Next Big Trend Revealed

GM Readers!📪 It's BitDegree Insider, and today's destination - Web3.

⭐️Today's selection:

• 🌍The Rise of RWA
• 🟠Mysterious Magi
• 🧩️Thursday Quiz
• 👌Selected Meme of The Day
• 📰Bite-Sized News

THE RISE OF THE REAL-WORLD ASSETS (RWA)

The rise of... what?..

Real World Assets (RWA) are physical assets that have been tokenized and introduced into the cryptocurrency market.

A familiar example is tokenized dollars, also known as stablecoins.

In reality, stablecoins are not just limited to USDT, USDC, and similar tokens, but also include any tokens pegged to the value of an asset.

For instance, PAX Gold (PAXG) and Tether Gold (XAUT) are stablecoins linked to gold, not dollars.

Top analytical firms such as Messari, Binance Research, and Boston Consulting Group believe that RWAs will become the next powerful trend, attracting a huge amount of liquidity to the crypto market.

Here are a few popular protocols from various sectors actively working on this concept:

• RealT tokenizes and sells real estate in the US.
• MakerDAO plans to invest in real-world assets to diversify the collateral backing DAI.
• Swarm Markets tokenize traditional financial assets through Polygon, such as TSLA, AAPL, and US Treasury bills.
• Centrifuge allows companies to mint NFTs representing real-world assets, which can then be used as collateral for loans.
• GoldFinch provides USDC loans to companies in emerging markets, including Africa, Southeast Asia, and Latin America.

What are the benefits of it?

For the DeFi industry, it's an influx of new liquidity into the crypto market and more reliable token collateral.

For traditional finance, it's cost savings (blockchain infrastructure is cheaper than traditional systems), a lower entry barrier (especially for developing countries), and the transparency and reliability of blockchain technology.

According to Boston Consulting Group estimates, the crypto market's capitalization will reach $16 trillion thanks to tokenized real-world assets, becoming a catalyst for mass adoption of cryptocurrencies.

Well, one way to find out. To actually wait and find out.

TL;DR: Analysts predict that the DeFi economy is about to receive an influx of new money in the form of RWA, which stands for 'real-world assets.'

MYSTERIOUS CIRCLE

Well, well, well... What is it? Another Bitcoin-related Flash Mob?

After generating intrigue throughout the day with a series of enigmatic tweets featuring orange balloons, A16z Crypto has finally unveiled the mystery:

By the way, a16z is short for Andreessen Horowitz, a highly prominent venture capital firm often seen during our Venture Mondays.

They announced the development of their own Layer-2 (L2) solution called Magi, which is based on Optimism.

The trend for L2 solutions continues to grow, and it's easy to understand why. These solutions are met with immense demand, partly due to the possibility of yet another airdrop.

So, we've deciphered the formula for a successful Layer-2 blockchain:

The L2 creator is usually a company with a prominent name or one that attracts substantial investments.

The project amasses a large number of airdrop hunters who contribute to its usability and popularity.

Voilà!

Magi is a rollup client developed using the Rust programming language to enhance the Optimism Stack ecosystem.

Currently, in its early stages of development, Magi requires further refinement before it can become a viable alternative to existing blockchains.

Layer-2 solutions are particularly valuable at the moment, as Ethereum gas prices have reached astonishing levels!

TL;DR: Through a series of mysterious tweets, A16z (Andreessen Horowitz venture firm) unveils Magi, a Layer-2 solution based on Optimism.

THURSDAY QUIZ

For the Thursday's brain scratcher, here's a question for y'all.

SELECTED MEME OF THE DAY

BITE-SIZED NEWS

• Coinbase Receives Class F License from Bermuda Monetary Authority. Leaving the US is the truth now?
• Voyager Reaches Resolution with Authorities to Proceed with Binance.US Deal. Wait, Binance is on the verge of dominating in the US?
• European Parliament Passes the Markets in Crypto-Assets Act (MiCA). Well, that's at least a practical approach!