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Market Updates
Weekly Market Insight: September Week 4
23 Sep 2024
Headline News
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- Bitcoin prices surged by 7.5% last week, driven by optimism following the Federal Reserve's unexpected 50 basis point rate cut. During the same period, Ethereum prices increased by 11.4%. ETHBTC trading pair increased by 3.62% last week, marking the largest weekly gain since May 2024. The weekly trading volume of Ethereum spot ETF increased for the first time since inception, although still experienced a net-outflow of $26.26 million last week. The Bitcoin spot ETFs had net-inflow of $397.04 million last week.
Macro-Outlook
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- The U.S. Federal Reserve cut the rate by 50bps, citing "recalibration" of policy, adjusting the Fed's stance on balancing inflation and labor market dynamic. Out of 19 officials, 7 officials predicted another 25bps cut by the end of 2024, 9 officials predicted a 50bps cut and 1 predicted a 75bps cut by the end of 2024 on the latest dot-plot. Meanwhile, the market estimated 76% probability there will be at least another 75bps cut in 2024.
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- The U.S. retail sales in August increased by 0.1%, higher than the estimation of a 0.2% decrease.
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- Weekly initial jobless claim reached a 4-month low of 219K, lower than estimation of 230K.
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- The Bank of Japan retained its key short-term interest rate at around 0.25% during its September meeting despite the resilience annual inflation rate of 3% in August, the highest level of inflation since October 2023.
Upcoming Economic Calendar including
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- Thursday, September 26th 8:30pm: The U.S. Durable Goods Orders in August and Q2 Final GDP
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- Thursday, September 26th 9:20pm: Jerome Powell speech at the 2024 U.S. Treasury Market Conference
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- Friday, September 27th 8:30pm: The U.S. PCE Price Index, Personal Income and Personal Spending in August
Weekly-Cryptos-Overview
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- The SEC approved options trading for BlackRock's spot Bitcoin ETF.
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- DBS Bank also announced its plan to launch Bitcoin option trading and structured notes.
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- Google Cloud released RPC services for Ethereum mainnet and test networks.
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- Franklin Templeton announced its plan to launch their money market fund on Solana, while Citibank is exploring cross-border money transfers on Solana.
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- MicroStrategy purchased another 7,420 Bitcoin with an average price of $61,750.
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- BingX exchange was hacked for an estimated $45 million according to SlowMist. BingX has frozen $10 million in assets and is still in the process of recovering funds.
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- Kamala Harris stated "We will encourage innovative technologies like AI and digital assets while protecting consumers and investors." at a Wall Street fundraiser.
Layer 1 and Layer 2s
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- Solana Firedancer validator client launched on Solana mainnet in non-voting mode (not participating in consensus yet). Frankendancer, serving as prototype for Firedancer, launched on the mainnet and demonstrated 1 million transactions per second. Meanwhile, ZK compression is live on the Solana mainnet as well.
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- TON announced collaboration with Curve Finance to incubate a new stable swap project.
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- Celestia's Lemongrass upgrade is live on the mainnet. The upgrade introduces minimum gas price, direct bridging, smoother upgrade, Interchain Accounts and improved architecture.
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- IoTeX integrated with Polygon to become the DePIN Layer for AggLayer.
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- Flare introduced Flare Time Series Oracle v2, an enshrined oracle that provides faster, secure and cost effective queries on Flare network.
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- Everclear, the clearing layer for chain abstraction, is live on the mainnet.
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- Oasis, a privacy chain, launched its first liquid staking token with Accumulated Finance.
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- Build on Bitcoin (BOB) announced BOB Stake, a one-click portal for Bitcoin liquid staking.
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- Aleo, the highly anticipated ZK Layer-1, launched its mainnet and ALEO token in multiple CEXs.
Dapps
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- Aethir announced strategic collaboration with Filecoin, where Filecoin's storage providers could borrow GPU capacity from Aethir to seal data and Aethir could utilise Filecoin to store logs and training data for trained AI models. Aethir also partnered with Return to provide cloud gaming on smart TV. Aethir and XAI launched a $10 million ecosystem grant to onboard AI-powered games.
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- Monerium launched EURe stablecoin on Noble, featuring its compliance effort and unique IBAN number connected to individual Noble wallet addresses.
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- Euler launched Stablecoin Maxi, a capital efficient cross-collateralised market for 6 yield-bearing stablecoins.
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- Backpack integrated with StraitsX to enable Backpack wallet users to pay merchants in Singapore using XSGD via existing Paynow QR code.
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- Decentralised WiFi project, Roam, launched eSIM. Users are able to enjoy seamless 4G and 5G coverage across 400 networks worldwide, joining the decentralised broadband movement together with Helium Mobile and Dawn Internet.
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- Phantom wallet launched usernames, seedless sign-in and embedded UI features.
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- Jupiter announced several new features including upgraded APIs, Jupiter RFQ (aka intent-based) to deepen liquidity, Perp V2 with Limit Orders, Jupiter Mobile and Ape Pro.
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- Kamino Finance announced the launching of Spot Leverage.
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- Wormhole launched a new intent-based transfer route, native-to-native swaps and overall better user experience. Sky (previously MakerDAO) and Securitize selected Wormhole as their official interoperability provider respectively.
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- Helio launched blinks feature in X for Shopify merchants.
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- Marinade Finance partnered with Zodia Custody, custodian backed by Standard Charted and SBI Holding, to provide institutional Solana staking solution.
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- Sanctum introduced Creator Coins (an expanded LST for organizations and individuals) and Cloud Card (a crypto debit card partnered with BasedApp and Jupiter).
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- Ranger announced launching Solana's first perpetual DEX aggregator, combining liquidity from Jupiter, Drift, Zeta and Flash Trade.
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- Pyth introduced Oracle Integrity Staking (OIS), enabling publishers and stakers subject to rewards and slashing mechanisms to help provide high-quality data.
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- Drift raised $25 million in series B funding led by Multicoin Capital.
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- Solayer introduced SUSDC stablecoin, accuring yield from restaking and RWA yield from OpenEden.
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- GMX launched the 'Kink' borrowing rate model to all markets, potentially boosting the available liquidity by 39% to 40%.
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- Lens Protocol, one of the leading DeSoc platforms, announced integrating Avail DA to host its social data.
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- 1inch launched Fusion+, a faster cross chain swap with MEV protection.
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- Threshold's tBTC is now supported by EigenLayer as a restaking asset.
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- LayerZero announced IzCatalyst, helping projects to connect with the best venture capital firms. The participating firms are incentivized to invest up to $300 million.
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- RISC Zero introduced Boundless, enabling applications to be built off-chain while inheriting blockchain security by leveraging ZK to be verifiable.
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- Prism introduced itself as the most secure private messaging platform with end-to-end encryption and Celestia as the data availability layer.
Upcoming Alpha and Governance
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- The SEC Chair Gary Gensler will be testified in front of the Senate on September 25th.
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- CZ is expected to be released on September 29th.
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- Mantra, the RWA-focus Layer-1, announced launching its mainnet in October 2024.
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- EigenLayer token, EIGEN, is expected to start trading by the end of September.
Token Unlock
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- PRIME token unlocked on September 31st, amount representing 1.69% of the token supply.
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- OP token unlocked on September 31st, amount representing 2.64% of the token supply.
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- DYDX token unlocked on October 1st, amount representing 4.92% of the token supply.
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- SUI token unlocked on October 3rd, amount representing 3.13% of the token supply.
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- IMX token unlocked on October 4th, amount representing 2.03% of the token supply.
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