Web3🌑Friday Wraps: Block's Bitcoin Acquisition, Coinbase's $1.6B Surge, Eigen's User Rewards, and Jito's Solana Leadership!

Welcome to another exciting edition of our Web3 roundup! As we bid farewell to the week and embrace the promise of the weekend, let's take a moment to delve into the latest happenings in the world of decentralized finance, blockchain technology, and cryptocurrency. Today's news is brimming with noteworthy developments, from significant moves by industry giants to initiatives that empower users and mark milestones in protocol dominance. So, grab your favorite beverage, settle in, and let's embark on a journey through the latest highlights shaping the landscape of Web3.

1. Jack Dorsey's Block Expanding Bitcoin Holdings, Setting a Blueprint for Others

Block (SQ) revealed its initiation of a dollar-cost averaging (DCA) strategy to boost its existing Bitcoin holdings, as stated in its first-quarter earnings report. Spearheaded by CEO Jack Dorsey, the firm plans to allocate 10% of its monthly bitcoin-related gross profit to acquire more BTC throughout 2024. With a reported $80 million in bitcoin gross profit for Q1, this approach could potentially add another $24 million worth of bitcoin to Block's balance sheet by year-end. Notably, Block already possesses substantial bitcoin reserves, having purchased 4,709 bitcoins in October 2020 and an additional 3,318 tokens in early 2021. The company also unveiled its "Bitcoin Blueprint For Corporate Balance Sheets," detailing its acquisition methods, custody, insurance, and accounting practices to manage large-scale crypto holdings effectively. This move underscores Block's commitment to expanding its Bitcoin portfolio strategically amidst the burgeoning digital asset landscape.

Jack Dorsey’s Block Adding More Bitcoin to Balance Sheet, Presents Road Map for Others

The company announced the news alongside its first quarter earnings report on Thursday afternoon.

CoinDeskStephen Alpher

2. Coinbase Surges with $1.6 Billion Quarterly Profits, Driven by Stablecoins and Crypto Value Surge

In Q1 2024, Coinbase, the San Francisco-based exchange, exceeded expectations with remarkable financial performance. Revenue surged to $1.6 billion, doubling transaction revenue to $1.1 billion compared to the previous year and surpassing analyst forecasts. Profits also surpassed expectations, reaching $4.40 per share, far exceeding Wall Street's estimate of $0.90. Coinbase attributed this success to revitalized trading activity among existing customers, as well as significant growth in new users, particularly institutional traders. Additionally, the company's strategic initiatives, such as reducing debt and offering interest on USD Coin (USDC) stablecoin, bolstered its balance sheet and contributed to increased revenue. The rise in interest in stablecoin services, with USDC being the fastest-growing stablecoin in 2024, further fueled growth. Coinbase's partnerships with major asset managers and the approval of Bitcoin exchange-traded funds (ETFs) in January unlocked additional avenues for customer engagement and revenue. Despite an initial stock price surge, shares dipped slightly in after-hours trading following the earnings release.

Coinbase $1.6 Billion Quarterly Profits Boosted By Stablecoins, Rising Crypto Prices - Decrypt

America’s biggest crypto exchange Coinbase reported strong results for the first quarter of 2024 after returning to profit last year.

DecryptAndré Beganski, Mat Di Salvo

3. Eigen Foundation Allocating $1,000 in EIGEN Tokens to 280,000+ Users

Eigen Foundation responds to criticism by allocating $280M worth of EIGEN tokens to 280,000+ users, aiming for fairer distribution. The move follows backlash over favoring whales in the airdrop and confusing documentation. EIGEN's current value on Aevo stands at $10.11. Investors and team members will have their allocations locked up for a year after transferability, expected by Sept. 30. Transfer restrictions aim to empower users, clarifies EigenLayer founder. Testnet operators, initially omitted, will be included in Phase 2 of Season with added allocations.

Eigen Foundation to Allocate an Additional $1,000 in EIGEN Tokens to Over 280,000 Users - Unchained

The $280 million move comes three days after EigenLayer announced its initial plans for its token genesis event, which attracted a range of criticisms, including how the airdrop allocation followed a linear distribution model that favored whales.

UnchainedSage D. Young

4. Jito Emerges as Solana's Leading Protocol, Locking $1.4 Billion in TVL

Jito, a liquid staking and MEV infrastructure project, emerges as Solana's leading protocol with $1.4B total value locked (TVL), representing 38% of Solana's $3.7B TVL. Positioned in the top five across all blockchains, Jito's flagship token, JitoSOL, sees 40% of its supply deployed in DeFi. The project plans to venture into the restaking market to compete against EigenLayer. Solana's ecosystem TVL has rebounded from a low of $210M in 2022 to $3.7B, marking a 150% increase year-to-date but remains 63% below its peak in November 2021.

Jito becomes largest protocol on Solana with $1.4 billion in TVL

Jito now has 10 million SOL ($1.4 billion) in total value locked — accounting for some 38% of Solana’s overall TVL.

The Block[email protected]

As we conclude this edition of our Web3 roundup, it's evident that the realm of decentralized finance and blockchain technology continues to evolve at a rapid pace. From groundbreaking acquisitions to user-centric initiatives, each development underscores the vibrancy and potential of this burgeoning ecosystem. As we look forward to the future, it's clear that innovation and progress will remain constant companions on this transformative journey. We hope you've found today's insights enlightening and inspiring. Remember to stay tuned for more updates as we navigate the exciting frontier of Web3 together. Until next time, stay curious, stay informed, and keep exploring the possibilities of decentralized finance.

WEB3 AI ML