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Weekly Market Insight: May Week 5
26 May 2025
Headline News
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Last week, Bitcoin gained 2.37%, initially surging due to a "flight to safety" as US credit concerns and low bond demand signaled weakening dollar confidence. Advancement of Texas Strategic Bitcoin Reserve Bill and GENIUS Act further fuelled the price gain. However, Bitcoin's price later dropped alongside the stock market after Trump's new tariff threats emerged. This dual reaction highlights Bitcoin's evolving nature, acting as a safe haven during systemic financial fear, but behaving like a risk asset when broader economic growth concerns trigger a market-wide sell-off.
Macro-Outlook
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Last week, the 20-year bond auction by the US Treasury Department showed weak demand, showing concern about the country's increasing debt burden as Congress wrangles with a tax and spending bill that is expected to worsen the fiscal outlook. The US 20-year bond yield increased 10bps last week.
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President Trump's tax bill has passed the House and now proceeds to the Senate. The bill is projected to add approximately $3.8 trillion to the federal deficit over the next decade according to The Washington Post.
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President Trump suggested 50% tariffs on European Union imports from June 1 as limited progression in discussions, but later announced extending the effective date to July 9. The president also considered a 25% tariff on Apple made outside the US.
Upcoming Economic Calendar including,
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Tuesday, May 27, 8:30pm: The US Durable Goods Orders in April
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Thursday, May 29, 2:00am: The US Federal Reserve FOMC Minutes in May
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Thursday, May 29, 8:30pm: The US Second Estimate Q1 GDP
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Friday, May 30, 8:30pm: The US Core PCE, Personal Income and Personal Spending in April
Weekly-Cryptos-Overview
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Texas has passed the Strategic Bitcoin Reserve Bill, SB21, in full House voting. The bill has to be approved again in the Senate to incorporate the House's amendment, then be sent to governor for final approval.
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The stablecoin legislation, GENIUS Act, was voted to move the bill forward for full Senate debate. If the bill is passed by the Senate, the bill will move to the House.
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JPMorgan Chase, Bank of America, Citigroup and Wells Fargo are reportedly exploring jointly issuing a stablecoin.
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SG Forge, the crypto venture of Société Générale, is reportedly planning to launch stablecoin on Ethereum.
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Vaneck will launch Purposebuilt, a dedicated fund to invest in businesses in the Avalanche ecosystem and relevant tokens with long term utilities and real-world applications.
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Kraken partnered with BackedFi to launch xStocks, offering over 55 tokenised US stocks on Solana, including Apple, Tesla, Google and Meta. Kraken also launched a MiFID-regulated perpetual and other crypto derivatives trading in Europe.
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Bybit users are now able to trade over 78 top global stocks such as Apple, Nvidia and Strategy via CFDs directly with USDT on the Bybit Gold & FX Trading MT5 platform.
Layer 1 and Layer 2s
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FIFA Collect launched FIFA Blockchain to deliver FIFA digital collectibles and immersive fan experiences with Avalanche Layer 1 technology.
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Starknet introduced Broly, a trust minimised method to sign Bitcoin inscriptions directly from Starknet wallet.
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Taiko has completed the Pacaya Fork upgrade on the mainnet, improving user experience and reducing transaction confirmation times.
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Sophon introduced a zkTLS Social Oracle, bridging users Web2 credentials to the network to enjoy target audience incentives, access and more.
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Astar Network collaborated with Animoca Brands to bring Japanese and Asian entertainment IP onchain, starting with Moca Network and Anime Art Fest initiative.
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Kin Capital launched a $100 million tokenised real estate debt fund using Chintai infrastructure, targeting 15% APY.
Dapps
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Circle has launched Circle Payment Network (CPN) on the mainnet, allowing banks and payment providers to exchange payment instructions securely and settle in real time using USDC.
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Fluid and Jupiter partnered to launch Jupiter Lend on Solana, introducing Fluid innovative smart collateral and smart debt money market to Jupiter platform.
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Kamino Lend V2 is live on the mainnet, introducing automated lending vaults, modular features, margin leverage trading and more.
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Rumpel onboarded Fluid's looping strategies, enabling users to tokenise points earned from the looped position.
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Defi App introduced its governance token, HOME. The team intends to allocate 45% to community and ecosystem and suggests potential proposals such as treasury strategies including buyback, fee mechanics and more.
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Cookie.fun launched v1.0 alpha and Cookie Snaps, providing protocol social insights and enabling opinion leaders to earn rewards for quality content. Spark Finance is the first-ever SNAPS campaign on Cookie.fun.
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Venice launched a $27 million Incentive Fund to accelerate ecosystem protocols that utilise Venice API and contribute to Venice's core value of private and uncensored AI.
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Sahara AI launched its SIWA Public Testnet. Sahara AI enables developers to create and monetise AI models, datasets and applications on Sahara Blockchain.
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The onchain reinsurance protocol, OnRe, is now live. OnRe utilises sUSDe as the collateral structure, offering combined yield return of 40% APY.
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Vest Exchange launched Forex Market with up to 100x leverage perpetual trading.
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World, previously Worldcoin, raised $135 million from a16z and Bain Capital through direct purchase of WLD token without vesting schedule.
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BounceBit launched a dual-yield strategy using BUIDL as collateral. The strategy is designed to capture BTC 3-month basis and option strategy, offering approximately 24% APY.
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Succinct Labs introduced SP1 Hypercube, a real-time Ethereum ZK prover which is 5x faster than the previous SOTA zkVM Turbo.
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Cetus, the largest DEX on Sui, was exploited by an unknown hacker. Approximately $223 million was stolen, with $162 million successfully frozen on Sui and the remaining of the fund had been bridged to Ethereum network.
Upcoming Alpha and Governance
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Bitcoin 2025 will be held from May 27 to 29 in Las Vegas, with speakers such as JD Vance, Michael Saylor, David Sacks and more on stage.
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Liquity will launch yBOLD this week, representing BOLD deposited in Liquity V2's Stability Pools. Liquity v2 currently has approximately $66 million of TVL, 2.77% of BOLD Stability Pool APY and 3% of interest rate.
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Thorchain will slowly roll out The App Layer, Rujira Network, soon. Rujira offers one-stop DeFi suite including orderbook DEX, perpetual trading, money market and more, which are all powered by Thorchain liquidity.
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Polkadot is launching no-code, one click rollups feature soon. Ankr is one of the early partners to facilitate custom Polkadot RaaS products.
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YieldNest, a DeFi yield optimisation platform, plans to launch YND token on June 3, allocating 40% to the community.
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Anza introduced Alpenglow, a new consensus protocol for Solana, reducing the final latency by 100x. The new upgrade is expected to launch on testnet in a few months and mainnet within 2025.
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Solana mobile, announced to ship Seekers on August 4 and plans to release its SKR token directly to builders and users.
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Initia proposed to reduce inflation rate from 5% of the total supply per year to 5% of the staking pool per year or 1.25% of total supply, as the parameter was set incorrectly initially. The proposal also includes other changes such as Initia governance to decide withdrawal period for all rollups, and allowing whitelisted addresses to submit emergency proposals.
Token Unlock
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GRASS token unlocked on May 31, amount representing 1.34% of the token supply.
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KMNO token unlocked on May 31, amount representing 22% of the token supply.
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OP token unlocked on May 31, amount representing 1.94% of the token supply.
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SUI token unlocked on June 1, amount representing 1.75% of the token supply.
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DYDX token unlocked on June 1, amount representing 1.85% of the token supply.
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ENA token unlocked on June 2, amount representing 1.62% of the token supply.
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JTO token unlocked on June 7, amount representing 3.43% of the token supply.
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IO token unlocked on June 12, amount representing 1.92% of the token supply.
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APT token unlocked on June 13, amount representing 1.79% of the token supply.
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IMX token unlocked on June 14, amount representing 1.33% of the token supply.
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BB token unlocked on June 14, amount representing 10.92% of the token supply.
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