As the crypto market keeps dropping, savvy DeFi traders are busy making millions on a buzzy new Ethereum exchange called Ethervista.
In just five days, the top 10 traders of the exchange’s VISTA token are up a combined $5.4 million.
One trader has made $3.3 million, according to data compiled by Dex Screener.
Launched on August 31, Ethervista is a decentralised exchange similar to Uniswap, where users launch their own tokens and create liquidity pools, letting other users swap tokens without the need to trust a custodian.
The VISTA token, which gives holders access to an in-app chat feature, soared to a $29 million market value within 48 hours of its launch.
But it’s also extremely volatile, experiencing 50% price swings in recent days.
The excitement around Ethervista has led many to compare the new exchange to memecoin creation platforms like pump.fun on Solana.
A new dark horse $VISTA
Pump fun now has a competitor on Eth.
The Eth maxis are in a dire state with Vitalik tweeting that DeFi doesn’t matter, ETHBTC hitting new lows, ETF inflows slowing down, and Layer 2 fragmentation resembling a shattered mirror.@ethervista seems… pic.twitter.com/ai66LYHrse
— Trissy (@Cryptotrissy) September 2, 2024
While both have captured the attention of DeFi degens, there are significant differences.
What is Ethervista?
Ethervista tries to fix some problems associated with launching tokens on other platforms.
Its fee system rewards creators when the tokens they launch experience high trading volumes instead of when they appreciate in price. This, the exchange says, addresses the issue of creators prioritising short-term profits.
So far, users have launched several memecoins using Ethervista. The most popular is called BONZI, named after Ethervista’s purple monkey mascot.
Tokens launched through Ethervista are also automatically bound by a delayed liquidity-removal mechanism.
This means creators cannot suddenly remove liquidity, leaving investors in the lurch. Doing so is commonly known as conducting a “rug pull” in DeFi circles.
A pseudonymous trader who goes by Imperator claims to have made $137,000 in three hours by creating memecoins on pump.fun and rug-pulling investors.
In February, the United States Attorney’s Office for the Middle District of Florida charged two men with conspiracy to commit wire fraud and money laundering in a case it characterised as a crypto “rug pull.”
Ethereum gas fees spike
The flurry of trading activity around Ethervista and its token has pushed Ethereum transaction fees to their highest sustained level in weeks.
Investors have flipped bearish on Ethereum even after spot exchange-traded funds hit the markets in July.
Activity has moved off of the main Ethereum network to speedy, more efficient layer 2s. As a result, users are spending less Ether on transactions, making the asset inflationary again. That means there is more Ether being created than the network is destroying.
In response, many have called for more users to start using mainnet again, despite the transactions being more expensive than those done on layer 2s.
While Ethervista has spurred mainnet activity, the subsequent increase in fees hasn’t been enough to make the network deflationary again.
Tim Craig is DL News’ Edinburgh-based DeFi Correspondent. Reach out with tips at tim@dlnews.com.