(32/52) Weekly Market Insight | August Week 3 | Sticky Long-End Yield - ChainUp: Leading Provider of Digital Asset Exchange & Custody Solutions

Headline News: Sticky Long-End Yield

Bitcoin retreated approximately 3% over the past week, decoupling from U.S. equities as major benchmarks notched fresh record highs. The divergence was driven by legislative bottlenecks—notably delays surrounding the CLARITY Act and the SEC’s postponed tokenization innovation exemption. Furthermore, while cooling inflation compressed front-end Treasury yields, sticky long-end yields continued to weigh on broader liquidity conditions.

Oil rebounded 6.5% toward $82 after mid-week diplomatic frameworks regarding the Strait of Hormuz transit security failed to produce immediate enforcement terms.
S&P 500 gained 0.36% last week, marking its third consecutive weekly advance and breaking above 7800 milestone record high during last Friday intraday. Blended S&P 500 EPS growth tracked near 50% year-over-year, supported by robust AI infrastructure monetization and mega-cap tech beats.
The US inflation rate decreased to 3.4% YoY in July, matching market expectations, as the impact of the energy shock caused by the war with Iran continued to ease. US PPI decreased to 4.7% in July, coming in well below market expectations of 5.0%.
US retail sales contracted 0.6% in July, missing market expectations of a 0.2% decline. The control group retail sales, which feed directly into GDP calculations, declined 0.4%.
Softer inflation data combined with weak retail sales reduced the market-implied probability of a September Fed rate hike to 32%, down from over 50% prior to the releases.

SEC considered an “innovation exemption” for tokenized securities enabling 24/7 stock trading. However, official release details were subsequently delayed amid ongoing Congressional negotiations over the CLARITY Act.
Strategy sold 1,690 BTC for $108.6 million to fund STRC buybacks and raised $650 million via MSTR shares to expand its USD reserve to $4.65 billion, maintaining 840,447 BTC in total reserve.
UMX (Unified Market Exchange), incubated by Li Lin’s Avenir Group, launched its invitation-only public beta as a crypto-friendly securities venue offering unified trading for digital assets and US equities.
Coinbase established Abu Dhabi (ADGM) as its international tokenization hub after securing an FSRA license to bring global tokenized securities to self-custody wallets.
World Liberty Trust won preliminary conditional OCC approval for a national trust bank charter to act as sole issuer and custodian for USD1 stablecoins for institutional clients.
Trezor disclosed a third-party shipping provider data breach impacting order information for 13,689 customers, confirming that hardware security and seed phrases remain completely uncompromised.

Solana nearly halted as a routing glitch temporarily took 28.8% of the staked SOL offline, yet blocks continued producing and fully recovered in about 33 minutes.
NEAR Protocol enabled NEAR AI staking, allowing users to fund confidential inference and always-on AI agents directly by staking NEAR without credit cards or cloud providers. Every 100 staked NEAR equals roughly $1 in credits per month.
Polygon unveiled a free wallet infrastructure framework for fintechs to embed user balance management and cross-chain asset routing without third-party vendor bloat.
Plume signed an MOU with Shinhan Asset Management to develop a proof of concept for a KRW-denominated tokenized short-term bond fund.
Harmony was exploited with 3 trillion ONE having unauthorized mint. Harmony deployed the emergency software patch, initiated a network rollback to pre-attack blocks, suspended bridge operations, and collaborated with LayerZero and centralized exchanges to freeze stolen assets.

Aster activated its AOS-2 perpetual listing framework, requiring projects to stake 1 million ASTER for four years to trigger an onchain validator vote for perpetual market listings.
xStocks launched natively on Hyperliquid’s HyperCore with 5 tokenized equities and ETFs.
Ether.fi released new comprehensive interface, including native trading of tokenized stocks, portfolio-backed borrowing via an integrated Aave V4, global fiat rails, and more.
Jupiter Protocol introduced Jupiter Lend v2 Smart Vaults, converting collateralized loans into active DEX liquidity to lower borrowing costs and maximize collateral yield.
TradeXYZ allocated 12% of HIP-3 collected revenues to buy back native HYPE tokens and fund new ticker listings on Hyperliquid.
Lombard announced that LBTC’s yield backing will shift to a Bitwise-managed covered-call options strategy targeting a 2.5% net BTC APY with Anchorage Digital and Kraken custody.

Monad co-founder updated on the MIP-8 rollout, introducing page-aware storage to reorganize Merkle trie database lookups and significantly reduce gas costs for state access.
Gnosis Chain submitted GIP-153 to re-base onto Ethereum as Layer-2, acquiring mainnet validator settlement security while keeping xDAI gas fees.
Cardano outlined a two-phase Dijkstra era roadmap activating Ouroboros Leios (CIP-164) in Q4 2026 for throughput and Ouroboros Peras (CIP-140) in Q2 2027 for faster settlement.
Aerodrome completed its first major core code release ahead of its upcoming protocol expansion.
LayerZero published an updated pricing structure taking effect September 1, which introduces a fee up to 2 basis points on Stargate app OFT transfers with excess revenue dedicated to ZRO buybacks, alongside raising the minimum LayerZero Labs Executor fee to $0.25 per transaction.