TLDR:

Web3 applications and protocols experienced significant growth in 2023, with an average of 4.2 million unique active wallets (UAWs) interacting with these apps daily. A Solana-based maximum extractable value (MEV) bot made headlines by earning $1.7 million in profit from a single trade. The Near Foundation laid off 40% of its staff to focus on core activities. The United States Commodity Futures Trading Commission (CFTC) released a report outlining ways to mitigate risks in the decentralized finance (DeFi) space. The top 100 DeFi tokens had a bullish week following the approval of the first Bitcoin exchange-traded fund (ETF) in the US, and the total value locked in DeFi protocols exceeded $65 billion.

Solana MEV bot earns $1.7 million profit from single trade

A Solana-based MEV bot, run by 2fast, made a $1.7 million profit from a single trade involving the memecoin Dogwifhat (WIF). The bot swapped 703 Solana for 490,000 WIF and then swapped the WIF back into Solana, netting itself the profit. This highlights the potential for significant returns in the MEV space.

Near Foundation lays off 40% of workforce

The Near Foundation, the developer of the Near protocol, announced that it would be laying off 40% of its staff in order to focus on core activities. The decision comes after feedback that the foundation had not been as effective as it could be and had been attempting to do too many things at once. While the foundation has performed well financially, it aims to streamline its operations for greater impact.

Web3 apps see 124% growth in 2023

The number of unique active wallets (UAWs) interacting with Web3 apps increased by 124% in 2023. Near, Klaytn, and Arbitrum were the leaders in growth, while Harmony, Solana, and Hive saw declining users. Nonfungible token (NFT) products experienced the most growth, followed by DeFi and social media apps.

CFTC outlines ways to mitigate DeFi risks

The CFTC released a report detailing recommendations for mitigating risks associated with DeFi. While the report acknowledges the promising opportunities in the space, it also highlights the complex and significant risks to the US financial system, consumers, and national security. The CFTC emphasizes the need for policymakers and industry players to take action to address these risks.

DeFi market overview

The top 100 DeFi tokens had a bullish week, with most trading in the green. The total value locked in DeFi protocols exceeded $65 billion. This demonstrates continued growth and interest in the DeFi space.