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<div style="display: none; max-height: 0px; overflow: hidden;">Crypto is overly dependent on USD-pegged stablecoins. Local currency-pegged stablecoins unlock meaningful everyday use cases β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β </div>
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<h1><strong>TLDR Crypto <span id="date">2025-10-03</span></strong></h1>
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<strong>Stablecoins Beyond the Dollar (7 minute read)</strong>
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Crypto is overly dependent on USD-pegged stablecoins, which account for 99% of the market. Local currency-pegged stablecoins, such as the euro, yen, or naira, unlock meaningful everyday use cases like payments, borrowing, and lending in familiar currencies. Base processed $1.5T in stablecoin volume last month and already hosts 12 local stablecoins, with new SGD and AUD tokens launched this week, while also testing its upcoming βsuper appβ focused on payments, social, and creator monetization.
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<strong>Perp DEXs Smash $1T Monthly Volume (2 minute read)</strong>
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Perpetual trading protocols crossed $1.05T in September volume, up 48% from August, marking the first time the sector has hit the trillion-dollar mark. Aster, newly rebranded and backed by CZ, had $420B in activity, overtaking long-time leader Hyperliquid at $282.5B, while Ethereum L2-based Lighter followed with $164.4B in private beta. With Lighter's mainnet now live and Aster's rapid token-fueled momentum, competition in the perp DEX market is heating up quickly.
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<h1><strong>Innovation & Launches</strong></h1>
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<strong>The $NOCK Thesis (20 minute read)</strong>
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Nockchain represents "Bitcoin, but better" as a scalable L1 purpose-built for zero-knowledge proofs using a UTXO transaction model that supports arbitrary intents, where 100% of $NOCK supply is distributed to miners who generate ZKPs proving correct transaction execution via the highly performant NockVM. The platform's differentiator is its zkPoW flywheel, where $NOCK incentivizes miners to optimize the NockVM prover, making ZKPs cheaper and faster, which expands NockApp margins and unlocks new use cases, driving increased demand for $NOCK and repeating the cycle. Near-term catalysts for repricing to $0.20 by year-end include deployment of an EVM bridge to Base with $1M+ Aerodrome liquidity seeding, an upcoming halvening reducing miner sell pressure from 32.7k to 16.3k $NOCK per block, October's programmability upgrade introducing transaction format improvements, and growing ecosystem signals across developers, miners, community, and traders, with long-term $1.00 target dependent on mining network growth and institutional credibility through mining partnerships.
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<strong>Avalanche Treasury Co. Goes Public via $675M SPAC (3 minute read)</strong>
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Avalanche Treasury Co. (AVAT) announced a $675M SPAC merger with Mountain Lake Acquisition Corp., including $460M in projected treasury assets and a $200M discounted AVAX purchase allocation. The company aims to grow its AVAX holdings beyond $1B and become a leading public vehicle for institutional exposure, with capital also directed toward protocol investments, partnerships, and validator infrastructure. Backed by firms like Dragonfly, VanEck, and Galaxy Digital, AVAT will trade on Nasdaq in early 2026 and launch at a 23% discount to direct AVAX exposure, with Avalanche founder Emin GΓΌn Sirer joining as a strategic advisor.
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<strong>7 deadly sins of tokenomics (4 minute read)</strong>
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Overinflated fully diluted valuations at launch that create immediate downside risk and discourage organic entry, low-float traps with tiny circulating supply creating artificial scarcity that pumps early but crashes when steep unlocks begin, and insider-dominated allocations exceeding 60% to VCs and teams with weak lockups that prioritize extraction over community alignment. Additional failures include utility theater, where tokens serve only governance or inflationary staking without real demand sinks, emissions without corresponding burn mechanisms that reward mercenary farmers who dump immediately, liquidity starvation through inadequate market-making and shallow pools that prevent scalable trading, and narrative disconnection where tokenomics don't align with product models or ecosystem narratives. These design flaws create predictable failure patterns, including retail exit liquidity scenarios, unsustainable hype cycles followed by sharp crashes, perpetual sell pressure from misaligned insiders, speculative churn without structural demand, TVL death spirals when rewards fade, high slippage preventing institutional participation, and token irrelevance due to lack of coherence between narrative, product, and token mechanics.
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<a href="https://tracking.tldrnewsletter.com/CL0/https:%2F%2Fwww.citigroup.com%2Frcs%2Fcitigpa%2Fstorage%2Fpublic%2FGPS_Report_Stablecoins_2030.pdf%3Futm_source=tldrcrypto/1/01000199aa09aefc-bad7934f-9c61-450c-b740-7bafd1e5b060-000000/Lqeb06R1VCXXLskJXX04QyjGe1w1TfCyvojtZcRTaT0=425">
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<strong>Stablecoins 2030: Web3 to Wall Street (45 minute read)</strong>
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Citi has revised its 2030 stablecoin issuance forecasts upward to $1.9 trillion base case and $4 trillion bull case, driven by 40% year-to-date growth, regulatory clarity from the GENIUS Act, and accelerating institutional adoption following what the bank calls blockchain's "ChatGPT moment." The growth drivers include partial reallocation of USD bank deposits and offshore holdings, continued crypto market expansion, and substitution of physical banknotes, with stablecoins potentially supporting $100 trillion in transaction activity by 2030 at 50x velocity similar to traditional payment rails. Citi expects bank tokens like tokenized deposits to potentially exceed stablecoin transaction volumes, reaching $100-140 trillion annually if just 5% of global large-value payments migrate onchain, as multiple digital money formats will coexist rather than compete in a "format war." Challenges include fragmentation and interoperability issues, privacy concerns on public blockchains, scalability limitations for large-value transactions, and the need for accounting recognition as cash equivalents. Emerging solutions include zero-knowledge proofs and the rush by Circle, Stripe, Bitfinex, and others to build specialized Layer-1 blockchains for payments infrastructure.
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<div style="text-align: center;"><strong><h1>Miscellaneous</h1></strong></div>
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<strong>Quitting Trump's top crypto job wasn't easy (7 minute read)</strong>
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Bo Hines stepped down as head of Trump's digital assets council on August 9 after delivering a comprehensive 180-day report positioning the US as the "crypto capital of the world," feeling confident the groundwork and regulatory framework were established while clearing the way for deputy Patrick Witt to lead upcoming legislative battles, including the digital asset market structure bill. Within days of his resignation, Hines received over 50 job offers before being appointed CEO of Tether USA on August 19, where he's overseeing the launch of USAT, which he claims will be the first federally licensed stablecoin in the US. The 30-year-old brings nearly a decade of crypto engagement since age 18 to his current role at Tether, which accounts for over half of all daily crypto transaction settlements. Hines remains confident in the Strategic Bitcoin Reserve's progress despite no timeline, praising crypto czar David Sacks' leadership, while envisioning a future of 24/7 markets, instant settlement, and tokenized public securities where "everything moves onchain," with stablecoin market cap potentially exceeding Treasury Secretary Bessent's trillion-dollar projection as tokenization accelerates globally.
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<strong>Everyone's Wrong About Stablecoins vs Visa (9 minute read)</strong>
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The comparison between stablecoins and Visa/Mastercard reflects a fundamental misunderstanding of payment architecture, as these technologies operate at completely different layers, with stablecoins competing against ACH and SWIFT settlement infrastructure rather than payment networks that handle authorization and routing. When you swipe a credit card, no money moves initially - only data flows through Visa's messaging network for authorization, while actual settlement happens days later through traditional banking rails that are slow, expensive, and operate only during business hours. Stablecoins operate at the settlement layer where authorization and settlement occur simultaneously in atomic blockchain transactions, offering 97-99% cost reduction and 100x faster finality compared to traditional wire transfers, which is why Visa and Mastercard are integrating stablecoins into their settlement infrastructure rather than fighting them. Crypto-native payment products like Base Pay, Solana Pay, and Coinbase Commerce compete directly with card networks by offering complete payment solutions with lower merchant fees but sacrifice consumer protections like chargebacks and dispute resolution that remain critical for mainstream adoption.
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<div style="text-align: center;"><span style="font-size: 36px;">β‘</span></div></div>
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<strong>New York's Stablecoin-powered UBI Pilot (2 minute read)</strong>
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A new charitable initiative is giving 160 low-income New Yorkers $12,000 over five months in USDC as part of an experiment to fight poverty.
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Ethereum is the only blockchain where anyone can instantly borrow $1 billion without KYC, paperwork, or oversight.
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Aerodrome has become DeFi's top revenue-generating DEX with over $400M earned in just two years.
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