Crypto Morning Brief: Fed Cuts Rates by 50 Basis Points, Aleo Mainnet Launches
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Crypto Morning Brief: Fed Cuts Rates by 50 Basis Points, Aleo Mainnet Launches
Bitcoin's dominance hits a three-year high, accounting for 58.47% of the total cryptocurrency market cap.
Navigating Web3 tides with focused insightsAuthor: TechFlow
Yesterday's Market Dynamics
Fed Cuts Rates by 50 Basis Points, Officially Kicking Off Easing Cycle
On Wednesday, September 18, the Federal Reserve announced after its FOMC meeting that the target range for the federal funds rate would be lowered from 5.25%-5.50% to 4.75%-5.0%, a 50 basis point cut. This marks the Fed’s first rate cut since launching its tightening cycle in March 2022. From March 2022 to July of last year, the Fed raised rates 11 times consecutively over just over a year, increasing them by a cumulative 525 basis points. Since then, it held rates steady across eight consecutive meetings, maintaining the highest level since 2001.
Trump Makes First-Ever BTC Purchase at PubKey Bar for a Burger
Republican presidential candidate Donald Trump bought a cheeseburger with Bitcoin at PubKey Bar in New York City, marking what is believed to be his first-ever Bitcoin transaction. Trump called it a "historic moment." The official X account of PubKey Bar shared the news, noting the transaction occurred at block height 861871. Trump later distributed burgers to patrons at the bar, dubbing them "crypto burgers." Earlier this week, Trump helped launch World Liberty Financial, a decentralized finance project developed by his sons.
Programmable Privacy Network Aleo Announces Mainnet Launch
Aleo, the programmable privacy network, officially announced on X that its mainnet has launched, enabling developers to build the next generation of decentralized applications powered by zero-knowledge cryptography. Previously, Aleo revealed its tokenomics: 1.5 billion tokens will be issued at mainnet launch, with 34% allocated to early supporters.
Data: Bitcoin Dominance Hits Three-Year High, Now 58.47% of Crypto Market Cap
According to SolanaFloor, as altcoins continue to struggle, Bitcoin’s share of the total cryptocurrency market cap has reached a new high. Latest data shows Bitcoin now accounts for 58.47% of the total crypto market cap—the highest level since April 2021.
Modular Blockchain Project Hemi Labs Raises $15M, Led by Binance Labs
Hemi Labs, co-founded by Bitcoin developer Jeff Garzik, has announced a $15 million funding round to develop and launch Hemi, a Layer 2 blockchain network built on both Bitcoin and Ethereum, according to CoinDesk. The round was led by Binance Labs, Breyer Capital, and Big Brain Holdings. Breyer Capital was an early investor in Facebook, Circle, and Spotify. The Hemi network operates as a single blockchain serving as a Layer 2 solution for both Bitcoin and Ethereum, aiming to combine the security of Bitcoin with the liquidity and programmability of Ethereum.
Bitget and Foresight Ventures Announce $30M Strategic Investment in TON
Bitget and Foresight Ventures have announced a $30 million investment into The Open Network (TON) blockchain, according to The Block. The investment aims to support the development of Telegram-based projects, particularly focusing on "tap-to-earn" games. The funds will be allocated through purchases of TON tokens, and both firms plan to “participate more deeply in the governance and future development plans” of the TON blockchain. Forest Bai, co-founder and CEO of Foresight Ventures, said: “The surge in the TON ecosystem represents the biggest growth opportunity in the crypto market this year.”
BNB Chain Launches Gas-Free Stablecoin Payment Initiative to Boost Cross-Chain Liquidity
BNB Chain has announced a gas-free stablecoin transfer program aimed at enhancing stablecoin infrastructure, according to Cointelegraph. The initiative will collaborate with major centralized exchanges and wallets, focusing on USDT, USDC, and FDUSD to deliver faster, lower-cost payment experiences. Gala Wen, Head of Ecosystem Development at BNB Chain, said the program aims to create a “gas-free transaction experience” through partnerships with “centralized exchanges, wallet providers, and cross-chain bridges.” For cross-chain functionality, BNB Chain is working with bridge service providers like Celer to enable “zero-fee transfers and premium liquidity,” simplifying cross-chain asset movement. Wen emphasized that the goal is to streamline and expand stablecoin usage in daily life, advancing BNB Chain’s vision for widespread Web3 adoption.
Vitalik: Ethereum’s Key Goal for the Next Decade Is Mainstream Adoption While Preserving Open-Source and Decentralized Values
At Token2049 on September 18, Ethereum founder Vitalik Buterin delivered a keynote titled “What Excites Me About the Next Decade.” He stated that Ethereum’s primary goal over the next ten years is achieving mainstream adoption while upholding open-source and decentralized values.
Vitalik highlighted six key areas:
1. Wallet security;
2. User experience in decentralized social media;
3. Payments;
4. Privacy tools;
5. zk-powered social media;
6. Ethereum L1 (Orbit SSF, Verkle Trees/stateless validation, MEV solutions, ZK-SNARKs for Ethereum L1, and light clients).
Arthur Hayes: Crypto Could Plummet Days After Fed’s First Rate Cut; Central Bank Era Is Over
Arthur Hayes, co-founder of BitMEX and CIO of Maelstrom, said during an interview with CoinDesk at Token2049 in Singapore that although the Fed is expected to announce its first rate cut since 2020, risk assets—including cryptocurrencies—could plunge in the days following the decision. Hayes views the rate cut as a poor move, arguing that inflation remains a significant issue in the U.S., and lowering borrowing costs could worsen it. Additionally, narrowing interest rate differentials between the U.S. and Japan may trigger a sharp appreciation of the yen, leading to unwinding of yen carry trades. Hayes forecasts U.S. interest rates will eventually fall from the current 5.25%-5.5% to near zero. He agrees with Scottish market strategist Russell Napier that the central bank era is over, and politicians will take over, directing banks to create liquidity in specific economic sectors. In such a scenario, Hayes believes cryptocurrencies will become the only globally portable assets allowing investors to escape the system.
Web3 Startup Vana Completes $5M Strategic Funding Round Led by Coinbase Ventures
Web3 startup Vana has announced a $5 million strategic funding round led by Coinbase Ventures. With this round, Vana has raised a total of $25 million to date. Vana aims to build a user-owned data pool network, using blockchain technology to address insufficient training data for AI models while offering internet users a way to earn income. The company plans to establish a decentralized autonomous organization (DAO) network that allows members to pool data collected from platforms like Reddit, LinkedIn, or X, and sell these datasets to AI researchers. Previously, Vana secured an $18 million Series A round led by Paradigm.
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