(40/52) Weekly Market Insight | October Week 3 | Record Level Liquidations

Headline News: Record Level Liquidations

• The crypto market underwent a historic deleveraging event last week, with over $20 billion in liquidations recorded across major exchanges. The sell-off saw Bitcoin plunge to a low of $104,000, ultimately closing the week with a 6.79% loss. The impact on altcoins was more severe, as some assets experienced flash crashes, dropping as much as 99.99%. Initial reports suggest cascading liquidations further fuelled the de-pegging of key collateral assets, such as USDE, wBETH, and BNSOL, within Unified Account systems.
• Following this major leverage reset, investors are now assessing whether contagion is contained, while a softer tone in US-China trade relations over the later weekend may help alleviate broader market concerns.

Macro-Outlook: TACO Trade Revival

• Over the weekend, President Trump threatened and announced 100% additional tariff on China as the countermeasure of export controls on rare earths implemented by China. China responded that export controls are “very limited” and willing to engage in deeper dialogue with the US. President Trump later posted a softer tone statement, saying “Don’t worry about China, it will be fine”.
• The September FOMC minutes indicated most officials agreed to cut rates toward the neutral level as the downside risks to employment had increased. However, the majority of officials also emphasised upside risks to the outlooks for inflation as continued uncertainty about the effects of tariffs.
• The Michigan consumer sentiment had a slight decrease to 55 in October, higher than the market expectation of 51.7.
• The prediction market is expecting the government shutdown to last over 33 days, potentially surpassing the record 35 days in 2019.

Upcoming Economic Calendar including,

• Wednesday, October 15, 12:20am: Fed Chair Powell Speech
• Thursday, October 16, 2:00am: Fed Beige Book
• The BLS announced a delay in the September CPI report this week to October 24.

Weekly-Cryptos-Overview: SuperApp Expansion

• Grayscale filed a Form 10 for its Bittensor Trust with the SEC. The market viewed this as the key step before ETF conversion. DCG also introduced Yuma Asset Management, enabling institutional investors to invest in subnet tokens.
• Luxembourg Intergenerational Sovereign Wealth Fund (FSIL) invested 1% of its holding in Bitcoin ETFs, making it the first state level fund in Eurozone to invest in digital assets.
• The Russian Central Bank allowed selected commercial banks to conduct regulated crypto-related activities.
• Major banks such as Goldman Sachs, Santander and more plan to issue “G7-digital money” on blockchains.
• Morgan Stanley lifted its restriction on crypto investment, allowing clients to invest in any crypto funds from BlackRock and Fidelity.
• Citi partnered with BVNK, a stablecoin payment company, integrating fiat-to-stablecoin global payment transfer.
• Softbank and PayPay acquired a 40% stake in Binance Japan, introducing seamless integration of Binance Japan and PayPay mobile payment application.
• Galaxy Digital launched Galaxy One, a super app that allows users to trade crypto assets, trade US equities and ETFs, and earn yield on crypto assets on the platform.
• Coinbase now allows DEX trading directly on the Coinbase platform.

Layer 1 and Layer 2s

• The Ethereum Foundation announced a privacy-focus wallet, Kohaku, which users can send private transactions with minimum trust to third parties.
• Plume Network registered a transfer agent with the SEC, enabling on-chain reporting to the SEC and DTCC, and compliant on-chain fund administration. Plume also acquired Dinero, the leading tokenised stock issuer across EVM and institutional-grade staking infrastructure.
• Mantle launched UR, a crypto-neobank with 0 off-ramp fees, Mastercard debit card and access to multiple fiat currencies accounts.
• ZKsync completed Atlas upgrade, introducing high performance TPS sequencer, 1-second ZK finality and $0.0001 proving cost per transaction.
• Polygon completed Rio upgrade, introducing near-instant finality, eliminating reorganisation risk, lightweight nodes and increased overall throughput for payment service providers.
• Celo integrated x402 agentic payment framework into its network, allowing protocols to accept HTTP micro-payment in any tokens.

Dapps

• Ondo Finance acquired Oasis Pro, a SEC-registered digital assets platform, as the strategic investment to gain access to provide tokenised securities to the US market.
• MetaMask integrated Hyperliquid perpetual trading on MetaMask Mobile and the team announced Polymarket will be the next integration.
• Based introduced Based Streams, a live trading streaming platform, allowing creators to receive tokens directly from their viewers on HyperCore.
• Ranger Finance, the perpetual trading aggregator on Solana, integrated Hyperliquid onto the platform.
• A new Zcash mobile wallet, Zashi, integrated NEAR Intent to support other assets such as BTC, SOL and USDC in the application. NEAR Intent processed over its record breaking $600 billion in volume within October.
• Lombard partnered with CapMoney to enable Symbiotic restaking LBTC as the credit default swap of institutional financing.
• PancakeSwap introduced Cake.Pad, allowing CAKE holders to gain tokens early access without complicated staking pool and the fees generated from this platform will be used to burn CAKE supply.
• Morpho launched its first Morpho V2 vault, a USDC vault curated by Keyrock.
• Ocean Protocol announced withdrawing from the Artificial Superintelligence Alliance.
• Superform, an on-chain asset allocator platform, released its UP tokenomics with validator staking and strategy bonding as the main token utilities.
• Jupiter Finance introduced Jupiter Wallet for Desktop, providing gasless trading, PnL analysis and more. Jupiter also announced to launch its own stablecoin, jupUSD, using the Ethena stablecoin-as-a-service framework.
• Fluid began its token buyback with 100% of its Ethereum mainnet revenue in the early stage. The token brought back will be allocated into the Fluid Reserve.
• Virtual launched Unicorn, a new launch system with cost-heavy sniper protection, linear fundraising from $2 million FDV to $160 million FDV using limit-sell order mechanism, scheduled or FDV-tier vesting, and 5% of new launches to be airdropped to VIRTUAL stakers.
• Maple Finance launched its first loan backed by Ethereum on Linea Network.

Governance and Upcoming Alpha

• Hyperliquid is launching the highly anticipated HIP-3, enabling permissionless perpetual market creation with 500K HYPE stake. Ventuals, the pre-IPO markets, introduced vHYPE with deposits open on October 16. The liquid staking HYPE will be used to power the pre-IPO markets listing on Hyperliquid via HIP-3.
• Binance Wallet launched the first Pre-TGE Prime Sale, allowing users to subscribe to a new project with BNB. Yield Basis will be the first project on the platform, with sales will be conducted on October 13. Yield Basis also proposed to Curve Finance to increase the crvUSD credit line from 60 million to 300 million.
• Monad will open its airdrop claim portal on October 14. The pre-market is pricing MON at approximately $8.7 billion in FDV.
• Synthetix will conduct its $1 million prize pool perpetual trading competition on October 20.
• AI16Z is expected to rebrand to ELIZAOS on October 21, with an additional 40% token supply increase post migration to fuel the new Generative Treasury.
• Fox Business reported the White House is considering pardoning former Binance CEO, CZ, but the timeline before decision might be longer than expected.
• The Polymarket founder hinted at launching its native token, POLY, soon. Polymarket raised $2 billion from ICE as the strategic investment to reenter the US market. Meanwhile, Kalshi raised $300 million to expand its platform globally.
• Babylon announced Trustless Bitcoin Vault Protocol, unlocking trustless Bitcoin bridging to EVM networks early next year.

Token Unlock

• PUMP token unlocks on October 14, amount representing 2.83% of the token supply.
• STRK token unlocks on October 15, amount representing 2.95% of the token supply.
• ZKC token unlocks on October 15, amount representing 7.46% of the token supply.
• STBL token unlocks on October 16, amount representing 46.2% of the token supply.
• DBR token unlocks on October 17, amount representing 16.80% of the token supply.
• ASTER token unlocks on October 17, amount representing 9.70% of the token supply.
• ZRO token unlocks on October 20, amount representing 10.3% of the token supply.
• KAITO token unlocks on October 20, amount representing 3.46% of the token supply.
• PLUME token unlocks on October 21, amount representing 3.25% of the token supply.
• SCR token unlocks on October 22, amount representing 64.50% of the token supply.
• HYPER token unlocks on October 22, amount representing 8.12% of the token supply.
• INIT token unlocks on October 24, amount representing 4.40% of the token supply.
• XPL token unlocks on October 25, amount representing 4.94% of the token supply.
• TAKE token unlocks on October 25, amount representing 10.1% of the token supply.
• RON token unlocks on October 27, amount representing 4.48% of the token supply.