Maker

$MKR

$BTC surged in the overnight hours, nearing $74k, following a day of record inflows into spot ETF products. It's now trading around $72.5k. $ETH is showing relative weakness this morning, dipping just below $4k. This may be due to capital rotating into Layer 2 solutions and other Ethereum-related assets following the successful Denunc upgrade. Ethereum-adjacent assets such as $AAVE, $SYN, $MATIC, $MKR, and $ARB, are outperforming thus far today. $SOL...

U.S. equity indices are continuing their slide to start 2024, with the SPY dropping -0.65% and the QQQ falling -0.86%, while the DXY (+1.24%) has pushed up to $102.6. Crypto assets are experiencing significant volatility as $BTC (-4.65%) briefly dropped more than 9% to the mid-$40,000s amid fears of the SEC rejecting spot bitcoin ETF applications. Despite most altcoins suffering large losses on the day, $ARB is showing strength, rising...

INTRODUCTION Blockchain networks initially were more like closed-loop systems, meaning the value created and traded on-chain was confined to crypto native assets. As technology has developed, blockchains and the real world are becoming more intertwined. Crypto protocols and TradFi institutions alike are looking to tokenize real-world assets and benefit from transaction efficiencies, cost savings, interoperability, composability, and transparency. Protocols have already begun bringing assets like dollars and treasuries on-chain while...

WHAT HAPPENS WHEN BONDS HAVE A HIGH EMISSIONS SCHEDULE Traditional markets have undeniably faced a whirlwind of volatility over the past week. The bond market continued its recent trajectory with the long end of the yield curve soaring to new multi-decade highs. At one juncture, the 30-year yield even brushed against the 5% mark, a development that has rattled both bond and equity investors. Concurrently, the DXY index maintained its...

Recent bearish trends continue to persist this afternoon. The SPX has sunk to its lowest level in months in part due to underwhelming home sales and consumer confidence data. Despite this data, rates continue to rise, with the U.S. 30-year yield eyeing the 4.7% mark after an early morning bout of short covering. All market sectors are currently in negative territory, and in the commodities market, oil prices are rebounding...

In July, the core personal consumption expenditures (PCE) index increased by 0.2% month-over-month and 4.2% year-over-year, meeting economists' projections. This led to a significant pullback in rates and a bond market rally. Surprisingly, the Dollar Index (DXY) also surged, likely exerting downward pressure on cryptoasset prices. Amid these market dynamics, major equity indices experienced slight gains. $BTC retraced its earlier post-Grayscale rally gains, a trend also seen in Ethereum and...

Traditional markets are flat on July's final trading day, ahead of a busy week of earnings. While $SPX and $QQQ are flat since open, they are poised for a fifth consecutive month of rises - the longest winning streak for each index since 2021. The jobs report due Friday is also expected to show ongoing strength in the labor market (200k July consensus vs 209k in June). $BTC and $ETH have...

INTRODUCTION The top 50 most valuable protocols all have circulating market caps of at least one billion. Why do these tokens, many of which have unproven business models, trade at such high valuations? One of the core assumptions behind these valuations is that the protocol will someday mature to have product-market fit, justifying its current market value. For protocols that operate decentralized applications (dApps), assessing profitability is one of the...

Digital asset markets have retraced following Silvergate's insolvency concerns detailed below. $BTC and $ETH have declined 3.7% and 3.2% in the past day, while $SPX and $QQQ are 1.1% and 1.4% higher than yesterday's close. US10Y (-2.0%) yields have dipped back below 4.0%, with the DXY (-0.3%) following suit. Despite retracements across large caps, $MKR is trading 26% higher over the past week. The CDP protocol announced more favorable terms for its...