Messari’s Q2 2024 Summary: Covalent (CXT) Rebrand, Modular Data for AI, APAC Expansion, CXT Buy-back Program and Network Growth

BE[IN]CRYPTO08-19

Covalent (CXT) is a long-term data availability protocol that structures data. It solves the problem of long-term data availability made prevalent after Ethereum’s Dencun upgrade, which deletes rollup...

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It solves the problem of long-term data availability made prevalent after Ethereum’s Dencun upgrade, which deletes rollup...</p>\n\n<a href=\"https://beincrypto.com/messaris-q2-2024-summary/\">Source Link</a>\n\n</div>\n","source":"beincrypto_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Messari’s Q2 2024 Summary: Covalent (CXT) Rebrand, Modular Data for AI, APAC Expansion, CXT Buy-back Program and Network Growth</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMessari’s Q2 2024 Summary: Covalent (CXT) Rebrand, Modular Data for AI, APAC Expansion, CXT Buy-back Program and Network Growth\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-08-19 23:37 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://beincrypto.com/messaris-q2-2024-summary/><strong>BE[IN]CRYPTO</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Covalent (CXT) is a long-term data availability protocol that structures data. It solves the problem of long-term data availability made prevalent after Ethereum’s Dencun upgrade, which deletes rollup...</p>\n\n<a href=\"https://beincrypto.com/messaris-q2-2024-summary/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4161","symbol_name":"工业机械","start_time":0,"source_url":"https://beincrypto.com/messaris-q2-2024-summary/","article_id":"2460055054","we_media_id":null,"thumbnails":["https://beincrypto.com/wp-content/uploads/2024/08/Снимок-экрана-2024-08-19-в-18.31.41-850x465.png"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2460055054","pubTimestamp":1724081852,"sourceInfo":{"source_id":"beincrypto_highlight","name":"BE[IN]CRYPTO"},"weMediaInfo":null,"summary":"Covalent  is a long-term data availability protocol that structures data. It solves the problem of long-term data availability made prevalent after Ethereum’s Dencun upgrade, which deletes rollup history due to the state expiry feature. This particular solution is called the Ethereum Wayback Machine ; it is used as a modular verifiable data infrastructure to solve challenges in AI, related to augmented decentralized AI training and inference.In its recent rebrand, Covalent implemented a series of upgrades focused on accelerating its commitment within two core areas of focus: data availability and decentralized AI. At the same time, it also raised $5 million in strategic funding that will be used to expand its operations in APAC. Following the rebrand, Covalent transitioned the previous CQT token to the new CXT token.Covalent Structures Billions of Web3 Data Points for AI, Leading dApps, and Protocol Ecosystems. Block specimens produced in Q2 grew 20% quarter-over-quarter and 32% year-o","collect":0,"end_time":0,"defaultTopTitle":"beincrypto.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4161":"工业机械","CETH":"21Shares Core Ethereum ETF","ETHV":"Vaneck Ethereum ETF","EWM":"马来西亚ETF-iShares MSCI","CXT":"Crane NXT","EZET":"Franklin Ethereum Etf","FETH":"Fidelity Ethereum Fund","BK4157":"电子设备和仪器","QETH":"Invesco Galaxy Ethereum ETF"},"translate_title":"Messari 2024年第二季度总结：共价(CXT)品牌重塑、人工智能模块化数据、亚太地区扩张、CXT回购计划和网络增长","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CXT":1,"EWM":1,"CETH":0.9,"ETHV":0.9,"EZET":0.9,"FETH":0.9,"QETH":0.9},"content_text":"Covalent (CXT) is a long-term data availability protocol that structures data. It solves the problem of long-term data availability made prevalent after Ethereum’s Dencun upgrade, which deletes rollup history due to the state expiry feature. This particular solution is called the Ethereum Wayback Machine (EWM); it is used as a modular verifiable data infrastructure to solve challenges in AI, related to augmented decentralized AI training and inference.\nIn its recent rebrand, Covalent implemented a series of upgrades focused on accelerating its commitment within two core areas of focus: data availability and decentralized AI. At the same time, it also raised $5 million in strategic funding that will be used to expand its operations in APAC. Following the rebrand, Covalent transitioned the previous CQT token to the new CXT token. \nKey Metrics \n\nCovalent Structures Billions of Web3 Data Points for AI, Leading dApps, and Protocol Ecosystems\nCovalent has over 3000 API customers & ecosystems using its structured data protocol. A few notable users revenue producing customers include Fidelity, EY, Consensys, Matcha, Rainbow Wallet, and CoinLedger. With its focus on AI and long-term data availability on Ethereum, Covalent also serves Laika AI, Entendre Finance, SmartWhales AI, and more. To arrive at the data these entities consume, the protocol must extract, transform, and enrich the raw blockchain data to make it accessible. \n\nBlock specimens produced in Q2 grew 20% quarter-over-quarter and 32% year-over-year. The number of block specimens produced by a protocol increases as more chains are covered, and Covalent added support for Blast, Gnosis Chain, Movement, and a few other blockchains last quarter, likely contributing to the increase in production.\nQ2 Staked CQT (Now CXT)\nWith a 27% increase in the CQT circulating supply, Covalent saw the raw number of staked CQT grow by 5.4%. By the end of the quarter, Covalent had successfully migrated the staking contract, added five new operators, and increased the staking multiplier from 27x to 40x, ending Q2 with 24% of CQT (now CXT) staked compared to the circulating supply.\n\nThe following analysis will reference CQT, given that CXT did not launch until mid-July 2024.\nNetwork Operators\nCovalent increased its network operator set by adding five new BSPs in Q2. Adding network operators increases the amount of stake the protocol can absorb and increases its workload capacity in block specimen and block result production. Increasing the amount of potential stake enhances the stake supply sink, reducing tradable supply and potentially putting upward pressure on the token price (depending on emissions).\n\nFinancial Rewards\nBSPs and BRPs are currently subsidized with a budget of up to 20 million CXT (previously CQT) rewards per year. In this model, query revenue (paid in fiat by cutomers) would be used to buy back CXT, which would then be used to reward node operators. Currently, 20% of all query revenue is used to execute automatic weekly buys of CXT, which are stored in a multisig wallet for later distribution.\n\nThe following analysis will reference CQT, given that CXT did not launch until mid-July 2024.\nNetwork operator rewards in USD grew 83% QoQ to $990,000. Despite a 27% drop in the average CQT price, this growth was largely driven by the 184% jump in reward emissions in CQT terms. Though Covalent has a yearly reward budget of roughly 20 million CQT, it only used about 10 million CQT in each of the 2022 and 2023 years, and it plans to use 24 million CXT in 2024.\nMarket Cap\n\nIn the future, Covalent’s buyback program will link network demand directly to the increased buying pressure of CXT. As API query demand rises, Covalent’s revenue will increase, enabling further buybacks of CXT with the additional revenue. Adding more ways for CXT to be leveraged could be a catalyst in decentralized AI protocols seeking structured historical onchain data, positioning Covalent and CXT holders to benefit from integrating AI with crypto.\nGovernance Updates\nCovalent initiated significant governance updates, including migrating all token activities to Ethereum and sunsetting Moonbeam activity. New proposals were made, such as increasing the max multiplier for staked operators from 27x to 34x and eventually to 40x. The launch of the new CXT token was also approved, aligning it more closely with Covalent’s AI and Ethereum data availability focus.\nMajor Developments & Ecosystems Support Updates\nCovalent integrated with multiple new protocols in Q2, including ZetaChain, Mode Network, and Guild. Additionally, five new operators, including ThunderHead, DappLooker, Corthos Capital, Allnodes, and Restake, joined the Covalent network. The protocol also committed $2.5 million in grants to projects within the Arbitrum and Consensys ecosystems. Arthur Hayes, co-founder of BitMEX, joined Covalent as a strategic advisor. Additionally, Covalent secured $5 million in a strategic funding round led by RockTree Capital to expand operations into the APAC region.\nAbout Covalent \nCovalent is the leading modular data infrastructure layer dedicated to solving major challenges in blockchain and AI, including verifiability, decentralized AI inference, and Long-Term Data Availability. Its large reservoir of structured, verifiable data enhances decentralized training and inference, reducing the risk of manipulated or biased AI models. Additionally, the Covalent Network’s Ethereum Wayback Machine ensures secure, decentralized access to Ethereum’s transaction data. Trusted by over 3,000 leading organizations, Covalent powers AI, DeFi, GameFi, and more with unfettered access to on-chain data from over 230 blockchains.\nLearn about the EWM: Technical | Non-TechnicalFor more information, check out Covalent’s: Official Website | Twitter/X | Linktree\n\n\n\n\nTop crypto platforms | August 2024\n\n\n\nPancakeSwap\nUp to 50% APR\n\n\n\n\n\n\nBYDFi\nNo KYC\n\n\n\n\n\n\nM2 Exchange\nExplore\n\n\n\n\n\n\nExodus\nExplore\n\n\n\n\n\n\nСoinex\nExplore\n\n\n\n\n\n\n\n\n\nTop crypto platforms | August 2024\n\n\nPancakeSwap\n\n\n\n\n\n\n\n\nBYDFi\n\n\n\n\n\n\n\n\nM2 Exchange\n\n\n\n\n\n\n\n\nExodus\n\n\n\n\n\n\n\n\nСoinex","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2460055054"}