Weekly Market Insight: December week 3

English

Market Updates

18 Dec 2023

Headline News

- Inscription has continued to surge in popularity, ORDI and SATS both hit billion dollar market cap. Ordinal fees paid and unconfirmed transactions in mempool both hit record high. The inscription craze did not stop at Bitcoin network, it spread across multiple blockchains (with substantial trading volume) including Solana, Avalanche, zkSync and Polygon. Meanwhile, Arbitrum and TON suffered outages as failing to handle the sudden influx of network traffic.

- Other Bitcoin tokens such as STAMPS, a SRC-20 token, have also surged in trading volume.

Macro-Outlook

- The US Federal Reserve held the rate unchanged during last week FOMC meeting. Additionally, new dot-plot indicating the FOMC members are likely done with rate hike and projected median rate for 2024 decrease from 5.1% (September forecast) to 4.6% or 3 possible rate cuts. Jerome Powell also stated that the committees are aware of the risk that they would hang on the rate too long and will keep that in mind as the policy goes forward. The market expects 57% probability that 3 rate cuts will happen by mid-2024.

- US core inflation in November increased by 0.3%, inline with market expectations. The PPI remained unchanged in November, following a 0.4% fall in the previous period, and compared to forecasts of a 0.1% rise.

Upcoming Economic Calendar including,

- Thursday, 21st December 9:30pm: US GDP Q3 Final

- Friday, 22nd December 9:30pm: US Core PCE Price Index in November

Cryptos-Outlook

- Bitwise spot BTC ETF is now listed on the DTCC with the ticker BITB.

- The SEC has postponed its decision on the Invesco Galaxy Ethereum Spot ETF to February 6, 2024.

- Ledger Connect Kits had been exploited, resulting in approximately $600K lost in user funds. Ledger and WalletConnect confirmed that the malicious code was later deactivated.

Trending Protocols

Layer 1 and Layer 2

- BNB chain updated its Greenfield roadmap to improve performance by 5x, DA layer solution, AI adoption and more.

- Polygon announced to integrate Celestia into its Polygon CDK. The team will make an RWA-related announcement on 20th December.

Dapps

- Trader Joe introduced its sister protocol Merchant Moe, which aims to be the leading DEX in Mantle.

- Worldcoin announced Worldcoin 2.0 update and new app integrations including Telegram, Reddit, Minecraft, Shopify and Mercado Libre.

- EigenLayer increased an additional 6 new LSTs and increased individual restaking caps to 200K and global cap of 500K.

- Lyra launched v2, featuring the Lyra Chain with better UI, faster transaction and cheaper fees.

- Line Next raised $140 million and is set to launch its NFT platform, DOSI, in January 2024.

- Swarm launched a regulated permissionless RWA DEX: Open dOTC, on Ethereum.

- COTI introduced v2, a privacy centric Ethereum L2 for payment, RWA and more.

- Redacted Cartel launched its Dinero mainnet, users can now mint pxETH.

- Safemoon filed for chapter 7 bankruptcy protection amid securities and wire fraud charges.

- The Sandbox introduced marketplace on Polygon with greatly reduced mint fees.

- SSV mainnet is now permissionless for ETH staking.

Upcoming Alpha: Token Unlock, Governance

- Paraswap proposed burning 400M token in treasury or 20% of total supply.

- Pendle teased the release of v3, which will include TradFi interest rate related upgrade.

- Arweave removed Irys (previously Bundlr) as trusted set on the main Arweave gateways due to Irys attempts to fork Arweave and accused Arweave of data censorship.

- YGG Token Unlocked on 27th December, amount representing 5.94% of the token supply.

- OP Token Unlocked on 30th December, amount representing 2.65% of the token supply.

Disclaimer

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