CryptoPotato

Pavel Durov has made a significant impact on the tech world, particularly with his focus on privacy and innovation.

Known for co-founding VKontakte and later Telegram, Durov has built a reputation as a staunch advocate for user confidentiality and free speech.

His journey from creating Russia’s largest social network to leading one of the most popular messaging apps globally has also not been without controversy.

In this article, we’re diving deep into the biography of a controversial figure. A man who has allegedly fathered over 100 children through sperm donation across 120 countries and gave Russian authorities the middle finger (literally).

Let’s dive in.

Who Is Pavel Durov?

Pavel Valeryevich Durov is a Russian entrepreneur known for co-founding the messaging app Telegram with his brother Nikolai. He’s been the company’s CEO since 2013. However, this wasn’t the first social media project the duo had worked on.

Pavel and Nikolai became popular in Russia after launching VK (VKontakte) in 2006, a social media network similar to Facebook, which earned Pavel the nickname “The Russian Zuckerberg.”

Nikolai (L) and Pavel (R)Telegram’s success has earned the brothers significant wealth. While Nikolai is a more low-key, under-the-radar type of guy, Pavel is more outgoing and the face of the company (Nikolai is actually the one who designed both Telegram and The Open Network).

Pavel’s net worth is estimated at around $15B in 2024, making him the 120th richest person in the world.

Where is Pavel Durov From?

Durov was born on October 10, 1984, in Leningrad, now Saint Petersburg, Russia. Yet he spent a good chunk of his childhood in Turin, Italy, before returning to Russia, where he graduated with honors in 2006 from the Philology Department of Saint Petersburg’s State University.

He’s also an official citizen of several countries besides Russia and Italy: Saint Kitts and Nevis, France, and the UAE (in 2022, Forbes recognized Durov as the wealthiest expat in the region, and Arabian Business named him the most powerful entrepreneur in Dubai in 2023).

We have a detailed thread on X on the matter, feel free to check it out here:

Pavel Durov’s recent arrest sparked global debates on freedom of speech involving the likes of Elon Musk, government leaders, and millions of people.

Here’s the scoop on the tech whale who managed to father over a 100 children and flip Putin off, while making billions

pic.twitter.com/FwHfoi83yp

— CryptoPotato Official (@Crypto_Potato) September 8, 2024

The Origins of Telegram

In 2013, Durov co-founded Telegram, an encrypted messaging app known for its emphasis on privacy and security. Telegram has gained millions of users globally and has become a significant player in the tech industry. Originally headquartered in Berlin, the company later moved to Dubai.

In his statements and opinions, Durov has always emphasized the importance of privacy, seeing Telegram as a tool for secure and free communication.

The app has undoubtedly been a success, but it came with a price in the form of regulatory pushback from numerous governments across the world.

Durov has faced many challenges, including Russia’s attempts to block Telegram and the US Securities and Exchange Commission (SEC) intervention in his plans for the Gram cryptocurrency and the development of The Open Network (TON), of which Telegram carried out the original design and implementation.

Durov was already a rebel, but things started to heat up in 2011 after Russia’s President Vladimir Putin demanded the de-platforming of opposition on VK. In response, Durov gave Russian authorities the middle finger, quite literally:


In 2014, friction escalated. The Russian government demanded Durov to hand over user data, — particularly from Ukrainian protesters against pro-Russian president Viktor Yanukovych to Russia’s Federal Security Service — and resisted government censorship of VK, ing Durov to leave Russia and stay in other countries.

That same year, Durov also sold his 12% stake in VK, when the company had a valuation of around $3-4 billion, according to Russian media.

However, his exit from VK at the time caused a lot of controversy, as he was ousted from the CEO position by the company shareholders without prior knowledge, according to The Moscow Times.

Durov responded that shareholders didn’t dare to do it directly and that the move had placed VK under the “full control” of Igor Sechin, a Kremlin-linked Rosneft CEO, and Alisher Usmanov, a VK billionaire shareholder. An excerpt from Wikipedia reads:

“Durov then said the company had been effectively taken over by Vladimir Putin’s allies, suggesting his ouster was the result of both his refusal to hand over personal details of users to federal law enforcement and his refusal to hand over the personal details of people who were members of a VK group dedicated to the Euromaidan protest movement.”

Family, Children, and Some Controversies

Both Pavel and Nikolai were raised in an environment deeply rooted in academic excellence, largely shaped by their father, Valery Semenovich Durov.

Valery is a distinguished philologist with a Doctorate in Philological Sciences and has led the Philology Department at Saint Petersburg State University since 1992. His contributions to linguistics through various publications have earned him recognition as a prominent scholar in his field.

Growing up in such an intellectually stimulating household, Pavel and Nikolai were exposed to a world of academic rigor and intellectual curiosity from an early age. Their mother, Albina Durova, was also a professor at the same university, reinforcing the family’s strong educational values. This background helped nurture their individual talents in technology and mathematics (a field in which Nikolai excells), which would later propel them to create VKontakte and Telegram.

Children

According to Forbes, Pavel Durov has two children with his ex-wife, Daria Bondarenko: a daughter, Alina (born 2009), and a son, Mikhail (born 2010). Durov met Daria while studying at university, and as of 2021, she was living in Barcelona. In that same year, Forbes ranked Durov’s children as the sixth wealthiest heirs in Russia.

In July 2024, Irina Bolgar, who lives in Switzerland, contacted Forbes, presenting documentation to confirm that she has three children with Durov. Bolgar also provided a family photo with Durov taken in 2020. Forbes verified the authenticity of these documents. In August 2024, Bolgar filed a lawsuit against Durov in Switzerland, accusing him of abusing their youngest son between 2021 and 2022. She also claimed that Durov stopped seeing their children in September 2022. I

Shortly after Durov’s arrest, French prosecutors started a probe into the alleged facts of physical violence against his child, according to CNN.

Father of Over 100 Children

If you think Elon Musk is the only tech billionaire who’s trying singlehandedly to stop declining birthrates, think again. Durov has made public statements claiming he has fathered more than 100 children through sperm donation across 12 countries since 2010.

Source: Telegram## 2024 Arrest in France: A Closeup

After Durov left Russia in 2014, he focused on Telegram, turning the app into a pro-privacy tool for millions of users worldwide. Years passed, and everything seemed fine—Telegram was becoming a major messaging app praised for its file-sharing capabilities, security, and privacy mechanisms.

By 2024, Telegram had made headlines after reaching 950M users worldwide. But it was probably the encryption policy that got Durov into trouble in the first place. In today’s technological era, encryption is essential for securing your sensitive data.

Two main methods are server-side encryption (SSE) and client-side encryption (CSE), each with its own strengths and weaknesses.

Server-Side Encryption (SSE)

In server-side encryption, like the one used by WhatsApp, the server encrypts your data after it is received and stores it in an encrypted format. The server manages the encryption keys, which can simplify things for you but requires you to trust the service provider.

SSE typically runs faster because the server uses its processing power for encryption and decryption. It’s commonly used in cloud services like Amazon S3, where your data is automatically encrypted at rest.

Client-Side Encryption (CSE)

With client-side encryption, you encrypt the data using your own algorithm and key, ensuring the server only receives encrypted information. This means you keep control over the encryption keys, enhancing security and helping meet strict data protection rules. In other words, not your keys, not your data.

Since encryption happens on your device, your data is secure during transmission and storage. Things get interesting here — even the service provider can’t access your unencrypted data. Overall, client-side encryption is best for highly sensitive data, as it gives you complete control over the keys and ensures privacy from the service provider, but it may slow down your and add complexity, especially with key management and encryption processes.

SSE v. CSE Comparison Table; Source: CryptoPotatoAnd what does all of this mean? Let’s put it this way:

• Server-side encryption means your data is protected by policies.
• Client-side encryption means you manage the key, and nobody can access the data in your files.

Telegram uses a combination of both. Cloud Chats are encrypted on Telegram’s server using client-server encryption. Telegram can access the encryption keys and decrypt the messages if needed. Secret Chats use end-to-end encryption, so only the chat participants hold the encryption keys. This means Teelgram cannot access the keys or decrypt the messages.

Therefore, Durov could have accessed the data because there was some sensitive information that Telegram could technically access and decrypt —he just refused to cooperate with law enforcement.

Durov’s Arrest in France

It was all marching well (sort of) until August of 2024.

In a funny and ironic turn of events, French authorities, not Russian, arrested Durov on August 25 in relation to Telegram’s content moderation. The arrest was part of an ongoing judicial inquiry into alleged illegal activities taking place on Telegram. It sparked widespread backlash from supporters of internet freedom.

He faced preliminary charges. See, in France, magistrates who have strong reasons to believe that a crime was committed but need more time for further investigation can impose preliminary charges. Prosecutors were quoted saying that “at this stage, the only person implicated in this case,” is Durov.

Durov’s Release

Later, he was released on bail but was forbidden from leaving France. Durov released his first statement after the fact:

“When Russia demanded we hand over “encryption keys” to enable surveillance, we refused —and Telegram got banned in Russia. When Iran demanded we block channels of peaceful protesters, we refused —and Telegram got banned in Iran. We are prepared to leave markets that aren’t compatible with our principles, because we are not doing this for money. We are driven by the intention to bring good and defend the basic rights of people, particularly in places where these rights are violated.”

A few days later, Durov announced new features while cutting “a few outdated ones,” starting with removing People Nearby. This feature was already controversial when it was introduced years ago.

According to Durov, People Nearby “was used by less than 0.1% of Telegram users, but had issues with bots and scammers”.

That 0.1% of users, accordiong to Durov, are involved in illicit activities that create a bad image for Telegram, “putting the interest of our billion users at risk”. People Nearby will be replaced by Business Nearby, which showcases legitimate and verfied businesses.

Nikolai Durov, The Mastermind Behind Telegram

The architect behind Telegram and The Open Network is Nikolai Valeryevich Durov, born on November 21, 1980, in Saint Petersburg, Russia.

From a young age, Nikolai demonstrated exceptional intelligence. He learned to read at just three years old and solved complex equations by eight. His education took him to Italy, where his mathematical skills began to gain attention. But it didn’t stop there.

Career and Achievements

Nikolai’s achievements in mathematics were evident early on. He won gold medals at the International Mathematical Olympiad in 1996, 1997, and 1998. Additionally, he garnered three silver and one gold medal in the International Olympiad in Informatics from 1995 to 1998. He was also a key member of the Saint Petersburg State University ACM team, which won the ACM International Collegiate Programming Contest in 2000 and 2001.

Besides technology, Nikolai Durov’s work spans the academia field as well. He has led teams of world-class programmers, developing infrastructures that power platforms with over 300 million combined users.

Telegram and The Open Network

Nikolai developed the MTProto protocol, which underpins Telegram’s encryption and security, making it a preferred tool for privacy-conscious users. His contributions to these platforms, especially the messenger app, have established him as a key figure in secure communication technologies.

He is also a co-founder of The Open Network (TON) and authored its original whitepaper. Although it was originally called the Telegram Open Network and planned for integration with Telegram’s messaging app, regulatory challenges forced Telegram to step back from the project. Since then, the open-source community has continued its development.

The Open Network is not just another decentralized protocol. It was designed to become a powerful web3 blockchain eco that surged throughout 2024. We can summarise TON’s key features and architecture as follows:

• Multi-Blockchain Architecture:

TON operates using a multi-blockchain structure, consisting of a masterchain and various workchains. The masterchain oversees key network functions, such as protocol updates and validator elections, while the workchains operate independently, allowing them to be customized for specific applications and increasing the ’s scalability.

• Sharding Technology:

To address scalability, TON employs dynamic sharding. This technology enables the blockchain to split and merge depending on transaction volume, efficiently distributing the workload. This architecture theoretically supports millions of transactions per second, making TON one of the most scalable blockchain solutions.

• Proof-of-Stake Consensus:

TON uses a proof-of-stake (PoS) consensus mechanism, where validators are chosen based on how much Toncoin they stake. This energy-efficient supports high transaction throughput and is well-suited for various applications, from financial transactions to digital services.

• Interoperability:

TON stands out for its cross-chain interoperability, enabling seamless communication between different blockchain networks. This feature enhances the utility of the platform and allows it to interact with other decentralized ecos, promoting a more connected digital landscape.

Legal Challenges

As mentioned, Nikolai tends to keep a low profile, unlike his more buoyant brother. But Pavel’s arrest also put the spotlight on Nikolai. While Nikolai is less publicly visible, he also faces charges in this ongoing controversy, given that he’s also a co-founder, and Telegram is accused of refusal to moderate illegal activity on its platform.

The War Against Privacy

A particular quote from Durov highlights the current state of things for tech innovation and user privacy in social media channels and applications.

“No innovator will ever build new tools if they know they can be personally held responsible for potential abuse of those tools.”

This quote addresses a core issue in the ongoing debate about privacy and innovation. It is especially relevant given the recent legal challenges that tech developers face and the broader context of privacy-focused technologies.

Durov’s stance on privacy, particularly with Telegram, has positioned him as a strong advocate for free speech and minimal content moderation. However, this approach has also made him a target for authorities seeking to regulate platforms that might be used for illegal activities.

Durov’s concerns reflect a growing fear among developers—if you could be held personally liable for how your tools are used, would you still create them?

Layer-2s foster the growth of the Web3 eco by enabling efficient, cost-effective blockchain interactions for various applications, such as finance, gaming, and governance. Hundreds of layer-2s have been developed throughout the years, and of all kinds, too – optimistic rollups, zero-knowledge rollups, etc.

Combined, layer-2s have accumulated billions of dollars in total value locked (TVL), reaching a peak of nearly $50B in June 2024. By 2024, Base was among the top three layer-2s, having an eco of more than $6 billion across emerging decentralized applications (dApps).

This article will guide you through some of the best wallets for Base in 2024. Let’s start by learning what Base is and how it works.


Quick Navigation

• What is Base?
• Methodology: How We Chose the Best Base Wallets
• Best Base Wallets to Watch in 2024
  • Coinbase Wallet
  • Ledger
  • MetaMask
  • Trust Wallet
  • SafePal
  • Brave Wallet
  • Exodus
  • YaspFi
  • Enkrypt
  • Zerion
• Factors to Consider Before Choosing a Base Wallet
• Closing Thoughts: The Best Base Wallets in 2024

What Is Base?

Base is an Ethereum Layer-2 (L2) blockchain developed by Coinbase, officially launched on August 9, 2023. It was built on the OP Stack in collaboration with Optimism.

It is designed to enhance the scalability, speed, and efficiency of the Ethereum network while maintaining its security and decentralization. By offering a low-cost, developer-friendly environment, it aims to drive mass adoption of on-chain applications.

How Does Base Work?

Base operates on top of the Ethereum blockchain, utilizing a technology known as “optimistic rollups.” This method allows Base to process transactions off the Ethereum main chain (Layer 1) and batch them before posting them back to Ethereum.

This approach reduces the load on Ethereum, leading to improved scalability and efficiency without sacrificing the network’s inherent security.

Base provides several key advantages that make it an appealing platform:

• Scalability: By processing transactions off-chain, Base can handle a much higher volume than Ethereum Layer 1. This capability helps alleviate network congestion and ensures faster transaction processing.
• Cost Efficiency: Batching transactions significantly reduces the load on the Ethereum main chain, resulting in lower transaction fees. This makes using Base more economical compared to Ethereum Layer 1.
• Developer-Friendly Environment: Base is fully compatible with the Ethereum Virtual Machine (EVM). This compatibility allows developers to migrate their existing Ethereum dApps to Base easily without requiring significant changes to the code.
• Accessibility: Base’s integration with Coinbase simplifies the onboarding process, allowing you to access the Base network directly through the Coinbase platform.

Methodology: How We Chose the Best Base Wallets

To determine the best Base wallets, we conducted an in-depth assessment of multiple critical components that are integral to the wallet’s functionality, usability, security, user experience, and support.

Some of the criteria that we took into account include, but is not limited to:

• Overview of the wallet’s standing in the industry: how popular is it? When was it launched?
• Important features.
• Security: how safe is the wallet? Has it been compromised? What safety protocols has the team implemented?
• Comparative analysis of its advantages and disadvantages.

Our main focus was on robust Base wallets with proven track records, which haven’t been compromised and have been established as reliable solutions in the cryptocurrency industry.

Best Base Wallets to Watch in 2024

With various options available, each offering unique features and benefits, it can be difficult to choose the best base wallet. Whether you value security, user experience, or compatibility, the right wallet can significantly enhance your crypto journey.

Coinbase Wallet

Coinbase Wallet is a secure, non-custodial option for storing and managing cryptocurrencies.


It supports over 100,000 digital assets, including NFTs, and provides access to various dApps from different blockchain networks, including those from layer-2s like Arbitrum, Optimism, and, of course, Base.

Accessing Base from Coinbase Wallet is a no-brainer.

• On the browser extension, simply open the network selection menu by clicking the network icon. Then, select Base.
• On mobile, it’s already by default, so you can explore dApps on Base directly from the app.

Overall, you can bridge from supported blockchains to Base, allowing you to access and use dApps. Note that bridging may incur additional fees, depending on which network you’re bridging to.

Other Key Features of Coinbase Wallet

• DeFi Hub: Explore and search for thousands of dApps across different ecos, such as Ethereum and Solana. You can interact with decentralized exchanges (DEXs) like Raydium, check out popular NFTs, use blockchain bridges, SocialFi apps, and more.
• Swap, Trade, and Buy: Swap over 100,000 cryptocurrencies across popular networks such as Polygon, Ethereum, and Solana, providing a flexible trading experience.
• User-Friendly and Easy to Set Up: Coinbase Wallet is accessible and easy to set up. It is available as a browser extension for Chrome and Brave and a mobile app for iOS and Android.
• Privacy: No personal information is required to use Coinbase Wallet. You can use your username to send and receive cryptocurrencies and NFTs, making transactions simple and private.

How Safe Is Coinbase Wallet?

Coinbase Wallet adheres to some of the highest crypto security standards, backed by the Coinbase exchange. As a non-custodial wallet, you own your private keys and are provided with a 12-word seed phrase to access your account on new devices.

Enhanced security features include biometric access, passwords, two-factor authentication (2FA), and security locks, adding multiple layers of protection. You can also integrate a Ledger hardware wallet, allowing you to store funds in a cold storage solution for added security.

Pros and Cons

Pros explained:

• Round-the-clock customer support, including a help page and email support.
• Offers liquid staking options, such as staking liquid ETH.
• Designed for ease of use, with straightforward installation and setup.
• Available as a browser extension or mobile app, ensuring a simple and quick installation process.

Cons explained:

• The desktop version might be more versatile and user-friendly than the mobile version, with features like the Community tab for user interactions.

Ledger

Ledger is known for crafting some of the best hardware wallets with enhanced security features.


These wallets come equipped with Secure Element Chips, providing tamper-proof technology and certification for your crypto assets. This ensures that your private keys remain offline and protected from potential online threats.

Here’s how to connect Ledger to Base in three simple steps:

• Open your Ledger Live app.
• Go to the accounts tab and create a Base account.
• Verify and confirm the address to which to deposit ETH tokens.

Ledger Options

• Ledger Nano S Plus: This model offers great value, providing essential features at a reasonable price. It’s ideal if you’re looking for a cost-effective way to secure your crypto with robust security measures.
• Ledger Nano X: The Nano X includes additional features such as Bluetooth connectivity, making it easier to manage your crypto on the go. If you need more flexibility and are willing to invest a bit more, this model might be the right fit for you.
• Ledger Stax: As one of Ledger’s premium models, the Stax features a larger screen and more advanced capabilities. It’s designed for those who want top-tier functionality and are ready to invest in premium features.

Pros and Cons

Pros explained:

• High security is embedded in all Ledger devices.
• Beginner-friendly options, like the Nano S Plus, are smaller and more affordable, while the Nano X offers more advanced features.
• Allows staking of several cryptocurrencies, including some of the most popular options on the market.

Cons explained:

• No iOS support for the Nano S Plus, limiting its usability for Apple users.

“Creating Base accounts on the Base network with your Ledger device is also supported in Ledger Live desktop.”

MetaMask

MetaMask, developed by Consensys, a company specializing in Ethereum-based tools and infrastructure, is one of the leading DeFi wallets in the industry.


It supports a wide range of tokens and blockchain networks, providing you with access to a variety of DeFi projects.

To connect Base to MetaMask, follow the steps below:

1. Open the network selection dropdown menu on your MetaMask browser extension.
2. Click the “Add network” button.
3. Click “Add a network manually.” In the pop-up dialog, enter the information for the Base mainnet, such as the RPC Endpoint, Name, Chain ID, etc.

Key Features of MetaMask

• Smart Transactions: Submit transactions to a virtual memory pool before they are confirmed on-chain. This feature helps mitigate maximum extractable value (MEV) strategies by simulating transactions in the virtual memory pool, reducing transaction fees.
• MetaMask Swap: Seamlessly swap tokens within the MetaMask wallet on the browser extension and mobile app. It aggregates data from several decentralized exchanges (DEXs) to find the best prices with low slippage. A service fee of 0.875% is automatically factored into each quote.
• MetaMask Bridge: This cross-chain bridge aggregator enhances Web3 interoperability by providing optimal routes for transferring tokens between blockchains, using data from multiple bridge aggregators.
• MetaMask Staking: You can stake ETH and MATIC directly from the wallet using liquid staking providers like Lido and Rocket Pool.

How Safe Is MetMask?

MetaMask is known for its robust security measures to protect your funds and identity. Key security features include:

• Privacy-Preserving Security s: This feature s you to detect malicious dApps. Initially tested with OpenSea, it is now available on an opt-in basis on the Ethereum Mainnet. Activate it within the “Experimental” tab under “Settings” to verify transactions before completing them.
• Security Vaults: These provide secure storage for your identity and allow you to interact safely with ERC and other tokens across various browsers.

Pros and Cons

Pros explained:

• Broad integration with numerous dApps and crypto tokens in the Ethereum eco.
• Supports custom integrations through Snaps.
• Interoperable with all EVM-compatible blockchains.
• Available for both iOS and Android with mobile integration.
• Supports hardware wallet integration.

Cons explained:

• Only supports Ethereum and EVM-compatible networks.
• Not very user-friendly, and customer support is somewhat limited.

Trust Wallet

Trust Wallet is a versatile wallet that allows you to buy, sell, and swap cryptocurrencies, collect and trade Non-Fungible Tokens (NFTs), and explore thousands of options on Ethereum and the Binance Smart Chain (BNB) eco.


These features are accessible within the wallet’s dashboard and are available for mobile devices and desktop browsers.

Adding Base to Trust Wallet is also quite straightforward.

• Open your Trust Wallet app and click on the two circles to the top right.
• Click on the dropdown menu and choose the Base network.
• Next, click on the tokens you wish to add to the Trust Wallet.

Key Features of Trust Wallet

• dApp Browser: Trust Wallet includes a dApp browser that lets you interact with the likes of Uniswap, Compound, and Aave. You can also access NFT marketplaces like OpenSea to view, collect, and trade NFTs. On iOS devices, this feature is available under the “Discover” tab.
• Staking Rewards: You can stake selected cryptocurrencies directly within the wallet and earn rewards.
• Flexible Purchasing Options: You have the option to buy cryptocurrencies from third-party platforms like Mercuryo, MoonPay, and Simplex, offering flexibility in acquiring digital assets.
• Custom Token Integration: Adding custom tokens is straightforward. Simply tap the “Wallet” tab, click the “+” button, and search for the desired token to integrate it into your wallet.
• Seamless Inter-Wallet Transfers: Trust Wallet allows you to quickly transfer cryptocurrencies from other wallets using various authentication methods, ensuring smooth and secure transactions.

How Safe Is Trust Wallet?

Trust Wallet employs several security measures to protect your funds and data, including biometric access, auto-lock timers, encrypted private keys, 12-word seed phrases, and two-factor authentication (2FA). The wallet is generally considered secure, with scores of 3.9 and 4.0 out of 5.0 on GetApp and Trust Pilot, respectively.

However, like all hot wallets, Trust Wallet is vulnerable to risks such as hacking attempts, phishing scams, and address poisoning. To enhance security, you can enable 2FA and connect Trust Wallet to a hardware wallet like Ledger.

Pros and Cons

Pros explained:

• Access to thousands of dApps.
• Allows staking for over 23 cryptocurrencies.
• Audited and certified by CertiK, Kudelski Security, and Halborn.
• Compatible with Ledger hardware wallets for added security.

Cons explained:

• Limited customer support and resources for educational content.
• The Android version of Trust Wallet has not been updated as frequently as the iOS version, which is actively maintained on GitHub.

SafePal

SafePal is one of the largest crypto wallet manufacturers, known for its tight security mechanisms and support for dozens of blockchain networks.


SafePal provides multiple types of wallets, starting with a hardware wallet called SafePal S1, which supports over 10,000 tokens across 21 blockchains.

The software app for your mobile is free and allows you to manage your hardware wallet as well. It gives you access to multiple dApps across Ethereum, Binance Smart Chain, Tron, and more.

To add Base Network to SafePal, you must do it manually on the SafePal app:

• First, make sure you are using the latest version of SafePal App.
• You can add Base automatically on the app or just by entering the network’s name, RPC URL, and Chain ID.

Key Features

• Multiple Accounts: The software wallet allows you to manage your accounts from different SafePal wallets, a convenient feature that allows you to control your hardware wallet within your phone.
• Support for Several Assets: Both SafePal S1 and the SafePal software wallet support a wide range of cryptocurrencies, including Bitcoin, Ethereum, Ripple, and Tron, allowing you to manage multiple digital assets in one secure place.
• User-Friendly Interface: Designed for ease of use, the SafePal S1 features a 1.3-inch full-color display and a D-pad for navigation. This simple and intuitive interface makes managing your cryptocurrencies straightforward and accessible.
• Portable Design: The compact size of the SafePal S1 makes it easy to carry, providing convenient access to your cryptocurrencies while on the go.
• Backup and Recovery Options: SafePal S1 offers robust backup and recovery options, ensuring that you can restore your assets if the device is lost or damaged. This feature provides an extra layer of security and peace of mind.

How Safe Is SafePal?

SafePal S1 comes with an EAL5+ secure element chip to store private keys. Moreover, it has a 6-digit device authentication code for tampering verification. The wallet is air-gapped and leverages a cryptographic number generator and multi-layer security sensors; it can even self-destruct in emergency situations.

The software wallet is available for iOS and Android, allowing you to set up biometric access and 2FA.

Pros and Cons

Pros explained:

• The air-gapped design and secure element provide robust protection against hacking and unauthorized access, making it a more secure hardware wallet option.
• Versatile enough to manage diverse portfolios due to its support for multiple cryptocurrencies and blockchain networks.
• The intuitive interface and portable design make the SafePal S1 accessible and convenient, regardless of your experience level with crypto.
• Relatively inexpensive compared to other hardware wallets, priced at 62.50 Euros.

Cons explained:

• While enhancing security, the lack of internet, Bluetooth, or NFC connectivity may limit functionalities that require real-time interaction.
• Firmware updates and other maintenance tasks must be performed manually, which could be inconvenient if you prefer automated processes.

Brave Wallet

Brave Wallet is a secure, self-custody crypto wallet built directly into the Brave browser. It allows you to safely store digital assets, track market data, send and receive NFTs, and connect to Web3.


Brave supports Base, but you must manually add it by visiting Chainlist.org. There, insert the network’s information (RPC URL, Chain ID, etc) into the wallet and then select the tokens you wish to add.

Key Features of Brave Wallet

• Multi-Chain Support: Brave Wallet supports multiple networks, including Ethereum, Solana, Filecoin, and other EVM-compatible networks, allowing you to manage assets across different blockchains.
• NFT Support: You can send, receive, and view your NFTs in a multi-chain gallery, making it easy to manage digital collectibles within the wallet.
• Crypto Buying and Swapping: Buy crypto with a credit card and swap tokens using an integrated DEX aggregator, providing flexibility and convenience for managing your digital assets.
• Hardware Wallet Integration: Brave Wallet supports connecting to Ledger and Trezor hardware wallets, adding an extra layer of security for your assets.
• Price Tracking: View real-time price feeds and market rankings powered by CoinGecko, allowing you to stay updated on market trends directly from the wallet.

How Safe Is Brave Wallet?

Brave Wallet is considered one of the safest self-custody wallet options available. It inherits Brave’s strict privacy and security protections and is also non-custodial, allowing you to control your funds at your will.

Pros and Cons

Pros explained:

• Secure, non-custodial storage for crypto assets and NFTs.
• Supports a wide range of blockchains and tokens.
• Enables buying crypto, swapping tokens, and connecting to dApps.
• Integrates with hardware wallets like Ledger and Trezor.
• Free to use (network fees may apply for transactions).

Cons explained:

• Only available on the Brave browser, not compatible with other browsers.
• Currently limited to desktop and Android devices, with iOS support coming soon.

Exodus

Exodus is a versatile, non-custodial cryptocurrency wallet that supports over 50 blockchain networks. It is available as a desktop wallet, browser extension, and mobile app for iOS and Android, allowing you to manage your digital assets conveniently across different devices.


You can explore the Base eco using your Exodus wallet. It’s actually integrated into the wallet, so you don’t really need to add the network manually.

Key Features of Exodus

• Multi-Chain Support: Exodus supports various blockchain networks, including Ethereum, Solana, BSC, Algorand, Arbitrum, Base, and more. Additionally, it supports NFTs and integrates with hardware wallets like Trezor, enhancing security and flexibility.
• Fiat On-Ramp: The wallet facilitates the purchase of cryptocurrencies using fiat currency through services like Moonpay, Ramp, Sardine, and Robinhood Connect. You can buy crypto with debit or credit cards and deposit it directly into your Exodus wallet, although availability may vary by location.
• Hardware Wallet Integration: Exodus integrates with Trezor hardware wallets, specifically the Trezor Safe 3, allowing for secure offline storage of your private keys.
• Built-In Exchange: Exodus features a built-in exchange, allowing you to trade and manage your crypto portfolio without needing external exchanges. This simplifies buying, selling, and swapping cryptocurrencies directly within the app.
• Swaps: You can easily exchange cryptocurrencies for different tokens directly within the Exodus app, providing flexibility in managing your crypto portfolio.
• Crypto Staking: Exodus supports in-app staking for various cryptocurrencies, including Ethereum (ETH), Solana (SOL), Cardano (ADA), and Cosmos (ATOM), enabling you to earn rewards on your holdings.
• Transaction Export: The wallet allows you to export your crypto transaction history for tax purposes, providing a .csv file format for easy record-keeping.

How Safe Is Exodus?

Exodus does not employ certain standard security features in many crypto wallets today. The wallet’s security is as robust as the device it is installed on. If your device is lost, compromised, or left unattended with the wallet visible, the funds within Exodus are at risk.

Moreover, Exodus does not provide additional security mechanisms like two-factor authentication (2FA), security locks, or scam s. However, the Exodus team regularly updates the wallet’s status and informs you of any patched vulnerabilities.

Pros and Cons

Pros explained:

• Easy setup on desktop, browser, or mobile devices.
• Offers customer support through chat and email services, help pages, and numerous articles on security practices.
• Provides updates and security reports every two weeks, though you must manually update the wallet via the official Exodus website.
• Supports staking, allowing you to earn rewards on your cryptocurrency holdings directly within the wallet.

Cons explained:

• Lacks traditional two-factor authentication (2FA) and other standard security features.
• Not open-source, preventing independent reviews of the wallet’s security mechanisms and overall reliability by users and external developers.

YaspFi

YaspFi is an all-in-one, non-custodial wallet with many capabilities. It’s designed to enhance and provide a smoother entrance to the world of DeFi, using several technologies to store, invest, and exchange funds across multiple blockchain networks.


All in all, the wallet’s main objective is to make DeFi accessible and transparent. It’s user-friendly, but don’t let that fool you; it provides comprehensive analytics, risk assessment scores, and seamless integration with hundreds of dApps across multiple blockchain networks, including those from Base.

Key Features of YaspFi

• Multi-chain Support: YaspFi supports over 12 blockchain networks, including major players like Ethereum and Base. This allows you to manage diverse assets in one place, making cross-chain transactions more straightforward and efficient.
• DeFi Integration: The wallet allows you to stake, lend, and provide liquidity easily. YaspFi brings DeFi tools directly to your fingertips, making it easier to participate in the decentralized economy.
• Yield Aggregator: YaspFi includes a yield aggregator that pools crypto assets and invests them in yield-generating products using automated strategies. This feature allows you to maximize returns without constantly monitoring the market.
• Portfolio Tracking: With YaspFi, you can monitor your investments closely. The wallet provides accurate estimates, performance history, and real-time price monitoring, giving you a comprehensive view of your portfolio and helping you discover new investment strategies.
• Open Trust Score Model: YaspFi uses a transparent tool for data-driven decision-making, weighing more than 15 trust parameters into a single score. This feature helps you uate the safety and reliability of various DeFi projects.

How Safe Is YaspFi?

YaspFi prioritizes your security by allowing you to control your private keys, which are stored locally on your device. The platform incorporates advanced security measures to protect your assets and transactions and offers integration with hardware wallets for added security.

Additionally, YaspFi is open-source, allowing its community to review its code and check for vulnerabilities.

Pros and Cons of YaspFi

Pros explained:

• Multi-chain support for managing diverse assets.
• Robust DeFi integration and yield aggregation features.
• Comprehensive analytics and risk assessment tools.
• Strong emphasis on security and control over private keys.
• Open-source for transparency.

Cons explained:

• Customer support is rather lackluster.

Enkrypt

Enkrypt is a Web3 wallet created by MyEtherWallet, the first open-source wallet created for Ethereum.


It supports multiple blockchains, including Ethereum, Polkadot, and Bitcoin. It is designed for secure asset management and easy interaction with () while keeping your private keys safe and supporting hardware wallets like Ledger and Trezor.

Enkrypt supports the Base network. You can manage assets on Base by selecting it within the wallet’s network options. It’s that simple.

Features of Enkrypt Wallet

• Multi-Chain Support: Enkrypt supports multiple blockchains, allowing you to manage various assets across different networks.
• dApp Integration: The wallet includes a Web3 browser, enabling seamless interaction with various dApps and enhancing your DeFi experience.
• Token and NFT Management: Send, receive, swap, and manage tokens and NFTs across supported networks, providing flexibility in managing your digital portfolio.
• Hardware Wallet Support: Enkrypt integrates with Ledger and Trezor, offering enhanced security for those who prefer hardware wallets.

How Safe Is Enkrypt Wallet?

Enkrypt is open-source, allowing its community to scrutinize its code and check for regular audits, helping to identify and resolve vulnerabilities.

As a non-custodial wallet, Enkrypt does not store your private keys or have access to your funds. Moreover, you are provided with a recovery phrase during wallet setup, which is essential for restoring access to your wallet if needed.

Pros and Cons of Enkrypt Wallet

Pros explained:

• User-friendly interface for all experience levels.
• Supports a variety of blockchains and assets.
• Integrated dApp functionality for DeFi use.
• Strong security with non-custodial design and open-source code.
• Ongoing updates from MyEtherWallet.

Cons explained:

• No desktop version (except for browser extension).

Zerion

Zerion is a non-custodial crypto wallet and DeFi dashboard allowing you to manage digital assets across multiple blockchains, including cryptocurrencies and NFTs.


The wallet presents itself as a fully-fledged Web3 app. It helps you track your investments, trade assets, and engage with various DeFi protocols across several networks. All this is done through a user-friendly interface and enhanced features.

Zerion supports Base. To add it, you can choose the network directly through the app and insert the tokens you wish to trade, similar to Trust Wallet. It’s as simple as that.

Key Features of Zerion

• Non-Custodial: You retain full control of your private keys, ensuring that your funds are secure and not accessible by Zerion or any third party.
• Multi-Chain Support: Zerion supports numerous Ethereum-compatible networks, such as Arbitrum, Binance Smart Chain, Polygon, and more, allowing you to manage assets seamlessly across different platforms.
• DeFi Integration: Access a wide range of DeFi services, including lending, borrowing, and liquidity provision, enabling you to earn yields on your assets directly through the wallet.
• Built-in DEX Aggregator: Zerion automatically sources the best prices for token swaps from various decentralized exchanges (DEXs), ensuring you get the most favorable rates.
• Portfolio Tracking: The wallet features a comprehensive portfolio tracker that automatically finds and displays all assets, including DeFi positions and NFTs, in one convenient location.
• Security Audits: Zerion has undergone multiple security audits by reputable firms, and its codebase is open-source, enhancing transparency and trust.

How Safe Is Zerion?

As a non-custodial wallet, Zerion does not store your private keys or have access to your funds. It allows you to set up biometric access, PIN, and 2FA. Moreover, the protocol behind the wallet runs a bug bounty program with Immunefi, rewarding ethical hackers who discover security issues, further enhancing the wallet’s security.

Professional security firms, including Cube53 and Trail of Bits, have audited the wallet to identify and address vulnerabilities.

Pros and Cons

Pros explained:

• User-friendly interface designed for both beginners and experienced users.
• Comprehensive support for various DeFi protocols and assets.
• Automatic tracking of DeFi positions and rewards.
• Strong security measures, including audits and non-custodial design.
• Integrated DEX aggregator for optimal trading prices.

Cons explained:

• Limited support for Bitcoin (only wrapped BTC is available).
• Some advanced features may not be as extensive as those dedicated DeFi platforms offer.

Factors to Consider Before Choosing a Base Wallet

When selecting a wallet for Base, consider factors such as security, usability, and compatibility to ensure it aligns with your needs and preferences. A good wallet will support your interactions with Base’s network, providing a secure and efficient platform for managing your assets and dApp activities.

Compatibility and Usability

Consider a wallet that provides flexibility and interoperability across multiple blockchain networks. Look for support for NFTs and the ability to integrate custom tokens, which will give you more versatility in managing different types of digital assets.

Choose a wallet with a clear and intuitive layout that makes it easy to navigate. A user-friendly wallet should simplify sending and receiving funds and offer an accessible and straightforward dApp store within the interface.

Preferences

Decide whether you prefer a mobile wallet for convenience or a desktop one for enhanced security. Your choice should depend on your lifestyle and how you plan to use the wallet.

Keep in mind some wallets offer extra features, such as market analysis and price charts, which can be particularly useful for traders.

Safety

To keep your funds safe, prioritize Base wallets with strong security features. Look for options that offer robust encryption, multi-factor authentication (MFA), a clean security track record, and regular security audits. These measures help protect your assets from potential threats.

Moreover, choose a wallet that provides control of your private keys. Not your keys, not your coins.

Customer support

Reliable customer support is crucial if you encounter any issues with your wallet. Look for wallets offering responsive and knowledgeable support options, such as live chat, email, or phone support, to ensure you can get help.

Fees

Wallet fees can vary based on the services offered and network congestion. Compare fees for different wallets, especially if you plan to make frequent USDT transactions, to find an option that aligns with your budget and usage needs.

Closing Thoughts – The Best Base Wallets in 2024

Choosing the best wallet for Base is essential for maximizing your experience with Ethereum’s Layer-2 solutions. Each wallet offers unique features, from multi-chain support and seamless DeFi integration to robust security measures and user-friendly interfaces. Whether you prioritize convenience, security, or advanced features, the right wallet will enhance your ability to navigate the Base eco efficiently.

As you explore your options, consider the factors that matter most to you, such as security protocols, compatibility with multiple blockchains, and the availability of customer support. With the right wallet, you can confidently engage in the dynamic world of decentralized finance on Base.

Space and Time Labs, the developer behind the Space and Time (SxT) network, a verifiable compute layer for artificial intelligence (AI) and blockchain that delivers enterprise use cases to smart contracts and large language models (LLMs), has concluded a Series A funding round that netted $20 million from industry top dogs and marquee investors.

According to a press release sent to CryptoPotato, the funding from the latest round has raised SxT Labs’ total funding to date to $50 million. The resources will enhance the company’s position as a leader in the intersection between AI and blockchain. The funding will also accelerate the network’s product development and engineering and enhance eco and community growth.

SxT Labs Raises $20M

Entities like web3-focused venture capital firms Framework Ventures, Arrington Capital, Lightspeed Faction, and Hivemind Capital led SxT Labs’ Series A funding round. The round also saw participation from other companies like OKX Ventures, Alumni Ventures, Circle Ventures, F-Prime Capital, DCG, and Microsoft’s M12 Ventures.

Notably, Microsoft’s M12 Ventures invested $20 million into SxT Labs in a strategic funding round in September 2022.

Michael Anderson, co-founder of Framework Ventures, said:

We have long believed in SxT, particularly given their commitment to solving the infrastructure needs of blockchain, having first invested in the company back in 2022. SxT is actively solving infrastructure problems, which in turn is ushering in more applications that are exciting users and amplifying interest.

Anderson said Framework Ventures supports SxT Labs’ efforts to power a new era of community-driven innovation in AI. The verifiable compute layer provides developers with data, infrastructure, and tools needed to build next-generation applications intersecting AI and blockchain.

Utilizing Proof of SQL

SxT Labs explained that its network combines three technologies – blockchain indexing, data warehouse, and zero knowledge (ZK) coprocessor.

Blockchain indexing provides developers with data from leading chains like Ethereum, Bitcoin, Polygon, and ZKSync. Data warehouse is a space where developers can use Structured Query Language (SQL) to analyze indexed blockchain data and customer-loaded offchain datasets.

The ZK coprocessor unlocks trustless data processing via Proof of SQL. The SxT team is developing a solution for verifiable LLMs using this ZK technology.

“Space and Time is committed to empowering the community to own their future in an AI-powered world by providing the tools they need to build next-gen applications at the intersection of AI and blockchain,” said Nate Holiday, co-founder and CEO of SxT Labs.

Blockchains were originally designed to be transparent, with every wallet and transaction on public display. Many supporters see this ‘trustlessness’ as a strength, but there are some obvious drawbacks, such as the security risk of having all of your financial activity available on-chain.

We can see this in the rates of illicit activity around blockchain, with bad actors accounting for $39.6bn of transaction volume in 2022.

We are also seeing a growing tactic of frontrunning for personal gain, where users with the technical skills to do so, reorder trades before they are committed to a block. By doing this they can ensure their own trades are always profitable.

These are just two examples of why transparency is often seen as a bug, and it’s also why the search for blockchain privacy is heating up. We are now seeing a flurry of innovation within the eco to push for privacy solutions, arguably the last frontier for blockchain.

Blockchain Privacy Solutions

You may already be familiar with Zero-Knowledge proofs or ZKPs, one of the first blockchain privacy solutions to gain widespread adoption. ZKPs allow data to be shared between two parties without revealing any sensitive information. However, they fall short when handling more complex computations.

In many instances blockchain applications need multiple parties to compute solutions together, known as Multi Party Computation (MPC). This is where Fully Homomorphic Encryption (FHE) came into play. About four years ago, FHE emerged as an elegant solution to solve the MPC problem. FHE enables multiple parties to carry out computations on encrypted data without needing to disclose or know the underlying data points in order to retrieve the end result. However, FHE faces significant scaling issues given its high computing costs.

Garbled Circuits, High-speed, Lightweight Blockchain Privacy

Garbled Circuits – a technology developed by Soda Labs and implemented exclusive by COTI – aims to solve the MPC problem with much lower costs to run and far better performance.

In essence Garbled Circuits can be used to make confidential multi-party computations of varying complexity with any number of participants providing inputs. This makes it suitable for complex applications on blockchain protocols including private smart contracts. However, tweaks to the technology today mean that it is less computationally intensive, giving it the ability to scale.

How do Garbled Circuits work?

The concept of Garbled Circuits actually dates back to the late 80s, when it was proposed as a solution to Yao’s Millionaires’ Problem by famous cryptographer Andrew Yao. Imagine that there are two millionaires, Alice and Bob, who want to know who between the two of them has more money. The problem is that no one wants to reveal how much they have exactly. Instead of revealing the amount of money each of them has, they can solve their dispute with the help of Garbled Circuits.

Alice and Bob each write down their net worth in encrypted text, as a string of letters and numbers. Both of them put this piece of paper into a black box, and after a split second, a piece of paper is ejected with the name of the richer person. In this example, the black box is the Garbled Circuit, a powerful computer program that can perform complex calculations on encrypted data without leaking any information.

Garbled Circuits introduce new levels of confidentiality to Web3, protecting data and metadata to enable confidential payments, private/blind auctions and the secure management of sensitive information on-chain without sacrificing performance. COTI has demonstrated the technology’s effectiveness ahead of its integration with Ethereum-based Layer-2 network, COTI V2, which launched in April.

Web3 Use Cases for Garbled Circuits

As blockchain applications grow more complex, a privacy solution is needed that can handle secure MPC without any limit to the number of inputs. In these instances, Garbled Circuits have huge potential.

Confidential DeFI: Garbled Circuits enable confidential transactions, allowing Decentralized Finance (DeFi) apps to maintain regulatory requirements while solving losses from MEV by encrypting transaction data, shielding them from sandwich bots. Just some of the DeFi use cases of GC include private Automated Market Makers (AMMs), undercollateralized lending, dark pools and hybrid exchanges. These can leverage both centralized and decentralized elements while keeping trade details confidential.

Dynamic Decentralized Identification (DID): Garbled Circuits facilitate identity verification and personal information sharing, calculation, and storage without revealing actual data to other parties, ensuring KYC compliance while maintaining user privacy. For instance, decentralized lenders can now establish someone’s suitability for a loan without the individual exposing their wallet address or personal information. The GC breakthrough preserves privacy whilst fulfilling regulatory requirements.

On-Chain Sensitive Data Management: Garbled Circuits allow for encrypted data storage on-chain, enabling analysis of sensitive information without compromising privacy. Data can be safely shared across sites, preventing companies from scraping and selling it. Some of the applications that become possible include confidential on-chain voting s and healthcare services. By storing encrypted data on-chain, GC satisfies stringent data protection standards whilst still providing the benefits of blockchain data storage and analysis.

One of the main characteristics of Garbled Circuits is their efficiency. Benchmark tests have shown that Garbled Circuits are much faster, lighter and cost-effective than any other privacy-preserving technology available today. This makes GC highly scalable, ensuring that the technology can grow alongside expanding markets such as Real World Assets (RWA) and Artificial Intelligence (AI).

Confidential Transactions for Payments, Stablecoins and RWA. Garbled Circuits maintains fund flow transparency while encrypting transaction details, ensuring regulatory compliance for payments, stablecoins, and real-world assets (RWA). RWAs include assets like real estate, commodities and securities that require high levels of privacy. GCs ability to ensure privacy, meet regulatory requirements, enhance security, and scale efficiently makes them an ideal choice.

Confidential Machine Learning & AI. Garbled Circuits also enables secure, private interactions with AI and large language models (LLMs), safeguarding data model confidentiality and data source privacy as required by law. GC can be used to enable decentralized and democratic ML model development and opens up new possibilities for privacy-focussed data marketplaces allowing researchers and businesses to work with datasets without exposing sensitive information.

Summary

To summarize, Garbled Circuits are revolutionizing privacy in blockchain applications, offering solutions that cater to various sectors, including DeFi, identity management, sensitive data handling, and AI. With their increased performance and scalability over other privacy solutions like FHE, Garbled Circuits are set to play a pivotal role in the future of Web3.

Authored by: Shafah Ban-Geffen, CEO and CO-Founder of COTI

Decentralized finance (DeFi) is a financial eco composed of decentralized applications (dApps) built on blockchain networks, most popularly, Ethereum.

It’s difficult to pinpoint precisely when DeFi was born, as there is not a universally agreed-upon date marking the birth of the DeFi sector. What could be stated is that DeFi was born over time thanks to different components of blockchain stacks and critical developments in the crypto industry that synergized to solve specific problems or innovate upon existing features/services.

DeFi runs on decentralized networks, primarily blockchain technology, which means no single entity controls the . This differs from traditional finance, where centralized institutions oversee and manage financial transactions. Instead of a middleman, DeFi relies on smart contracts —self-uting digital contracts that are triggered if certain conditions are met.

Further, In DeFi, decentralized autonomous organizations (DAOs) are behind the development and sustainability of DeFi projects. Each DAO can implement a governance structure with its own rules and procedures, including voting mechanisms, vesting schedules, token delegation, protocol development, and more.

The following is an in-depth guide on the best DeFi projects not just on Ethereum but on other popular chains such as Solana, TRON, Base, and more.


Quick Navigation

• The 14 Best DeFi Projects to Watch in 2024
  • Uniswap: Top Ethereum Decentralized Exchange
  • Aave: Largest Lending Platform on Ethereum
  • Lido: Leading Staking Protocol on Ethereum
  • EigenLayer: Top Ethereum Restaking Protocol
  • Ondo Finance: Largest RWA Protocol
  • PancakeSwap: Top Decentralized Exchange on BNB Chain
  • Jito: Top dApp on Solana Blockchain
  • MakerDAO: Creators of Largest Decentralized Stablecoin (DAI)
  • Raydium: Leading Decentralized Exchange on Solana
  • 1inch: Veteran Ethereum DEX
  • Aerodrome: Top Lending Protocol on Base
  • Just Lend: Biggest Lending Protocol on TRON
• Honorable Mentions
  • Indigo Protocol
  • Benqi
• Is DeFi Safe?
• Is DeFi Suitable for Beginners?
• What Problems Does DeFi Solve?
• Does Bitcoin Have DeFi?
• Closing Thoughts – the Best DeFi Projects

The 14 Best DeFi Projects To Watch in 2024

The following projects were selected based on their popularity and impact in the DeFi market Without further ado, let’s see some of the best DeFi projects in 2024.

Uniswap: Top Ethereum Decentralized Exchange

Quick summary:

• Leading decentralized exchange
• Pioneered and popularized Automated Market Makers (AMMs)
• A heavily-backed protocol with nearly $180M in funding


Uniswap (UNI) is one of the best DeFi projects in the industry, a decentralized exchange that has amassed billions of dollars in total value locked. It allows users to swap, earn,

It is fully open-source and provides resources and tools for founders to build on its eco, including starting guides, protocol documentation, a Java SKD, and more. If that’s not enough, it also offers grant funding for projects with great potential.

The DEX is a household name in the DeFi industry. It popularized the use of AMMs to source liquidity through liquidity pools in contrast to traditional order books, which rely on buy and sell orders placed by market makers.

Uniswap introduced the constant product formula, which underpins its AMM model. In short, the formula states that a pool’s base liquidity needs to remain the same despite two or more tokens dropping or soaring in value.

Founders

Uniswap, originally called Unipeg, was founded by Hayden Adams, who was laid off from Siemens in July 2017.

Adams spent several months learning all about Ethereum, including its programming language, Solidity and Java. In November 2018, Uniswap was launched, experiencing notable success in the market.

The protocol is at its third iteration, Uniswap V3, which introduces benefits such as concentrated liquidity, better risk management features for LPs, and fewer slippage events for arbitrage traders.

Investors and Backers

Uniswap has received $176M in funding from 17 investors, including high-profile institutions like Andreessen Horowitz (a16z), Polychain, Paradigm, and Union Square Ventures.

Aave: Largest Lending Platform on Ethereum

Quick summary:

• The most popular platform for staking and lending stablecoin.
• Has its own stablecoin called GHO, which is overcollateralized and backed by Aave assets.
• Popularized the use of flash loans in DeFi


Aave (AAVE) is one of the most popular crypto lenders in the DeFi industry. It was once the largest DeFi app in 2021, with over $18B in total value locked. The protocol still holds well at $13B (July 2024), a 255% increase from its all-time low of 3.64.

Aave, formerly called ETHLend, was built on Ethereum and supports multiple chains, such as Polygon, BSC, Arbitrum, Avalanche, Harmony, and Fantom. This allows users to lend and borrow crypto in multiple ecos without intermediaries.

You can do other things in Aave, such as staking crypto and stablecoins like USDC or providing liquidity to the protocol’s liquidity pools (LPs). Further, you could become a member of the governance community and vote or submit proposals called Aave Request for Improvement (AIP).

Founders

Stani Kulechov, a Finnish entrepreneur and programmer, founded Aave in 2017. He holds a law degree from the University of Helsinki, but he started coding at 12 and became interested in blockchain technology later on.

Investors and Backers

Aave has raised nearly $50M from four investments. Notably, the Fantom Foundation is one of their biggest investors, pouring $10M into the protocol in May 2024.

Lido: Leading Staking Protocol on Ethereum

Quick summary:

• Largest dApp on Ethereum and in the broader DeFi market.
• Reached a peak of over $30B in TVL, one of the highest in DeFi history
• Pioneered the liquid staking narrative


Lido (LDO) is the largest decentralized finance (DeFi) protocol, with a total value locked that has exceeded $30B in the past.

Lido pioneered the liquid staking narrative on Ethereum and the broader crypto market, becoming a success almost overnight.

The protocol allows you to stake Ethereum and receive a liquid token in exchange, known as stETH (Staked Ethereum). stETH can be used in other DeFi applications to earn additional yields while still receiving staking rewards and providing security to the Ethereum Beacon Chain.

It’s worth noting that Lido has invested over $4 million in security measures, including audits and bug bounties.

EigenLayer: Top Ethereum Restaking Protocol

Quick Summary:

• An Ethereum-based heavyweight protocol, dominating much of the market with its restaking feature
• Changed the game liquid staking game by introducing restaking, allowing users to maximize yields even further.


EigenLayer is one of the best DeFi projects in the Ethereum blockchain, a prominent protocol that introduced the concept of restaking, which involves depositing staked Ethereum (stETH) or liquid staked tokens (LSTs) into the protocol’s liquidity pools.

Restaking enhances pooled security by repurposing staked ETH, effectively allowing these staked tokens to be lent to other protocols. This process occurs through an opt-in mechanism on EigenLayer, where users agree to two key terms: 1) granting EigenLayer access to the staked ETH’s withdrawal credentials and 2) accepting the slashing conditions set by the validator. This setup encourages participation and, most importantly, promotes honest behavior.

EigenLayer then acts as the middleware, creating a free and open market where validators and protocols can trade pooled security for a price. Protocols have the option to purchase staked tokens or stETH, controlling the supply, allowing them to buy additional network security without the need to bootstrap it or invest in validator services.

Validators, in turn, can uate and select the protocols they consider safe and profitable to supply with staked tokens (they also have the ability to regulate the amount supplied to these protocols for security purposes). Ultimately, the process on EigenLayer is neither automated nor random but carefully managed.

Founders

EigenLayer was founded in early 2021 by Sreeram Kannan, a distinguished expert in engineering, computer science, and telecommunications. Kannan’s academic journey includes studies at the College of Engineering, Guindy, the Indian Institute of Science (IISc), and the University of Illinois Urbana-Champaign.

Kannan also served as a postdoctoral researcher at UC Berkeley and later became an associate professor at the University of Washington, where he led the UW Blockchain Lab.

Investors and Backers

EigenLayer has received over $164M in funding, according to data from Crunchbase. Their latest funding was raised on February 22, 2024, from a Series B round. Some of the protocol’s most prominent investors include Blockchain Capital, a16z, WAGMI Ventures, and Ambush Capital.

Founders

Lido was founded in 2020 by three renowned crypto and tech entrepreneurs:

• Konstantin Lomashuk: A seasoned entrepreneur and blockchain expert, Lomashuk is also a co-founder of P2P Validator, a prominent staking service provider. He has been actively involved in the crypto space since 2012.
• Vasiliy Shapovalov: A blockchain developer and researcher with significant experience in smart contract development and blockchain architecture. Before Lido, Shapovalov worked on various blockchain projects and contributed to developing decentralized s.
• Jordan Fish (also known by the pseudonym “Cobie”): A well-known figure in the cryptocurrency community, Fish has been involved in various crypto projects and is recognized for his insights into the DeFi eco. He is also known for co-hosting the popular cryptocurrency podcast “UpOnly.”

Investors and Backers

According to Crunchbase, eight investors, including VCs Quiet Capital, Pareto Holdings, and NextView Ventures, have funded Lido in two private rounds.

Ondo Finance: Largest RWA Protocol

Quick summary:

• Largest RWA protocol
• Specializes in tokenized treasuries
• Has expanded into multiple blockchain ecos and has opened offices in several continents.


Ondo Finance is dedicated to integrating real-world assets (RWAs), such as bonds and treasuries, onto the blockchain, mainly focusing on the Solana network. This initiative aims to enhance liquidity and efficiency for investors by tokenizing these assets, allowing for seamless trading on secondary markets without the usual delays and administrative hurdles.

Moving on, Ondo launched USDY, a tokenized note backed by short-term U.S. Treasuries with a 5.2% annual yield, on the Cosmos platform in June. The integration makes Ondo’s token offerings accessible across over 90 blockchains interconnected through Cosmos’ Inter-Blockchain Communication Protocol (IBC).

The protocol experienced substantial growth in early 2024, mostly due to the rising interest in tokenized assets, especially tokenized treasury bills, of which Ondo dominates the market share.

Ondo has also expanded to other continents, opening an office in the Asia Pacific region to meet demand for tokenized assets.

Founders

Ondo Finance was founded in 2021 by Nathan Allman, who previously worked with Goldman Sachs’ digital assets team. The team includes former utives from Goldman Sachs, McKinsey & Co., BlackRock, and Bridgewater.

Investors and Backers

Ondo Finance has raised approximately $34M in funding over three rounds. Wintermute Ventures and Pantera Capital are some of the lead investors.

It should be noted that Ondo Finance moved $95 million into BlackRock’s tokenized fund, BUIDL, enabling instant settlements for Ondo Finance’s OUSG tokens, backed by short-term government treasuries.

The protocol has also partnered with regulated and qualified custodians, including Ankura and StoneX.

PancakeSwap: Top Decentralized Exchange on BNB Chain

Quick summary:

• Largest dApp on the Binance Smart Chain (BSC)
• Offers some of the lowest fees in the market
• Interoperable with Ethereum


PancakeSwap (CAKE) is a decentralized exchange (DEX) built on the Binance Smart Chain. The protocol is known for its low fees and user-friendly dashboard, making it a standout DEX on the Binance Smart Chain.

Like other DEXs, PancakeSwap allows users to trade cryptocurrencies directly without a central authority or the need for orderbooks, thanks to its use of Automated Market Maker (AMM). In short, AMMs are algorithms that aggregate liquidity from multiple sources without relying on makers or takers for liquidity provisioning.

PancakeSwap is popular for its vast liquidity pools, allowing traders to earn yields through staking. Additionally, it’s compatible with MetaMask and supports cross-chain transfers from BSC to Ethereum and vice versa.

PancakeSwap V4 brought many benefits, including support for native gas tokens, minimized slippage and impermanent loss, native ETH support, and more.

Founders

PancakeSwap was launched by an anonymous team of developers in September 2020. Nevertheless, the developers use pseudonyms and are usually active on social media. Despite their anonymity, the platform has garnered substantial trust and adoption within the DeFi community.

Investors and Backers

PancakeSwap has received over $4M in funding from at least three investors, including ICONIUM (during PancakeSwap’s ICO) and Platinum (Seed Round).

PancakeSwap is also backed by Binance Labs. The exchange’s venture capital and incubation arm invested an undisclosed amount in PancakeSwap’s utility and governance token, CAKE.

Jito: Top dApp on Solana Blockchain

Quick summary:

• Largest dApp on the Solana blockchain
• Solidified its presence in the market with a unique approach towards MEV and frontrunning
• Ran one of the largest airdrops in crypto history


Jito (JTO) is one of the best DeFi projects on the Solana blockchain —widely recognized for its ease

of use and intuitive dashboard.

It’s a liquid staking platform similar to Ethereum’s Lido. However, Jito’s success comes largely from its innovative approach to handling MEV (Maximal Extractable Value), a frontrunner strategy in DeFi trading.

Jito addresses the MEV challenge by implementing an auction in which traders bid on profitable transaction sequences optimized by third-party block engines. This approach boosts staker rewards and mitigates the benefits of spam transactions.

MEV will remain a debatable topic in crypto as one side argues that MEV miners exploit the by front-running trades on DEXs or reordering transactions to maximize profits, leading to unfair advantages and a negative user experience.

Conversely, proponents assert that MEV can enhance market efficiency by identifying the best token prices across exchanges and resolving economic inefficiencies in DeFi protocols. For instance, MEV ensures lenders are repaid when borrowers fail to meet collateral requirements.

Founders

Jito was established by Jito Labs, with Lucas Bruder (CEO) and Zano Shermani (CTO) at the helm.

Bruder has a background in robotics and firmware, having worked at Ouster and Tesla. At the same time, Shermani previously served as a Software Engineer at Parsec and is an alumnus of George Mason University. Brian Smith, the COO, is also a significant contributor to the Jito Network.

Investors and Backers

In 2022, Jito Labs secured $12 million in a Series A funding round led by Multicoin Capital and Framework Ventures. Since then, Jito has become increasingly prominent within the Solana eco, experiencing a substantial rise in total value locked in the first quarter of 2024.

Additionally, Jito conducted a major token airdrop on December 7, 2023, further solidifying its presence in the market.

MakerDAO: Creators of Largest Decentralized Stablecoin (DAI)

Quick summary:

• An OG protocol in the Ethereum eco, founded in 2014
• Created DAI, one of the largest stablecoins by market capitalization
• Established Maker RWA to invest in off-chain assets


MakerDAO is a decentralized autonomous organization (DAO) built on the Ethereum blockchain. It is best known for creating the Dai stablecoin and contributing to the rise of Real-World Assets (RWAs) in the Ethereum network.

Established in 2014, MakerDAO operates through smart contracts that allow users to borrow and lend crypto, specifically Dai (DAI), by using other assets as collateral. DAI is supported by almost every dApp in the industry and can be used for staking, lending, and as a utility and governance token.

MKR token holders handle governance, participating in decisions related to the protocol’s parameters and risk management.

Founders

Rune Christensen is the co-founder and CEO of MakerDAO. Prior, he co-founded a recruiting company in China and studied biochemistry at the University of Copenhagen.

Christensen became interested in stablecoins after discovering Bitcoin in 2011 and experiencing the Mt. Gox hack, which influenced his vision for creating a more stable financial solution through MakerDAO.

The other co-founder is Nikolai Mushegian, a well-respected figure in the crypto community known for his work in decentralized finance. He had a background in computer science and software engineering and contributed significantly to the project’s development until his passing in 2022.

Investors and Backers

MakerDAO has secured substantial investment from leading venture capital firms, including a16z and Polychain Capital. According to Crunchbase data, the protocol has secured nearly $80M in funding, with the latest round raised on December 1, 2021.

Raydium: Leading Decentralized Exchange on Solana

Quick summary:

• The largest decentralized exchange on Solana by total value locked
• It has integrated numerous features to make trading more smooth and faster in its platform


Raydium (RAY) is a prominent player in the decentralized exchange (DEX) space, often competing closely with Jupiter in terms of daily trading volume. It is recognized for its sleek, user-friendly interface, low transaction fees, and support for a wide range of cryptocurrencies.

The protocol has an user-friendly dashboard and allows anyone to create a liquidity pool for a token pair, promoting permissionless participation and enhancing liquidity within the eco.

A standout feature of Raydium is its integration with OpenBook’s central limit order book, allowing Raydium users and liquidity pools to access the broader liquidity and order flow of the entire OpenBook eco, and vice versa.

Founders

Raydium was founded by individuals who operate under pseudonyms. At the forefront is AlphaRay; heleads the protocol’s overall strategy, operations, product direction, and business development. He has a background in algorithmic trading in commodities, he transitioned to market-making and liquidity provision in the cryptocurrency space in 2017

Investors and Backers

While there is not any publicly available information about Raydium’s investors or backers, the protocol has made significant investments in the DeFi eco. Its most recent investment was on June 9, 2022, when Orderly Network raised $20M.

1inch: Veteran Ethereum DEX

Quick summary:

• One of the best DEX aggregators in the market, providing users with the prices for their trading orders.
• Has received nearly $190M in funding
• Backed by prominent investors, including Platinum Capital


1inch is a renowned DeFi protocol that acts as a DEX aggregator, helping users find the best prices and lowest fees for token swaps across different decentralized exchanges. It basically routes multiple liquidity sources, optimizing trades for efficient transaction ution.

At the heart of 1inch is its Aggregation Protocol, which enables cost-effective and secure swaps by pooling liquidity from multiple sources using Pathfinder, its algorithm that optimizes trading paths across different markets, considering gas fees for maximum efficiency.

Another element crucial for 1Inch functionality is the 1inch Liquidity Protocol, an advanced automated market maker (AMM) that enhances capital efficiency for liquidity providers while protecting users from front-running attacks. Users can earn annual percentage yields (APY) on staked assets and participate in liquidity mining programs to earn additional 1INCH tokens.

Founders

1inch was co-founded in May 2019 by Russian developers Serjez Kunz and Anton Bukov, both of whom have extensive experience in smart contract security and blockchain development. Kunz has around 13 years of experience in engineer and cybersecurity. Meanwhile, Bukov has been in software development since 2002.

Investors and Backers

1inch has secured over $189M in funding over six rounds, with the latest funding raised on June 1, 2022. Some of the protocol’s most prominent investors include Platinum Capital and Wave Digital Assets.

Aerodrome: Top Lending Protocol on Base

Quick summary:

• The leading liquidity marketplace on Base
• Backed by Coinbase Ventures


Aerodrome Finance is a DeFi protocol running as an automated market maker (AMM) and liquidity hub on the Base network, the Ethereum layer-2 built by Coinbase.

Officially launched on August 28, 2023, Aerodrome aims to facilitate efficient token swaps and attract liquidity within the Base eco, incorporating advanced features from Velodrome V2, another DEX built on top of Optimism.

As a trader, you can swap tokens with minimal slippage and pay low fees to AERO lockers. Liquidity providers deposit trading tokens and receive AERO emissions as rewards.

It should be noted that Aerodrome employs a multi-token in which AERO, an ERC-20 token, is used to pay fees, place trading orders, and interact with liquidity pools. Meanwhile, veAERO, an ERC-721, is a governance token obtained by locking AERO. This allows you to vote on emission distributions and receive trading fees and other incentives.

Founders

Alex Cutler is behind Aerodrome Finance. His background spans politics, technology, and consulting. Cutler is also a core team member at Velodrome Finance, a leading decentralized exchange on the Optimism network.

Investors and Backers

Aerodrome’s financing amount or latest valuation estimates have not been disclosed to the public. What it’s known is that Coinbase Venture made an undisclosed, strategic investment in Aerodrome’s native currency, AERO.

Just Lend: Biggest Lending Protocol on TRON

Quick summary:

• The most popular lending protocol on TRON
• Founded and backed by Justin Sun


JustLend is a DeFi protocol on the TRON blockchain, facilitating the lending and borrowing of digital assets without traditional financial intermediaries. It was created by Justin Sun to create pools based on the supply and demand for assets like TRX and TRC20 coins.

Users can lend cryptocurrencies to earn interest or borrow assets by providing collateral. Interest rates are algorithmically determined based on supply and demand for TRON-based assets. However, borrowers must provide collateral exceeding the loan amount to mitigate default risks. In other words, all loans must be over-collateralized.

Just Lend is part of the broader JUST eco, which includes JustSwap, JustLink, and JustStable.

Founders

Just Lend was founded and is backed by Justin Sun, the creator of the TRON network.

Investors and Backers

There is little information regarding Just Lend’s investors, except for a small investment of £100,000 from multi-millionaire Steven Barlett.

Honorable Mentions

Below are some honorable mentions from other popular blockchain protocols.

Indigo Protocol


Indigo Protocol is a DeFi platform on the Cardano blockchain, enabling users to create and trade synthetic assets (iAssets). These synthetic assets provide exposure to real-world assets without requiring direct ownership, enhancing flexibility and accessibility in the DeFi space.

Indigo allows users to mint synthetic assets using smart contracts. These iAssets can be traded on various Automated Market Makers (AMMs) and used for yield farming.

The protocol features an Autonomous Oracle that updates the prices of real-world assets, ensuring that the synthetic versions remain aligned with their real counterparts.

Founders

Eric Coley and Dewayne Cameron are the founders of Indigo Protocol. They launched the platform in November 2022, reaching an all-time high of $125M in total value locked in March 2024. Coley is a blockchain and crypto entrepreneur with over 15 years of experience in the tech industry.

Cameron is Indigo’s CIO. He holds a Master’s in Finance from Durham University Business School.

Investors and Backers

There is no publicly available information regarding Indigo’s backers. However, Cardano’s founder, Charles Hoskinson, has recognized it as one of the fastest-growing protocols on the Cardano network.

Benqi


BENQI is a decentralized finance (DeFi) and Web3 protocol that offers various financial services, including lending, borrowing, and liquid staking.

The protocol provides a user-friendly and permissionless platform for various financial services, including lending, borrowing, and liquid staking.

As such, BENQI consists of three main components:

• BENQI Markets: Users can lend, borrow, and earn interest on digital assets. This component offers a shared liquidity market where users can supply and withdraw liquidity, use their supplied assets as collateral, and view real-time interest rates based on market dynamics.
• BENQI Liquid Staking: This service tokenizes staked AVAX, enabling users to use, swap, or collateralize the yield-bearing asset within other DeFi applications. It adds utility to staked assets by allowing the transfer of locked-up capital.
• Ignite: Designed to bootstrap Avalanche validators and Subnets, Ignite makes it easier for institutions, individual developers, and Web3 natives to launch validators and blockchains with minimal capital.

Founders

Dan Mgbor is the founder of BENQI. He has a background in distributed ledger technologies and decentralized applications, managing projects and providing technology consulting at organizations such as Plan International UK, DXC Technology, and the Children’s Hospital of Wisconsin.

He holds a Master’s degree from the University of Southampton and a Bachelor’s from the University of Nottingham.

Investors and Backers

BENQI raised $6M in one private equity round in April 2021. Some of its investors include Arrington XRP Capital, Morningstar Ventures, Rarestone Capital, and The Spartan Group.

Is DeFi Safe?

DeFi is largely an unregulated industry. Let’s break down some of the key risks you should be aware of:

• Smart Contract Vulnerabilities: Smart contracts are the backbone of DeFi, but if they’re not coded correctly, they can have weaknesses. Hackers can exploit these flaws to steal funds. To reduce this risk, many DeFi projects hire professional auditors to thoroughly review and test their code before making it public.
• Flash Loan Attacks: Flash loans must be repaid within the same transaction. They can be used for legitimate purposes but also for scams; for instance, a malicious actor can manipulate token prices and drain liquidity pools, affecting those who provide liquidity.
• Reentrancy Attacks: This type of attack happens when an attacker repeatedly calls a function in a contract before the initial ution is complete, draining funds in the process. It’s a common vulnerability that needs to be carefully guarded against.
• Rug Pulls: This scam occurs when developers of a new token suddenly withdraw all funds from the liquidity pool, leaving investors with worthless tokens. It’s particularly common in DeFi because creating and promoting new tokens is relatively easy.
• Regulatory Uncertainty: The legal landscape for DeFi is still developing. Regulatory actions, like the SEC’s case against LBRY, can significantly impact DeFi projects and their users.
• User Error: Many DeFi losses happen because users don’t fully understand how the s work. Education and caution are essential for anyone looking to participate in DeFi.

Is DeFi Suitable for Beginners?

DeFi emerged as the counterpart of traditional finance (which in the crypto industry is referred to as TradFi), building and innovating upon traditional financial mechanisms and services. That said, DeFi is not quite beginner-friendly.

In fact, DeFi is equally or more complicated than TradFi as you add the complexity of smart contracts, setting up and connecting cryptocurrency wallets, understanding blockchain technology, and more.

Despite being a multi-billion dollar industry, it’s a nascent, unregulated sector with many things to improve. There are risks of smart contract vulnerabilities, faulty programs, and hacks and phishing scams are rampant.

What Problems Does DeFi Solve?

Despite these risks, DeFi also offers significant potential benefits:

• Accessibility: DeFi platforms are open to anyone with an internet connection, making financial services available globally without geographic restrictions.
• Eliminating Intermediaries: By facilitating direct peer-to-peer transactions, DeFi removes the need for intermediaries like banks, potentially reducing costs and increasing efficiency.
• Transparency: DeFi transactions are recorded on public blockchains, providing a high level of transparency and accountability compared to traditional finance, which can often be opaque.
• Financial Freedom: Users have greater control over their assets, allowing them to negotiate lending and borrowing terms directly without relying on centralized institutions.
• Innovation in Financial Products: DeFi enables the creation of new financial instruments and services, such as flash loans and yield farming, which aren’t possible in traditional finance.
• Efficiency: DeFi transactions can be faster and more cost-effective than traditional financial services, especially for cross-border transactions.
• Interoperability: Many DeFi protocols are designed to work together, creating a more integrated and flexible financial eco.

Does Bitcoin Have DeFi?

Bitcoin did not inherently have a DeFi eco, but integrating DeFi into Bitcoin was made possible through wrapped tokens such as Wrapped Bitcoin (wBTC).

Moreover, in recent years, Bitcoin layer-2s (L2) were designed and launched on top of the original Bitcoin blockchain to improve its scalability and throughput. These developments have incentivized the rise of different kinds of Bitcoin-native DeFi protocols, including platforms for lending, staking, and trading NFTs.

The rise of DeFi in Bitcoin is largely thanks to protocols like Ordinals, which enabled the creation of NFTs on the Bitcoin network by attaching data to individual satoshis. Similarly, the BRC-20 standard is an experiential fungible token designed for the BTC blockchain, built using the Ordinals protocol.

Closing Thoughts – The Best DeFi Projects

This article has covered some of the best DeFi projects in 2024. These projects come from different subsectors in DeFi, including RWAs, lending and borrowing, DEXs, and much more.

Further, we’re not sticking to Ethereum, as several dApps come from multiple blockchain networks, including Cardano, Avalanche, Solana, Base, and more.

COTI is one of the veteran projects in the cryptocurrency field, and we had the chance to speak to Shahaf Bar-Geffen, the chief utive officer.

The team is on the brink of major developments, with the current priority being on the V2 of the protocol, focusing on delivering a privacy-centric Ethereum layer-two solution.

With bold plans of launching its mainnet by the end of 2024, Bar-Geffen also speaks on the merits behind the decision to go down this path, the fundamental challenges that the industry is facing, and how COTI is planning to tackle them.

COTI’s Main Focus

In our most recent podcast episode, Shahf Bar-Geffen explained more about the recent progress of the project and also shed important clarification regarding its roadmap for the near future.

Starting off, he said that the current focus of the team is the launch of COTI V2 – a privacy-centric Ethereum layer-2 blockchain. But why privacy?

Bar-Geffen identifies the root of the ongoing challenges faced by blockchain-based technology, in general, but also for the Internet itself.

“The best outcome of the Internet, and again, this is not just for blockchain, and the communication networks will be a decentralized network that can keep secrets, that can keep your data private.

So, this is exactly what we are doing with COTI right now. We are doing that on top of an existing network, so we start very strong in terms of liquidity, and we are doing it in a very unique technology that no one has ever employed.”

And right here is where it’s critical to clarify some important points. In light of recent events in which institutions across the globe have been cracking down on anonymity-first solutions, we asked Bar-Geffen how COTI V2 is different.

He explained that the team is working on a feature known as “selective disclosure,” where the core principal is “confidentiality instead of anonymity.” Through that, users can decide whether they want to show their transaction details and to whom exactly. Opposing this to Monero, COTI’s CEO explained that the method is much different.

He explained that transactions can be confidential as long as users want them to be while still allowing regulators to audit them if there are doubts about their nature.

This is fundamentally different than entirely anonymous solutions where bad actors are able to transfer funds and conduct various illicit activities such as money laundering, he said.

What is the Tech Stack that Powers COTI V2?

COTI is the first blockchain-based project to integrate a technology called garbled circuits.

In essence, garbled circuits bring on-chain privacy with a computation speed up to 1,000 times faster than other encryption s, such as fully holomorphic encryption (FHE), for example.

Bar-Geffen explained that its original purpose and structure “wasn’t very useful to solve blockchain privacy because of performance issues.” But that all changed.

Along came a bunch of researchers from a company called Soda Labs, and we helped them fund practical research to how to actually employ this on blockchian. And they did it.

But that’s not all, Garbled Circuit technology can also handle transactions that affect a private state shared among multiple parties, potentially making it superior to ZK-based solutions.

According to a previous release:

It is also immune to single point of failure weaknesses that have been revealed in TEE solutions. The result is a privacy-protecting solution on-chain that is both scalable and more secure than alternative solutions.”


The Roadmap for the Following Months

Shahaf Bar-Geffen reminded that COTI introduced the concept for the V2 network earlier this year, followed by the garbled circuits on the blockchain.

He explained that the Developer Network also recently became operational and already has more than 400 smart contracts built on it. The network uses a technology called GC EVM (from Garbled Circuits), which is an expansion to EVMs, allowing developers to code in Solidity with a few new parameters

Essentially, developers are able to write smart contracts in Solidity but determine which data should be confidential

Moreover, COTI recently finished building the testnet, which should be deployed in the next few months and should pave the way for a mainnet launch later this year

“That should be quite stable and will lead us to mainnet in Q4 this year. So the idea is to have the mainnet, which is a privacy-centric Ethereum layer-2.”

Enabling easier KYC procedures, focusing on AI-related initiatives, and building DeFi solutions will be some of the other key things of focus in the following months for COTI, the added.

To learn more about what else COTI is working on, as well as the ABC growth fund, check out the podcast above.

Real-world assets (RWAs) are digital tokens representing physical or financial assets outside the blockchain, such as real estate, commodities, bonds, equities, artwork, and intellectual property.

To understand RWAs, you must first understand the concept of tokenization. In short, it is the process of bringing off-chain assets on-chain. It’s achieved by replacing sensitive, private data with a series of non-sensitive, randomly generated data, referred to as the token.

Tokenization is popular in data security and payment processors, not just blockchain ecos. It’s a process carried out usually with cryptography.

In the context of cryptocurrencies, this is essentially the creation of a token for a tangible or non-tangible asset (which may be traditionally illiquid), dividing (possibly) it into smaller, more accessible units on the blockchain.


Quick Navigation

• Types of RWA Crypto Protocols
• Top RWA Crypto Projects in 2024
  • Ondo Finance
  • Centrifuge
  • RealT Tokens
  • OpenEden
  • Maple RWA
  • stUSDT
  • Tangible
  • Mountain Protocol
  • Solv Protocol
  • SuperState
• Benefits of RWAs
• Risks and Legal Challenges for Real-World Asset Cryptos
• The Future of RWA Cryptos
• Closing Thoughts: The Best RWA Crypto Projects in 2024

Types of RWA Protocols

The integration of RWAs into decentralized finance (DeFi) platforms has created new possibilities for financial services.

RWAs can serve as collateral for loans, be included in index funds, or be managed through autonomous protocols, bridging the gap between traditional finance and the crypto world. This convergence has the potential to create a more inclusive and efficient financial , offering investment products similar to those found in traditional finance but with the added benefits of blockchain technology.

There are various types of Real-World Asset (RWA) protocols, each targeting different asset classes:

Public Credit/Equities

These protocols tokenize traditional financial assets like stocks and bonds. Examples include Ondo Finance and Backed Finance, which allow investments in tokenized US Treasuries and fixed-income products.

Real Estate

Platforms like Tangible enable real estate tokenization, allowing users to mint stablecoins backed by real estate and offering fractional property ownership through NFTs. This increases market access with lower capital requirements and enhanced liquidity.

Debt/Private Credit

These protocols tokenize loans and private credit. MakerDAO and Centrifuge are notable examples, with MakerDAO expanding into real-world lending and Centrifuge tokenizing various debt instruments.

Climate/Carbon Credits

These protocols tokenize carbon credits and other environmental assets, facilitating efficient trading and management of climate-related financial instruments as businesses and individuals seek to offset their carbon footprints.

Precious Metals and Commodities

The tokenization of commodities like gold, silver, and oil allows for fractional ownership and easier trading. Pax Gold is a notable protocol that tokenizes gold.

Emerging Markets

Accessing traditional loans is difficult in these countries because the financial infrastructure is often underdeveloped. However, several protocols, like Goldfinch, focus on providing access to emerging markets, which are often challenging to invest in through traditional means.

Oracle/data feeds

Protocols like Chainlink provide essential infrastructure for tokenizing and managing real-world assets on the blockchain by offering Oracle services that connect off-chain data to on-chain smart contracts.

Top RWA Protocols in 2024

The protocols below were chosen in no particular order rather than innovations, amount of TVL, popularity, and other social and financial metrics.

Let’s look at the best RWA protocols in the crypto industry without further ado.

Ondo Finance

Ondo Finance is the largest RWA protocol in 2024.


As such, Ondo Finance is a blockchain-based protocol that provides institutional-grade financial products and services. It focuses on tokenizing stable, yield-generating assets from traditional finance —such as treasury bonds— to offer individuals the reliability of conventional financial s mixed with blockchain accessibility.

The protocol has integrated its tokenized products into multiple blockchain networks, including Ethereum, Aptos, and Solana, to expand the accessibility and utility of RWAs.

Key Features

• Asset tokenization: Ondo offers products like OUSG, a tokenized version of a BlackRock short-term US Treasuries ETF, and OMMF, a tokenized BlackRock money market fund, providing on-chain exposure to traditional financial instruments.
• Yield-Bearing Stablecoin: USDY is Ondo’s yield-bearing alternative to traditional stablecoins, combining stability with the potential for earning yield.
• Risk-Isolated Vaults: Ondo introduces Vaults that isolate risks, allowing lenders to specify preferences for collateral, fund usage, and loan-to-value thresholds.
• Security: Ondo Finance has undergone security audits by reputable firms such as Peckshield and Quantstamp.
• Stakeholders: To support and govern its tokenized assets, the protocol runs through ONDO stakeholders and partners through its eco, including the Ondo Foundation and the Ondo DAO.
• KYC: Ondo Finance runs KYC (Know Your Customer) checks to verify identities, maintain transaction records, and report suspicious transactions.

Founders & Investors

Nathan Allman founded Ondo Finance in 2021. He’s the company’s CEO, has a background in traditional finance, and previously worked at Goldman Sachs.

According to Crunchbase, Ondo Finance has raised over $34M in over 3 rounds, with Wintermute, Founders Fund, and Pantera Capital being the leading and most frequent investors.

Centrifuge

Centrifuge is one of the largest RWA protocols. Its primary goal is to lower the cost of capital for small and mid-size enterprises (SMEs) while providing investors with a stable income source.


Centrifuge offers SMEs liquidity through blockchain technology by tokenizing real-world assets into collateral. These assets can be pretty much anything from the real world—bonds, invoices, real estate, revenues, and more.

Overall, Centrifuge seeks to create a trustless, transparent, and accessible financial by allowing borrowers and lenders to transact peer-to-peer with no intermediary fees or hidden costs.

Key Features

• Asset tokenization: Centrifuge allows businesses to tokenize tangible and intangible assets like invoices, real estate, and royalties, which can be used as collateral for financing on Centrifuge’s pools.
• Liquidity Pools: Centrifuge’s liquidity pools allow investors to provide liquidity to tokenized assets and earn yield. These pools are deployable on any EVM-compatible blockchain and have expanding testnets on layer-2 networks like Arbitrum and Base.
• Decentralized Governance: Centrifuge is supported by the Centrifuge DAO, an on-chain governance where all parties can issue/vote on proposals
• Regulatory Compliance: The platform uses KYC, sanctions screenings, accredited investor checks, and robust technical audits.
• Integration with DeFi Protocols: Centrifuge collaborates with leading DeFi protocols, such as MakerDAO, to enhance collateral transparency through projects like “Proof of Portfolio,” enabling independent verification of Centrifuge portfolios.
• Yield Generation: Centrifuge provides access to diversified and stable yields backed by real-world assets, including financing options for invoices, real estate, and revenue-based financing.
• CFG Token: Centrifuge’s native token, CFG, is used for governance and incentivizing adoption. The total supply of CFG tokens is 425 million, with allocations for the team, early-stage investors, and eco growth.

Founders & Investors

Centrifuge was co-founded by Lucas Vogelsang, who serves as the CEO. Vogelsang has been instrumental in driving the vision of integrating real-world assets into the DeFi eco.

According to Crunchbase, Centrifuge has raised over $30M in a Series A funding round led by VCs and angel investors Wintermute and Stefan George, the founder of the Gnosis blockchain.

Centrifuge has partnered with some of the industry’s leading crypto projects, including a $220M deal with MakerDAO to bring RWAs on-chain through Centrifuge’s network.

RealT Tokens

RealT is one of the top RWA protocols in the industry. It’s a tokenization platform focusing on fractional real estate investment. The network allows investors globally to buy into the US real estate market through fully compliant, fractional, tokenized ownership.


This approach democratizes access to real estate investments, traditionally a high-barrier market, by enabling fractional ownership and providing blockchain-secured passive income.

Key Features

• Fractional Ownership: RealT enables investors to purchase fractional shares of real estate properties, allowing individuals to invest in high-value assets with relatively small amounts of capital.
• Blockchain Integration: The platform uses blockchain technology to ensure transparency, security, and transaction efficiency. This integration also allows for seamless ownership rights and income distribution management.
• DeFi Integration: RealT’s RMM (RealT Mortgage Market) platform allows users to leverage their tokenized real estate assets within the decentralized finance (DeFi) eco, enhancing liquidity and providing additional financial opportunities.
• Walletless Feature: RealT has introduced a “walletless” feature, simplifying the user experience by allowing investors to participate without needing a traditional cryptocurrency wallet.

Founders & Investors

RealT was founded by brothers Remy and Jean-Marc Jacobson. Both founders have extensive backgrounds in real estate and blockchain technology. Notably, Remy founded Liquid Bits, one of the first commercial Bitcoin mines.

Further, RealT’s specific investors and the amount raised by the protocol are private. However, the platform has formed strategic partnerships to bolster its market position. For instance, RealT has collaborated with WiSEED, a pioneer in crowdfunding in France, and Twenty First Capital, a major player in real estate fund management, to create a consortium and lead the real estate tokenization sector in Europe.

OpenEden

OpenEden is an innovative Real World Asset (RWA) protocol that uses blockchain technology to expose investors to US treasury bills.


Launched in late 2022, its primary product is the TBILL Vault, which allows users to mint TBILL tokens, representing direct ownership of short-dated US treasury bills.

The assets backing TBILL tokens are invested in Reverse Repurchase Agreements, also known as reverse repos, which are collateralized by US Treasuries. Network participants minting these tokens undergo stringent KYC and AML screening processes to ensure individual compliance.

Key Features

• Direct T-Bills Exposure: TBILL tokens are backed 1:1 by U.S. Treasury Bills held in segregated accounts by licensed custodians.
• Instant Settlement: The protocol offers 24/7 instant minting and redemption of TBILL tokens on-chain, providing superior liquidity compared to traditional finance.
• Regulatory Compliance: OpenEden operates under a compliance-first approach. The issuer of TBILL tokens is a professional fund regulated by the British Virgin Islands Financial Services Commission.
• Transparency: The protocol provides daily portfolio reports and monthly attestations and has undergone smart contract audits to ensure security and transparency.

Founders & Investors

OpenEden was founded in December 2021 by Jeremy Ng and Eugene Ng, both former utives from Gemini’s APAC unit.

While there is no information about VCs or angel investors, the project received a $5M investment from UXD Protocol.

The protocol obtained regulatory approval to operate as a professional fund regulated by the BVI Financial Services Commission, a notable achievement. Another milestone for the protocol is reaching over $50M in tokenized US treasury bills.

Maple RWA

Maple Finance is a decentralized finance (DeFi) protocol focused on providing high-quality lending opportunities to institutional and individual accredited investors.


The protocol specializes in overcollateralized lending, which is secured by digital assets. This includes thorough borrower due diligence and on-chain transparency, offering superior risk-adjusted yields and enhancing capital efficiency for digital asset portfolios.

Key Features

• Direct Lending Opportunities: Maple Finance offers lending directly to top-tier institutional borrowers in the digital asset eco, ensuring premium yields and strong balance sheet backing.
• On-Chain Transparency: The protocol leverages blockchain technology for radical transparency in risk management and monitoring.
• Competitive Yields: Maple Finance provides attractive annual percentage yields (APY) across various lending opportunities, such as USDC lending, with a target APY of around 10-11%.
• Cash Management: The platform offers on-chain cash management solutions, allowing users to access US Treasury yields with daily liquidity and a conservative risk profile.

Founders & Investors

Maple Finance was co-founded by Sid Powell and Joe Flanagan in 2021. Both founders have a background in traditional finance and have leveraged their expertise to bridge the gap between traditional finance and DeFi.

The protocol has received around $7.7M in funding over 3 rounds, with the latest funding raised on Aug 22, 0223. Some of its most notable backers are Framework Ventures, BlackTower Capital, and Circle Ventures.

stUSDT

stUSDT is the first RWA protocol for the TRON eco. It aims to tokenize U.S. Treasury Bills and other real-world assets and bring them into the blockchain space.


Operating through the decentralized platform JustLend, stUSDT allows users to earn passive income from tokenized real-world assets,

Key Features

• Tokenization of Real-World Assets: stUSDT tokens represent ownership of U.S. Treasury Bills and other real-world assets, providing a secure investment opportunity.
• Passive Income: Holders of stUSDT tokens can earn passive income, benefiting from the stability and returns of real-world assets.
• Instant Settlement and Redemption: The protocol ensures high liquidity with 24/7 instant minting and redemption of stUSDT tokens.
• Built on TRON: stUSDT leverages the TRON blockchain technology to provide an investment platform for its users.

Founders & Investors

stUSDT is managed by JustLend DAO. The protocol is heavily supported by Justin Sun, the founder of TRON, who envisions stUSDT as the Web3 equivalent of Alipay’s Yu’e Bao, aiming to integrate traditional finance with blockchain technology and broaden the accessibility of financial products.

stUSDT has yet to raise capital from investors formally. The protocol operates under the governance of JustLend DAO, and was once one of the biggest RWA protocols with over $2B in TVL in December 2023.

Tangible

Tangible is a Real World Asset (RWA) protocol that focuses on tokenizing physical assets like real estate, converting them into digital tokens known as Tangible NFTs (TNFTs).


These TNFTs can be redeemed for the physical products at any time, making real-world assets more accessible and liquid.

The protocol also offers a stablecoin called Real USD (USDR), which is backed by income-generating tokenized real estate, providing holders with a daily rebasing yield projected to be between 10-15% APY.

Key Features

• Tokenized Real Estate: Tangible converts real estate properties into TNFTs, allowing for fractional ownership and greater accessibility.
• Stablecoin (USDR): USDR is backed by tokenized real estate, with rental income distributed to holders through a daily rebase mechanism.
• Decentralized Marketplace: Tangible provides a decentralized platform where users can buy, sell, and trade tokenized assets.
• Yield Generation: The platform offers consistent, reliable yields from low-volatility off-chain sources, distributed to token holders.

Founders & Investors

Tangible was founded by Jag Singh, a UK-based tech and finance entrepreneur who previously founded Vid Inc. and Singh Capital. The amount of funds raised and potential investors remain private information.

Notably, the protocol has tokenized over 218 properties, producing a TVL of over $40M

Mountain Protocol

Mountain Protocol is a decentralized finance (DeFi) platform that focuses on providing a yield-bearing stablecoin called USDM, which is backed by U.S. Treasury Bills.


Launched in September 2023, USDM has quickly become one of the largest Treasury-backed stablecoins, offering a stable and regulated investment option in the DeFi space.

Key Features

• Yield Generation: USDM provides a 5% annual percentage yield (APY) by investing in short-term U.S. Treasury securities. This yield is distributed to USDM holders daily.
• Security and Transparency: The protocol emphasizes security and compliance, with USDM reserves held by reputable financial institutions and audited by OpenZeppelin. It is regulated by the Bermuda Monetary Authority (BMA).
• Composability with DeFi: USDM is an ERC-20 token compatible with various decentralized applications, smart contracts, and protocols within the Ethereum eco, facilitating seamless financial interactions.
• Instant Liquidity: USDM can be quickly exchanged for other assets on compatible decentralized exchanges, ensuring high liquidity without significant delays or price slippage.

Founders & Investors

Mountain Protocol was co-founded by Martín Carrica and Matías Caricato. The leadership team also includes board members such as Nic Carter and Firas Habach, who bring extensive experience in finance and blockchain technology.

Nic Carter from Castle Island Ventures led the company’s fundraiser campaign, which included participation from Coinbase Ventures, New Form Capital, and others. In total, the protocol raised over $8M, according to Crunchbase.

Solv Protocol

Solv is a decentralized finance (DeFi) platform that focuses on tokenizing and aggregating high-quality yields from various sources.


This particular protocol aims to revolutionize yield aggregation and liquidity management through its innovative financial NFTs, known as vouchers. These vouchers represent financial ownership and allow for flexible and efficient expression of complex financial contracts on the blockchain.

Key Features

• Liquid Yield Tokens: Solv offers “Liquid Yield Tokens” like SolvBTC, which allow users to participate in Bitcoin-powered DeFi across multiple chains. These tokens are designed to unlock many earning opportunities in the blockchain eco.
• Financial NFTs (Vouchers): Solv’s vouchers are semi-fungible tokens (SFTs) based on the ERC-3525 standard. They enable a new class of digital assets that combine the unique attributes of NFTs with the fungibility of traditional tokens. These vouchers can represent a variety of financial instruments, such as bonds, convertible notes, and vesting tokens.
• Unified Liquidity Gateway: Solv is a gateway to liquidity for major digital assets, reducing barriers and costs for users seeking high-quality investment opportunities.
• Composability with DeFi Products: Solv tokens can interact seamlessly with various decentralized applications, smart contracts, and protocols within the Ethereum eco

Founders & Investors

Solv was founded in 2020 by Ryan Chow and Will Wang.

Solv has raised over $14M from over 20 investors, some of them located in Singapore. The protocol’s backers include Laser Digital, UOB Venture Management, Mirana Ventures, Emirates Consortium, Matrix Partners, and more.

SuperState

SuperState is a blockchain-based protocol focused on the tokenization of U.S. Treasury securities.


It aims to modernize traditional financial products by bringing them onto the blockchain. The protocol uses Ethereum as a secondary record-keeping tool to create and manage financial products.

The protocol has amassed over $130 million in assets under management (AUM) and provides weekly yields of over 5%.

Key Features

• Tokenized Treasury Funds: SuperState’s primary product is the tokenized U.S. Treasury fund, which allows institutional investors to hold and trade shares of government bond funds directly in their blockchain wallets. This fund is designed to offer a yield comparable to short-term U.S. Treasury Bills.
• Regulatory Compliance: The protocol is registered with the U.S. Securities and Exchange Commission (SEC) and operates under the Investment Advisers Act of 1940, ensuring its products meet rigorous regulatory standards.
• Integration with DeFi: By holding tokenized Treasury funds in crypto wallets, investors can manage these alongside other crypto assets, leveraging the existing infrastructure of decentralized finance (DeFi).

Founders & Investors

SuperState was created by Robert Leshner, a tech entrepreneur and investor who co-founded Compound Labs, a decentralized network responsible for the first algorithmic money markets for DeFi.

Further, SuperState has raised over $18M in funding over two rounds, with the latest funding coming from a Series A round on Nov. 15, 2023. The most recent investors are Nascent, The Department of XYZ, and Distributed Global.

Benefits of RWAs

Tokenization offers solutions to various operational inefficiencies across industries. The main benefits include:

• Higher accessibility and liquidity
• Reduced transaction costs with fewer intermediaries
• Increased transparency
• Programmability for new investment features and operational options

Tokenization is particularly beneficial for large asset classes like treasuries and real estate. Real estate, often considered highly illiquid due to limited affordability, regulatory hurdles, and lack of information, can benefit significantly from tokenization. Here’s how:

• Elimination of intermediaries, allowing 24/7 asset transfers
• Complete transparency with all information stored on the blockchain
• Higher accessibility through better frameworks for fractional ownership

Several crypto protocols, such as Chainlink, collaborate with global financial companies to integrate tangible and intangible real-world assets into the blockchain.

Risks and Legal Challenges for RWAs

Investment opportunities in RWAs depend on the tokenization and distribution of assets. Platforms leading the RWA narrative must provide infrastructure and compliance protocols due to varying laws across jurisdictions. This creates challenges and opportunities for a broader investor base.

However, the success of RWAs heavily depends on how well these protocols adapt to regulatory laws. Switzerland is one of the few countries with established crypto laws, highlighting the importance of infrastructure and compliance protocols for mass adoption.

Further, as RWAs gain traction, different types of protocols will play a significant hand in pushing the industry forward:

• Auditors will verify on-chain assets, ensuring trust.
• On-chain oracles like Chainlink have to feed off-chain data to protocols and entities.
• Compliance protocols like Tokeny provide legal guidance and infrastructure for seamless onboarding and asset management.

The Future of Real-World Assets

Industry reports indicate that the tokenization market could reach approximately $3.5 trillion in a worst-case prolonged bearish scenario and up to $9 trillion in a bull market, as per data from 21.co.

Additionally, Boston Consulting Group estimates that tokenizing illiquid assets could represent a $16 trillion business opportunity, accounting for 10% of global GDP.

Source: Boston Consulting Group## Closing Thoughts: The Best RWA Protocols in 2024

The integration of traditional assets into decentralized finance (DeFi) platforms has created new possibilities for financial services and increased access to individuals globally.

RWAs can serve as collateral for loans, be included in index funds, or be managed through autonomous protocols, bridging the gap between traditional finance and the crypto world. This convergence has the potential to create a more inclusive and efficient financial , offering investment products similar to those found in traditional finance but with the added benefits of blockchain technology.

In a candid conversation during EthCC, Greg Osuri, the founder of Akash Network, shares insights into his journey, Akash’s inception, and the future of decentralized cloud computing.

Osuri’s venture into the world of decentralized cloud computing began long before Akash Network.

Osuri, an experienced entrepreneur, first made waves with AngelHack, the largest hackathon-based accelerator globally.

“Before AngelHack, hackathons were a very underground concept, and we made them more mainstream,” he reflects.

Through AngelHack, he helped launch numerous companies, including Firebase, which was later acquired by Google.

In 2013, Osuri encountered a significant challenge in the tech eco: scaling deployments from small hackathon projects to robust, scalable solutions.

“At a hackathon, you build something in a couple of days and deploy it on Heroku, but scaling it down to Amazon is an incredible challenge that sets back companies by ages,” he explains. This led him to explore container technologies, eventually falling in love with Kubernetes, contributing extensively to its eco, and developing libraries widely used today.


Akash Network: The Non-Crypto Birth

Akash Network’s story began with the vision of an open-source, decentralized cloud.

“The cloud was getting increasingly closed, introducing closed databases and ecos that lock you into a single platform, which means high costs and limited flexibility,” Osuri explains.

This realization drove him to democratize cloud computing, leading to the creation of Overclock Labs (the foundation behind Akash) in 2015.

Initially, Akash’s journey wasn’t directly tied to cryptocurrency. However, the team faced scalability challenges with centralized structures, ing a pivot towards peer-to-peer infrastructure. “We discovered that the challenge of peer-to-peer is bootstrapping credentials,” Osuri recalls.

In 2016, they found Ethereum promising but faced issues with its scalability during high-demand periods like the CryptoKitties crash. This led Akash to develop its own Layer-1 blockchain using Cosmos SDK. “We chose proof of stake over proof of work, and that’s how we ended up with a token,” Osuri recounts.

Impossible to Get a GPU Right Now

Despite being a Layer-1 blockchain, Osuri clarifies that Akash is fundamentally different.

“Akash is not your typical Layer-1; it’s an app chain,” he asserts. Unlike traditional Layer-1s that offer smart contracts and shared platforms, Akash focuses on decentralized cloud computing without smart contracts. “We don’t have smart contracts. We don’t have any of the typical Layer-1s. We’re not a shared platform,” he says.

One of the primary features of Akash is its ability to provide on-demand, high-density GPUs at a fraction of the cost. Osuri emphasizes,

“It takes two years to get a GPU from Nvidia directly. If you’re an AI engineer, it’s impossible to get a GPU right now in the market.”

Akash addresses this gap by offering GPUs on demand, with a user-friendly interface allowing deployment within 90 seconds. “We’re talking about 80 cents for an A100, $2.50 for an H100,” he notes.

AI and Crypto: a Unique Synergy

As AI becomes increasingly central to modern life, Osuri sees a symbiotic relationship between AI and crypto.

“AI is going to be the center of our lives, like it or not. The traditional structures of Amazon and Google have failed AI,” he asserts.

According to Osuri, Akash leverages the surplus GPUs in the market, opening a secondary market that traditional providers can’t match. “When Apple turns on the GPT integration, where are we going with this?” he questions.

Osuri is optimistic about the future, noting that “Decentralized compute networks will only grow bigger and bigger.”

The diverse and distributed nature of AI training chips and the verification capabilities of crypto create a unique synergy, making Akash a pivotal player in this evolving landscape. “The need for AI is so great and the supply chain is not improving,” he says, predicting a significant role for decentralized solutions.

The Challenges in Onboarding Non-crypto Users

Despite its technological advancements, Akash faces challenges in onboarding non-crypto users. The requirement for a wallet and AKT tokens can be a hurdle. “Installing a wallet involves backing up your keys, and then going to Coinbase for KYC and it takes time,” Osuri explains.

To streamline this process, Akash is exploring account abstraction and trial wallets to reduce the onboarding time to just 60 seconds.

“We think it’s going to come down to 60 seconds to Akash,” he says.

Akash’s user base is increasingly non-crypto, with platforms like Brev.dev and universities like the University of Texas leveraging its capabilities. Notable users include Erik Voorhees’s Venice.ai, which utilizes Akash for its privacy-optimized chatbot. “Venice is censorship-resistant and privacy-optimized, offering features that traditional platforms can’t,” Osuri highlights.

Looking at Akash’s short—and long-term future goals, Osuri’s vision extends beyond the current landscape with a focus on scalability and accessibility. As AI and crypto continue to converge, Akash is poised to play a crucial role in this transformative journey, providing decentralized cloud solutions that are both innovative and essential for the future. “We are starting a trend; it’s very early and very exciting,” Osuri concludes.

The Securities and Exchange Commission (SEC) finally approved spot ether ETFs, which started trading on July 23rd, 2024. This was a significant milestone for the cryptocurrency industry that builds upon the earlier success of spot bitcoin ETFs. The move has spurred increased interest and optimism in the market, reflecting the broader acceptance and integration of digital assets within the financial .

However, Ethereum ETFs have also been a subject of debate regarding the long-term impact they might have on the Ethereum eco —especially since ETFs were obliged to exclude staking, a fundamental part of the Ethereum blockchain.

This guide will detail all you need to know about spot Ethereum ETFs, including how they work, the challenges ETFs (and the Ethereum network) could face in the future, the complex regulatory landscape in the US, and, of course, a detailed list of all nine ETFs approved in July 2024.


Quick Navigation

• What is Spot Etrehereum ETF?
• In-Kind/In-Cash Redemption for Spot Ethereum ETFs
  • In-Kind Redemption Model
  • In-Cash Redemption Model
• How Different are Ethereum ETFs to Bitcoin ETFs?
• Best Ethereum Spot ETFs
  • BlackRock’s iShares Ethereum Trust (ETHA)
  • Grayscale Ethereum Trust (ETHE)
  • Grayscale Ethereum Mini Trust (ETH)
  • Franklin Ethereum ETF (EZET)
  • VanEck Ethereum ETF (ETHV)
  • Bitwise Ethereum ETF (ETHW)
  • 21Shares Core Ethereum ETF (CETH)
  • Invesco Galaxy Ethereum ETF (QETH)
  • Fidelity Ethereum Fund (FETH)
• How to Invest in Spot Ethereum ETFs: What You Need to Know
• Alternatives to Spot Ethereum ETFs
• Benefits of Spot Ethereum ETFs
• Closing Thoughts – The Best Ethereum ETFs in 2024

What is a Spot Ethereum ETF?

A spot Ethereum exchange-traded fund (ETF) is a financial product that tracks the price of Ethereum (ETH), enabling investors to buy and sell shares on traditional stock exchanges. This provides a regulated and straightforward way to gain exposure to ETH’s performance without the hassle of managing digital assets directly.

By operating within traditional financial markets, these ETFs offer a secure and compliant investment pathway, enhancing investor confidence and adhering to established financial regulations.

Given Ethereum’s complex eco, one of the main challenges that slowed down the approval of spot Ethereum ETFs was establishing agreed-upon buying and selling procedures. That is, choosing between in-kind and in-cash redemption models.

In-Kind/In-Cash Redemption for Spot Ethereum ETFs

Like spot Bitcoin ETFs, the SEC requested issuers that all spot Ethereum ETFs use an in-cash redemption model instead of in-kind, aligning with the agency’s preference for enhanced regulatory oversight and market integrity in crypto-based investment vehicles.

While we covered how in-kind vs. in-cash models work in our guide on the Best Bitcoin ETFs in 2024: Fees, Alternatives, and How to Buy, let’s do a quick recap on how these models work.

In-Kind Redemption Model

The in-kind redemption model helps ETFs maintain tax efficiency by avoiding the sale of appreciated securities to meet redemptions. Two crucial points for this particular model include:

• The Exchange Process:

Authorized participants (APs) exchange ETF shares for a basket of underlying securities held by the ETF rather than for cash. Only APs —typically institutional investors— can redeem the shares directly for a proportional basket of the underlying securities/assets.

• Better Tax Efficiency:

In-kind redemptions do not trigger a taxable event for the ETF in question because no securities are sold to generate cash, and capital gains taxes are deferred for non-redeeming shareholders, making this model more tax-efficient than mutual funds. Institutions benefit from reduced trading and transaction costs.

In-Cash Redemption Model

The in-cash redemption model involves the APs receiving cash instead of a basket of securities when redeeming ETF shares. This model is relatively standard for ETFs holding less liquid assets or actively managed ETFs that prefer to keep their strategies confidential. In a nutshell:

• Exchange Process:

APs deposit cash into the ETF, which is then used to purchase the underlying assets— or the ETF sells the underlying assets to generate the needed cash. In short, the APs exchange ETF shares for cash equivalent to the redeemed shares’ net asset value (NAV).

• Flexibility and Costs.

In-cash simplifies the redemption process by dealing in cash rather than securities, but they are less tax-efficient because selling securities to generate cash can trigger taxable events, leading to capital gains distributions that affect all shareholders. When selling the underlying assets, higher transaction costs are incurred due to bid/ask spreads and broker commissions.

Similarly to spot Bitcoin ETFs, the SEC mandated that redemptions must be in cash rather than in-kind for all the nine approved Ethereum ETFs.

Here’s a table showcasing the above:


How Different are Ethereum ETFs to Bitcoin ETFs?

While they work similarly using cash for in-kind redemptions, the nature of both cryptocurrencies differs mainly due to each coin’s consensus algorithm.

Ethereum Staking, the SEC’s Biggest Problem

After Ethereum ditched the Proof-of-Work (PoW) model in 2022 and adopted the Proof-of-Stake (PoS) model instead, many questions arose regarding its viability as a traditional investment vehicle for institutional investors.

Like miners are crucial for the Bitcoin network, staking is crucial for Ethereum’s consensus mechanism (it wouldn’t be called proof of stake otherwise). Staking allows holders to lock up their ETH to validate transactions and secure the network in exchange for rewards.

Staking has become one of the most popular yield-accruing mechanisms in the crypto market because it can significantly enhance crypto holders’ return on investment (ROI). Staking rewards typically range from 1% to 4% annually, while some pools can generate over 10% in APR. This is akin to interest on a savings account—but on steroids.

However, the SEC is not quite fond of this idea and has expressed that staking is similar to an investment contract.

The SEC’s Stance on Staking in ETFs

The SEC has mandated that spot Ethereum ETFs exclude staking features to gain regulatory approval. The agency’s decision is based on its concern that staking could be considered an offering of unregistered securities.

The Commission’s interpretation is grounded in the Howey Test, which assesses whether an asset qualifies as an investment contract. According to the agency’s logic, staking involves investing money with an expectation of profits derived from the efforts of others, potentially classifying it as a security.

So, to align with the SEC’s regulatory expectations and avoid legal challenges, issuers of spot Ethereum ETFs, such as BlackRock, Grayscale, and Bitwise, amended their ETF filings to exclude staking provisions. This strategic adjustment was necessary to secure SEC approval.

This leads to certain consequences:

• Reduced Attractiveness:

Without staking, spot Ethereum ETFs may be less attractive to investors compared to direct ETH holdings, which allow for staking and the associated rewards. This could lead to a lower overall return on investment for ETF holders.

• Regulatory Compliance:

Excluding staking ensures that the ETFs comply with SEC regulations, avoids potential legal issues, and facilitates smoother approval processes.

• Market Dynamics:

It’s probably the most important factor here.

The absence of staking in Ethereum ETFs can affect Ethereum’s eco and the market dynamics of ETH, including the total amount of ETH staked and the overall network security and decentralization. This refers to the fact that no one associated with the Ethereum ETFs, not even custodians, can perform ETH staking. You can find this information on Franklin Templeton’s S-1 filing:


Therefore, what happens to all of the ETH held by custodians? This is a question that Swissblock asked in its blog post called ETH ETFs, a “decaf” version of Ethereum, stating that without staking, investors are missing a fundamental part of what makes Ethereum unique:

“[Ether] powers the machinery of Web3 and is likely to make applications possible that will drive decentralized value in everyone’s life in ways we cannot even grasp yet. An ETF is just a speculative shadow you can use to bet on that future while missing out on real ownership and staking rewards for the sake of comfort.”

While the current regulatory environment requires the exclusion of staking from Ethereum ETFs, there is ongoing debate and potential for future changes. Market observers and analysts hope that as regulatory frameworks evolve, staking might eventually be included in these financial products, enhancing their attractiveness and aligning more closely with Ethereum’s unique features. That remains to be seen.

Best Ethereum Spot ETFs

Now that we have all the essential information, let’s review the best Ethereum ETFs.

Keep in mind that the funds’ facts and key information are subject to change, and certain information is not publicly available or differs per fund. For example, certain funds prefer to display Net Asset Value (BlackRock), while others, like Grayscale, use Asset Under Management (AUM).

BlackRock’s iShares Ethereum Trust (ETHA)


The BlackRock iShares Ethereum Trust (ETHA) is the largest Ethereum ETF managed by the largest asset manager in history, BlackRock.

Like the other ETFs, ETHA is designed to provide investors with exposure to the spot price of ETH. This allows traditional investors to benefit from ETH’s price movements without having to buy or directly own the cryptocurrency.

Shares of ETHA are traded on Nasdad with a fee of 0.12% until the waiver period ends or the fund reaches $2.5B, at which point the fee will be incremented to 0.25%.

Fund Facts

Overview and fund facts:

• Fund inception: July 23, 2024
• Fee (with waiver): 0.25% (0.12%)
• Waiver period/limits: 12 months or $2.5 billion
• Exchange: Nasdaq
• Type: New
• Custodian: Coinbase

Grayscale Ethereum Trust (ETHE)


Grayscale Ethereum Trust (ETHE) is the second-largest Ethereum ETF by volume and is managed by Grayscale Investments.

The product provides investors with exposure to ETH without purchasing the asset directly, simplifying the process of investing in the Ethereum eco. It was first launched as a private placement in 2017 and began trading publicly on OTC Markets in mid-2019. Grayscale converted the trust into an ETF and updated it to NYSE Arca in 2024.

ETHE charges an annual management fee of 2.5%, which is considerably high, but the fee covers the costs associated with the administration and safekeeping of its ETH balance.

Fund Facts

Overview and fund facts:

• Fund inception: December 14, 2017
• Fee (with waiver): 2.50%
• Waiver period: None
• Exchange: NYSE Arca
• Custodian: Coinbase
• Type: Conversion

Grayscale Ethereum Mini Trust (ETH)


The Grayscale Ethereum Mini Trust (ETH) is a new financial product launched by Grayscale Investments, offering significantly lower fees than Grayscale’s ETHE.

The fund began trading on NYSE Arca on July 23, 2024. Like the other ETFs. It is designed to provide investors with exposure to ETH (the coin, not the fund). However, note that ETH is not a fund registered under the Investment Company Act of 1940. This means it is not subject to regulation under this act, unlike most mutual funds or ETFs.

Overall, the difference between ETH and ETHE is that ETH charges zero fees until it reaches $2B (or after six months of trading); then the fees will be incremented to 0.15%, which is relatively standard for ETFs.

Fund Facts

Overview and fund facts:

• Fund inception: July 18, 2024
• Fee (with waiver): 0.15% (0.00%)
• Waiver period/limits: 6 months or up to $2B
• Exchange: NYSE Arca
• Type: New
• Custodian: Coinbase

Franklin Ethereum ETF (EZET)


The Franklin Ethereum ETF (EZET) is a top Ethereum ETF that allows traditional investors to gain exposure to the spot price of ETH.

Like Grayscale’s Mini Trust, The ETF was launched with an initial fee of 0.00%, effective until January 31, 2025, or until the fund accumulates $10 billion in assets. After this period, the expense ratio will rise to 0.19%.

Fund Facts

Overview and fund facts:

• Fund inception: July 23, 2024
• Fee (with waiver): 0.19% (0.00%)
• Waiver period/limits: January 31, 2025, or $10B
• Exchange: Cboe BZX
• Type: New
• Custodian: Coinbase

VanEck Ethereum ETF (ETHV)


The VanEck Ethereum ETF (ETHV) provides investors with direct exposure to ETH, offering a straightforward way to gain exposure to the cryptocurrency’s performance.

ETHV is a part of VanEck’s offering of crypto-focused ETFs, which includes the VanEck Bitcoin Trust (HODL) and the VanEck Digital Transformation ETF (DAPP). As such, VanEck is recognized for pioneering direct digital asset exposure in the exchange-traded product market in the US. The fund will charge zero fees until it reaches 12 months (beginning from the first trading day) or reaches $1.5B.

Fund Facts

Overview and fund facts:

• Fund inception: June 25, 2024
• Fee (with waiver): 0.20% (0.00%)
• Waiver period/limits: 12 months or $1.5B
• Exchange: Cboe BZX
• Type: New
• Custodian: Gemini

Bitwise Ethereum ETF (ETHW)


The Bitwise Ethereum ETF (ETHW) trades on the New York Stock Exchange (NYSE) and provides a regulated and simple method for investors to gain exposure to ETH. The fund purchases ETH and stores the funds using the Bank of New York Mellon, one of the largest and most crypto-friendly banks in the US.

ETHW charges zero fees waived for the first six months or the initial $500 million in assets. Then, it will charge a management fee of 0.20%, which is also quite standard.

Note: Do not confuse Bitwise Ethereum Fund, a private fund for accredited investors, with Btiwise Ethereum ETF (ETHW), the actual spot exchange-traded fund for ETH.

Fund Facts

Overview and fund facts:

• Fund inception: July 22, 2024
• Fee (with waiver): 0.20% (0.00%)
• Waiver period/limits: 6 months or $500M
• Exchange: NYSE Arca
• Type: New
• Custodian: Bank of New York Mellon

21Shares Core Ethereum ETF (CETH)


The 21Shares Core Ethereum ETF (CETH) offers a streamlined and secure way to invest in Ethereum, eliminating the complexities of direct ownership. CETH buys ETH and holds the funds through Coinbase Custody.

CETH is part of the 21Shares crypto-focused ETF offering, including a Bitcoin ETF. 21Shares also has several exchange-traded products in the US and globally.

The fund started with a zero-fee approach similar to Grayscale’s Mini Trust, but the standard 0.21% fee will be applied after January 31, 2025, or for the first $500 million in assets.

Fund Facts

Overview and fund facts:

• Fund inception: July 22, 2024
• Fee (with waiver): 0.21% (0.00%)
• Waiver period/limits: 6 months or $500M
• Exchange: Cboe BZX
• Type: New
• Custodian: Coinbase

Invesco Galaxy Ethereum ETF (QETH)


The Invesco Galaxy Ethereum ETF (QETH) debuted on July 23, 2024, through a collaboration between Invesco Ltd. and Galaxy Asset Management, similar to what they did with their joint Bitcoin ETF.

The ETF invests directly in ETH and trades its shares on the Cboe BZX Exchange. Overall, QETH offers a straightforward and accessible way for a broad spectrum of investors to gain exposure to the spot price of ETH.

This is one of the funds with a flat fee of 0.25%; no waiver period/limits apply.

Fund Facts

Overview and fund facts:

• Fund inception: July 23, 2024.
• Fee (with waiver): 0.25%
• Waiver period/limits: None
• Exchange: Cboe BZX
• Type: New
• Custodian: Coinbase

Fidelity Ethereum Fund (FETH)


The Fidelity Ethereum Fund (FETH) provides fractional ownership of Ethereum through its fund structure, allowing investors to benefit from Ethereum’s price movements without directly handling the cryptocurrency. This ETF offers a regulated and convenient investment option for both individual and institutional investors.

The ETH is safeguarded by the company’s trusted custody arm, Fidelity Digital Assets, which has been regulated by the New York Department of Financial Services since 2019.

However, FETH is not registered under the Investment Company Act of 1940 nor regulated under the Commodity Exchange Act of 1936, meaning it lacks the investor protections typically associated with these regulations.

The fund charges no fees, waived until January 1, 2025. After this period, an expense ratio of 0.25% will be applied.

Fund Facts

Overview and fund facts:

• Fund inception: July 23, 2024
• Fee (with waiver): 0.25% (0.00%)
• Waiver period/limits: December 31, 2024
• Exchange: Cboe BZX
• Type: New
• Custodian: Fidelity Digital Assets

How to Invest in Spot Ethereum ETFs: What You Need to Know

First, you need to open a brokerage account and choose the ETFs you want to invest in. However, not all brokers offer ETF trading, and some might also have different deposit options.

Robinhood is one of the few brokers that offer ETF trading. Once your account is ready, deposit cash to start trading. The steps are pretty simple:

• Open an investment account.
• Fund the account with cash.
• Select the ETF you wish to purchase.
• ute the trade to buy the ETF’s shares.

While the idea/objective is pretty straightforward (i.e., get ETH exposure), there are a few key points to consider:

Expense Ratio

Compare the management fees of different ETFs. Many issuers are currently offering fee waivers for initial periods.

Assets Under Management (AUM)

Larger funds may offer better liquidity and lower tracking errors.

Issuer Reputation

Consider the track record and reputation of the ETF provider.

Trading Volume

Higher trading volumes generally indicate better liquidity and tighter bid-ask spreads.

Another thing to consider is the lack of staking rewards. Staking directly on Ethereum is a more complex procedure that requires high-security hygiene practices and a certain level of knowledge of Ethereum and how it works.

Finally, check if you wish to buy and hold or actively trade the shares. For active traders, liquidity and tight bid-ask spreads are more important due to frequent trading in and out of positions. Higher liquidity allows for easier entry and exit and lower trading costs.

Long-term investors should prioritize low-cost ETFs to maximize returns, paying close attention to expense ratios and potential fee waivers. Active traders should focus on ETFs with high liquidity and tight bid-ask spreads to reduce trading costs.

Similar to Bitcoin ETFs, Fidelity also allows you to trade ETFs using a broker account, and you can open an account using IRAs, HSAs, or a simple brokerage account.


Alternatives to Spot Ethereum ETFs

If you’re looking for alternatives to spot Ethereum ETFs, several options provide exposure to Ethereum.

Here are some primary alternatives, each with unique characteristics and potential benefits.

Direct Cryptocurrency Investment

If you’re comfortable with the risks and complexities, you can just purchase Ethereum through a cryptocurrency exchange or perform a swap on a decentralized exchange by connecting your DeFi wallet. You can then stake ETH to generate yield.

Futures-Based Ethereum ETFs

Futures-based Ethereum ETFs are currently available in the U.S. They invest in Ethereum futures contracts rather than holding the cryptocurrency directly. Notable futures-based Ethereum ETFs include:

• ProShares Ether Strategy ETF (EETH): This ETF invests in Ethereum futures contracts, providing indirect exposure to Ethereum.
• VanEck Ethereum Strategy ETF (EFUT): Another option that focuses on Ethereum futures, offering a similar indirect investment approach.
• Bitwise Ethereum Strategy ETF (AETH): This ETF also invests in Ethereum futures and offers a reduced fee until October 2025, making it a potentially cost-effective choice.

Ethereum Exchange-Traded Notes (ETNs)

ETNs provide another way to gain exposure to Ethereum. Unlike ETFs, ETNs are debt instruments that track the performance of an underlying asset and are often physically backed by the cryptocurrency. Examples include:

• WisdomTree Physical Ethereum: This is an ETN physically backed by Ethereum, offering a direct link to the cryptocurrency’s performance.
• Global X Ethereum ETP: Another ETN backed by Ethereum that provides similar benefits.
• 21Shares Ethereum Staking ETP: This ETN offers exposure to Ethereum and the added benefit of staking rewards.

Blockchain ETFs

Blockchain ETFs invest in blockchain technology and cryptocurrency infrastructure companies, providing broader exposure to the sector rather than direct investment in cryptocurrencies. Examples include:

• Amplify Transformational Data Sharing ETF (BLOK): This ETF invests in companies heavily involved in blockchain technology, offering exposure to the infrastructure supporting cryptocurrencies.
• Siren Nasdaq NexGen Economy ETF (BLCN): This fund focuses on companies developing and utilizing blockchain technologies, providing a diversified approach to investing in the blockchain eco.

Benefits of Spot Ethereum ETFs

The approval of spot Ethereum ETFs marks a significant milestone for both Ethereum and the broader cryptocurrency market. It offers investors a more traditional and regulated way to invest in Ethereum, potentially driving increased adoption, liquidity, and market stability.

It also places Ethereum as a legitimate asset within traditional finance. Therefore, the regulatory endorsement reassures investors that Ethereum ETFs are credible and regulated products, broadening ETH’s recognition and acceptance in mainstream financial markets.

Here are some of the benefits of spot Ethereum ETFs:

Increased Accessibility for Traditional Investors

Spot Ethereum ETFs provide a regulated and accessible way for traditional investors to gain exposure to the spot price of ETH without the complexities of directly owning and storing the cryptocurrency.

Potential for Increased Institutional Investment

Investors who may have been cautious about direct cryptocurrency investments now have a regulated and familiar vehicle to gain exposure to ETH’s spot price. This influx of institutional capital can lead to increased market liquidity and potentially greater price stability.

However, the main issue is dealing with Ethereum’s narrative, as most investors probably won’t invest in assets/financial products they do not understand. Hopefully, a change of narrative mixed with a change in the US regulatory landscape could lead to staking services being included in ETF offerings, potentially driving more demand for Ethereum ETFs.

Diversification for Cryptocurrency Portfolios

Both Bitcoin and Ethereum ETFs add another option for diversification within cryptocurrency-focused portfolios, allowing investors to easily balance their exposure between BTC and ETH through regulated ETF products.

Simplified Investment Process

Spot Ethereum ETFs simplify the investment process by eliminating the need for crypto wallets and exchanges. Investors can buy and sell Ethereum exposure through their existing brokerage accounts, making it as easy as trading stocks.

Regulatory Oversight and Investor Protection

These approved ETFs come with the benefit of regulatory oversight, potentially offering greater investor protection compared to direct cryptocurrency investments. This can help mitigate some of the risks associated with cryptocurrency exchanges and storage.

Closing Thoughts – The Best Ethereum ETFs in 2024

This article on the Best Ethereum ETFs provides a complete guide on everything you need to know about these groundbreaking crypto vehicles.

There are several ways to gain exposure to Ethereum and the broader cryptocurrency market. Each option offers unique benefits and risks, whether that is futures-based ETFs, ETNs, blockchain ETFs, or simply buying and holding ETH directly.

It’s important to consider all the challenges and risks that Ethereum ETFs face now that ETH is part of the open market. Hopefully, a change in the US regulatory framework could help Ethereum ETFs drive more demand by integrating staking, a fundamental part of the Ethereum network.

In the rapidly evolving landscape of Layer 2 networks, Zircuit aims to create a new approach to security and scalability. Co-founded by Martin Derka, a seasoned professional with a PhD in algorithms and complexity, sat with us for an interview during EthCC. Derka shared insights into his journey, the founding of Zircuit including the meaning of the whooping $3 billion staked ETH to the project, and above all – the expected launch date for Zircuit’s mainnet.

Multiple well-known investors have taken part in the protocol’s mainnet funding round, including Binance Labs, Nomad Capital, AMBER, and much more.


From Soccer to Crypto

Martin Derka’s journey into the world of crypto began after an unexpected turn in his career. “I have a PhD in algorithms and complexity,” Derka explained, detailing his academic background. “For many years, I was developing software for various companies while still a student.” His transition from academia to entrepreneurship was marked by a stint as CTO of a startup focused on car advertisement photography, which he co-founded in 2013. However, after internal disputes led to his departure in 2017, Derka sought new opportunities, eventually finding his way to the crypto sphere.

“After leaving the startup, I went to clear my head in Argentina and Chile,” Derka recounted. “Upon returning to Canada, I connected with Leo (Leonardo Passos, Ph.D), a former soccer buddy and one of the veteran employees of the crypto auditing giant Quantstamp.” This serendipitous meeting led to Derka joining Quantstamp as one of its earliest hires in 2018, where he delved deep into crypto security.

The Birth of Zircuit

Derka’s tenure at Quantstamp laid the groundwork for Zircuit. “At Quantstamp, we knew rollups would be key to scaling Ethereum,” Derka noted. This realization sparked intensive research into rollups, eventually leading to the inception of Zircuit. “We saw an amazing opportunity to enhance blockchain security proactively,” Derka said. “This is how the feature that now distinguishes Zircuit—sequencer level security—began.”

‘Many Uses of AI Seem Fabricated’

Zircuit’s most striking feature is its AI-driven security mechanism, sequencer-level security, a concept Derka elaborated on extensively.

“Our sequencer uates each transaction for malicious intent before inclusion in the block,” Derka explained. “We use AI to simulate transactions and assess their impact, determining if they’re hacks.” This proactive approach allows Zircuit to quarantine potentially harmful transactions, enhancing the overall security of the blockchain.

The sequencer is a privileged node designed to collect user transactions and order them based on predefined rules. In essence, once the transaction arrives at the sequencer, it is then routed to the “Malice Detection” module – something that the team refers to as the “oracle.” It’s designed to determine whether a transaction is benign or it can potentially be malicious. Those that are benign are queued for block inclusion, while those that are flagged are diverted to another module called “Quarantine-Release Criterion” module. It acts as a holding area for the time during which these transactions undergo a rigorous verification process.

The following can be seen in the overview presented by Zircuit:


When asked about the prent AI hype, Derka acknowledged the phenomenon but remained pragmatic. “There is a huge level of hype,” he admitted. “Many uses of AI seem fabricated, and AI can be highly inaccurate. But failure is part of innovation. If we don’t try applying AI in all possible areas, we might miss its true potential.”

L2’s: Do We Really Need That Many

Zircuit positions itself as a Layer 2 (L2) solution with a strong emphasis on security, amidst a crowded field of competitors. Derka was clear about the inevitability of multiple L2 solutions. “If we didn’t build another L2, someone else would,” he said. “The better question is why users should choose Zircuit over others, and that comes down to our unique security proposition.”

Despite the competitive market, Derka does not foresee a winner-takes-all scenario.

“Technologists love to build and compete,” he asserted. “There will always be new players challenging the status quo.”

Zircuit: When Mainnet Launch

Zircuit’s immediate focus is on launching its Mainnet, with significant milestones already achieved. “We launched our Testnet last year, which has been very stable,” Derka shared. “We are now in the process of deploying Mainnet, integrating partners, and ensuring security measures are in place.”

The Mainnet Phase 1 launch is scheduled for Augustmid-July in a gated mode, with a broader public launch expected soon afterin mid-August. “We are also working on optimizing zero-knowledge proof generation to reduce operating costs and improve efficiency,” Derka added. This technical enhancement is crucial for the blockchain’s functionality and user experience.

Over $3 Billion in Staked ETH

Derka is mindful of the challenges in sustaining Zircuit’s initial success: With over $3 billion in restaked Ether (at its peak) signaling strong interest, the true test will be retaining these funds post-launch. “It’s the best signal we currently have, but it’s not a guarantee of success,” Derka cautioned. “Our task is to support projects deploying on Zircuit, ensuring they attract and retain capital.”

Zircuit aims to create a robust eco encompassing all essential blockchain functions. “We want a fully functional eco comparable to other chains, with lending protocols, oracles, DEXs, and stablecoins,” Derka explained. The security aspect remains a key differentiator, offering users and developers a more secure environment for their projects.

As the old adage goes: “not your keys, not your coins,” and people have definitely paid the price for not owning their private keys and leaving their funds in custodial wallets or cryptocurrency exchanges.

In 2013, two crypto users decided to create a small, pocket-size computer that could store their Bitcoin’s private keys. Those two crypto users are Pavol Rusnák and Market Slush, who launched Trezor and its flagship product, Trezor One —the first Bitcoin hardware wallet ever created.

Fast-forward to 2024, we’ve come a long way in the development of hardware wallets, and constant innovations come from major manufacturers that have perfected the art of cold storage.

Only a few hardware wallets can make the cut, and that’s why we’ve decided to write a comprehensive guide on the best cold storage solutions in the market, considering important factors like security, usability and functionality, price, and others.

So, without any further ado, let’s jump into understanding everything there is about hardware wallets and which are the best ones to consider.


Quick Navigation

• What is a Hardware Wallet?
• Best Hardware Wallets – Top 5 Cold Storage Options
  • Trezor Safe 3
  • Cypherock X1
  • BC Vault
  • Ledger Nano S Plus
  • Tangem Wallet
• Choosing a Hardware Wallet – Factors to Consider
• Tips for Using Hardware Wallets Safely
• Frequently Asked Questions
• Best Hardware Wallets – Final Thoughts

What is a Hardware Wallet?

A hardware wallet, also known as cold storage, is a physical device used to securely store the private keys needed to access and manage cryptocurrency assets. It can look, weigh, and feel like a USB, although some companies have opted for a different design.

Unlike software wallets, which are connected to the internet and thus more susceptible to malicious attacks like hacking and exploits, hardware wallets keep your private keys offline, mitigating the aforementioned risks. That doesn’t mean there are no drawbacks, but let’s first talk about their benefits:

Security

Hardware wallets are convenient for those who want to store their private keys offline, significantly reducing the risk of hacking and enhancing privacy and security.

Ownership

Your private keys are generated and stored within the hardware wallet, and it’s not owned by it or any third-party application. Some wallets even use tamper-resistant chips for added protection.

Support for multiple cryptocurrencies

Hardware wallets can support hundreds or thousands of cryptocurrency coins and tokens.

However, if we can highlight one crucial benefit of modern hardware wallets, that would be the transaction signing process. Even though a hardware wallet remains offline, you can still sign transactions using the manufacturer’s website application, or if the wallet comes with a card, you can use that too to spend your crypto.

That’s because certain cards come with NFC antennas, allowing transaction details to be scanned using the vault (which are called vaults —i.e., the actual cold storage device), which signs it offline. That means your private keys are never exposed.

Cypherock X1, which comes with four cards and one vault.In conclusion, a hardware wallet is a mini computer that fits in your pocket and provides all the basic functions you need to store and manage your crypto assets, but in a much safer way.

Hardware wallets are undoubtedly safer than hot wallets, but this doesn’t mean they’re perfect. The main drawbacks of hardware wallets are the lack of flexibility, functionality, higher costs, and others. We’ll take a more in-depth look at the pros and cons of hardware wallets in another section so you can consider the crucial factors before buying one.

Let’s look at the best hardware wallets to pick in 2024 without further ado.

Best Hardware Wallets – Top 5 Cold Storage Options

The following wallets were chosen based on innovation, functionality, and the number of supported cryptos.

Trezor Safe 3

Trezor Safe 3 is one of the most recognizable Trezor products. It features advanced security with Secure Element, a certified EAL6+ chip.


Trezor Safe 3 prioritizes privacy, supports the anonymous web browser Tor, and uses Coinjoin to anonymize Bitcoin transactions. Moreover, it’s compatible with Shamir backup, a security standard that allows you to create multiple recovery methods for your private keys. Trezor commonly uses this Standard in its hardware models, including the Trezor Model T.

Related: CryptoPotato’s podcast with the CEO of Trezor – Matej Zak.

It’s not just about privacy and security, however. This powerful model supports over 8,000 coins and tokens, significantly expanding Trezor’s cryptocurrency offerings and outranking practically every other hardware wallet. Its starting price is $79, which is considerably cheaper than other Trezor models.

Safe3 is also one of the best Bitcoin hardware wallets. Trezor offers a limited-edition Bitcoin-only version that is easily identifiable due to its black and orange design.


Key features of Trezor Safe 3

• Supports over 8,000 cryptocurrency assets
• EAL6+ chip for more advanced security
• Supports Tor and Coinjoin
• Shamir backup compatible
• Compatible with: operating s such as Linux, Microsoft, and Mac and for mobile devices on iOS and Android through the Trezor Suite Lite app

Supported Cryptocurrencies

As previously mentioned, Trezor Safe 3 supports over 8,000 coins and tokens, including the most popular crypto assets by market cap —Bitcoin, Solana, Ethereum Cardano, Ripple, Binance Coin— as well as ERC-20 and SLP tokens. However, note that Cosmos and Avalanche are not supported, for no apparent reason yet.

You can also integrate your Safe 3 with third-party software wallets, including Exodus, MetaMask, and some of the best Cardano wallets like Yoroi.

Pros and Cons of Trezor Safe 3

Pros explained

• It is more flexible than other Trezor models
• Cheaper starting price
• Integrates Shamir backup security
• Integrates a dedicated security chip —EAL6+

Cons explained

• No touchscreen
• Lacks support for popular networks like Cosmos and Avalanche

Cypherock X1

Cypherock is an innovative hardware wallet that stands out from the crowd for its approach to security, design, and functionality. Its flagship product is the Cypherock X1, which comes with two components:

• X1 vault: the main device for storing crypto assets and signing transactions. It has an OLED display and a joystick for navigation.
• X1 cards: four cards with Near Field Communication (NFC) antennas, allowing users to sign transactions using the X1 vault. These cards are tamper-proof and leverage bank-grade encryption —meaning they use encryptions similar to banks, such as the Advanced Encryption Standard (AES).


While the Cypherock X1 is relatively new —launched in December 2022— users have praised its highly secure and user-friendly design, which addresses common vulnerabilities associated with traditional seed phrase backups.

Instead of private keys, Cypherock splits your private key into four shards, and each X1 Card holds a unique shard of your private key. This also eliminates the single point of failure if, for instance, someone steals your wallet or gets access to one part of your private keys.

Key features of Cypherock X1

• Similar to Trezor Safe 3, the X1 allows users to leverage Shamir backups to recover their private keys.
• It’s EAL6+ certified and comes with bank-grade hardware components
• Supports over 3,000 cryptocurrency coins and tokens
• Compatible with multiple blockchain networks
• Comes with a vault and four cards with NFC antennas
• Can be connected with dozens of software wallets through Wallet Connect

Supported cryptocurrencies

Cypherock X1 supports over 3,000 cryptocurrencies, including Bitcoin, Ethereum, Solana, and token standards such as ERC-20, SLP, and BEP-20.

Additionally, the wallet supports Avalanche, Cosmos, Polygon, and all EVM-compatible blockchains.

Pros and Cons of Cypherock X1

Pros explained

• Recovery phrases can be extracted
• High-end security with EAL6+ and bank-grade encryption
• Flexible, dynamic, and Intuitive design
• Shamir backup compatible

Cons explained

• Its price is more expensive than other wallets in the market
• Plastic build

BC Vault

All the hardware wallets listed in this article have implemented innovative and robust security mechanisms and components to ensure reliability and the highest level of safety for their users. However, BC Vault will arguably inspire the most confidence.

BC Vault is a hardware wallet that supports millions of cryptocurrencies and all blockchains. That’s right —millions of coins and all blockchain networks, even testnets, layer-2s, NFTs, memes, you name it. Its parent company is REAL Security, a Slovenian-based cyber-security firm founded in 2002 and a leader in IT security.

According to its website, almost everyone on the REAL Security team has a technical background in fields such as computer engineering, security, electrical engineering, and mathematics. Therefore, its reputation and trajectory go beyond cryptocurrency assets and blockchain technology.

Regarding security, BC Vault does not use mnemonic seed phrases. It uses an SD card or QR code backup. Further, the wallet uses a random number generator coupled with non-deterministic algorithms to create private keys for each account created (you can create up to 2,000 accounts with BC Vault). This eliminates another single point of failure and ensures that no wallet is mathematically linked.

Another perk of BC Vault is that you can set a Global PIN and password for an extra layer of security. Without these, the device will not respond to any key requests. In total, the following passwords and PINs are available. Keep in mind you can use any combination you prefer, but at least one method should be used to encrypt all your data properly:

• Global Password: Used along with the Global PIN to unlock access to BC Vault. Entered in the application.
• Global PIN: Used along with the Global Password to unlock access to BC Vault. Entered on the device.
• Wallet Password: Used along with the Wallet PIN to send currencies from individual wallets. Entered in the application.
• Wallet PIN: Used along with the Wallet Password to send currencies from individual wallets. Entered on the device.

You can even customize the look of your device, which is a nice touch if you’re paying over 130 Euros for it.


Key features of BC Vault

• Thanks to FeRAM storage, your data can be stored for up to 200 years.
• True Random Number Generator: BC Vault generates private keys using a true random number generator, which increases their security and unpredictability.
• In-Wallet Swap Feature: You can swap assets within the wallet thanks to BC Vault’s integration with Changelly.
• WalletConnect Integration: The wallet supports WalletConnect, allowing you to interact with multiple dApps and DeFi platforms.
• Compatibility: BC Vault is compatible with Windows, macOS, and Linux desktop applications and supports browsers like Firefox, Chrome, Opera, Safari, and Internet Explorer.
• Large OLED Display: BC Vault features a 2.42-inch OLED display, making it easier to navigate and use than other hardware wallets.
• Multi-Language Support: BC Vault supports multiple languages, including German, Chinese, Slovenian, and English.

Supported cryptocurrencies

BC Vault claims to support all cryptocurrency coins and tokens in existence, including NFTs, on different blockchain networks, such as Ethereum, Polygon, BNB Chain, Cosmos, Avalanche, and more. You can also find all types of token standards: TRC-10, TRC-20, ERC-20, ERC-721, SLP, BEP-20, etc.

You can check out BC Vault’s Supported Cryptocurrencies page for more information.

Pros and Cons of BC Vault

Pros explained

• Supports virtually all cryptocurrencies and blockchain networks, including NFTs and Layer-2s
• High-end security coupled with multiple safety combinations
• Customizable design
• Long-term storage, up to 200 years
• Multi-language support
• In-wallet exchange
• Provides access to DeFi applications

Cons explained:

• Not open-source
• More expensive than other wallets in the market

Ledger Nano S Plus

The Ledger Nano S Plus is a hardware wallet designed for the secure storage of cryptocurrencies and non-fungible tokens (NFTs). It provides mass storage for over 5,500 digital assets and is also one of the best DeFi wallets.

Regarding security, the Nano S Plus is a CC EAL5+ certified hardware wallet that incorporates an exchange to manage your funds on the go. It also has a touchscreen, making it more dynamic and easier to manage than the Nano X model.

While the Nano S Plus is quite similar to Ledger’s Nano X, there are certain differences to consider. The Nano S Plus supports over 5,500 cryptocurrencies, costs $79, and is compatible with Android, while the Nano X is compatible with both Android and iOS.

Key features of Ledger Nano S Plus

• The Nano S Plus is compatible with over 50 wallets for accessing DApps, different cryptocurrency assets (including NFTs), and even Web3 applications.
• Supports up to 100 apps installed on the device and over 5,500 compatible crypto assets.
• It features Secure Element, a CC EAL5+ certified chip. It’s also independently certified by ANSSI, which refers to the National Agency for the Security of Information s in France, which highlights a product’s robustness.
• Unlike the Ledger Nano X, the Nano S Plus does not have Bluetooth or a battery. It measures 62.39mm x 17.40mm x 8.24mm, has a screen resolution of 128×64 pixels, a USB-C connector, and weighs 21 grams.

Supported Cryptocurrencies

Ledger Nano S Plus supports over 5,500 cryptocurrency coins, tokens, and even NFTs. It can securely manage and store some of the most popular assets, including Bitcoin, Ethereum, Cardano, Solana, Avalanche, Stellar, and more. It also supports different types of token standards, including:

• ERC-20
• ERC-721
• TRC-20
• TRC-10
• BEP-2
• SLP

You can check Ledger’s database to see if any of the supported assets can be staked, swapped, or connected with other wallets. You can also read our complete Ledger Nano S review.

Pros and Cons of Ledger Nano S Plus

Pros explained

• Secure, CC EAL6+ certified hardware wallet
• Supports over 5,500 digital assets
• Smaller and cheaper than Nano X and other Ledger wallets.

Cons explained

• No Bluetooth connection
• Seed phrase recovery feature requires KYC (Know your Customer) checks
• Does not support iOS devices

Tangem Wallet

Tangem Wallet has gained recognition as one of the best cold storage wallets due to its robust security design and simplicity. It supports over 6,000 digital assets across more than 30 blockchain networks.


Instead of a USB, Tangem’s design comes as a credit-card-size device with private keys divided into multiple cards, eliminating the single risk of failure —but without a vault, like Cypherock’s X1. In other words, the card is the cold storage. It does not come with a screen or buttons because everything is controlled through the Tangem mobile app, which allows users to initiate transactions and manage the wallet entirely.

It’s also very cheap, with the three-card set costing $69.

Tangem Wallet offers a high level of security, backed by a 25-year warranty, and comes with an EAL6+ certification, ensuring stringent security measures through sophisticated engineering and a rigorous development process. It’s also been independently audited by Riscure and Kudelski Security.

The wallet generates the private keys, which are stored within the card itself, adding an extra layer of protection against unauthorized access. Similar to Cypherock, Tangem allows recovery as long as the user has one of the cards, the app, and their pin/passcode.

Key features of Tangem Wallet

• High-end security: Tangem Wallet features an EAL6+ certified chip and secure element, offering a high level of security comparable to a biometric passport.
• User-friendly: The Tangem app has an intuitive interface, providing a seamless and user-friendly experience.
• Battery-free: Similar to Cypherock, Tangem’s cards use NFC technology, requiring no batteries or charging to make continuous and convenient use.

Supported cryptocurrencies

Tangem Wallet supports over 6,000 cryptocurrency coins and tokens, including Bitcoin, Ethereum, Litecoin, Cardano, and Dogecoin. It also supports a vast number of blockchains, including Avalanche, Cosmos, Ethereum, and BNB Chain, as well as all EVM-compatible networks and layer-2s like Arbitrum and Optimism.

Pros and Cons of Tangem Wallet

Pros explained

• Affordable and comes with a 25-year warranty
• Simple design and easy set-up
• NFC-enabled cards
• EAL6+ certified and has been independently audited by several blockchain firms
• Beginner-friendly

Cons explained

• Lack of advanced features, such as multi-sig capabilities, dApp, and exchange integrations
• No desktop support

Choosing a Hardware Wallet – Factors to Consider

There are at least six crucial factors to consider when choosing a hardware wallet. Let’s break them down below:

Security Features

Look for wallets with secure element chips, EAL certification (preferably EAL6+), and state-of-the-art encryption. Check if the wallet offers protection against physical tampering (if it’s shipped, consult if the package comes with such as tamper-evident tape) and secure methods for generating and storing private keys.

Multi-Factor Authentication (MFA)

Wallets usually allow you to set up a PIN code, biometric authentication, passphrases, etc. Make sure you at least have one set up.

Open-Source Software

Open-source software allows the community to inspect the code for vulnerabilities. If a hardware wallet is not open-source, it’s not the end of the world. Sometimes, the firmware on the devices is not open-source, but certain components or applications related to the wallet might be. Ledger and BC Vault are not open-source, yet they are some of the most secure and best cold storage wallets.

Backup and Recovery

Check if the wallet provides reliable backup and recovery processes, such as a seed phrase or encrypted backups.

Track Record

It doesn’t hurt to look for reviews from real users (not bots) and independent sources to gauge the reliability and security of the wallet.

Usability, Design, & Price

Ease of Use: If you’re a beginner, you should go for a wallet with a user-friendly setup process and an intuitive interface.

Display and Controls

While self-explanatory, a clear display and easy-to-use controls —buttons or touchscreen— help verify and confirm transactions and other functionalities within the wallet.

Compatibility

Remember that not all wallets are compatible with all operating s. Therefore, make sure the wallet supports Windows, macOS, Linux, Android, iOS, or any other devices you plan to use it with.

Battery and Connectivity

Check if the wallet requires a battery and what types of connectivity it supports (USB, Bluetooth, NFC). These factors can affect the convenience and usability of the device.

Price

Check your budget. Hardware wallets can cost from $50 to north of $400, depending on the brand, model, specifications, etc.

Supported Cryptocurrencies & Integrations

Range of Supported Coins

Verify that the wallet supports the cryptocurrencies you plan to store and manage. Some wallets might claim to support thousands of coins, but those types of claims should be taken with a grain of salt.

Range of Supported Blockchains

Now, say you have found a wallet with the coins you need, but they’re limited to specific blockchains you do not intend to transact with. Make sure the wallet you’re choosing supports the network(s) you wish to use.

Integrations

If you’re a more advanced crypto user, you might benefit from wallets that integrate exchanges and DeFi applications that allow you to put your assets to work and earn rewards.

Tips for Using Hardware Wallets Safely

Now that you have in mind what to think before buying a hardware wallet, let’s give you some tips on how to use it safely:

• Remember that hardware wallets might come in a credit card-size device or a USB port. Either way, they’re small and thin and prone to getting lost if you leave them lying around. Make sure you store them in a secure, room-temperature environment.
• Never share your seed phrases or passwords with anyone. A manufacturer will never contact you and ask you for your credentials and recovery phrases.
• Make sure you set up a PIN, a password, or a combination of booths (if permitted).
• Backups are a must. Make sure you back up your recovery seed phrase using the manufacturer’s instructions. If possible, make multiple backups and store them in different secure locations. It’s good to test your recovery phrases with a spare wallet periodically.

Related: 9 Tips For Securing Your Bitcoin and Crypto Wallets You Must Follow

Frequently Asked Questions

Are hardware (cold) crypto wallets 100% safe?

There is no such thing as 100% safe when it comes to crypto, but then again, that’s also true for keeping your money at the bank (banks can go bankrupt). However, hardware wallets are the safest way to store your cryptocurrencies compared to all other storage solutions out there.

Can a hardware wallet get hacked?

Yes, but only provided you fail to maintain proper security protocol. If you never connect it to the internet, it can’t get hacked online. However, if you connect it to a phishing website, then, obviously, it can get compromised.

Can a hard wallet fail?

Hardware wallets are known to be extremely reliable, and there aren’t many instances of failure. However, it’s still an electric device, so there’s always that possibility. In this case, your seed phrase backup becomes the key to recovering your funds – that’s why it’s critical to safeguard it properly.

What happens if a hardware wallet dies?

If a hardware wallet dies, you can use the backup of your seed phrase to restore your funds. Make sure always to keep a backup at a safe and secure location.

Best Hardware Wallets – Final thoughts

We’ve reached the end of our extensive guide on the best hardware wallets to check in 2024, which covered new market participants and veterans like Ledger and Trezor.

All of these wallets offer unique solutions and innovations to cold storage crypto management, as well as their fair share of pros and cons. But remember, the best cold storage wallet is the one that fits your necessities —and budget.

DePIN, which stands for decentralized physical infrastructure, is one of the fastest-growing crypto narratives. It has reached notoriety due to its seamless integration of various technologies under one umbrella.

This particular sector refers to protocols that use blockchain technology to support a global network of physical infrastructure maintained by participants providing the necessary computing resources.

However, it is still a nascent category of projects, with many moving components, elements, and challenges to analyze before reviewing some of the top protocols in this list.


Quick Navigation

• What is DePIN?
• The Top DePIN Projects
  • Render Network (RNDR)
  • The Graph (GRT)
  • Filecoin (FIL)
  • Arweave (AR)
  • Akash Network (AKT)
  • AIOZ Network (AIOZ)
  • Bittensor (TAO)
  • Helium Network (HNT)
  • IOTA (IOTA)
  • Theta Network (THETA)
• Frequently Asked Question
• Top DePIN Projects: Closing Thoughts

What is DePIN?

Explained simply, DePIN projects are categorized into two types:

• Physical Resource Networks (PRN): These include hardware s essential for connectivity, such as wireless internet, energy distribution, and geospatial data. An example is Helium Hotspots, which are similar to internet routers.
• Digital Resource Networks (DRN): These supply the network resources needed to operate physical s, such as computing assets, bandwidth, decentralized cloud storage, and connectivity.

For instance, Eloop, a car-sharing service, partnered with Peaq Network to tokenize 100 Teslas on its blockchain. Peaq utilized MoveID, a self-sovereign identification , allowing users to own a fraction of a car. Since Tesla cars use AI for geospatial data, Peaq provided MoveID users with services like parking and charging spots.

In this example, the Teslas represent the physical infrastructure, while Peaq Network is the digital resource network supporting it. This scenario illustrates the intersection of AI, real-world assets, tokenization, and blockchain, forming the Economy of Things (EoT), where DePIN is anticipated to be pivotal.

There are some projects that transcend a single category and are part of multiple ones. That’s why you might see some of them listed here and also in our guide on the best AI cryptos.

The Top DePIN Projects

The following protocols are based on performance, team members, foundation strength, and more. Without further ado, let’s jump in.

Render Network (RNDR)


Render Network is an Ethereum-based blockchain platform that aims to decentralize GPU cloud rendering by connecting users needing rendering services with owners of high-performance GPU power. This marketplace allows artists, individuals, and businesses to scale their rendering work more affordably and quickly than centralized GPU cloud s.

Render Network was a top performer in the DePIN sector, reaching an all-time high of $13.60 in March 2024, surpassing its previous ATH of $7.79 in April 2021. The project has attracted interest from tech giants like Apple, which integrated OctaneRender, Render’s high-performance render engine that operates on Nvidia’s CUDA technology.

Key Features of Render Network

Render’s business model involves two main participants: creators who submit rendering jobs and node operators who use spare GPU power to complete these tasks, earning RNDR as a reward. Rendering tasks can range from simple gaming, entertainment, or art jobs to complex tasks involving AI or machine learning (ML).

Render Network employs a multi-tier pricing protocol based on a reputation . This model democratizes GPU cloud computing for creators, particularly in Web3, and accommodates various budgets. There are three tiers.

• Tier 1 node operators are the highest-rated and are used mainly by Render’s partners. They offer reliable and scalable services at a higher cost.
• Tier 2 nodes provide high-quality GPU services at a lower cost,
• and Tier 3 nodes are the most economical option.

Founders of Render Network

Render Network (RNDR) was founded by Jules Urbach, who also founded and serves as CEO of OTOY, Inc., a cloud graphics company. The core team includes Kalin Stoyanchev as Head of Blockchain, Joshua Bijak as Project Lead, Charlie Wallace as Chief Technology Officer, Phillip Gara as Director of Strategy, and Jayson Kleinman as Head of Business Development.

Funding and Investors

Render Network completed one fundraising round, securing $30 million from a Seed round on December 21, 2021. The funding came from venture capital firms like Multicoin Capital and Solana Foundation and angel investors like Vinny Lingham.

The Graph (GRT)


The Graph is a decentralized, open-source indexing protocol that collects, processes, and stores data, similar to how a web browser like Google operates. It allows users to explore different blockchain ecos and their dApps and is available in at least 14 languages.

Yaniv Tal, Brandon Ramirez, and Jannis Pohlmann founded The Graph in 2018. Two years later, the protocol’s native token, GRT, was launched. GRT has one of the most extensive supplies in the DePIN sector, with a maximum supply of over 10B tokens and about 9.5B in circulation.

Key Features of The Graph

A key feature of The Graph is Subgraphs, which are indices designed to enhance data querying across various networks, including EVM-compatible blockchains and the InterPlanetary File (IPFS).

Subgraphs can index all public information globally, bridging Web2 and Web3. This data can be stored, organized, and shared across applications, making it accessible for querying. Users pay for these services with the protocol’s native coin, GRT.

Founders of The Graph

Yaniv Tal —an engineer and tech entrepreneur— aimed to create the first decentralized indexing and querying protocol for blockchain data to simplify dApp development.

Before founding The Graph, Tal and Ramirez worked together at MuleSoft, a company specializing in enterprise integration that Salesforce later acquired.

Funding and Investors

According to Crunchbase, The Graph has received approximately $69.6M in funding over eight rounds. The protocol is backed by notable investors, including FinTech Collective, Tiger Global Management, and Blockwall. The latest funding was raised from a Series A round on Mar 2, 2022.

Filecoin (FIL)


Filecoin is a decentralized storage network that transforms cloud storage into an open market.

The protocol is built on the same technology as the InterPlanetary File (IPFS) and enhances it by adding an incentive layer that ensures data is reliably stored and easily accessible.

Key Features of Filecoin

The Filecoin network functions as a peer-to-peer marketplace, allowing anyone to join as a storage provider or a user needing storage. Economic incentives built into the promote honesty and reliability among storage providers, ensuring that data is maintained securely over time.

Users can pay to store their files with storage providers using Filecoin’s native token, FIL. The model is simple: decentralized data storage, more competitive pricing, and reliable service compared to traditional cloud storage providers. Additionally, storage providers are judged by their track record —which is published on the blockchain— to promote trust and reliability.

This model supports various use cases, from storing NFT assets to large-scale data for Web3 applications​. Moreover, Filecoin’s decentralized nature makes it resistant to censorship, as no single entity controls the storage network.

Filecoin offers several key features that set it apart from traditional and other decentralized storage solutions:

Founders of Filecoin

Filecoin was founded by Juan Benet, an American computer scientist who also created IPFS (InterPlanetary File ). Benet is the CEO of Protocol Labs, the company behind IPFS and Filecoin.

Funding and Investors

Filecoin has attracted significant funding from various investors. In its initial coin offering (ICO) in 2017, Filecoin raised $257 million, one of the largest in crypto history. Key investors include venture capital firms such as Sequoia Capital, Andreessen Horowitz, Union Square Ventures, and Winklevoss Capital.

The FIL token’s total supply is capped at 2 billion and distributed through block rewards over several decades. A portion of the tokens is allocated to miners, Protocol Labs, investors, and the Filecoin Foundation, each with specific vesting schedules to ensure long-term commitment and development of the network.

Arweave (AR)


Arweave is a decentralized blockchain protocol for long-term, permanent data storage.

Arweave uses a unique “blockweave” structure instead of a traditional blockchain, allowing the protocol to return data immutability and global replication through a consensus mechanism known as Succinct Proof of Random Access (SPoRA). This mechanism requires miners to prove access to random pieces of stored data, ensuring the data’s durability and accessibility.

Key Features of Arweave

The Arweave network operates as a global, permissionless hard drive, allowing users to store a wide range of files, from simple text documents to complex web applications and archival databases. This makes it suitable for indefinitely preserving important historical, cultural, and personal information.

Arweave has thousands of independent nodes worldwide that store and replicate data, enhancing security and resilience. Likewise, the stored data is accessible through the permaweb, a decentralized web built on top of Arweave that hosts and provides access to the stored information.

Unlike other decentralized storage solutions, Arweave allows users to pay a one-time fee to store data permanently. There are no ongoing payments​ or hidden costs.

Founders of Arweave

Sam Williams founded Arweave and has served as its CEO since May 2017. He conceived the idea while completing his PhD in Computer Science at the University of Kent, focusing on decentralized and distributed s.

Like Benet, Williams wanted to create a permanent, decentralized data storage solution to preserve humanity’s most valuable information for future generations.​

Funding and Investment

Arweave has received significant funding from various venture capital firms and private investors.

Some of Arweave’s notable investors include Andreessen Horowitz, Union Square Ventures, and Coinbase Ventures. The protocol’s funding model also includes a tokenomic endowment designed to cover long-term data storage costs; users pay an upfront fee to store their data permanently, with the fees contributing to an endowment that funds storage costs for over 200 years.

Akash Network (AKT)


Akash Network is an open-source, decentralized platform that offers a cloud-computing marketplace where users can buy and sell cloud resources.

Anyone needing cloud computing resources can purchase them from those with excess capacity, with transactions paid in AKT, Akash’s native token, peer-to-peer.

Key Features of Akash Network

Akash is an extensive eco that provides businesses and individuals with decentralized storage, asset and data ownership, and cloud resources at a much lower cost than traditional centralized s.

Akash also uses the Interplanetary File (IPFS) for decentralized storage due to its security and resistance to censorship. Here’s a quick rundown of Akash Network’s key features:

• Decentralized Cloud Marketplace: Facilitates a peer-to-peer market where users can buy and sell computing resources.
• Containerization and Kubernetes: Akash uses container technology to ensure applications run consistently across different environments and Kubernetes to manage container orchestration and scaling.
• Cost Efficiency: Reduces costs by utilizing underused resources from data centers and individual providers.
• Security and Privacy: Enhances security by decentralizing data storage and computing, reducing risks associated with centralization​

Founders of Akash Network

Akash Network was founded by Greg Osuri and Adam Bozanich

Osuri, who serves as the CEO, has a background in cloud architecture and has worked with prominent organizations like IBM and Kaiser Permanente. He is also the founder of Angelhack, an accelerator for startups and FinTech projects.

Bozanich, Akash’s CTO, has extensive experience in software engineering and has held positions at Symantec, Mu Dynamics, and Topspin Media.

Funding and Investors

Akash Network has attracted significant investment, completing a $2 million seed round in March 2020. Key investors include George Burke and Infinite Capital. The network also partnered with Solana and the Cosmos Interchain Foundation to expand its capabilities and support for other blockchains.

The AKT token, central to the network’s operations, facilitates transactions and incentivizes providers. It also supports on-chain governance, allowing holders to vote on network improvements.​

AIOZ Network, DePIN for Web3 (AIOZ)


AIOZ Network is a decentralized content delivery and cloud storage platform that seeks to transform how digital content is stored, distributed, and accessed.

The protocol leverages a peer-to-peer (P2P) layer-1 blockchain to provide scalable, efficient, and cost-effective solutions for media streaming, AI computation, and Web3 storage needs.

Moreover, this platform is maintained by a global network of edge nodes, ensuring that digital content can be delivered with low latency and high reliability, bypassing the limitations of traditional centralized s.

Key Features of AIOZ

AIOZ is an eco that offers a comprehensive suite of services, including live streaming, video on demand (VOD), and decentralized AI computation.

These services are powered by AIOZ’s blockchain and Web3 infrastructure, which allows for the seamless integration and operation of decentralized applications (dApps). Here’s a summary of its key features:

• Decentralized Content Delivery Network (dCDN): AIOZ uses a P2P network of edge nodes to deliver content globally, ensuring low latency and high availability.
• Web3 Storage (W3S): Compatible with Amazon S3, it offers scalable and secure decentralized storage with built-in CDN capabilities.
• AI Computation: AIOZ W3AI provides decentralized AI task ution and model training, enhancing privacy and performance by running AI tasks locally on user devices.
• NFT Support: AIOZ simplifies the storage and management of NFTs, providing a resilient and decentralized infrastructure for digital assets.
• Transparent Pricing: The network uses AIOZ tokens for transactions, offering a straightforward and cost-effective pricing model for storage and computation needs​

Founders of AIOZ

AIOZ was founded by Erman Tjiputra, who serves as CEO. Tjiputra has a background in engineering and technology and extensive experience developing and managing technology-driven projects.

Funding and Investors

According to Cryptorank data, AIOZ raised over $1M in a private round led by private investors.

BitTensor (TAO)


BitTensor is an open-source infrastructure built around a blockchain called Subtensor, using a unique consensus mechanism known as Proof-of-Intelligence (PoI). This mechanism, similar to Proof-of-Work (PoW), rewards miners for their valuable contributions across various technology and research domains within the BitTensor network.

Overall, BitTensor aims to democratize and commoditize AI and emerging technologies through blockchain technology.

Key Features of BitTensor

BitTensor operates as a decentralized marketplace with multiple subnets, each designed for specific tasks. Unlike parallel chains in s like Avalanche, these subnets are competitive marketplaces tailored for AI, machine learning, data storage, price feeds, cellular automation, and more.

A notable example of a BitTensor subnet is Decentralized AI Detection, where miners are incentivized to share findings, solutions, products, tools, and frameworks to help the network detect content generated by large language models (LLMs) like ChatGPT.

Anyone can create a subnet by paying a registration fee in TAO, BitTensor’s native token, and establish incentive mechanisms for miners and validators. Each subnet has validators who assess the quality of miners’ work and reward them with TAO.

Here’s a quick rundown of BitTensor’s key features:

• Decentralized Mixture of Experts (MoE): Utilizes multiple specialized neural networks to improve prediction accuracy and handle complex data.
• Knowledge Compounding: Allows AI models to build upon existing knowledge, reducing the need for expensive retraining.
• Token Incentives (TAO): Rewards contributors based on their informational value and supports network governance.
• Collaborative Learning: Fosters a dynamic environment where AI models learn from each other, enhancing overall network intelligence.

Founders of BitTensor

BitTensor was founded by Jacob Steeves and Ala Shaabana. Steeves has a background in computer science and previously worked at Google as a software engineer.

Meanwhile, Shaabana holds a PhD in Computer Science from McMaster University and has served as an assistant professor at the University of Toronto. Together, they aimed to create a decentralized AI network that leverages the power of collective intelligence to advance the field of machine learning.​

Funding and Investors

BitTensor was incubated by Polychain Capital, one of the largest crypto venture firms in the industry. Polychain Capital has invested over $200 million in the project.

The network’s economic model is inspired by Bitcoin. A total supply of 21 million TAO tokens is used to incentivize participation and ensure the network’s sustainability. Token holders can earn staking rewards and participate in governance, shaping the platform’s future development.

Helium Network (HNT)


Helium is a decentralized, blockchain-based wireless network designed to create a new, more efficient way for Internet of Things (IoT) devices to communicate. It leverages both blockchain and radio technology to provide long-range wireless coverage for Internet of Things (IoT) devices.

By incentivizing individuals to set up Hotspots, which act as nodes, Helium aims to build “The People’s Network,” where users earn Helium’s native token, HNT, as a reward for contributing to network coverage.

Key Features of Helium

Helium’s network is built on the Solana blockchain, which offers high scalability and speed. These are essential for handling a growing network and enabling fast, cost-effective transactions.

Further, the network supports multiple use cases through its Proof-of-Coverage (PoC) consensus algorithm, which ensures reliable and verifiable network coverage.

Key features of Helium are highlighted as follows:

• Decentralized Infrastructure: The network allows individuals and organizations to deploy and maintain wireless networks, incentivized by the native HNT token.
• Proof-of-Coverage (PoC): A unique consensus algorithm that verifies network coverage and ensures stability.
• Multi-Token Eco: Besides HNT, the network uses Data Credits for transactions and specific tokens like IOT for Internet of ToT devices and MOBILE for 5G networks.
• Scalability and Speed: Helium leverages the Solana blockchain to ensure high transaction speeds and scalability.
• Incentivized Participation: Hotspot owners are rewarded with HNT for providing wireless coverage, encouraging continuous network expansion​

Founders of Helium

Helium was founded in 2013 by Amir Haleem, Shawn Fanning, and Sean Carey. Amir Haleem has a background in eSports and game development.

Shawn Fanning is known for developing Napster, one of the first mainstream peer-to-peer file-sharing services. Sean Carey has held various development roles, including at the advertising optimization firm Where, which was acquired by PayPal.

Funding and Investors

Helium has raised over $360M in several Series D rounds and is valued at over $1B as of 2024. Some of the protocol’s most notable backers are Multicoin Capital, 10T Fund Andreessen Horowitz, and Pantera Capital.

IOTA (IOTA)


IOTA is a decentralized, open-source distributed ledger designed for the Internet of Everything (IoE). It provides a secure, feeless infrastructure to support data and value transfer between humans and machines.

Key Features of IOTA

Unlike traditional blockchains, IOTA uses a unique structure called the Tangle, which is a Directed Acyclic Graph (DAG); this type of distributed ledger technology (DLT) allows transactions to be processed simultaneously rather than sequentially, enabling high scalability and zero-fee transactions. This makes IOTA particularly suited for the IoT eco, where devices need to exchange small amounts of data frequently and efficiently.​

Moving on, the Tangle blockchain does not need miners nor transaction fees. It instead promotes microtransactions that users all users can pay. The idea is to create a more inclusive and efficient for the digital economy, driving the adoption of IoT and other emerging technologies.

Here’s a quick rundown of IOTA’s key features:

• DAG: IOTA’s Tangle uses a DAG structure to enable parallel transaction processing, resulting in high scalability and zero-fee transactions.
• Feeless Transactions: Eliminates transaction fees, making microtransactions feasible and promoting wider adoption.
• Low Resource Requirements: Designed to operate efficiently on devices with limited computational power, such as IoT sensors.
• Scalability: Capable of handling a large volume of transactions without congestion, thanks to its unique consensus mechanism.
• Data Integrity: Provides a tamper-proof method of recording transactions, ensuring data authenticity and security

Founders of IOTA

IOTA’s team is full of academic researchers and tech entrepreneurs worldwide. It was co-founded by David Sønstebø, Dominik Schiener, Sergey Ivancheglo, and Serguei Popov.

Sønstebø and Schiener have backgrounds in tech and entrepreneurship, focusing on decentralized technologies and digital innovation.

Similarly, Ivancheglo has a background in cryptography and decentralized s, while Popov is an academic with expertise in mathematics and distributed s as well.

Founders and Investors

IOTA raised around $500,000 through a crowdfunding campaign in 2015. However, there are scarce details about the initial funding. The $500k was used to develop the network and support the IOTA Foundation, a non-profit organization dedicated to the continued development and promotion of the IOTA eco.

The protocol frequently promotes its IOTA Grants Program to projects with potential in several areas, such as DeFi, NFTs, SocialFi, and more.

Theta Network (THETA)


Theta Network is a blockchain-based content delivery platform aimed at revolutionizing the streaming industry by decentralizing video streaming, data delivery, and edge computing.

Theta’s infrastructure is designed to enhance the efficiency and reduce the costs of streaming services, providing a decentralized alternative to traditional platforms like YouTube and Twitch​.

Thanks to the Theta blockchain, the protocol supports Turing-complete smart contracts, allowing for the creation of various Web3 applications such as non-fungible tokens (NFTs), decentralized exchanges (DEXs), and decentralized autonomous organizations (DAOs).

Key Features of Theta Network

The platform operates through a network of Validator Nodes, Guardian Nodes, and Edge Nodes, which collectively contribute to the network’s decentralization. Validator Nodes propose and produce new blocks, while Guardian Nodes seal blocks and provide a second layer of security.

Edge Nodes, part of the Theta Edge Network, perform tasks such as video transcoding, relaying, and AI computation, leveraging unused bandwidth and computing resources from users worldwide. This decentralized approach aims to improve the quality of streaming services and reduce the costs associated with traditional centralized models.

Theta’s key features are outlined as follows:

• Decentralized Video Delivery: Utilizes a network of nodes to stream video content, reducing the need for centralized servers and improving streaming quality and speed.
• Smart Contracts and DApps: Theta supports the creation of various Web3 applications, including NFTs and DAOs, enhancing the platform’s versatility and functionality.
• Edge Computing: The Theta Edge Network allows for decentralized video transcoding, AI computation, and data delivery, leveraging community resources for efficient task ution.
• Token Incentives: Users earn Theta’s native tokens, THETA and TFUEL, for participating in the network, either by staking or by providing computing resources and bandwidth

Founders of Theta Network

Theta Network was founded by Mitch Liu and Jieyi Long

Liu has a computer science and engineering background and has founded multiple gaming and video startups. He co-founded Gameview Studios, known for its popular social mobile games, and Tapjoy, a mobile advertising platform.

Meanwhile, Long, co-founder and CTO, holds a Ph.D. in computer engineering and has extensive experience in virtual reality, large-scale distributed s, and blockchain technologies.

Funding and Investors

Theta Network raised one venture round on May 3. However, the details about the investors and the amount raised remain private.

Frequently Asked Questions

What is an example of DePIN?

As explained in our guide, decentralized physical infrastructure projects in the cryptocurrency field vary and they focus on different areas. For example, Render Network focuses on decentralized GPU rendering, while Theta Network is a content delivery network.

What is DePIN Solana?

DePIN on Solana encompasses various prominent project who are building on the network. One of them is Helium. It is a decentralized, blockchain-based wireless network designed to create a new way for Internet of Things (IoT) devices to communicate.

Which crypto is DePIN?

There are multiple crypto projects that focus on providing a decentralized physical infrastructure (DePIN). Examples include Render Network, The Graph, Helium, Theta Network, Akash Network, AIOZ, Bittensor, and many more.

Top DePIN Projects: Closing Thoughts

Essentially, DePIN refers to the application of blockchain technology to a global network of physical infrastructure and hardware s supported by participants who provide the computing resources needed to maintain these decentralized s.

On July 11, blockchain security firm PeckShield reported that the website of Compound Finance (compound[.]finance) had been compromised.

“Do not interact with the website until further notice,” it warned.

The incursion was also reported by blockchain sleuth ‘ZachXBT’ on his investigations Telegram channel The Compound Finance website seems to “potentially be hijacked,” he said before adding, “do not visit the site for the time being.”

It “currently redirects to a newly registered phishing site,” he cautioned.

#PeckShield compound[.]finance URL has been compromised. DO *NOT* interact with the website until further notice.

— PeckShield (@PeckShield) July 11, 2024

Domain Hijacking

The website was unavailable when CryptoPotato tried to access it, suggesting that the team had possibly taken it down.

There was nothing about the incident on the official Compound Labs X account It is currently unclear whether any users have lost funds due to the incident.

Domain name hijacking is when hackers gain unauthorized access to and control over a website’s domain name in order to redirect its users to a fraudulent site.

It is usually done by compromising the domain registrar account through social engineering or phishing attacks, or exploiting vulnerabilities in the domain management However, there was no further information on this incident at the time of writing.

Hackers often target crypto platforms in order to steal sensitive information by redirecting users to a fake site to collect login credentials or personal data or to spread malware that could steal crypto assets.

In November, decentralized cross-chain protocol Frax Finance suffered a similar domain hijacking attack.

Compound Finance is a DeFi lending platform that uses algorithmic, autonomous interest rates.

It currently has a total value locked of $2.17 billion, which is down 83% from peak levels in November 2021, according to DeFiLlama.

COMP Price Reaction

The DeFi platform’s native token, COMP, hasn’t reacted to the website hijacking and remained flat on the day, trading at $47.88 at the time of writing.

However, like most DeFi assets, it has been heavily battered from its all-time high. COMP is currently down almost 95% from its lofty peak of $910 in May 2021, according to CoinGecko.

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Cardano (ADA) is one of the largest blockchains with a vast dApp eco and one of crypto’s most active development communities.

Data shows that at the time of this writing in July 2024, over 70% of ADA in circulation is actively staked. That means millions of Cardano users hold and stake ADA, enhancing the network’s security and compounding profits.

Staking ADA does not require lockup periods, and users can transact ADA even while it remains staked. This level of flexibility makes Cardano’s staking mechanism unique, attracting crypto veterans and newcomers alike.

With Cardano’s rising popularity, newcomers seek to stake their tokens in some of the best Cardano staking pools.

Quick Navigation

• What is Cardano Staking?
• Staking ADA in a Pool Vs. Staking ADA on an Exchange
• How to Stake your Cardano (ADA)
• The Best Cardano Staking Pools
  • Cardanians.io
  • CardanoCafe
  • Spire Staking
  • Rocky Mountain Staking
  • Nordic Pool
• Factors to Consider When Choosing a Staking Pool
• Researching and uating Staking Pools
• Is Staking ADA Safe?
• Final Thoughts on the Best Pools to Stake Cardano


What is Cardano Staking?

As in any proof-of-stake blockchain, staking pools are crucial to the Cardano network. They serve as block-producing server nodes that pool the staked ADA of multiple depositors.

Holding ADA on the Cardano blockchain represents a commitment to the network, with the stake size proportional to the amount of staked ADA.

One peculiarity of Cardano is stake addresses, which allow you to stake all tokens within a specific address. That means you don’t have to re-stake any of your funds (but you can’t send or receive payments as you would with your everyday wallet).

Earning Rewards With ADA

ADA holders can earn rewards in two ways: by delegating their stake to a pool managed by someone else or by running their own pool. The Ouroboros protocol primarily uses the amount of stake delegated to a pool to decide who should add the following block to the blockchain and receive a reward.

The more assets delegated to a pool (there are limits), the higher the chances of creating the next block. Naturally, the rewards earned are shared among everyone who participated (including operators) and delegated their funds.

Public Stake Pools Vs. Private Stake Pools

Note that there are public and private Cardano stake pools.

• Public pools provide an address that enables users to delegate their tokens and receive rewards directly, taking away the complexity of running the pool themselves.
• Private pools only provide rewards to their operators and vetted delegators. If you have the time and resources to run the node, you could keep 100% of the stake earnings to your reward address.
• More specifically, having sufficient resources means you can run at least one block every epoch (the amount of ADA per block changes based on multiple parameters, and it’s never the same for every pool.)

To sum up, stake pools are managed by reliable operators who have the technical knowledge and resources to run the node consistently. The more delegated stake in a pool, the higher its chances of being chosen as the next block producer.

Staking ADA in a Pool Vs. Staking ADA on an Exchange

Staking in a Cardano pool supports network decentralization, as it relies on independent operators running nodes. Rewards are distributed proportionally based on the amount of ADA staked and the pool’s performance.

As with other blockchains, delegators maintain control over their ADA, as staking in Cardano is non-custodial; funds are not locked and can be accessed at any time.

More advanced crypto users might prefer staking directly on a Cardano pool, but this requires more due diligence, such as finding reliable pools with minimal orphaned blocks and a robust technical setup. Other technical elements will be discussed at the end of this article.

• Staking on an Exchange

On the other hand, exchanges often provide a more user-friendly interface and manage the technical aspects of staking. However, note that the main risk of doing this is that exchanges are custodial platforms, meaning they hold your funds.

Further, exchanges may charge higher fees, and the reward structure can vary, sometimes offering lower returns than independent pools.

Overall, it depends on your situation. Newcomers might find an exchange a more suitable option because they provide a more user-friendly experience but face higher fees and custodial risk.

How to Stake your Cardano (ADA)

Before we review the best Cardano staking pools, there are a few things to clear out of the way. First, you must know how to stake your Cardano into a pool.

Setting up a Cardano wallet

First things first —you need a Cardano wallet that supports staking. There are several options to choose from: Yoroi, Daedalus, or Exodus. While these are software options, you can still stake with hardware wallets, although you might be obliged to use a third-party app to stake Cardano.

The best way to do this is to read our comprehensive guide on the Best Cardano Wallets for 2024.

Once you have chosen a wallet for the job and top it up, you’re ready to dive into some of the best Cardano staking pools.

Choosing a Cardano Pool

There are around 3,000 Cardano pools to choose from. Ideally, you’d go to ADApools.org, a platform that aggregates data from all Cardano pools in existence and a dashboard with all the metrics necessary to gauge each pool’s performance.

Each pool in the list has several metrics embedded, including the stake APY, stake size, blocks (i.e., number of blocks produced —the higher, the better—), and pledge (amount of ADA pledged). Here’s a look at the website:


By clicking on one of the pools, you’ll find important metrics and their overall performance. Further, you can look at the number of rewards, current delegators, and you might also find the owner/operators, who usually have a biography or social media in which you can contact them.

This is another key point: joining social media forums and discussing topics in Cardano groups can help you stay up-to-date on the latest developments.


If you click on the More Information tab, you will be redirected to cexplorer.io, and there, you’ll find more in-depth information about the pool, including the pool’s lifetime luck, number of delegators, and saturation percentage. In the example below, the Cardanians pool has an 89.36% saturation, 47 blocks in epoch, and a Lifetime Luck of 97.7%.


Pool Hopping

Since returns from stake pools fluctuate with each epoch, a pool currently offering low returns may later yield higher rewards. In staking, there’s a strategy called Pool Hopping. As the name suggests, you are moving from one pool to another to capitalize on the varying returns of different staking pools.

In other words, pool hoping is just betting on the pool’s luck. There’s even a metric called Lifetime Luck, which is applied to each Cardano pool. Be aware that pool hopping also means paying transaction fees with each move, and over time, these can diminish the overall benefits, making the strategy less advantageous.

If you don’t have the time for it, you might as well take the good ol’ passive staking approach —enjoying the convenience of crypto staking without constant, frenetic monitoring.

The Best Cardano Staking Pools

Now that most of the important information and basic steps to staking in Cardano have been explained, let’s look at some of the top Cardano pools.

However, a necessary disclosure here is that the pools saturate fast. Therefore, the list below does not have a specific order, as pools can quickly become outdated.

The best way to do your research is to use the above factors and practices once a new batch of staking pools gains traction in Cardano. This will allow you to delegate your ADA to new, hotter pools.

Please note that some of the stats that we’ve shown below change constantly. The following stats are relevant to July 2024.

Cardanians.io

Cardanians is a collective of cryptocurrency enthusiasts and official ambassadors for Cardano, committed to enhancing the network’s security and decentralization.


They manage staking pools known for their stability, transparency, and reliability. Additionally, Cardanians participate in community activities by writing and translating articles to support the Cardano eco.

Quick stats:

• Margin fee: 2%
• Lifetime ROA: 4%
• Blocks produced: 16,135 total.
• Amount staked (in ADA): 66M

CardanoCafe

CardanoCafe is a staking pool operator within the Cardano eco, recognized for its dedication to sustainability and climate neutrality.


CardanoCafe is part of the Climate Neutral Cardano (CNC) alliance and uses 100% renewable energy for its operations, highlighting its commitment to environmentally friendly practices.

The platform offers at least three staking pools for delegators: Cafe1, Cafe2, and Cafe3. The two main pools have a saturation of 95.14% and 14.05%, with the third one having less than 1%. Naturally, the most saturated pool has a bigger fee but comes with more delegators and more active staked ADA.

Quick stats:

• Margin fee: 1%
• Lifetime ROA: 3.93%
• Blocks produced: 11,740
• Amount staked (in ADA): 72M

Spire Staking

Spire Staking is a prominent staking pool in the Cardano eco, identified by the ticker [SPIRE]. According to the Cardano Journal, it is listed among the top staking pools due to its competitive ROA and substantial live stake.


Overall, Spire Staking is a well-established and high-performing Cardano staking pool with a high number of delegators and over 14,000 blocks produced.

The pool’s performance metrics and block production highlight its efficiency and effectiveness as a staking option.

Quick stats:

• Margin fee: 1%
• Lifetime ROA: 3.96%
• Blocks produced: 14,843
• Amount staked (in ADA): 70.39M

Rocky Mountain Staking

Rocky Mountain Staking (ROCKY) is a Cardano stake pool run by Ken Akerley, an experienced IT professional based in Calgary, Canada. Ken operates the pool using its own infrastructure and avoiding centralized cloud providers.


The pool has become one of the largest (and most saturated) pools, with over 58M staked ADA. This is primarily thanks to the fact that a public and experienced operator manages it and has secure and highly available infrastructure to ensure no missed blocks.

However, the fee is higher than other pools, at 1.99%. This is compensated by the pool’s Lifetime and recent ROA, which are 3.3% and 4.02%, respectively.

Ken is dedicated to Cardano’s decentralization and its community, being constantly active in forums and discussions on social media regarding its pool and the overall Cardano eco.

Quick stats:

• Margin fee: 1.99%
• Lifetime ROA: 4.02%
• Blocks produced: 7339
• Amount staked (in ADA): 58M

Nordic Pool

Nordic Pool is one of the largest Cardano staking pools. It is run by two pseudonymous crypto entrepreneurs based in Sweden. The team also consists of two community moderators who are in charge of running the site’s official Telegram channel and social media.


Nordic Pool offers up to five pools, all with the same ticker (NORTH). The platform has partnered with SundaeSwap and other prominent crypto applications in the industry.

Quick stats:

• Margin fee: 1.99%
• Lifetime ROA: 4.02%
• Current ROA: 3.3%
• Blocks produced: 7339
• Amount staked (in ADA): 58M

Factors to Consider When Choosing a Staking Pool

• Return on Stake (ROS): represents the expected annual return from staking in a particular pool. Comparing ROS across different pools can help maximize potential earnings.
• Pool Saturation: Pools have a saturation point beyond which additional staking results in diminishing returns. Choosing pools that are not overly saturated ensures optimal rewards.
• Pool Fees: Pools might charge a fixed fee (e.g., 340 ADA) and a variable margin fee. Lower fees generally translate to higher net rewards for delegators.
• Pool Reputation and History: uating a pool’s track record, including its reliability and performance history, provides insights into its stability and trustworthiness.
• Pool Infrastructure and Reliability: Reliable infrastructure ensures the pool can consistently produce blocks and earn rewards. Look for pools with minimal orphaned blocks and robust technical setups.
• Pool Operator Communication and Community Engagement: Active communication and engagement from pool operators can indicate a well-managed pool. Operators who contribute to the community and

Researching and uating Staking Pools

Here are a few research and uation practices to follow before staking on Cardano.

Using Cardano Community Resources

Leverage resources like the Cardano Foundation’s website and community forums to gather information about different pools.

Exploring Pool Metrics on Cardano Blockchain Explorers:

Some of the best data aggregators for pools are ADApools and Cardano Journal, which provide detailed metrics on pool performance, saturation, fees, lifetime luck, blocks produced, and each pool’s official website, helping you make informed decisions.

Seeking Advice from Experienced Stakers

Engaging with experienced stakers in community forums and social media groups can provide valuable insights and recommendations. Moreover, most Cardano staking pools are led by operators that provide a public Telegram channel that allows you to stay updated with current pool developments.

Joining Cardano Community Forums and Social Media Groups

Participating in groups like r/cardano will help you stay updated on the latest developments and pool performance and seek community advice.

Moreover, engaging with the Cardano community through forums and other social media groups, etc., is crucial to gain insights and advice from ADA stakers.

Is Staking ADA Safe?

In general terms, staking is quite an attractive way of generating a passive, compounded income. You’re letting your crypto funds work for you while committing to the network’s overall security.

However, staking in ADA —and with any crypto network, for that matter— conveys certain risks that should be considered before joining a pool. Since there are no lockup periods for staking ADA, that point will be skipped, but there are other general risks associated with staking.

Potential risks associated with staking

• Volatility: The value of the staked token can fluctuate significantly, even overnight. High annual percentage yields (APYs) may be offset by sharp asset price declines.
• Liquidity Risk: Low liquidity in some cryptocurrencies can make it difficult to sell or convert staking rewards into stablecoins, posing challenges, especially for micro-cap altcoins.
• Running a node: Running your own pool requires a certain level of technical expertise and constant uptime. This translates into time and resources to run a Cardano pool.
• Smart contract vulnerabilities: Staking platforms and cryptocurrencies are susceptible to hacking and smart contract exploits.

The Importance of Diversification

As the old saying goes, don’t put all your eggs in one basket. Users often explore multiple pools and invest in several of them in order to offset the risks and potential losses associated with staking.

Investing in multiple pools can compensate for the impact of a single asset’s poor performance. In practice, this should balance the risk and potential returns.

Staying Informed and Adapting to Eco Changes

Like one of the previous points, staying updated with the latest developments within the Cardano eco will help you make wiser and more informed decisions. Educating yourself on topics you’re unaware of is also helpful.

Final Thoughts on the Best Pools to Stake Cardano

Choosing the best Cardano staking pool requires due diligence and keeping up with the latest developments in the Cardano eco.

Note that some of the best Cardano pools saturate fast. Therefore, it is recommended that you follow the instructions in this guide before joining a staking pool.

Cardano (ADA) is the blockchain network founded by IOHK, a company created by Ethereum co-founder Charles Hoskinson in 2015. It is known for its methodical and scientific approach to building the eco.

Cardano’s core team is also known for its meticulous, peer-reviewed development approach. Its proponents believe the slower pace is necessary for long-term growth, sustainability, and robustness.

As with any other crypto eco, self-custody wallets play a very important role in Cardano. The following is a comprehensive overview of the best wallets to consider to store and use your ADA.


Quick Navigation

• Types of Cardano (ADA) Wallets
• The Best 6 Cardano Wallets
  • Daedalus – Best Cardano Desktop Wallet
  • Nami – Best Cardano Web Wallet
  • VESPR – Best Cardano Mobile Wallet
  • Yoroi Wallet – Best Cardano Light Wallet
  • Eternl – Best Cardano Wallet for Staking
  • Exodus – Best Cardano Wallet for Hardware Integration
• Best Cardano (ADA) Wallets – Final Тhoughts

Types of Cardano (ADA) Wallets

The broader categorization can be defined within two major types: hot and cold wallets.

Hot wallets are online software applications providing users with many features to store and manage cryptocurrencies like ADA. Other key features of hot wallets are cross-chain transfers and access to decentralized applications (dApps) on Ethereum, Cardano, Solana, etc.

In contrast, cold wallets are physical hardware devices similar to USB drives. They offer increased security by keeping cryptocurrencies offline, yet they’re not as flexible and dynamic—or user-friendly—as hot wallets.

Several subtypes of wallets exist, such as desktop, web browser, mobile, etc. However, Cardano is also quite popular because it supports many light wallets.

Let’s review them below.

Desktop Wallets

Desktop wallets are software programs installed on computers. They offer advanced features like integrated staking, support for a broader range of cryptocurrencies, and heightened security measures.

Most desktop wallets are non-custodial, meaning users have complete control over their private keys, allowing them to manage cryptocurrency transfers directly without relying on third parties like exchanges.

Desktop wallets have their fair share of downsides: they require an internet connection, making them vulnerable to malware, hackers, and other online threats, and they require a certain level of technical proficiency to install and operate effectively.

Web Wallets

Web wallets are browser extensions that allow users to manage, store, and transact with cryptocurrencies directly through web browsers like Chrome, Firefox, and Opera. They provide flexibility and accessibility and support various digital asset activities, including dApps, Web3 applications, and NFTs.

However, they might not be as dynamic as desktop or mobile wallets and might not offer the same number of features.

Mobile Wallets

Mobile wallets, available for iOS and Android devices, provide convenience for managing assets on the go. Most mobile-based wallets are user-friendly and allow users to explore Web3 and DeFi applications across several blockchains.

The principal risks of mobile wallets should be evident—malware attacks, phishing scams, SIM swaps, and the potential loss of your mobile device.

Light Wallets

Light wallets operate through an external full node that allows them to interact and receive specific and relevant transaction payments, data, and other information without downloading the entire blockchain. That’s because the full node already has a copy of that ledger.

These features make light wallets a convenient solution that offers accessibility, as they’re faster to set up, require minimal device storage, and have user-friendly interfaces. However, they are as secure as the external node, which means dependency, and may lack certain advanced functionalities compared to full nodes (like running the actual validator node).

Hardware Wallets

Hardware wallets provide elevated security for cryptocurrencies by generating and storing private keys offline, safeguarding them from internet-based threats like hacking and online attacks. This offline storage minimizes the risk of unauthorized access to funds.

Despite offering the highest security measures, hardware wallets have some drawbacks. Their small size makes them prone to loss, potentially resulting in the loss of funds. Additionally, they lack the flexibility and dynamism of software wallets, which may restrict specific user preferences or functionalities.

Despite the robust security features of hardware wallets, fund loss or hacking incidents are typically attributed to user error or the physical loss of devices.

The 6 Best Cardano Wallets

The following article explores and details the best Cardano wallets in the market. These wallets were chosen based on their level of security, flexibility, fees, and overall functionality.

Daedalus – Best Cardano Desktop Wallet

Daedalus is one of the best Cardano wallets for desktop users. While it’s not an official wallet of the Cardano blockchain, it’s mentioned on the protocol’s official website as IOHK supports it.


Daedalus is open-source and can be downloaded in multiple operating s, such as MacOS, Linux, and Windows.

Daedalus is designed with web technologies based on Electron, an established open-source protocol for developing cross-platform desktop applications.

Notable Features of Daedalus

• Fully open-source, can be reviewed by anyone
• Allows ADA staking, with rewards earned directly on the wallet
• Runs a full node
• It’s compatible with most operating s

Daedalus Security

One of the things that makes Daedalus stand out is that it runs a full node. That means the wallet downloads and stores a copy of the entire Cardano network on your desktop. This is better overall in terms of security and decentralization than light clients.

Pros and Cons of Daedalus

Pros explained:

• Developed and supported by IOHK
• High level of security
• Allows users to stake ADA
• Fully open-source
• Desktop support for most operating s
• Provides hardware wallet integration (Ledger)

Cons explained:

• Requires a large amount of storage space (around 10GB of space to download)
• Syncing blockchain transactions takes a long time, given that it’s a full node.
• No access to dApps on Cardano

Nami – Best Cardano Web Wallet

Nami is a browser-based Cardano wallet built exclusively for the Cardano blockchain. It’s a lightweight client that accesses transaction data through external nodes.


Nami is one of the best ADA wallets for its user-friendliness and easy setup, but also because it’s pretty feature-rich. It’s also one of the few wallets that supports Cardano tokens like ADAX and USDM, the blockchain network’s native fiat-backed stablecoin.

Notable Features of Nami

• Users can stake, send, and receive ADA and Cardano tokens, including stablecoins like USDM
• Supports all NFTs on the Cardano blockchain, making it one of the few Cardano wallets to provide such a feature
• Supports multipool staking. Users can stake ADA with Nami and delegate it to one or multiple Cardano Stake Pools
• While the wallet is free to use, but there might be fees and commissions from third-party services
• It allows users to import one recovery phrase and pair multiple hardware wallets, which is a plus in terms of security

Nami Security

Nami provides basic security mechanisms. It supplies users with a seed phrase of 24 words and allows hardware wallet integration with Trezor or Ledger for an extra layer of security.

Pros and Cons of Nami

Pros explained:

• User-friendly wallet with easy setup
• Provides several features, such as NFT trading, multipool staking, and more
• Supports Cardano tokens
• Allows multiple hardware wallet integrations

Cons explained:

• No mobile app
• Limited to ADA

VESPR – Best Cardano Mobile Wallet

VESPR is the best Cardano wallet for mobile users. It’s another non-custodial lightweight wallet exclusively built for the Cardano eco.


VESPR operates as a non-custodial wallet, ensuring user privacy by not storing personal information such as email addresses, passwords, secret recovery phrases (SRPs), or private keys.

Likewise, the wallet is praised for its simple and intuitive design—but it’s packed with enough features to keep advanced users busy all day.

Notable Features of VESPR

• VESPR features a built-in decentralized exchange (DEX) aggregator that helps users find the best exchange rates across all Cardano DEXs
• The wallet allows users to explore hundreds of dApps on the Cardano eco thanks to its dApp Browser feature
• It supports NFTs on Cardano, allowing users to send, receive, and trade NFTs directly on the wallet
• VESPR is a community-run project, with users having the right to vote on proposals to improve or change the wallet
• Allows users to stake ADA and earn around 3% APY directly on the wallet

VESPR Security

VESPR leverages multiple encryption methods to safeguard users’ funds and general data. Likewise, it allows users to set up passwords, pins, and biometric authentication. For an extra security touch, it supports hardware wallet integration with Ledger.

VESPR was also the first ADA wallet to undergo an audit.

Pros and Cons of VESPR

Pros explained:

• User-friendly mobile wallet
• Supports staking
• Community-led project
• Open-source
• Feature-rich wallet

Cons explained:

• No support for other wallets or blockchains
• No desktop support

Yoroi Wallet – Best Cardano Light Wallet

Yoroi is a light wallet designed by EMURGO, a crypto company that produces blockchain products for Cardano. It’s available as a browser extension and has a mobile version for iOS and Android users.


Yoroi comes with a handful of features for ADA enthusiasts, including an NFT gallery for users to display, explore, store, and trade NFTs and a Web3 portal to access Cardano’s vast eco of dApps and decentralized protocols.

Notable Features of Yoroi Wallet

• Yoroi facilitates onboarding by providing a user-friendly interface for wallet funding, staking, and swapping tokens
• It provides a dApp browser and supports several blockchains, including EVM-compatible networks
• While it does not provide multipool staking, users can stake ADA by delegating to network validators
• Besides ADA, it supports Cardano-based tokens, including stablecoins such as USDM

Yoroi Wallet Security

Yoroi is a self-custodial wallet that generates encrypted private keys for users and allows them to set up password protection and recovery seed options in case they lose access to their funds. The wallet is also open-source, allowing anyone to explore the source code on GitHub.

Yoroi also allows users to integrate a hardware wallet, like Trezor and Ledger, adding an extra layer of security for their funds.

Pros & Cons of Yoroi Wallet

Pros explained:

• Supports ADA staking
• Supports Cardano tokens
• Provides a dApp browser
• Supports hardware wallet integration
• Comes in a mobile version for iOS and Android

Cons explained:

• Does not support multipool staking
• Relies on external nodes for accessing blockchain data

Eternl – Best Cardano Wallet for Staking

Eternl is a versatile light wallet developed by the team behind TITAN and AHL, two popular Cardano staking pools. It’s among the most popular Cardano wallets on social media and the ADA community.


Eternl comes in multiple versions—browser extension, desktop, and mobile. It’s self-custodial, so users bear responsibility for their privacy and security. Similarly, it’s a community-run project with an open-source code, encouraging developer contributions.

It’s one of the best Cardano wallets for staking because it supports all Cardano tokens and provides multipool staking with high APY. Moreover, the user-friendly interface facilitates all the features within the wallets.

Notable Features of Eternl

• Eternl provides access to Cardano dApps through a browser extension and a mobile app. It’s one of the best Cardano wallets for exploring and engaging with the eco
• Supports multipool staking, providing users with 3.5% in APY on multiple Cardano pools
• Supports multiple types of tokens, including NFTs and Cardano-based tokens, making it a versatile solution for users
• Allows users to integrate hardware wallets for extra security

Eternl Security

Eternal provides all the necessary security features, such as a recovery phrase, password, biometric access, and other mechanisms. However, it’s not open-source, which might be a concern because it’s a light wallet relying on external parties.

Pros & Cons of Eternl

Pros explained:

• Accessible as a mobile app on the App Store and Google Play and as browser extensions for Brave Browser and Google Chrome
• Fast synchronization for transaction and data retri
• Staking and dApps: Eternl simplifies staking and connecting to decentralized applications, making it convenient for users to engage with Cardano’s eco

Cons explained:

• It is not open source, leading to concerns about transparency among some users
• Complex interface, which might not be ideal for new users

Exodus – Best Cardano Wallet for Hardware Integration

Exodus is a versatile crypto wallet that can be the best option for safeguarding ADA thanks to its integration with Trezor, more specifically, Trezor Safe 3, which supports over 8,000 cryptocurrencies and comes with security features like the Secure Element, a certified EAL6+ chip.


The wallet supports over 50 blockchain networks. It’s available as a desktop wallet, browser extension, and mobile app on iOS and Android.

Notable Features of Exodus Wallet

• Exodus supports in-app staking for ADA, allowing users to earn rewards directly on the app
• The wallet provides a feature-rich browser extension for accessing Cardano dApps and NFTs
• It provides a built-in exchange, allowing users to trade and manage ADA and other assets without recurring to external, centralized crypto exchanges
• The wallet provides a fiat onramp, allowing users to purchase cryptocurrencies via services like Moonpay, Ramp, Sardine, and Robinhood Connect (availability varies by location). Purchases can be made using debit or credit cards, with funds deposited directly into the Exodus wallet.

Exodus Wallet Security

Exodus’ security features are pretty basic. It only provides users with a seed phrase, and that’s about it. It does not provide scam s, biometric authentication, 2FA, or any other security mechanism in today’s wallets.

That said, Exodus reminds users that they bear full responsibility for their wallet’s safety; if their device is lost, compromised, or left vulnerable, their funds are at risk.

However, the Exodus team consistently updates users on the wallet’s status, ly addresses any vulnerabilities, and makes it compatible with multiple hardware wallets.

Pros & Cons of Exodus Wallet

Pros explained:

• Easy setup for desktops, browsers, or mobile devices. It allows users to sync a single wallet using a 12-word seed phrase
• Customer support is available via chat, email, help pages, and educational content on safety practices
• Regular updates and security reports every two weeks
• Supports staking directly through the wallet
• Allows hardware wallet integration with Ledger and Trezor

Cons explained:

• Lack of extra security mechanisms, such as 2FA, biometric access, and more
• Not open source

Best Cardano (ADA) Wallets – Final Тhoughts

There’s a wallet to suit every preference. However, it’s crucial to analyze each wallet’s pros and cons, range of features, functionalities, and security to choose the Cardano wallet that best suits you.

Our comprehensive guide on the best Cardano wallets highlights their diverse range of applications—each offering unique features tailored to different needs.

Liquid staking and, by extension – liquid restaking – have been some of the most interesting and fast-growing narratives in the past year.

Lista DAO is introducing an open-source liquidity protocol that’s designed to earn yield on collateralized cryptocurrencies such as BNB, ETH, certain stablecoins, and other assets, while also enabling the borrowing of the protocol’s decentralized stablecoin called lisUSD.

The team also coined the term “destablecoin,” which is used to describe the decentralized nature of lisUSD.

With that in mind, let’s dive deeper into Lista and its intricacies.


What is Lista DAO?

Lista DAO (decentralized autonomous organization) brings forward a liquidity protocol for earning yields on multiple cryptocurrencies, as mentioned above.

It is made of a dual token model, where the two native cryptocurrencies are lisUSD (destablecoin) and LISTA. It also has a set of mechanisms that are engineered to support features such as instant conversions, borrowing, yield farming, asset collateralization, and more.

The team behind Lista consists of experienced smart contract developers, according to the main website, who aim to position lisUSD as one of the most widely-used decentralized stablecoins by leveraging Proof-of-Stake and yield-bearing assets.

About LisUSD, the Destablecoin

Destablecoin is a term used to describe a relatively new asset type in the industry. The “de” prefix stands for “decentralized.”

These destablecoins take advantage of decentralized crypto assets that have been staked through a liquid-staking protocol as collateral and do not aim to achieve absolute stability in terms of price with fiat currencies like the USD.

In that sense, they are not fully volatile but definitely carry more volatility relative to absolute stablecoins.

It’s also true that destablecoins are different than all the different types of stablecoins out there.

• They are entirely decentralized. lisUSD, for instance, will be using decentralized assets as collateral, unlike DAI, for example, which leverages USDC.
• Destablecoins also leverage assets staked on liquid-staking platforms.
• As mentioned above, destablecoins don’t aim to achieve absolute price parity with the USD or other fiat-based currencies.

Lista DAO and its Features

Lista DAO is designed to provide users with the abilities to:

• Participate in the governance of the protocol through LISTA tokens
• Claim rewards for borrowing lisUSD in LISTA
• Farm lisUSD
• Borrow lisUSD
• Collateralize BNB

The intent behind the protocol is to deliver a solution for a problem that hs been experienced for a long time by some users – that of overcollateralized stablecoins for users who try to leverage their funds with a collateral dept position (CDP).

Lista uses a combination of features such as the functionality of the MakreDAO model, liquid staking, as well as more liquidity from liquidity providers (LPs) on decentralized exchanges to avoid issues such as frozen funds.

The Tokenomics of Lista DAO

As mentioned above, there’s a dual token model in place where lisUSD is the active destablecoin of the protocol, while the LISTA token is its native cryptocurrency.

The purpose of LISTA is to:

… provide a convenient and secure mode of payment and settlement between participants who interact within the ecosyste on Lista DAO without any intermediaries such as centralized third party entity/institution/credit.

It’s a BEP-20 and ERC-20 compatible token. It shall also be used to promote decentralized governance, where holders can propose and vote on proposals to determine upcoming upgrades, features, and parameters of the protocol.

The total supply will be 1,000,000,000. The token distribution looks like this:

Source: ListaThe tokens will be allocated per the following timetable:

Source: Binance## How to Participate in the Binance Megadrop

Lista will be the second project that Binance is launching through the so-called Binance Megadrop platform.

10% of the LISTA supply will be allocated and reserved for users who participate in the campaign.

The program aims to provide users with very early-stage access to some Web3 projects before they get listed on major exchanges.

In the following, you can find a step-by-step guide on how to participate.

First, you will need a Binance account.

You can register one using this link and also earn a $600 welcome bonus as an exclusive deal for CryptoPotato readers!

Once you have this done, you need to navigate to the Megadrop section and lock your BNB to earn scores. This is also where you can subscribe your BNB and lock it for a certain period of time. This will earn you a score.

The longer the subion period is, the higher the multiplier will be too.


The next thing that you should do is Web3 quests. You will need the Binance Web3 wallet. You can creat yours from the Binance mobile app. Just navigate to your wallets tab at the bottom and then tap on the Web3 button at the top as shown below:


From here, simply follow the instructions, which will lead you to generating your Web3 wallet. Once you have that ready, navigate back to the Megadrop section and simply hit the start Quest at the bottom and you will have to stake some with Lista.

The total score you receive will always be a combination of your locked BNB score, your quest multiplier, and your Web3 quest bonus. here’s the formula:

Total Score = (Locked BNB Score * Web3 Quest Multiplier) + Web3 Quest Bonus.

If you choose not to do quests and simply stake BNB, you will get a multiplier of 1.

This post has been powered by Lista DAO.

The founder of the stablecoin lending and borrowing protocol Curve Finance, Michael Egorov, is seeing his position liquidated.

He had over 111 million CRV tokens in collateral and $20 million in debt over four DeFi platforms, reported Lookonchain on June 13.

As the price of CRV fell, other positions went underwater, causing a cascade of liquidations.

The #Curvefi founder(Michale Egorov) is being liquidated!

He currently has 111.87M $CRV($33.87M) in collateral and $20.6M in debt on 4 platforms. pic.twitter.com/huwgetBXuS

— Lookonchain (@lookonchain) June 13, 2024

Curve Finance Woes

CRV prices have been crumbling for the past week, having fallen 45% since June 7. This has put pressure on those using the token as collateral for DeFi loans, such as the platform’s founder.

Further pressure has been put on the platform and token prices following a $20 million hack of the UwU lending protocol earlier this week.

In response to the incident, Egorov said that ‘soft liquidations’ worked well. “The showed a fantastic performance,” he said before adding “This gave time for liquidators to prepare funds and OTC-liquidate the hacker’s position. As a result, the has no hacker’s funds left, no bad debts, everything operates well.”

Soft liquidations are part of Curve’s Lending-Liquidating Automate Market Maker Algorithm (LLAMMA).

As of June 12, Egorov was borrowing around $96 million in stablecoins, mostly Curve’s crvUSD, against $141 million in CRV, across five accounts on five protocols, according to blockchain intelligence firm Arkham.

$140M CRV nearing Liquidation

Curve founder Michael Egorov is currently borrowing $95.7M in stablecoins (mostly crvUSD) against $141M in CRV, across 5 accounts on 5 protocols.

Based on current rates, Egorov is paying $60M annualized in order to keep his positions open on… pic.twitter.com/ipTlWLZOAx

— Arkham (@ArkhamIntel) June 12, 2024

Industry observers and DeFi experts had previously warned about the potential impacts of such a large debt position.

“This has ramifications throughout the whole DeFi sector, unfortunately, so expect some pullbacks,” commented trader ‘MisterSpread’ on X on June 13.

“CRV balance on exchanges hit an all-time high, rising 57% in the past two hours,” observed Crypto Quant founder Ki Young Ju in a post on X on June 13.

DeFi Fallout

CRV prices tanked 33% in a matter of minutes in late trading on June 12. The DeFi asset is currently trading at $0.283 following a fall from an intraday high of $0.374 CRV is now down a painful 98% from its all-time high of $15.37 in August 2020.

Other DeFi tokens such as GMX and Frax Share (FXS) are also seeing losses today but not as severe.

Markets are flat on the day at $2.58 trillion, with very little movement from Bitcoin and Ethereum following their falls earlier this week.

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dWallet Network has announced expanding its technology to the Layer 1 blockchain network, Aptos. This move aims to introduce Zero Trust Protocols (ZTPs) with inherent multi-chain interoperability capabilities to the decentralized finance (DeFi) and gaming ecos on Aptos.

By incorporating dWallet’s Zero Trust architecture, ZTPs developed on Aptos will be able to seamlessly sign transactions on Bitcoin, Ethereum, or any other blockchain network without the need for bridging or token wrapping mechanisms. The end goal is to unlock multi-chain experiences.

Broadening DeFi, Gaming Within Aptos

According to the latest press release shared with CryptoPotato, this integration holds particular significance for DeFi projects on Aptos. It presents a crucial capability to natively include BTC and ETH transactions, marking a milestone in blockchain interoperability and functional versatility.

In a statement, Omer Sadika, Co-Founder of dWallet Network, said that bringing the decentralized, non-collusive dWallet building block to the fast and secure Aptos blockchain enables ZTPs. This would also aid in expanding the horizons for DeFi and gaming protocols within the Aptos eco. Such a step represents a significant leap toward dWallet Network’s vision of Zero Trust and a multi-chain future.

Professor Benny Pinkas, Researcher at Aptos, also doubled down on the integration and said,

“The dWallet team led pioneering cryptography research to introduce the innovative 2PC-MPC protocol, enabling multi-chain Zero Trust. I’m excited about developers in the Aptos eco being able to develop ZTPs that operate seamlessly across all of Web3 in a cryptographically secure way.”

The Zero Trust Framework

dWallet Network introduces a fundamental building block that enables individuals to have control over any asset and the ability to enforce any logic across any network. dWallets leverage cryptographic signatures, which have traditionally been the default authentication method for blockchain networks.

This makes a dWallet-generated signature indistinguishable from a regular user’s signature from the network’s perspective.

This capability extends even to non-smart contract networks like Bitcoin, enabling the creation of Zero Trust Protocols (ZTPs) that operate across networks without the need for bridging or token-wrapping mechanisms.

These ZTPs uphold the core Web3 principles of decentralization and user ownership. dWallet’s Zero Trust framework represents a significant stride towards realizing a truly user-centric, interconnected, and flexible blockchain infrastructure.

Earlier this year, dWallet Networ announced adding support for EVM-compatible Layer 1 blockchain, Monad.

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The volatile nature of the cryptocurrency market has ed many smart investors to adopt the age-long investment strategy of diversifying their crypto holdings to reduce risk. This diversification, however, poses a new problem as users find it difficult to keep track of their crypto assets, especially as they grow in value.

Crypto portfolio trackers have become essential tools for everyone looking to prevent the possible consequences of losing track of their investments. With the right crypto tracker, users can monitor the value of their assets in real-time, calculate profits and losses, and find out the latest market trends.

This article provides a detailed overview of some of the best portfolio trackers for crypto assets and their features. We will also consider the cost of these tools and how to access them.

Table of Contents

• What is a Crypto Portfolio Tracker?
• Why Should You Use a Portfolio Tracker?
• The 8 Best Crypto Portfolio Trackers
  • CoinStats
  • CoinTracker
  • Kubera
  • CoinMarketCap
  • Delta Investment Tracker
  • CoinGecko
  • Koinly
  • CryptoCompare
• Frequently Asked Questions (FAQs)
• Closing Thoughts

What is a Crypto Portfolio Tracker?

A cryptocurrency portfolio tracker is a digital asset platform that allows investors to consolidate and track all of their crypto investments in one place. These applications provide users with a comprehensive overview of their crypto holdings across multiple exchanges and wallets, enabling them to track the assets’ performance simultaneously.

To facilitate easy asset monitoring, the crypto portfolio apps or websites typically require users to input their portfolio data, including linking a crypto exchange or wallet. While some wallet-tracking crypto platforms provide automatic integrations with exchanges and wallets, others require users to input their transactions manually.

The best crypto portfolio tracker platforms allow users to monitor their portfolios and offer trading tools designed to help them make smart decisions. Some of these tools include customizable s and analytics tools to identify market trends and assess risks quickly.

Why Should You Use a Portfolio Tracker?

Using a crypto portfolio tracker is paramount for investors in the rapidly evolving crypto eco, especially if their assets are diversified across multiple exchanges and wallets. Here are a few key benefits of using one:

Real-time Asset Monitoring

The best crypto wallet trackers enable investors to consolidate all their digital asset investments across different platforms and monitor them in one interface.

Portfolio Performance Overview

‍Crypto wallet tracking tools are essential for investors with digital assets scattered across multiple crypto platforms. These tools automatically calculate the overall portfolio value, gains, and losses at any time, helping investors to make data-driven decisions.

Staying Updated with Market Trends

The best crypto portfolio trackers provide users with real-time market data, relevant industry news, and significant market trends. This information allows investors to make smart choices about their investments.

The 8 Best Crypto Portfolio Trackers

The number of crypto portfolio apps available in the market makes it a daunting task for investors. As such, we have compiled a comprehensive list of the best crypto portfolio trackers based on their functionality, reputation, ease of use, and supported crypto assets.

CoinStats

CoinStats is one of the most popular and reputable crypto wallet trackers on the market. Founded in 2017, the platform allows users to track and manage their investments across multiple exchanges and wallets.


CoinStats provides users with real-time data on over 20,000 crypto assets, including non-fungible tokens (NFTs) and DeFi tokens. Some supported cryptocurrencies include BTC, ETH, USDT, SOL, DOGE, SHIB, and LTC. It also features popular NFT collections like Bored Ape Yacht Club, Azuki, DeGods, and more.

Users can monitor their assets on over 1,000 DeFi protocols across multiple chains. The platform also integrates with over 300 crypto exchanges and wallets via API keys, allowing users to monitor the performance of their digital assets seamlessly.

Some of the key features that CoinStats provides include:

Customizable s

These s help traders receive timely notifications about the latest crypto market updates. Thus, users can quickly know when price changes occur in any of their chosen assets and when notable transactions take place.

Industry-grade encryption standards and access control mechanisms

Due to the large amounts of sensitive user data that CoinStats processes, the platform prioritizes security by adopting some of the best encryption methods in the industry.

Detailed asset analytics

CoinStats provides users with robust analytics tools that provide insight into their portfolio’s overall growth. Users can easily assess an asset’s profit and loss, growth projections, and historical data.

In-built asset swap and trading features

CoinStats allows users to quickly swap tokens without leaving the platform. Users can also purchase cryptocurrencies on the platform using various fiat payment options. Thus, crypto investors can manage all their trading, swapping, and storing activities on the same platform.

The platform offers three account types: Basic, Premium, and Degen. The Basic plan allows users to track 10 portfolios and contains a few of the platform’s features.

The Premium plan costs $13.99 per month and allows users to track 100 portfolios, conduct 100,000 transactions, receive custom s, view portfolio heatmaps, and use other features not available on the Basic plan.

The Degen plan costs $62.91 per month. It offers wallet tracking and management for 500 portfolios, 1 million transactions, VIP support, an unlimited daily sync count per portfolio, an AI bull market price, and more.

CoinStats is available on both web and mobile. The mobile app is compatible with Android and iOS devices.

Pros

• Supports an extensive number of cryptocurrencies, over 20,000
• Integration with major exchanges and wallets
• User-friendly and intuitive interface
• Reliable security
• Customizable real-time price s
• DeFi and NFT wallet explorer

Cons

• Limited functionality on the Basic plan

CoinTracker

CoinTracker is a versatile crypto portfolio management platform that simplifies crypto wallet tracking and tax reporting. The platform enables users to quickly analyze their trades and gain insight into the overall performance of their crypto portfolio over a given period.


CoinTracker offers wallet tracking services for 10,000+ cryptocurrencies across over 500 wallets and exchanges, including Coinbase, Binance, MetaMask, Trust Wallet, and Ledger. The platform supports multiple NFTs and offers robust integrations with over 20,000 DeFi protocols, including Uniswap, 1inch, and Aave.

Some of the key features that CoinTracker offers include:

Tax Reporting

Navigating the crypto tax landscape can be challenging, especially for investors conducting multiple transactions across different exchanges and DeFi protocols.

With each new transaction, a taxable event occurs, and it can be daunting to determine what is taxable or not. Thus, crypto tax software like CoinTracker helps to streamline the tax reporting process, performing all the calculations for users.

CoinTracker connects users’ wallets and automatically populates their transactions on multiple crypto platforms. Within minutes, these transactions are classified into taxable and non-taxable.

High Security

CoinTracker offers users maximum security safeguards that protect their sensitive information. The platform uses end-to-end encryption and a token-based, two-factor authentication to protect user accounts.

CoinTracker offers both free and paid plans. The free plan has limited functionality, with just tax summary and portfolio value.

To benefit from the platform features, users can choose from the paid plans – Base, Prime, and Ultra – which are charged annually. The Base plan costs $59 annually and offers portfolio tracking, tax reports for all years, and up to 100 transactions.

The Prime plan costs $199 per year and allows users to conduct up to 1,000 transactions, in addition to portfolio tracking, performance tracking, tax loss harvesting, and more.

The Ultra plan is the most expensive plan on the platform, priced at $599 per year. This plan offers users powerful tools to optimize their taxes and portfolio performance. It supports up to 10,000 transactions, priority customer support, tax lot breakdowns, portfolio and performance tracking, and other perks.

CoinTracker is available both as a web version and as a mobile app. The app is compatible with both Android and iOS devices.

Pros

• Multi-asset support
• It supports 500+ wallets and exchanges
• Integrations with 20,000+ DeFi protocols
• High-quality analytics
• Simplified tax reporting
• Mobile app

Cons

• The free plan is basic.
• Limited portfolio tracking features

Kubera

Kubera is a comprehensive portfolio tracker that helps investors manage financial assets, from cryptocurrencies to traditional investment products like stocks, real estate, and more. The platform enables users to consolidate all of their crypto and non-crypto investments and monitor them from one place.


Kubera offers premium portfolio and net worth tracking tools that allow users to monitor the performance of their assets. Since its inception in 2018, the platform has gained popularity among investors, tracking assets worth over $42 billion.

The platform supports many DeFi applications across multiple chains, including Ethereum, Solana, BNB Chain, and Arbitrum. It grants users access to major crypto exchanges and trading platforms, allowing them to track different cryptocurrencies and NFTs. You can integrate your Solana wallet or your USDT wallet into it without any issue.

Furthermore, Kubera supports over 20,000 financial institutions, including banks, brokerages, and investment accounts. Users can track the price performance of real estate, automobiles, precious metals, ETFs, etc.

Some of Kubera’s core features include:

API import functionality for crypto exchanges.

Kubera allows users to import their preferred crypto exchanges automatically. However, if the exchange is not listed, users can manually enter it.

Advanced charting tools

The platform provides users with a visual representation of their portfolio composition using pie charts to highlight each asset’s percentage share. This feature enables investors to monitor their portfolio diversity.

Kubera does not offer a free plan. However, the platform gives users a 14-day trial for $1. The paid subion starts at $150 per year for individuals and $225 per year for families. The business plan starts at $150 per month.

Pros

• Supports diverse financial assets
• Real-time crypto price tracking and market updates
• Advanced charting tools
• Detailed analysis of portfolio performance

Cons

• No free plan
• Limited crypto exchange and wallet support

CoinMarketCap

CoinMarketCap (CMC) is the largest and most popular crypto tracking platform. Even if you are not a crypto investor, you probably have used CMC at one point to check the prices of popular cryptocurrencies.


Since its launch in 2013, CMC has become a reputable platform for crypto price tracking for investors worldwide. The platform monitors thousands of cryptocurrencies, from the most popular, like BTC and ETH, to newly launched coins. CMC tracks the prices of more than 11,000 cryptocurrencies from over 400 exchanges.

The platform allows users to track their investments in three ways:

1. Connecting a wallet
2. Manually adding transactions
3. Connecting to Binance account.

Some of the core features on CoinMarketCap include:

• It offers investors real-time market data, including market caps, trading volumes, and overall asset performance over a trading period.
• CMC provides users with charting tools and historical data for each cryptocurrency, allowing investors to compare price performance and make smart trading decisions.
• CMC allows users to create personalized watchlists of their preferred cryptocurrencies.

In addition to its web version, CMC has a mobile app that keeps users updated with crypto prices and other market trends.

Pros

• Free to use
• Supports 11,000+ cryptocurrencies
• Offers charting tools and historical data
• Multilingual support.
• Educational resources
• Personalized crypto watchlist
• Offers crypto market news and analysis

Cons

• Manual data input can be time-consuming and inaccurate.
• Limited functionality compared to paid crypto wallet trackers
• There are no direct API connections to the supported exchanges and wallets
• Multiple pop-up ads can affect the user experience

Delta Investment Tracker

Delta is a crypto portfolio tracker with a sleek design and customizable interface. It allows users to monitor their investment portfolio seamlessly. The platform is well suited for users with a diversified portfolio as it supports a wide variety of assets, including cryptocurrencies, stocks, fiat currencies, and more.


Delta allows users to track the value of their investments, providing real-time profit and loss metrics and detailed analysis of chosen assets. The platform supports over 10,000 cryptocurrencies, including blue chips like BTC and ETH and popular memecoins like SHIB and DOGE.

On the platform, users can easily connect to more than 300 crypto exchanges and wallets. Delta automatically syncs users’ wallets, allowing them to monitor their portfolios from one place. Users also have the option of manually entering their preferred exchange.

Here are some core features of the Delta platform:

Comprehensive Trading Analysis

Delta uses advanced charting tools to offer users a detailed overview of their asset allocation, most used exchanges, frequent transactions, and more.

Custom Notifications

The platform allows users to receive personalized notifications that suit their preferences. Users are immediately updated on price changes and significant transactions, enabling them to make informed trading decisions.

Performance Tracking and Risk Analysis

Delta helps track the monthly, quarterly, or yearly performance of assets in their portfolio. The platform also regularly measures portfolio risk factors to enhance performance.

ICO Support

The platform allows users to add their preferred tokens even when they are not listed on exchanges. Through the Delta Direct feature, users can receive notifications about and participate in upcoming token launches and initial coin offerings (ICOs).

Delta offers free and paid plans to users. The free plan provides limited access to the platform’s features. Conversely, the paid subion – Delta Pro – grants users access to exclusive features, including advanced insight and metrics, real-time market prices, and unlimited connections.

The Delta Pro subion costs $12.99 per month and $99.99 per year. Users can also opt for a lifetime subion, which costs $229.

Pros

• Real-time portfolio tracking
• Personalized notifications
• Multi-asset support
• Detailed portfolio analysis
• Supports multiple exchanges and wallets
• Sleek design and a user-friendly interface

Cons

• Limited functionality on the free version
• A few charting tools

CoinGecko

CoinGecko is a globally recognized crypto ranking platform. It was founded in 2014 as a comprehensive cryptocurrency data aggregator that provides detailed crypto market analysis, tracking asset prices, trading volumes, and market capitalization in real-time.


CoinGecko allows millions of users worldwide to monitor the prices of over 14,000 cryptocurrencies and provides support for more than 700 crypto exchanges. The platform does not support auto-syncing; thus, users have to manually enter their chosen cryptocurrencies and exchanges.

Some of the platform’s key features include:

• CoinGecko allows users to create multiple portfolios for different trading strategies on the platform. Users can have different portfolios for their DeFi, HODL, conservative, and high-risk investment strategies. The platform allows users to create as many portfolios as they want.
• The platform also tracks community growth, the development of open-source codes, major events in the crypto industry, and relevant on-chain metrics.
• CoinGecko provides users with historical asset data and analytics insights to enable them to make informed decisions.

CoinGecko offers its portfolio tracking services for free on its web and mobile versions. However, users can go ad-free with the CoinGecko Premium subion, which includes several exclusive perks. Users can choose between the monthly and annual subion plans, which cost $8.32 and $99.90, respectively.

Pros

• Real-time price monitoring for 14,000+ cryptocurrencies
• Free to use
• Customizable watchlist and notifications
• Supports multiple portfolios for different trading strategies
• Offers advanced charting tools and historical asset data
• Simple and easy-to-use interface
• Mobile app

Cons

• No automatic portfolio management
• Manually entering transactions is time-consuming and increases the chances of human error
• Pop-up ads can be distracting

Koinly

Koinly is a cryptocurrency tax calculator and wallet tracker that helps users manage their investments and create tax reports based on their transaction data. Since its launch in 2018, the crypto portfolio app has tracked over $250 million of users’ assets.


The platform allows users to automatically sync their crypto wallets and investment portfolios in one place and import all transactions. Users can then monitor their portfolio performance and investment strategies.

Koinly supports 20,000+ cryptocurrencies and integrates over 800 crypto exchanges and wallets. The platform provides accurate crypto tax reports for over 20 countries, including Japan and the United States, and supports 100+ countries.

Some appealing features of Koinly include:

Automated Tax Reporting

Koinly uses sophisticated algorithms to calculate market prices during user transactions, calculate gains and losses, and generate tax reports. These calculations are fast and accurate, saving investors time and allowing them to focus on their investment strategies.

Tax loss Harvesting

The platform helps users consider the impact of selling their non-profitable investments at a loss to reduce their capital gains tax.

Crypto Glossary

Koinly has robust educational resources that provide users with knowledge of the crypto market. The Glossary feature contains an alphabetical list of crypto terms that are helpful to experienced and new crypto investors.

Koinly has a free version that offers access to basic platform features. However, users must subscribe to one of the three paid plans (Newbie, Hodler, or Trader) to download their tax reports. The Newbie subion costs $49 per tax year and offers access to 100 transactions, portfolio tracking, and tax reports.

The Hodler plan costs $99 per tax year and offers portfolio tracking, 1,000 transactions, tax reports, unlimited wallets and exchange integrations, and more. The Trader subion is for expert traders and costs $199 per tax year. Users can access over 3,000 transactions, margin trades and DeFi, tax reports, and more.

Pros

• Multi-asset support, over 20,000 supported cryptocurrencies
• Automatic tax reporting
• Advanced analytics
• Multi-wallet integration
• User-friendly interface

Cons

• The free version offers access to very few features.
• Automatic data import does not work on some exchanges and wallets

CryptoCompare

CryptoCompare is a robust eco of crypto resources designed to provide users with a comprehensive and holistic market overview. The platform offers investors real-time information on prices, market trends, and trading volumes of thousands of cryptocurrencies and traditional investment products.


The platform provides investors with reliable data on over 5,000 coins and 240,000+ currency pairs. The portfolio tracker uses powerful algorithms to help users monitor their crypto assets and analyze their performance over time.

CryptoCompare’s user interface features a sleek and functional design that makes it easier for users to navigate platform features. The portfolio tracker offers users access to a list of potentially rewarding tokens, mining platforms, and gaming platforms.

Some key features that users can access on CryptoCompare include:

Detailed Market Insights

CryptoCompare allows users to receive detailed market insight by aggregating and analyzing tick data from several reputable crypto platforms.

Robust Educational Resources

The platform has many learning materials, including an up-to-date news section, to provide users with more information about the crypto market.

CryptoCompare caters to a diverse group of clients, from individual investors to enterprises. Thus, the platform offers different subion plans based on users’ investment needs.

The Personal plan is completely free and suitable for individuals managing their assets. Access to advanced features on the platform is available to users on the Corporate and Enterprise plans.

The Corporate plan costs $349.99 per month, and it offers advanced crypto data solutions to users. The Enterprise plan unlocks all limits, and the cost depends on the specific needs of the enterprise user.

Pros

• Comprehensive cryptocurrency database
• Supports multiple traditional investment products
• Automatic wallet integration
• Ability to create multiple portfolios
• Mobile support

Cons

• The paid subion plan is more expensive than other crypto trackers on the list.

Frequently Asked Questions

Here’s a list of some frequently asked questions (FAQs) about the best crypto portfolio tracker:

Is there a free crypto portfolio tracker?

Yes, most of the wallet trackers mentioned in this article offer free versions with limited access to supported features. Others, like CoinMarketCap and CoinGecko, are completely free to use.

Which crypto portfolio tracker is best for beginners?

CoinMarketCap and CoinGecko offer user-friendly, intuitive interfaces suitable for beginners. They both provide educational resources that help new crypto investors understand how the market works.

How to track crypto gains?

Some crypto wallet trackers mentioned in this article provide tax reporting features that allow users to import their transactions and calculate their gains. CoinStats and Koinly offer these features, and users can leverage them to track their crypto gains.

Best Crypto Portfolio Tracker – Closing Thoughts

Crypto trackers have become indispensable tools in the ever-expanding and volatile crypto world. By leveraging these tools, millions of digital asset investors of all experience levels have optimized their trading strategies while managing several assets in one place.

Currently, the market offers a diverse range of cryptocurrency portfolio trackers, each offering features that appeal to specific needs. We have examined a few of them based on their usability, supported cryptocurrencies and exchanges, security, pricing, and more.

Our selection of the best portfolio trackers for crypto will give investors insight into their different features and help them decide which one is right for their investing needs. Since most of the portfolio trackers mentioned in this article offer free versions, investors can try out multiple options to find one best suited for them.

In 2024, the United States Securities and Exchange (SEC) made the historic decision to approve the trading of spot Bitcoin exchange-traded funds (ETFs).

This opened a new chapter in the cryptocurrency industry, further legitimizing BTC as an investment option that regulators deem worthy of regular investors’ access.

However, there are multiple intricacies associated with buying and selling spot BTC ETFs, so we’ve prepared the ultimate guide to which ones are the best, their associated fees, custodians, and everything you need to know about this new product.

Let’s take a closer look.


Table of Contents

• What Are Bitcoin Exchange-Traded Funds (ETFs)?
• Futures or Spot Bitcoin ETFs?
• The Best Spot Bitcoin ETFs
  • BlackRock iShares Bitcoin Trust (IBIT)
  • Grayscale Bitcoin Trust (GBTC)
  • Fidelity Wise Origin Bitcoin Trust (FBTC)
  • Bitwise BITB
  • Valkyrie Bitcoin Fund (BRRR)
  • Ark 21Shares Bitcoin ETF (ARKB)
  • Franklin Bitcoin ETF (EZBC)
  • Invesco Galaxy Bitcoin ETF (BTCO)
  • VanEck Bitcoin Trust (HODL)
  • WisdomTree Bitcoin Fund (BTCW)
  • Hashdex Bitcoin ETF (DEFI)
• In-Kind and In-Cash Redemption Models for Spot Bitcoin ETFs
  • In-Kind Redemption Model
  • In-Cash Redemption Model
• How to Choose and Invest in Spot Bitcoin ETFs
• Benefits of Spot Bitcoin ETFs
• Alternatives to Spot Bitcoin ETFs
• Best Bitcoin ETFs: Conclusion

What Are Bitcoin Exchange-Traded Funds (ETFs)?

Explained simply, a spot Bitcoin ETF provides investors with direct exposure to Bitcoin, unlike futures-based Bitcoin ETFs, which allow them to speculate on BTC’s future price, hence the name.

Either way, both allow users to open positions in the market without being obliged to hold the cryptocurrency. On a surface level, Spot Bitcoin ETFs work this way:

• The Spot Bitcoin ETF issuer, like BlackRock, buys Bitcoin and holds the funds with a secure custodian. That custodian (spoiler , it’s mostly Coinbase) typically uses cold storage solutions, which are hardware wallets stored somewhere safe and offline.
• Custodians not only safeguard the assets on behalf of issuers. In fact, the custodian is in charge of surveillance-sharing agreements with the ETFs’ listing exchanges.
• Note that the ETF might invest in Bitcoin directly through a broker or buy derivatives linked to the price of BTC.
• As an investor, you can simply buy the shares of the ETF on stock exchanges like the NYSE or NASDAQ or, more simply, brokers that have listed the ETF’s shares. So, when you do that, you’re essentially buying the ETF’s shares, which consequently means you’re buying a portion of the current market value of the fund’s Bitcoin holdings.

In other words, you don’t need to buy Bitcoin from a cryptocurrency exchange or deal with the complexities of managing the coin yourself, setting up a trustworthy BTC wallet, setting up security measures, etc., because you’re buying the shares in the fund that holds the BTC.

This is especially convenient if you’re a newcomer in the crypto space and don’t want to deal with the inherent burdens of buying BTC. Or any crypto asset, for that matter.

In addition, spot Bitcoin ETF issuers are regulated financial companies that adhere to the most stringent regulations of the United States Securities and Exchange Commission. It’s also worth noting that spot Bitcoin ETFs have officially been approved by the SEC in January 2024.

To learn more about Bitcoin you can read our beginners guide.

Futures or Spot Bitcoin ETFs?

Bitcoin futures ETFs allow users to invest in Bitcoin’s future price movements without holding the actual asset. That means they can use a futures contract to gain indirect exposure to BTC’s price.

Typically, investors use futures contracts to lock in prices and take offsetting positions against unpredictable market movements. But they can be expensive; futures ETFs come with higher costs related to managing futures contracts. Their market dynamics add complexity and risk, as the price of futures contracts can diverge significantly from Bitcoin’s spot price.

We’ll review the Bitcoin futures ETF in another section at the end of this article.

The Best Spot Bitcoin ETFs

Now that you understand how these financial vehicles work, and other important information is clear, let’s look at the best Spot Bitcoin ETFs.

BlackRock iShares Bitcoin Trust (IBIT)

BlackRock’s Spot Bitcoin ETF, known as iShares Bitcoin Trust (IBIT), is designed to provide investors with a cost-effective way to gain exposure to Bitcoin’s price performance without directly owning the cryptocurrency.


The ETF tracks the price of Bitcoin, allowing investors to benefit from its price movements through a traditional brokerage account. This ETF simplifies the investment process by handling the storage and security of Bitcoin, alleviating the need for individual investors to manage these aspects themselves.

Fund Facts

Overview and fund facts:

• Fund inception: Jan 05, 2024
• Sponsor fee: 0.25% (established after reaching over $5 billion in holdings)
• Exchange: NASDAQ
• Custodian: Coinbase Custody Trust Company, LLC
• Assets Under Management (as of June 2024): 295,457 BTC ($20,8B)

Grayscale Bitcoin Trust (GBTC)

The Grayscale Bitcoin Trust (GBTC) ETF is one of the largest Spot Bitcoin ETFs, having dozens of billions in assets under management (UAM).


GBTC was created in 2013 and functioned through private placements. In other words, it was only available to accredited investors. The company had famously promised that the fund would be converted into an ETF.

Due to regulatory hurdles back then, the fund suffered lower liquidity as it traded on the OTC (over-the-counter) market, had limited accessibility for most retail investors, and potential tracking discrepancies due to the lack of creation/redemption mechanisms. This didn’t stop it from becoming one of the largest Bitcoin funds in the market, however.

The premium in the Grayscale Bitcoin Trust (GBTC) refers to the difference between the market price of GBTC shares and the net asset value (NAV) of the underlying Bitcoin that the trust holds. This premium (or discount) indicates how much investors are willing to pay above (or below) the actual value of the Bitcoin held by the trust.

You should note that the fee structure is notably higher than other Bitcoin ETFs available today.

Fund Facts

Overview and fund facts:

• Fund inception: 2013, uplisted as a Spot Bitcoin ETF on January 10, 2024.
• Sponsor Fee/Expense Ratio: 1.5% management fee.
• Exchange: NYSE Arca
• Custodian: Coinbase Custody Trust Company, LLC.
• Total AUM and notional value (as of June 2024): 285,458 BTC ($20,3B).

Fidelity Wise Origin Bitcoin Trust (FBTC)

The Fidelity Wise Origin Bitcoin Trust (FBTC) is one of the industry’s first spot Bitcoin exchange-traded products (ETPs). Launched by Fidelity Investments, FBTC aims to track Bitcoin’s performance, providing investors with direct exposure to this digital asset.


The fund is available to financial advisors, institutional investors, and retailers through Fidelity’s online platforms.

Unlike other ETFs, FBTC’s Bitcoin is secured by Fidelity Digital Assets Services, which has been regulated by the New York Department of Financial Services (NYDFS) since 2019.

If you’re confused as to why FBTC is an ETP rather than ETF, then there’s some context you need to know. First, all ETFs fall under a broader category called exchange-traded products (ETPs), which are listed on exchanges and can be traded like stocks during market hours.

In other words, ETFs are the most common type of ETP and are regulated by the Investment Company Act of 1940. They are pooled investments that typically include baskets of stocks, bonds, and other assets according to the fund’s objectives.

FBTC, while similar to an ETF as it trades on an exchange, is an ETP that holds 100% Bitcoin and does not invest in securities. That means it’s not subject to the regulations of the Investment Company Act of 1940. If you search for Fidelity’s Spot Bitcoin ETF on Google, you’ll see it’s marketed and signaled as an ETF, and in a technical sense, it is.

Fund Facts

Overview and fund facts:

• Fund inception: January 10, 2024
• Sponsor Fee/Expense Ratio: 0.25% (Waived until July 31, 2024.)
• Exchange: NYSE
• Custodian: Fidelity Digital Asset Services, LLC
• Total AUM (as of June 2024): Approximately $9.17B

Bitwise BITB

Bitwise’s BITB fund is a well-known spot Bitcoin ETFt. It exposes investors to Bitcoin’s price by tracking its performance (minus the Trust’s operating expenses and other liabilities).


BITB has an expense ratio of 0.95%. While it’s higher than most ETFs, it covers management fees, custody charges, and the fund administrator’s and auditor’s customary fees.

Fund Facts

Overview and fund facts:

• Fund inception: January 10, 2024
• Sponsor Fee/Expense Ratio: 0.95%
• Exchange: NYSE Arca
• Custodian: State Street Digital Assets
• Total AUM (as of June 2024): Approximately $2.4B

Valkyrie Bitcoin Fund (BRRR)

The Valkyrie Bitcoin Fund (BRRR) tracks the price performance of BTC by purchasing and holding Bitcoin directly.


Designed by Valkyrie Funds LLC, the ETF began trading on the Nasdaq exchange on January 10. It also uses Coinbase Custody to protect its Bitcoin holdings. The company has also provided investors with other types of investment vehicles for cryptocurrencies, including a Bitcoin and Ether Strategy futures ETF.

Fund Facts

Overview and fund facts as of June 2024:

• Fund inception: January 10, 2024
• Sponsor Fee/Expense Ratio: 0.25%
• Exchange: Nasdaq
• Custodian: Coinbase Custody Trust Company, LLC
• Total AUM (as of June 2024): Approximately $607M

Ark 21Shares Bitcoin ETF (ARKB)

Ark 21Shares Bitcoin ETF (ARKB), co-launched by Ark Invest and 21Shares, provides investors with a regulated way to gain exposure to Bitcoin.


It tracks its performance via the CME CF Bitcoin Reference Rate (New York Variant) and adjusts for expenses and liabilities. It trades on the Cboe BZX Exchange and has an expense ratio of 0.21% as of June 6, 2024.

As mentioned, the fund was co-launched by two well-known companies in the crypto and FinTech space.

Ark Invest is a renowned FinTech firm founded by Cathie Wood in 2014. It offers ETFs targeting themes like fintech innovation and is known for its bullish outlook on blockchain and disruptive technologies.

Meanwhile, 21Shares is a Swiss fintech company that specializes in cryptocurrency investment products. It offers various exchange-traded products (ETPs) that give investors regulated exposure to digital assets through traditional brokerage accounts.

Fund Facts

Overview and fund facts as of June 2024:

• Fund inception: January 11, 2024.
• Sponsor Fee/Expense Ratio: 0.21%
• Exchange: Cboe BZX Exchange
• Custodian: Coinbase Custody Trust Company, LLC.
• Total AUM (as of June 2024): $3,47B

Franklin Bitcoin ETF (EZBC)

The Franklin Bitcoin ETF (EZBC) was launched by Franklin Templeton on January 11, 2024. It invests 100% in Bitcoin and uses Coinbase Custody as its custodian.


Franklin Templeton is a global investment management firm under Franklin Resources, Inc., an American multinational holding company founded in 1947 by Rupert H. Johnson Sr. in New York City.

Similar to Fidelity’s FBTC, EZBC is not governed by the Investment Company Act of 1940, so it’s not subject to the same regulatory requirements because it does not invest in securities, it offers exposure solely to Bitcoin.

Fund Facts

Overview and fund facts:

• Fund inception: January 11, 2024
• Sponsor Fee/Expense Ratio: 0.19% (waived until August 2, 2024, or first $10 billion in assets)
• Exchange: CBOE BZX Exchange, Inc.
• Custodian: Coinbase Custody Trust Company, LLC.
• Total AUM (as of June 2024): $312.2M

Invesco Galaxy Bitcoin ETF (BTCO)

Invesco Galaxy Bitcoin ETF (BTCO) is a Spot Bitcoin ETF that provides secure and convenient exposure to Bitcoin by directly investing in physical Bitcoin.


The ETF trades on the Cboe BZX and matches Bitcoin’s spot price performance through the Lukka Prime Bitcoin Reference Rate.

As such, the ETF is a joint venture between Invesco and Galaxy Digital. Both companies are renowned in the cryptocurrency space and have launched many crypto-related ETPs in the past due to the soaring demand for crypto assets.

Fund Facts

Overview and fund facts:

• Fund inception: January 11, 2024.
• Sponsor Fee/Expense Ratio: 0.25% (waived until July 2024)
• Exchange: Cboe BZX Exchange
• Custodian: Coinbase Custody Trust Company, LLC.
• Total UAM (as of June 2024): $384.4M

VanEck Bitcoin Trust (HODL)

VanEck Bitcoin Trust (HODL) is a trust designed to give investors exposure to the price of Bitcoin by holding Bitcoin directly.


According to VanEck, HODL is designed as a passive investment vehicle and only aims to track Bitcoin’s price without seeking additional returns or avoiding losses from price changes. It was Launched on January 4, 2024, sponsored by VanEck Digital Assets, LLC, and trades on the Cboe BZX Exchange under the ticker symbol HODL.

HODL shares are valued daily based on the MarketVector™ Bitcoin Benchmark Rate, which is calculated using prices from what the Sponsor considers the top five Bitcoin exchanges.

Fund Facts

Overview of HODL and fund facts:

• Fund inception: January 4, 2024
• Sponsor Fee/Expense Ratio: 0.20%
• Exchange: Cboe BZX Exchange
• Custodian: Gemini Custody
• Total AUM (as of June 2024): $705.46M

WisdomTree Bitcoin Fund (BTCW)

The WisdomTree Bitcoin Fund (BTCW) is an exchange-traded fund (ETF) designed to provide exposure to Bitcoin’s price.


As per the official website, the fund values its shares daily based on an independently calculated value from aggregated trade flows on major Bitcoin spot exchanges.

Finally, BTCW does not directly manage Bitcoin but uses a passive approach to reflect its market price through a benchmark rate. It’s listed on the Cboe BZX Exchange and safeguards its assets through Coinbase Custody.

Fund Facts

Overview of BTCW and fund facts:

• Fund inception: January 11, 2024
• Sponsor Fee/Expense Ratio: Expense Ratio: 0.25%
• Exchange: BATS Exchange (Bats Global Markets).
• Custodian: Coinbase Custody Trust Company, LLC
• Total AUM (as of June 2024): $79.7M

Hashdex Bitcoin ETF (DEFI)

Hashdex Bitcoin ETF (DEFI) distinguishes itself from other Bitcoin ETFs by having a small element of Futures ETFs in it due to a conversion in early March 2024.


Note that DEFI is a spot ETF after being converted in March 2024 to primarily hold actual Bitcoin and track the spot price. However, according to the fund deion, DEFI can allocate up to 5% of its assets to Bitcoin futures contracts.

This minor allocation of futures is meant to help the ETF track the price of Bitcoin more closely and offer a smoother creation/redemption process. So, yes, DEFI is classified as a spot ETF but with a small futures component.

Moving on, DEFI’s expense ratio is 0.94%, which is higher than most ETFs. The expense ratio covers the costs of operating the ETF, including management fees, administrative expenses, and custody fees.

Fund Facts

Overview and fund facts:

• Fund inception: September 15, 2022, updated on March 2024
• Sponsor Fee/Expense Ratio: 0.94%
• Exchange: NYSE Arca
• Custodian: BitGo
• Total AUM (as of June 2024): $12.4 million

In-Kind and In-Cash Redemption Models for Spot Bitcoin ETFs

One of the many pain points for approving the Spot Bitcoin ETFs was that applicants and the SEC needed to agree on what buying and selling procedures would be used for this type of asset, given its unique nature.

This is where the in-kind and in-cash redemption models kick in.

In-Kind Redemption Model

In-kind redemptions help ETFs maintain tax efficiency by avoiding the sale of appreciated securities to meet redemptions. In this model, authorized participants (APs) exchange ETF shares for a basket of underlying securities and have been fundamental to ETF operations since their inception.

In a nutshell:

• In-kind redemptions involve exchanging ETF shares for a basket of the underlying securities held by the ETF rather than cash.
• Only the APs, typically institutional investors, can directly redeem the shares from the ETF for a proportional basket of the underlying securities.

It’s simple. However, the main reason institutions do this is for tax efficiency. This process does not trigger a taxable event for the ETF because no securities are sold to generate cash. This helps defer capital gains taxes for non-redeeming shareholders. Therefore, institutions limit trading and transaction costs (making them more tax-efficient compared to mutual funds).

In-Cash Redemption Model

In-cash redemptions, where authorized participants receive cash instead of securities when redeeming ETF shares, have also been common, especially for ETFs holding less liquid assets or for actively managed ETFs that want to keep their strategies confidential.

Here’s the skinny:

• In-cash redemptions involve the exchange of ETF shares for cash equivalent to the net asset value (NAV) of the shares being redeemed.
• The AP deposits cash into the ETF and uses it to purchase the underlying assets. That, or the ETF sells the underlying assets to generate the cash needed for redemption.

In-cash redemption provides more flexibility for fund participants because it simplifies the redemption process by dealing in cash rather than securities.

But they’re not as tax-efficient as in-kind models because selling securities to generate cash can trigger taxable events, leading to capital gains distributions that affect all shareholders. Further, the process involves higher transaction costs due to bid/ask spreads and broker commissions when selling the underlying assets.

Below is a table that can help you compare both types of redemption models:

Source: CryptoPotatoFor spot Bitcoin ETFs, the SEC has mandated that redemptions must be in cash rather than in-kind.

This might sound like a disadvantage for Bitcoin investors, but this likely stems from Bitcoin’s unique nature and concerns about potential market disruption if large amounts of BTC were sold for in-kind redemptions.

This also means that the issuers are responsible for trading BTC when shares are added or redeemed, leaving investors to bear the trading costs, such as transaction fees, cost crossing the bid-ask spread, and market-impact costs.

How to Choose and Invest in Spot Bitcoin ETFs

Not all brokerages offer shares of spot Bitcoin ETFs. Therefore, that’s the first thing to check. Also, it’s important to see what investment accounts the broker supports and if they work for you.

For example, Fidelity supports different types of accounts, starting with IRAs and brokerage accounts.

Once your account is open, you must fund it with cash to be ready to invest in spot Bitcoin ETFs.

The steps are simple:

Step 1: Open an investment account.

Step 2: Fund the account with cash.

Step 3: Select the ETF you wish to purchase.

Step 4: ute the trade to buy the ETF’s shares.

Whichever you choose, note that spot BTC ETFs have a simple goal: exposure to Bitcoin. It’s how they do it, how much liquidity they have, their reputation, and how much they charge that matters.

However, it’s not as simple as picking up an ETF and buying the shares because you might want to buy and hold or actively trade the shares. In that case:

• Fees are the primary consideration for long-term, buy-and-hold investors as their impact compounds over time. Choosing a low-cost ETF is crucial to maximizing returns.
• Several ETFs, including ARK, Fidelity, VanEck, and iShares, have expense ratios of around 0.25% after fee waivers expire. The Bitwise Bitcoin ETF (BITB) has the lowest expense ratio at 0.20%.
• Consult each ETF’s official website and be up-to-date with fee waivers; they can expire on a specified date or when the ETF reaches a certain NAV number.
• For active traders, liquidity and tight bid-ask spreads are more important for those frequently trading in and out of their positions because higher liquidity allows for easier entry/exit and lower trading costs.
• Larger, more established issuers like BlackRock’s IBIT and Fidelity’s FBTC may offer the highest liquidity initially.

Benefits of Spot Bitcoin ETFs

Spot Bitcoin ETFs provide various advantages for investors, making them a compelling choice for those seeking БТЦ exposure without directly holding the cryptocurrency. Here are the main benefits:

• Legitimacy: Approval of spot Bitcoin ETFs by regulatory bodies such as the SEC lends credibility to Bitcoin as an asset class. This approval makes Bitcoin more acceptable to a wider range of investors, including those with retirement accounts like IRAs and 401(k)s.
• Accessibility: Spot Bitcoin ETFs offer a simple way for investors to gain Bitcoin exposure without needing to manage digital wallets and private keys or navigate cryptocurrency exchanges.
• Market Liquidity: By buying and selling large blocks of Bitcoin based on demand, spot Bitcoin ETFs can enhance Bitcoin’s overall liquidity, potentially stabilizing its price over time.
• Accurate Price Tracking: Spot Bitcoin ETFs are designed to closely follow Bitcoin’s current price, providing investors with a transparent and straightforward way to track its market value.
• Daily Creation and Redemption: Shares of spot Bitcoin ETFs can be created or redeemed daily, helping keep the ETF’s price aligned with the underlying Bitcoin holdings’ net asset value (NAV).
• Regulation: Spot Bitcoin ETFs operate within a regulated framework, offering an added layer of security and oversight compared to unregulated cryptocurrency exchanges.
• Portfolio Diversification: Spot Bitcoin ETFs provide investors with an easy way to diversify their portfolios by adding Bitcoin exposure without the complexities of direct ownership. This can be particularly beneficial for retirement accounts and other long-term investment strategies.
• No Futures Roll Costs: Unlike Bitcoin futures ETFs, spot Bitcoin ETFs do not incur additional costs associated with rolling futures contracts, which can erode returns over time.

Alternatives to Spot Bitcoin ETFs

If you can’t access a spot Bitcoin ETF for any reason, there are several alternatives to gain exposure to Bitcoin’s price. Note that neither of these provide direct exposure and the value of the listed products and alternatives is not 100% correlated to the price of BTC.

Bitcoin Futures ETFs

Bitcoin Futures ETFs track the price of Bitcoin futures contracts rather than BTC’s spot price.

What’s the difference between spot and futures? Investors иn futures contracts buy or sell an asset at a determined price at a specified time. In other words, they are not buying at current market prices. This is also beneficial as it allows investors to hedge against current market prices going in opposite directions.

However, futures contracts are subject to issues like contango, in which the price of an asset in a futures contract trades above the spot price, and backwardation, in which the contract prices an asset lower than the spot price. In other words, expect price performance discrepancies.

Some notable examples include ProShares Bitcoin Strategy ETF (BITO) and VanEck Bitcoin Strategy ETF (XBTF).

Bitcoin Trusts

Investment vehicles like the Grayscale Bitcoin Trust (GBTC) hold Bitcoin and aim to reflect its price. These trusts can trade at a premium or discount to the underlying asset’s value, which might impact their performance relative to Bitcoin.​

Direct Purchase on Crypto Exchanges

You can buy Bitcoin directly from exchanges such as Coinbase, Binance, Kraken, or Bitfinex. This method involves directly owning Bitcoin and managing its storage and security​. For more information see our bitcoin ETF vs buying directly comparison.

Bitcoin Mining Stocks

Investing in companies involved in Bitcoin mining, such as Riot Blockchain (RIOT) or Marathon Digital Holdings (MARA), provides indirect exposure to Bitcoin. Their stock prices are often correlated with Bitcoin’s price movements.​

Stocks Holding Bitcoin: Some publicly traded companies hold Bitcoin on their balance sheets, offering indirect exposure. Examples include Tesla (TSLA) and MicroStrategy (MSTR). MicroStrategy, in particular, has significant Bitcoin holdings and considers itself a “Bitcoin development company.”​

However, it’s important to note that these do not provide direct exposure to the BTC price and their value is not 100% correlated to it.

Blockchain ETFs

These ETFs invest in companies involved in blockchain technology rather than holding Bitcoin directly. Examples include Amplify Transformational Data Sharing ETF (BLOK) and Siren Nasdaq NexGen Economy ETF (BLCN)​.

Each method has its own risk profile and regulatory considerations, so it’s essential to research and choose the option that aligns with your investment strategy and risk tolerance.

Best Bitcoin ETFs: Conclusion

Spot Bitcoin ETFs began a new era for Bitcoin and the cryptocurrency market by introducing it to investors and the mainstream media in a regulated, secure environment. However, that doesn’t mean we shouldn’t understand the basics of Bitcoin, crypto, and how investment vehicles such as spot or futures ETFs work.

When you grasp how Spot Bitcoin ETFs work, you understand the lengthy regulatory discussions between legislators and applicants before approval. It’s worth noting that spot Bitcoin ETFs were designed (to a certain extent) for individuals unfamiliar with the crypto space. They provide a straightforward way to invest in Bitcoin without:

1. understanding traditional finance complexities and

2. the hurdles and complexities of buying, managing, and securing crypto directly.

In a certain sense, Bitcoin ETFs take away a large chunk of those intricacies and confusion from newcomers because they can invest through a large institution that handles the buying, managing, dealing with custodians, security, etc.

Further, these ETFs offer a regulated, accessible entry point for investing in Bitcoin, simplifying the process for a broader range of investors.