Crypto Rout Rises as Vitalik Buterin Advocates For Privacy in DeFi

The crypto market rout has intensified with heavy liquidation amid low liquidity. Although the Bitcoin (BTC) price has rebounded above $70,000 on Monday, February 9, the derivatives market has signaled further weakness due to the falling Open Interest (OI) in the recent past amid a negative funding rate.

Fed’s Waller Blames Stalled Clarity Act for Low Crypto Adoption

According to Federal Reserve governor Christopher Waller, the stalled Clarity Act has led to low traction in crypto adoption in the United States and, by extension, globally. Waller stated that his plan for Fed Skinny accounts has not prevented lawsuits tied to the crypto industry.

As such, Waller concluded that the initial enthusiasm tied to President Donald Trump is fading fast. 

Buterin Advocates for Privacy to Catalyze Mainstream DeFi Use

Amid the low crypto liquidity and heavy liquidation in the recent past, Ethereum cofounder Vitalik Buterin has urged the use of privacy-centric DeFi projects to catalyze the mainstream adoption of digital assets and web3 protocols. Furthermore, Buterin believes that self-sovereignty is the holy grail to catalyze organic adoption of digital assets and web3 protocols.

Already, institutional investors and regulators have turned to the use of privacy-centric technologies led by Zero Knowledge (ZK). Moreover, institutional investors seeking to tokenize real-world assets (RWA) have been increasingly adopting privacy-centric DeFi protocols and chains.

Circle Internet Group Inc. (NYSE: CRCL) has led many web3 companies in doubling down on privacy-centric solutions. For instance, XION (XION), a small-cap layer one blockchain backed by Circle, has over 150 brands led by Uber, Amazon, and BMW, thus engaging more than 4 million global organic users. Earlier on Monday, XION announced the launch of its ZK and DKIM modules to pioneer privacy in email messaging.