Weekly Market Insight: June week 3

English

Market Updates

19 Jun 2024

Headline News

- Last week, Bitcoin's price experienced significant volatility influenced by macroeconomic factors, including the CPI, the FOMC meeting, the PPI, and initial jobless claims. Consequently, Bitcoin's price declined by 4.31%. This was accompanied by a weekly net outflow from ETFs amounting to $580.6 million. Despite these developments, the balance of Bitcoin held on exchanges continued its downward trend, reaching the lowest levels observed since 2018, with a weekly decrease of 0.56% and a cumulative decline of 7.2% since the launch of ETFs in January 2024.

Macro-Outlook

- The annual inflation rate in the US unexpectedly slowed to 3.3% in May 2024, compared to 3.4% in April and forecasts of 3.4%. The Fed later kept the rate unchanged last Thursday with 78% of the Federal Reserve Board members expecting at least 1 rate-cut in 2024 in the new economic projections. The report also indicated the members expect higher PCE inflation and higher median long run rate of 2.8%, compared to previous estimation of 2.6% in March.
- The US PPI decreased by 0.2% in April, defied the market expectation of a 0.1% increase. The University of Michigan consumer sentiment fell to 65.6 in June, well below forecasts of 72.

Upcoming Economic Calendar including,

- Tuesday, June 18th 8:30pm: US Retail Sales in May

Weekly-Cryptos-Overview

- MicroStrategy announced raising $500 million convertible senior notes for the purpose of purchasing Bitcoin and other corporate purposes.
- Paradigm raised $850 million for its third venture fund, focusing on early stage crypto projects.

Layer 1 and Layer 2s

- Optimism launched its open source and permissionless fault proofs, achieving Stage 1 decentralization.
- Berachain public testnet, bArtio B2, is now live. The latest upgrade in testnet includes introduction of BeaconKit, an EVM-focused development framework to improve Berachain experience, and some changes to the consensus, such as increase of validator limit.
- Ripple introduced Ripple USD (RLUSD), a 1:1 USD-backed stablecoin, and XRPL EVM Sidechain, an EVM compatible chain for DeFi and RWA integrations with Axelar as its official bridge to XRP Ledger.
- Polygon announced to allocate 1 billion POL over the next 10 years for the Community Grants Program. The allocation is funded by 1% of protocol emission. Season 1 of the grant program is now live, with 35 million MATIC to be distributed. Polygon also proposed connecting Polygon PoS to the AggLayer using Succinct Labs SP1 zkVM.
- Celestia launched Blobstream, enabling Celestia's data roots to be verified permissionlessly on Ethereum.
- Near Modular, which offers NEAR DA and Fast Finality Layer AVS, rebranded to Nuffle Labs and raised $13 million in funding led by Electric Capital.
- Binance Labs invested undisclosed amount in Zircuit, an Ethereum zk-rollup with parallelized circuits and AI-powered sequencing layer.
- Manta announced to launch a $50 million EcoFund to support early stage projects focusing on AI/DePin, ZK and meme.
- Moonbeam announced to allocate a new $13 million development fund for gaming, RWA and Moonriver protocols.
- Everclear, previously Connext, raised $5 million from Pantera Capital to support its vision for chain abstraction.

Dapps

- Symbiotic launched its bootstrapping phase and the initial onboarding of restaked collateral. The protocol also raised $5.8 million in seed funding led by Paradigm and Cyber Fund. Mellow Protocol and Ether.fi are among the LRT protocols that support Symbiotic's restaking.
- Uniswap is now live on zkSync. The team also acquired "Crypto: The Game", a social gaming protocol.
- Curve founder, Michael Egorov, was liquidated for approximately $140 million in CRV and covered the remaining bad debt in Llamalend funded by OTC sales of 30 million CRV to NextGen Venture with estimated price of $0.2.
- The Graph announced completing its Sunrise upgrade, in which the subgraphs are now hosted by globally distributed networks instead of centralized hosting services.
- Jupiter launched Swap V3, dynamic slippage and more features in alpha/beta mode.
- Beefy introduced Cowcentrated Liquidity Manager for yield optimising to concentrated liquidity provider.
- Farcaster is reported by Fortune that it will launch a token in the future.

Upcoming Alpha and Governance

- Bloomberg's senior ETF analyst Eric Balchunas renewed his expectation of the launch of spot ETH ETF from July 4th to July 2nd, stated hearing the SEC sent issuers comments on S-1s with no major issue and asking issuers back in a week.
- zkSync introduced ZK token and allocated 17.5% to airdrop. The token will be listed on major exchanges on June 17th.
- Sophon, a modular L2 powered by zkSync hyperchain, announced a farming program using BEAM, starting from June 18th.
- LayerZero is expected to make an announcement regarding ZRO on June 20th.
- Synthetix V3 is expected to launch on Arbitrum this week.
- Cardano is expected to hand over control of its $600 million treasury to token holders via governance voting after Chang upgrade.
- SSV proposed a $4.5 million market-making agreement with at least two service providers to enhance token liquidity.

Token Unlock

- ALT token unlocked on June 25th, amount representing 6.92% of the token supply.
- YGG token unlocked on June 27th, amount representing 4.48% of the token supply.
- PRIME token unlocked on June 30th, amount representing 1.83% of the token supply.
- OP token unlocked on June 30th, amount representing 2.88% of the token supply.

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