White Star Capital Digital Asset Fund - newsletter #67
2021 in review: DEXs saw over $1tr in trading volume while NFT trading volume surpassed $13bn
2021 in review: DEXs saw over $1tr in trading volume while NFT trading volume surpassed $13bn
Decentralized exchanges (DEXs) reported more than $1tr in trading volumes in the year 2021. That figure is a massive 858% increase compared to 2020 DEX trading volumes. In 2020, DEXs facilitated over $115bn in trading volumes.
Overall, monthly DEX trading volume peaked in May 2021 at $162.8bn. The most considerable month-over-month growth was in January, with a 137.3% gain.
The trading volume of non-fungible tokens (NFTs) surpassed $13bn in the year 2021. That figure is a massive 42,988% increase compared to 2020 NFT trading volumes. In 2020, NFTs had a trading volume of just over $33m.
OpenSea is the leading NFT marketplace. It facilitated nearly 88% of the total trading volumes for 2021, or over $12.5bn.
🔦 White Star & Portfolio Spotlight
Alethea AI raised $12.4m in their token distribution auction
Index Coop launches their latest index, $GMI
🏦 Enterprises & Institutions
Samsung enters the metaverse, opening its flagship 837 store in Decentraland
The physical store is located at 837 Washington Street in New York City's Meatpacking District, Manhattan. The virtual store, dubbed Samsung 837X, will be open in Decentraland for a limited time.
MicroStrategy purchased another $94.2m worth of bitcoin during December
The publicly traded firm "purchased approximately 1,914 bitcoins for approximately $94.2m in cash, at an average price of approximately $49,229 per bitcoin," according to an SEC filing.
The Associated Press is launching an NFT marketplace for photography
The Associated Press has demonstrated an interest in blockchain in the past. In October, it announced work with oracle network Chainlink to help developers access AP data.
⚖️ Government & Regulation
Powell says delayed Fed report on digital currencies will be released 'within weeks'
However, that report may not provide interested parties with all the answers for which it is looking. Powell explained, “it’s more going to be an exercise in asking questions and seeking answers from the public.”
Fed chair and US senator agree on core principles — and limits — for a potential digital dollar
While some lawmakers looking to CBDCs as a means of combatting the rise of private stablecoins, the Fed chair and a leading Republican on the Senate Banking Committee seem determined to leave a role for private operators.
💰 Funding & Exits
NFT aggregator Flip raises $6.5m in seed funding
The round was led by co-led by Distributed Global and Chapter One, with participation from CMS Holdings, NFT artist PplPleasr (aka Emily Yang), Keyboard Monkey, DeeZe, and others.
Crypto infrastructure firm Pocket Network raises $10m
Republic Capital, RockTree Capital and Arrington Capital helped lead the round.
A16z leads $25m round for DeFi credit protocol Goldfinch
Other investors in the round included noted hedge fund manager Bill Ackman, crypto investment firm BlockTower and investment management firm Kingsway Capital.
Citadel Securities raises $1.15bn from Sequoia Capital and Paradigm, now valued at $22bn
Citadel Securities is a global market-making leader, handling nearly 30% of all trading in the U.S., including equities, fixed-income and other assets. One of its biggest clients is Robinhood.
Decentral Park Capital launches $75m DeFi fund
The Web 3 fund will invest in projects, including liquid tokens, decentralized exchanges and lending protocols.
Katie Haun seeks $900m for crypto funds after A16z departure
Haun is aiming for $300m for an early investment fund targeting crypto startups and $600m for a fund focused on larger companies and digital tokens.
NFT marketplace OpenSea in talks to buy Dharma Labs
Deal terms are still being hammered out, with current talk of an all-stock deal valued at between $110m and $130m.
Elrond Foundation acquires crypto payments firm Utrust
The merged companies plan to combine DeFi with payments, in a product dubbed “Merchant Yield.”
🚀 Project Launches & Updates
Aave launches permissioned DeFi platform Aave Arc, Fireblocks becomes first whitelister
At launch, Fireblocks has whitelisted 30 institutions to participate on Aave Arc. These include SEBA Bank, Bluefire Capital (acquired by Galaxy Digital), Celsius, CoinShares, GSR, Ribbit Capital, QCP Capital, and Wintermute.
🔥 Other Bits We're Excited About
NFT marketplace OpenSea kicks off the new year with strong volumes
NFT trading on OpenSea in the first 10 days of January has already exceeded $1.36bn. By comparison, the platform’s highest-ever monthly volume, recorded in August 2021 was $3.16bn.