BioNexus Gene Lab Corp, a Wyoming-based healthcare technology company, has become the first Nasdaq-listed company to adopt Ethereum (ETH) as its primary treasury asset. 

The announcement was made on March 5. It was accompanied by the release of a strategic whitepaper detailing the company’s rationale for prioritizing Ethereum over Bitcoin (BTC).

BioNexus Chooses Ethereum Over Bitcoin

The board-approved Ethereum treasury strategy positions BioNexus at the forefront of a growing trend of corporations integrating digital assets into their financial frameworks. Unlike Bitcoin, often hailed as a digital “store of value,” BioNexus is betting on Ethereum’s versatility as a programmable blockchain platform. 

“Ethereum offers high liquidity, utility, and stability compared to other digital assets, positioning BGLC as a leader in blockchain-integrated corporate finance,” CEO Sam Tan said.

The company’s whitepaper emphasizes the preference for Ethereum due to its broader utility, significant institutional adoption, and key features that make it ideal for corporate treasury management. 

Ethereum is widely used in decentralized finance (DeFi) and stablecoin transactions. This enables cost-effective cross-border payments. Its Proof-of-Stake (PoS) mechanism also offers staking rewards of 3-5% annually, turning ETH into an income-generating asset.

BioNexus also pointed to Ethereum’s institutional credibility. Major financial players like BlackRock, Grayscale, and Fidelity have embraced Ethereum. This lends it legitimacy, which the company believes will ensure its long-term viability. 

The whitepaper also touts Ethereum’s scalability. Upcoming upgrades like Pectra further bolster this. Additionally, Ethereum’s Layer-2 solutions further enhance its appeal for enterprise use by reducing costs.

With growing institutional adoption and real-world applications like tokenized assets and decentralized payments, the company believes Ethereum is set to lead the future of corporate finance.

“We believe Ethereum is more than a digital asset—it is a new financial paradigm. BGLC’s commitment to an Ethereum-first treasury strategy underscores our confidence in its stability, institutional growth, and transformative potential,” the whitepaper read.

Nonetheless, the move comes at a tumultuous time for Ethereum. ETH’s market performance has been shaky, with its value continuously declining since early December.

Over the past month alone, ETH has shed 15.8% of its gains. At press time, it traded at $2,293. As per BeInCrypto data, this represented a slight appreciation of 3.3% over the past day.

Meanwhile, Ethereum ETFs have also majorly recorded outflows since February 20, with the exception of March 4. According to data from SoSo Value, on March 5, the total outflows were recorded at $63.3 million. The outflow was from Grayscale Ethereum Trust (ETHE). Furthermore, other ETFs saw no flows at all.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

In addition to his roles in finance and technology, Aayush serves as the director of a prestigious IT company, where he spearheads initiatives aimed at driving digital innovation and transformation. Under his visionary leadership, the company has flourished, cementing its position as a leader in the tech industry and paving the way for groundbreaking advancements in software development and IT solutions.

Despite his demanding professional commitments, Aayush is a firm believer in the importance of work-life balance. An avid traveler and adventurer, he finds solace in exploring new destinations, immersing himself in different cultures, and forging lasting memories along the way. Whether he’s trekking through the Himalayas, diving in the azure waters of the Maldives, or experiencing the vibrant energy of bustling metropolises, Aayush embraces every opportunity to broaden his horizons and create unforgettable experiences.

Aayush’s journey to success is marked by a relentless pursuit of excellence and a steadfast commitment to continuous learning and growth. His academic achievements are a testament to his dedication and passion for excellence, having completed his software engineering with honors and excelling in every department.

At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he’s poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush’s unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

Uniswap Labs’ decision to launch Unichain, its Layer-2 (L2) network, without extensive consultation with the Uniswap DAO has sparked significant controversy within the DeFi community.

Critics argue that this move raises serious concerns about transparency, centralization, and the broader impact on Uniswap’s ecosystem.

Uniswap Labs and Uniswap Foundation Under Fire

The launch of Unichain has highlighted governance concerns for the Uniswap ecosystem. Community members and delegates expressed frustration over the lack of input from UNI token holders.

Notably, DeFi analyst Ignas pointed out that Uniswap Foundation recently approved a $165.5 million funding proposal to support Unichain’s development and incentivize liquidity migration. However, many believe this funding benefits Uniswap Labs and the Uniswap Foundation at the expense of UNI holders, who currently receive no revenue from the platform.

Reportedly, Uniswap Labs has generated an estimated $171 million in front-end fees over the past two years. Unlike competitors such as Aave (AAVE), which shares protocol revenues with token holders through a fee switch mechanism, Uniswap has centralized all earnings, further fueling discontent among UNI investors.

“In a shifting era where Aave proposes buying back $1M of AAVE per week and Maker $30/month buy-backs, UNI holders are a milking cow with now value accrual to the token…Aave and Maker have a more aligned relationship with token holders, and I don’t see why front-end fees couldn’t be shared with UNI holders.,” Ignas expressed.

Duo Nine, a crypto analyst, criticized this strategy, suggesting that Uniswap should use its funds to buy back UNI tokens rather than investing heavily in Unichain.

“They are better off buying UNI with that cash. Their flywheel won’t work if they don’t reward token holders. Creating an L2 seems like an unnecessary cost now,” the analyst remarked.

 In response to concerns about how the expansion would be funded, Ignas speculated that Uniswap would sell UNI tokens to cover the costs. However, such a move could lead to further dilution and dissatisfaction among holders.

Liquidity Fragmentation: A Major Concern

Another key issue surrounding Unichain’s launch is the risk of liquidity fragmentation. Uniswap DAO has allocated $21 million to attract Total Value Locked (TVL) to Unichain, aiming to grow it from $8.2 million to $750 million.

However, many worry that these incentives will primarily lure liquidity providers (LPs) away from Ethereum and other Layer-2 (L2) networks rather than attracting new capital.

Ignas warned that shifting liquidity to Unichain could weaken Uniswap’s market share on Ethereum, allowing competitors to gain ground.

“Incentivizing TVL on Unichain leads to LPs migrating from Ethereum and L2s, decreasing market share on ETH/L2s, and enabling competitors to emerge,” Ignas added.

This liquidity migration could lead to higher slippage and less favorable trading conditions across the broader DeFi ecosystem.

Despite concerns, the Uniswap Foundation remains committed to expanding Unichain’s adoption and incentivizing liquidity migration. BeInCrypto reported that the foundation intends to drive growth for Uniswap v4 and Unichain. However, skepticism remains over whether they will deliver long-term value to the protocol’s ecosystem.

However, since Unichain L2 launched on the mainnet on February 11, the Uniswap token price has been declining. As of this writing, UNI was trading for $7.52, up by a modest 2% since Thursday’s session opened.