Ethereum Foundation faces inquiry, Fed maintains steady economic outlook, Base Network's trading volume soars, and TON launches a $100M rewards program.
Ethereum Foundation Subpoenaed by “State Authority”

Ethereum Foundation Subpoenaed by “State Authority”

Ethereum Foundation faces inquiry, Fed maintains steady economic outlook, Base Network's trading volume soars, and TON launches a $100M rewards program.

Last update:
Mar 22, 2024
| Issue

Welcome to another edition of Datawallet Daily. Here are the key stories that are shaping the crypto landscape over the last 24 hours:

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Ethereum Foundation Subpoenaed by “State Authority”

The Ethereum Foundation is under investigation by an unspecified “state authority,” following a confidential inquiry detailed in a GitHub commit. Despite the Foundation’s non-disclosure of the authority involved, the incident has attracted attention since being reported by Coindesk. 

The Foundation, a non-profit dedicated to supporting the Ethereum ecosystem, removed a website disclaimer and a “warrant canary” image following the inquiry, indicating a change in its previously unblemished record of governmental contact. The investigation’s specifics remain unclear, including its connection to recent SEC actions against crypto companies and the Foundation. 

Fed Maintains Interest Rates, Steady Rate Cut Outlook

The Federal Reserve maintained interest rates at 5.25%-5.5% and upheld its year-end projection of reducing rates to 4.6%, aligning with December’s forecast. This decision, anticipated by market participants, quelled fears of a more hawkish approach amidst recent inflation concerns. 

The Fed’s “dot plot” indicated a conservative stance on rate cuts, with the majority expecting no more than three reductions this year, a shift from December’s more divided outlook. This stability in the monetary policy outlook is crucial for financial markets, including cryptocurrencies, where lower rates enhance appeal.

Base Network Daily Volume Surges 51% to $356M

The daily trading volume on the Base network, an Ethereum Layer 2 solution, witnessed a 51% surge, reaching $356 million on Tuesday. This growth coincides with the network’s TVL achieving a new all-time high of $745.3 million. The spike in activity, including 1.65 million daily transactions and nearly 130,000 new users, follows Ethereum’s Dencun upgrade, which reduced transaction fees on Layer 2 networks. 

The upgrade has positioned Base as a cost-effective platform, outpacing competitors like Arbitrum and Optimism in on-chain activity. Analysts attribute this surge to reduced transaction costs and predict further growth, especially with Coinbase’s integration of its smart wallet to facilitate on-chain transactions directly from user balances.

TON Foundation Launches $100M Toncoin Rewards Initiative

The TON Foundation has launched The Open League, a community rewards initiative for The Open Network (TON) blockchain, distributing 30 million Toncoin, valued at over $115 million, to support ecosystem growth. This program aims to incentivize participation and innovation within the TON ecosystem, starting in April. 

After a successful pilot, which significantly increased network engagement, the initiative will offer rewards through competitions, airdrops, quests, and liquidity pool boosts. The initiative, which aims to make crypto accessible and enjoyable, opens participation to projects across various blockchains, encouraging them to migrate to TON. 

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