Weekly Market Insight: August Week 2

English

Market Updates

06 Aug 2024

Headline News

- Bitcoin and Ethereum experienced massive sold-off, both ETFs had an outflow of $237.4 million and $54.3 million respectively last Friday. Ethereum price once plummeted to $2,059 and triggered $140 million liquidation within 1 hour on Monday morning, causing the network gas fees to surge over 660gwei and liquidated $304 million in the past 24 hours. $247 million worth of Bitcoin was liquidated during the same period.
- Negative sentiment from the US unemployment rate, lack of catalyst in August and potential cascading selling pressure from Mt. Gox and Genesis further holding the Bitcoin price hostage.

- The US ISM manufacturing PMI fell to 46.6 in July, firmly below market expectations of 48.8, reflecting the sharpest contraction in US factory activity since November 2023. Later in the week, non-farm payrolls increased 114K in July, well below forecasts of 175K and a downwardly revised from 206K to 179K in June.
- The US Fed kept the interest rate unchanged in July FOMC (or August in Singapore timezone), emphasising balance of keeping the inflation rate low and avoiding cutting too late to promote maximum employment.
- July unemployment rate came in at 4.3%, the highest since October 2021, raising concern on recession based on "Sahm rule". Citi and JPMorgan subsequently expect Fed to cut 50bps in September and totaling 125bps cut in 2024. The market expects 94.7% probabilities Fed to cut 100bps and 64% probabilities to cut 125bps in 2024 according to CME FedWatch.

- Monday, August 5th 10:00pm: US ISM Services PMI in July

- Genesis announced completion of restructuring and will start repayment process to creditors. The repayment included $4 billion worth of digital assets and USD.
- Ribbit Capital leads a $50 million raise for decentralized lending developer Morpho.
- MicroStrategy announced to raise $2 billion at the market equity offering to purchase more Bitcoin.

- Fantom has completed its rebranding to Sonic Labs, and plans to launch Sonic by the end of 2024. The Sonic Network will be an EVM-Compatible layer-1 platform, providing a fast settlement layer for digital assets with over 10,000 TPS and complete, one second confirmation times.
- The Aptos Foundation announced the launch of Ondo Finance’s yield-bearing stablecoin, Ondo US Dollar Yield (USDY), on the Aptos blockchain.
- Gnosis introduced Gnosis AI, aiming to develop agent-to-agent payment and prediction markets on Gnosis Chain.
- Ripple announced to allocate $10 million in tokenised Treasury Bills on XRP Ledger as the first RWA issuance.
- Injective announced that it has completed the Altaris mainnet upgrade, integrating RWA oracles (providing tokenized asset product data).
- Irys was introduced as the first programmable datachain, a scalable layer 1 for storage and computation of data.
- Eclipse, SVM based Ethereum Layer 2, launched its mainnet.
- Router Chain, a cross-chain interoperability protocol, launched its mainnet, connecting 30+ ecosystems.

- Elixir, orderbook liquidity layer, launched a delta neutral arbitrage stablecoin deUSD.
- Ethena announced adding USDe as reward bearing stable margin collateral in Bybit.
- Lido introduced Lido Institutional, to provide a staking solution tailored to the high standards of custodians, asset managers, exchanges, and more.
- Jito launched its StakeNet Steward Program, increasing security, stability and decentralisation of its SOL staking.
- The Jupiter community has voted to pass the proposal, which proposed reducing the supply of JUP tokens by 30%, from 1 billion to 700 million, with a support rate of 95%. According to Meow (the founder of Jupiter), burn reduction will happen over a period of time, likely over 6 months.
- Kamino, Solana's largest lending market, introduced its "Road to $10B" with Lend V2 and governance.
- Makenow.meme lets anyone launch a meme coin directly from a tweet on X.
- The largest DEX in Tron, SUN introduced SUN DAO to enable everyone to equally participate in project development and governance.
- Vertex, one of the leading Perpetual Exchange in Arbitrum, introduced Edge. Edge is a cross-chain aggregate orderbook liquidity layer, empowering traders to trade spot assets, perpetual contracts and cross-chain borrowing/lending.

- Drift Labs is expected to launch its prediction market on the Solana blockchain on August 5th.
- Marinade Finance is expected to launch its Stake Auction Marketplace (SAM) on August 14th.
- Jasmy is reportedly launching a marketplace offering GPUs soon.

- IMX token unlocked on August 9th, amount representing 2.11% of the token supply.
- APT token unlocked on August 12th, amount representing 2.41% of the token supply.
- SAND token unlocked on August 14th, amount representing 9% of the token supply.
- STRK token unlocked on August 15th, amount representing 4.4% of the token supply.
- ARB token unlocked on August 16th, amount representing 2.8% of the token supply.
- APE token unlocked on August 17th, amount representing 2.3% of the token supply.
- ROSE token unlocked on August 18th, amount representing 2.2% of the token supply.
- PIXELS token unlocked on August 19th, amount representing 7% of the token supply.
- AVAX token unlocked on August 20th, amount representing 2.42% of the token supply.

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