The crypto market rout intensified with a sharp sell-off amid low liquidity. Although the price of Bitcoin (BTC) rebounded above $70,000 on Monday, February 9, the derivatives market reported further weakness due to the recent decline in open interest (OI) amid a negative funding rate.
Fed’s Waller Blames Blockage of Clarity Act for Low Crypto Adoption
According to Federal Reserve Governor Christopher Waller, the blocking of the Clarity Act has resulted in low crypto adoption in the United States and, by extension, around the world. Waller said his plan for Skinny Fed Accounts did not prevent lawsuits related to the crypto industry.
Waller therefore concluded that the initial enthusiasm linked to President Donald Trump is quickly fading.
Buterin advocates for privacy to catalyze mainstream use of DeFi
Amid low crypto liquidity and strong liquidation of late, Ethereum co-founder Vitalik Buterin has urged the use of privacy-centric DeFi projects to catalyze widespread adoption of digital assets and Web3 protocols. Furthermore, Buterin believes that self-sovereignty is the holy grail for catalyzing organic adoption of digital assets and Web3 protocols.
Already, institutional investors and regulators have turned to the use of privacy-centric technologies, led by Zero Knowledge (ZK). Additionally, institutional investors seeking to tokenize real-world assets (RWA) are increasingly adopting privacy-centric DeFi protocols and chains.
Circle Internet Group Inc. (NYSE: CRCL) has led many Web3 companies to double down on privacy-centric solutions. For example, XION (XION), a small-cap layer 1 blockchain backed by Circle, has over 150 brands led by Uber, Amazon, and BMW, engaging over 4 million organic users worldwide. Earlier on Monday, XION announced the launch of its pioneering email privacy modules ZK and DKIM.
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