EC escalates Ripple lawsuit seeking $2B, Ethereum's client diversity grows, RWA tokens surge 81%, and Aave adjusts token incentives amid borrowing boost.
SEC Targets $2B in Ripple Lawsuit

SEC Targets $2B in Ripple Lawsuit

EC escalates Ripple lawsuit seeking $2B, Ethereum's client diversity grows, RWA tokens surge 81%, and Aave adjusts token incentives amid borrowing boost.

Last update:
Mar 27, 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:

SEC Targets $2B in Ripple Lawsuit, CEO Reports

The Securities and Exchange Commission is reportedly pursuing $2 billion in fines and penalties from Ripple Labs, according to Ripple’s Chief Legal Officer Stuart Alderoty. This action marks a significant escalation in the ongoing legal conflict between the SEC and Ripple, with Alderoty criticizing the SEC’s approach as misleading and punitive towards Ripple and the broader industry.

Ripple CEO Brad Garlinghouse also voiced strong objections, highlighting the absence of fraud allegations in the case and accusing the SEC of overreach. This development follows a mixed court ruling last year that partly favored Ripple, questioning the SEC’s broad interpretation of securities laws. Ripple’s formal response to the SEC’s claims is anticipated next month.

Ethereum Non-Geth Clients Share Hits 34%

Ethereum’s client diversity landscape is witnessing a notable shift, with non-Geth clients now representing 34% of the network, thanks to initiatives like Coinbase’s decision to transition half of its validators to Nethermind. This move has reduced Geth’s dominance from 84% to 66%, addressing concerns about centralization and the risks associated with a potentially critical bug in a single client.

Despite these positive developments, industry experts caution that the battle for decentralization is not yet won. A truly decentralized Ethereum requires no single client to hold more than a 33% share, emphasizing the need for continued efforts in diversifying execution clients to enhance network resilience and security.

RWA Tokens Rally 81% Amid Institutional Demand

Real-world asset (RWA) governance tokens have witnessed an astonishing 81% rally in a single week, propelled by increasing institutional interest in on-chain finance. With a significant 28% jump in 24 hours and an overall 81% surge over the week, the market cap for RWA protocols’ governance tokens now stands at $8 billion. 

Notably, six out of the top 15 RWA tokens have seen their value more than double. Leading the charge is Ondo (OND) with a 123% increase. This surge is concurrent with financial institutions exploring the tokenization of real-world assets, such as ANZ Bank’s recent pilot with Chainlink’s interoperability protocol, showcasing a growing trend of integrating traditional assets with blockchain technology.

Aave Nears Zero Token Incentives as Borrowing Surges

Aave is nearing the elimination of token incentives, aligning with founder Marc Zeller’s view of their diminishing necessity. This shift occurs as Aave experiences a surge in borrowing, demonstrating robust platform activity. Despite reducing token incentives by 37% from their peak in December 2023, Aave’s loan activities have significantly increased, with a 31% uptick in active loans over the past 30 days. 

This growth asserts Aave’s leadership in the DeFi lending market. Unlike other DeFi protocols, Aave’s approach is evolving, with plans to implement a profit share switch, redistributing net profits to users, reflecting a strategic pivot to enhance user engagement and platform value.

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