Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) insights — a newsletter crafted to bring you significant developments over the last week.
The second week of November could have been a bullish week, as consumer price index data released on Nov. 10 indicate lower-than-expected inflation. This resulted in a significant rally for traditional stocks, but the crypto ecosystem is currently fighting its own demon.
The FTX turmoil has not just tanked the price of the native token FTX Token (FTT), but any token associated with Sam Bankman-Fried or his associate company. Solana, a top-10 cryptocurrency and one of Bankman-Fried’s biggest investments, lost 32% of its market cap over the past couple of days.
Chainlink Lab said it would offer proof-of-reserve services for embattled exchanges. The new concept came to light after the collapse of the FTX exchange as a measure that can restore trust in crypto exchanges through greater transparency.
The DeFi ecosystem also faced criticism for denying user access based on wallet content. Entrepreneur Brad Mills criticized the so-called decentralized ecosystem and said DeFi rebuilt everything wrong with Wall Street on a blockchain.
It was a bloodbath on the crypto street this past week, with the majority of the top 100 DeFi tokens trading in red in the wake of FTX turmoil.
Solana TVL drops 32.4% as FTX turmoil rocks ecosystem
The total value locked (TVL) on the Solana chain has plummeted 32.4% in the last 24 hours, as news stemming from the collapse of FTX has sent waves through the crypto ecosystem.
According to DefiLlama, at the time of writing, Solana’s TVL has fallen to $423.68 million, down 32.4% in the last 24 hours, a far cry from its all-time-high (ATH) of $10.17 billion on Nov. 9, 2021.
Chainlink Labs offers proof-of-reserve service for embattled exchanges
Chainlink Labs offered its proof-of-reserve product as a solution to future trust issues in the crypto exchange market on Nov. 10. In a tweet thread, Chainlink Labs asked, “Will crypto continue to repeat the mistakes of the traditional black-box financial industry? Or will a better system emerge?”
In answer to this question, it offered its proof-of-reserve product, which it said is useful “for verifying centralized exchange asset reserves, off-chain bank account balances, cross-chain collateral, real-world asset reserves, and much more.”