aggregate demand in the economy, which is a fancy way of saying they want Americans to spend more money. What I argue here is that Fed purchases of bitcoin could be an effective means to boost aggregate demand and have other benefits as well.

To understand why, we need to briefly explore how QE works and why purchases of some assets are more effective than others. Let’s start with a thought experiment: assume the Fed purchases a three-month Treasury bill from a private market actor. In exchange, the private market actor, through the magic of primary dealers and the banking system, receives a deposit to their bank account, which we think of as money. Then assume the market actor takes said deposit and, to achieve a higher interest rate, converts their deposit to a certificate of deposit. What has changed? I’d argue, hardly anything. All that’s been done is the trade of a liability of the U.S. government for a liability of a commercial bank. That CD in the bank may show up as M2 in fancy graphs, but in reality, the asset transformation has done nearly zilch for the real economy.

Now let’s say the private market actor held a mortgage-backed security with an average term of 10 years. In this case, the Fed has removed two risks from private markets, default risk for the security and duration risk (which reflects that rates could change and the bond could be worth less, if exchanged before maturity). Now let’s assume that, when the Fed bought that MBS, there was no market for them, like during the Global Financial Crisis. Then effectively, the Fed has created helicopter money. It took an asset that was worth 50 cents on the dollar in private markets, and given that market participant par value, i.e., the whole dollar! In doing so, it has lowered long-term interest rates and prevented financial markets from collapsing by removing private market risk. Lowering rates induces price increases in risk assets (wealth effects in commodities, bonds, real estate, and stocks) and preventing market collapse gives people the confidence to spend, not hoard, dollars.

So what can we determine from these two examples? Generally, the more risky the assets the Fed purchases, the greater the effect of that QE, per dollar invested. This is why the Bank of Japan moved QE from only purchases of government bonds, to corporate bonds and stocks. It’s also why some contend that continued QE in healthy markets has diminishing returns for the real economy. Ignoring the slight effects of interest rates, swapping safe government bonds for bank deposits is like giving your kid one hundred $1 bills for a $100 bank CD earning a paltry 0.1%. They’re more liquid, but still have roughly the same net worth. To really juice spending per dollar of QE, the Fed would do best to purchase the riskiest asset it could find (like in the junky MBS example). My conceptual framework for evaluating the effectiveness of QE is provided below:


I know this will upset some Bitcoiners, but truth be told, bitcoin is still a highly risky asset. It could be a safe asset someday, but right now, its volatility will make even the most seasoned investor occasionally pee their pants. I think all Bitcoiners would agree that the Fed purchasing Bitcoin would have a rocket-ship effect on its price. According to some estimates, for every dollar that is used to purchase bitcoin, its price goes up between $20 and $1001. I’d argue that, if the Fed were the buyer, we would easily be at the top of that range. In fact, a Fed announcement that it’s even thinking about Bitcoin QE would probably produce the desired wealth effect without injecting any money. A study in 2019 concluded that, for stocks, each dollar of wealth created resulted in 2.8 cents worth of spending.2 Doing some quick math, that means every $1 the Fed spends on Bitcoin QE produces $100 in wealth, which results in $2.80 worth of spending. Helicopter money achieved, with a money multiplier. These are rough estimates for sure, but you get the picture.

A logical question here is, why does the size of the Fed balance sheet even matter? After all, if the Fed wants to inject more stimulus, it has the means to buy all the bonds available and pump risk asset prices indirectly. There are several potential problems with this. First, the size of the Fed balance sheet is already massive. I think even Fed officials would admit what they have done is unprecedented and experimental, and there may be risks associated with a large balance sheet that aren’t apparent.

Second, by pumping banks full of reserves, the unsecured interbank lending market is dying. Some have even speculated that it doesn’t make sense for the Fed to target the federal funds rate anymore, as most of the lending between banks is now secured. This is a potential problem because, aside from regulators, banks effectively police themselves when lending unsecured to each other. If Bank A is lending unsecured to Bank B, you’d best believe that Bank A has done some homework to ensure Bank B is solvent. For this reason, the lack of interbank lending may be increasing systemic risk.

Third, regulations (such as the supplementary leverage ratio) limit the size of large bank balance sheets. Some of them are essentially choking on reserves, and offloading them for treasuries through reverse repo. That raises the question, how much more bond QE can the system take? It seems more prudent to inject fewer reserves, with a bigger bang for the buck, than to inject more reserves, with a small effect.

Some will argue that pumping bitcoin is morally unfair, in that it directly enriches bitcoin holders, whereas targeting interest rates to stimulate asset prices works more broadly. But let’s look at past beneficiaries of Fed policies. In the 1970s, the Greatest Generation benefited from holding gold during a period of high inflation, enabled by dovish Fed policy. During the 1980s and through today, boomers have benefited from decades of falling interest rates (see below), which have resulted in massive wealth effects for them due to decades of higher prices for bonds, real estate, and equities. Today, millennials are faced with higher home prices and an explosion of student loan debt. Given that estimates show that almost 50% of bitcoin owners are millennials,3 would Bitcoin QE really be that unfair? After all, the Fed has in the past embarked on targeted policies that directly benefited junk bond holders, home owners, and large banks, and recently it’s been considering the impacts of Fed policy on minorities. Politicians are aware of the problem, as we are even seeing proposals to wipe out student loans. Is that fair to someone who paid off their student loans themself? Seems to me, it would be equally as fair to reward millennials who attempted to save and invest. I would call Bitcoin QE a way to restore generational karma.


There would be other effects that could prove desirable. Immediately after the Fed announced it would be purchasing bitcoin, many of the remaining tens of millions of Americans who don’t own any would scramble to get some. Thus, with nearly everyone owning a digital wallet, it becomes a way for the Fed to raise the price of an asset that is directly owned by individuals. While this may change eventually, as of right now, most institutions haven’t bought bitcoin en masse because of various regulatory constraints around custody and reporting. That means that Bitcoin QE could be the closest we get to QE for the people. And would it really be so bad if bitcoin got more Americans to start investing? Clearly it has that effect on young people.

The last primary reason for the Fed to buy bitcoin is to get ahead of the global adoption curve. Bitcoin is the largest and most secure decentralized digital currency on the planet. We are already seeing small countries like El Salvador adopting bitcoin as a national currency, and others contemplating it. Compared to the global banking system, it’s a faster and cheaper means to move money. In addition, there has been growing chatter about de-dollarizing global trade. Back before the Chinese digital yuan project took center stage, there was talk of creating a global currency like the International Monetary Fund’s special drawing rights, which is essentially a basket of global currencies. This sentiment is precisely what Facebook was tapping into with its now-failed Libra project. The governments of the world uniformly and effectively squashed the idea. If something were to replace the U.S. dollar for global trade, no one wants a centralized player like Facebook or China running the show. Given all this, it makes sense that, if the United States wishes to remain at the top of the global banking pyramid, it should be hedging its risk by acquiring any potential replacement currency – and that means acquiring at least some Bitcoin.

So when can we realistically expect the Fed to consider Bitcoin QE? Uhh… don’t hold your breath. Aside from the political firestorm such a policy would create, there are many reasons implementation would be difficult. For starters, changes in Fed policy mostly move at a snail’s pace. Pivots are well telegraphed through Fed communications, which is evident from past Powell-speak about “not even thinking about thinking about removing accommodation.” And that’s just operating within their existing framework; more structural policy changes like transitioning to average inflation targeting, or even common-sense changes like converting to a Nominal Gross Domestic Product target, take years, or even decades, of Fed study and analysis. The Fed is an extremely conservative institution.

Then there is the Fed’s role as a banker to banks. The Fed has a balance sheet like any other bank, with profits and losses being ultimately remitted to the U.S. Treasury. Any losses from Bitcoin QE would therefore have the appearance of being borne by U.S. taxpayers, even if such accounting is really just a mirage. It sounds silly that an institution with the statutory authority to create trillions in liquidity should have any questions about solvency or losses, but these accounting perceptions matter.

Last, and most importantly, the Fed is restricted by law in regard to which assets it can buy. Probably the most common interpretation is that the Fed can’t even buy equities. Although, it’s worth noting that at one time, many didn’t believe the Fed could legally buy mortgage-backed securities or corporate junk bonds. Yet, during a crisis, the Fed can get creative. So maybe, just maybe, if we encountered a perfect economic storm, the Fed could employ some legal loophole for Bitcoin QE.

So where does that leave us? Well, I’ve argued here there is a case to be made for Bitcoin QE. And to be clear, I’m not advocating ALL QE go into bitcoin. A reasonable QE “bang for your buck” strategy for the Fed would be to buy a lot of long-dated government bonds, some corporates, some stocks, and a little bitcoin. Unfortunately for Bitcoiners, given the political and statutory realities, I’m not optimistic we could see a policy shift any time soon. Most likely, it would take amending the laws that govern the Fed. And there are many other angles to this, such as where and how the Fed enters private markets to purchase bitcoin as well as the potential benefits/drawbacks of dollar devaluation.

I’ve barely scratched the surface of this thought experiment. Indeed, a full analysis of the implications and operational constraints of Bitcoin QE would likely require a myriad of academic papers and years of Fed debate before implementation. It goes without saying that no one at the Fed is going to accept these back of the envelope estimates on the wealth effects, spending estimates, and the beneficiaries of such a large policy shift. At the current pace of legislative and Fed policy, we might well see millennials retiring before we see Bitcoin QE. All that said, my aim here is to get the ball rolling and start the discussion. It’s been said that the journey of a thousand miles begins with a single step. I say, there are some potential benefits to Bitcoin QE, so let’s start walking.

Follow me on twitter at @monetarywonk




This is a guest post by Monetary Wonk. Opinions expressed are entirely their own and do not necessarily reflect those of BTC, Inc. or Bitcoin Magazine.


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U.K. Post Office Now Allows Users Purchase Bitcoin Through Its App

Bitcoin adoption is indeed ramping up in recent months. From retail outlets announcing users can checkout using their bitcoins to El Salvador officially accepting bitcoin as a legal tender, there is no doubt that bitcoin is headed for mainstream adoption. Coming hot on the heels of recent news of adoption is a peculiar situation with the U.K. Post Office.

A report from The Telegraph said that the Post Office was allowing the purchase of bitcoin through a new partnership. Swarm Markets, a German-based and regulated crypto exchange, entered into this partnership with the U.K. Post Office. It will allow users that have verified their identities through the Post Office EasyID app to directly access and purchase cryptocurrencies from Swarm’s websites.

Related Reading | As Crypto Market Goes Into “Extreme Greed,” Is Bitcoin Set For New All-Time High?

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Users will be able to purchase cryptocurrency vouchers with just a few clicks, which they can then go on to redeem for cryptos like Bitcoin. This has worried financial markets experts, who have warned that cryptocurrencies are very risky to invest in. Thus, users should be presented with a clear and concise warning when they are purchasing them. Concerns were also raised about associating assets as volatile as cryptocurrencies with the Post Office.

“When people buy cryptocurrencies, they should be sold with a very clear wealth warning: that you could get back a lot less than you purchased. It’s one thing buying crypto online via an investment platform, as that’s what the audience expects, but you don’t associate this with the Post Office.” – Warren Shute, Chartered Financial Planner

Bitcoin price chart from

Bitcoin price chart from

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BTC trading north of $45K | Source: BTCUSD on

Swarm Markets believes that this partnership will make it easier for people to get started in crypto. “By making it easy and safe to buy real Bitcoin and Ethereum, more people now have the option to get started in crypto,” said Phillip Pieper, Co-Founder of Swarm Markets.

Buying Bitcoin In The U.K.

Just like any other region, there are numerous ways available for residents to purchase Bitcoin in the U.K. Exchanges like Binance, Coinbase, and Gemini are already operating and offering these services to U.K. residents, along with a host of other crypto exchanges.

Last month, payments giant PayPal announced that it was now expanding its crypto options to U.K. citizens. Users are not able to buy, sell, and store Bitcoin and other cryptocurrencies in their PayPal accounts. Although the ‘Checkout with Crypto’ feature which was made available to U.S. users was not included in this rollout. Nevertheless, this presented a new way for customers to get exposure to crypto. With PayPal allowing users to purchase as low as £1 worth of crypto.

Related Reading | The September Curse And How It’s Preparing Bitcoin For Another Rally

Speaking on the partnership with Swarm Markets, a spokesperson for the U.K. Post Office said, “Access to products and services are increasingly moving online and we’ve responded to this shift by launching our free-to-use app, Post Office EasyID. Allowing people to build their own secure digital identity on their smartphone and enabling them to easily control and prove who they are to whichever business they want to interact with.”

The U.K. Post Office will not receive a commission on the bitcoin and crypto bought through the EasyID app on Swarm Markets. But Swarm Markets is paying the Post Office for the usage of its ID verification software.

Featured image from eSeller365, chart from


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XRP Price Spikes After Sudden Reappearance on Coinbase

The delisted crypto asset XRP just made a brief reappearance on Coinbase Pro, causing its price to jump 14% in a matter of minutes.

The top US-based exchange removed the ability to trade the token on its platform soon after the U.S. Securities and Exchange Commission (SEC) launched its lawsuit against Ripple, which claims Ripple sold XRP as an unregistered security for years.



Coinbase says a glitch caused XRP to appear on its professional trading platform, and the coin was quickly removed.

Source: CoinGecko

The exchange says no one was actually able to buy or sell the token.

“As previously announced, Coinbase has suspended trading in XRP.

Due to a technical issue, XRP was temporarily viewable on the Coinbase Pro mobile app for some customers but was not tradeable.”

After a brief spike to $1.24, XRP’s price dipped back down to $1.08 at time of writing.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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This Altcoin Is Skyrocketing Amid the Greater Crypto Market Correction

While most of the cryptocurrency market suffers through a correction, one altcoin is surging 86% this week.

Algorand (ALGO), a blockchain for decentralized finance (DeFi) applications, was trading around $1.51 before this week and dropped like the rest of the crypto market to $1.20 by the middle of Tuesday.



However, since hitting that price point, the 17th-ranked asset by market cap shot up by more than 100% to a weekly high of $2.41 on Thursday. ALGO has since stabilized to at $2.13 at time of writing, according to CoinGecko.

The exact catalyst driving ALGO’s upswing remains unclear. The crypto project announced the release of the next version of its asset management platform on Thursday, though most of its price surge preceded that news.

One possible factor could be SkyBridge Capital founder Anthony Scaramucci giving Algorand a shoutout Tuesday on CNBC, saying it was one of the crypto assets likely to grow because of its utility.

The former Trump Administration official explains,

“There’s a lot of great stuff happening in this space… as more digital applications happen, some of those altcoins, stuff like Algorand or Cardano, or things like Ethereum, will continue to rise because there’s actually great use cases for them.”

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Bitcoin, Ethereum and Solana Prices Slip—So Does the S&P 500

The S&P 500, an index of the 500 largest publicly traded companies, fell today for the fifth day in a row. It ended the week 1.7% lower than where it was on Monday morning after slipping 0.8% today.

Cryptocurrency markets are also down this week, dropping from a cumulative market cap of $2.43 trillion on Sunday to $2.2 trillion today, a 9% fall. Much of that happened in a Monday correction, but after stabilizing, markets have slumped again to close out the week. According to figures from CoinGecko, Bitcoin has jettisoned 3% in the last 24 hours, Ethereum 7%, and Solana—which has seemed impervious to market drops in recent weeks—even shed 9%.

Okay, so that’s a lot of numbers. What does it all mean? Well, forgive us for hedging like a Bitcoin hodler would, but it’s just one small data point showing cryptocurrencies may or may not react to the same stimuli as the S&P 500.

The S&P 500 and Bitcoin sometimes move in tandem, despite the fact that the latter is pitched as a safe haven against inflation. In 2020, after years of either negative correlation or negligibly positive correlation, the two began acting more similarly. The correlation coefficient, which ranges from -1 to 1, hit 0.22. That means, roughly, that they’re 22% alike. Cousins, but not siblings. 

BTC, unsurprisingly, was more aligned in 2020 with gold, another safe haven asset. Those two assets, both embraced by a Venn diagram of economic libertarians, correlated 34%. That correlation has since turned negative.

Still, the increasing degree of correlation in 2020 reflected growing institutional interest in Bitcoin, as companies like MicroStrategy and Square bought into the asset and banks and investment firms dipped their toes in the water. BTC was a financial instrument that mainstream investors could deploy, so it started acting similar to other asset classes.

But that may yet prove to be a fluke. Over the last year, the two markets are just 15.5% correlated, according to data from crypto analytics firm Skew, and that correlation has been dropping since November, when it was closer to 46%. On a monthly basis, it’s been all over the board since last October, from as high as 62% to as low as -37%.

Which is to say nothing of the correlation between relative newcomer Solana and stock trading, or Ethereum and crypto firm ETFs.

You know what they say about crypto, though: It’s volatile. And it will act like the stock market whenever it wants to.


The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.


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Altcoin Roundup: High Ethereum fees kick-start a liquidity migration to layer-1 platforms

In the ever-evolving world of cryptocurrencies and blockchain technology, the race to establish a highly scalable, user-friendly network capable of being adopted on a global scale is a never-ending marathon where new competitors regularly join in on the race. 

Bitcoin is undoubtedly the market leader when it comes to network security, active users and market capitalization value, while Ethereum has thus far established itself as the top smart contracts platform, but the continued difficulty in getting these networks to scale has opened the door for next-generation blockchain protocols to gain a foothold in the market.

The tenuous nature of Ethereum’s reign has begun to come under increased pressure in recent months as several up-and-coming layer-one- and layer-two-based protocols have launched incentive programs to attract liquidity and users to their ecosystems.

Here’s a look at some of the rising layer-one smart contract platforms that are vying for an increased share of liquidity in the crypto market.

Fantom incentivizes developers to migrate

Fantom is a protocol that utilizes a directed acyclic graph architecture to perform its consensus and is, in theory, infinitely scalable based on this design.

The high-speed, low-cost nature of the network has been gaining increased attention from participants in the crypto community in recent months because the Ethereum network continues to suffer from high transaction costs and slower confirmation times due to network congestion.

Activity on the network really began to increase following the Aug. 30 announcement of a 370-million-FTM incentive program aimed at rewarding developers who build new protocols on the Fantom network.

In the time since the launch of the FTM incentive program, the total value locked (TVL) on the Fantom protocol has increased from $691 million to a new record high at $1.44 billion on Sept. 9, based on data from Defi Llama.

Total value locked on Fantom. Source: Defi Llama

According to data provided by the Fantom Foundation, a TVL of $1.44 billion makes Fantom the fourth-largest Ethereum Virtual Machine (EVM)-compatible network on the market and is currently adding more than 20,000 new addresses and processing over 1.5 million transactions on a daily basis.

Multiple new nonfungible token (NFT) and decentralized finance (DeFi) protocols are launching on the network, and it’s possible that this trend will continue to rise as liquidity migrates to Fantom.

Liquidity “rushes” to Avalanche

Another network that has been draining liquidity from the Ethereun network is Avalanche, an open, programmable smart contracts platform specifically designed for decentralized applications.

Activity for the protocol saw a significant uptick following the launch of the Avalanche Rush DeFi Incentive Program on Aug. 18, which dedicated $180 million to DeFi protocols and liquidity to the Avalanche ecosystem.

The program initially integrated with Curve and Aave, two of the top DeFi protocols on the Ethereum network, but has since expanded to include other protocols, such as SushiSwap, Benqi Finance, YAY Games, Kyber Network and ParaSwap.

Following the launch of the incentive program, data from Defi Llama shows that the total value locked on the Avalanche protocol surged from $311.5 million on Aug. 18 to an all-time high at $2.42 billion on Sept. 5 before a market-wide pullback dropped its value to $2.11 billion at the time of writing.

Total value locked on Avalanche. Source: Defi Llama

Avalanche has also seen a number of new DeFi and NFT protocols launch on the network, including a partnership with the collectible and trading card maker Topps, which launched its “2021 Topps Major League Baseball Inception NFT Collection” on the Avalanche network.

The ongoing migration was made possible by the launch of the Avalanche Bridge in June, and this enabled users to transfer any asset on the Ethereum network to Avalanche at a fifth of the cost previously required through the bridge.

Related: As Bitcoin debuts in El Salvador, Honduras and Guatemala study CBDCs

A competitive field gets even more crowded

Fantom and Avalanche are two of the more recent rising stars in the layer-one game that have been siphoning users from the Ethereum network, but they are far from alone.

Other EVM-compatible networks that made headway earlier in the year are the Binance Smart Chain and Polygon. Both networks allow users to keep their assets on the Ethereum network while avoiding the high fees on the base layer.

Top 7 blockchain protocols by total value locked. Source: Defi Llama

The biggest threat posed to Ethereum from a non-EVM-compatible chain comes from Solana, which has seen the biggest gain in TVL over the past seven days, followed by the stablecoin-focused protocol Terra.

Two final notable mentions include the self-amending blockchain protocol Tezos and Algorand, which is a pure proof-of-stake protocol.

Data from Defi Llama shows that each network’s TVL increased by 207% and 71%, respectively, over the past seven days, while their token prices spiked close to their all-time highs thanks to protocol upgrades and, in the case of Algorand, adoption by the government of El Salvador.

As mentioned at the outset and shown in the TVL figure above, the Ethereum network is the dominant smart contract blockchain in terms of users, protocols and TVL, but the current limitations of the network have left the door open for competitors to chip away at its market share.

It remains to be seen whether Ethereum 2.0 will solve the problems faced or if a next-generation protocol will rise to the top and offer the optimal solution to the blockchain trilemma of providing decentralization, security and scalability on one easy-to-use platform.

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