USDC Issuer Restructures, Crypto ETPS See Weekly Outflows

Aug 22, 2023

Bitcoin is extending its slide lower, down 1.0% today and 11.9% weekly to trade at $25.8k. Ethereum is underperforming, losing 2.5% over the last day to trade near $1.6k. Investors expecting a decision on the Grayscale vs. SEC case today were disappointed yet again as no opinions were released. The next possible decision day is this Friday. Nearly 70% of the top 100 tokens are in double digit losses over the past week, with every token in the red except KAS (+2.1%) and RUNE (+9.6%). THORChain’s RUNE has benefited from the release of a lending product that allows users to lend L1 assets to ThorChain and borrow USD denominated debt with no liquidations, interest, or expiration. Kaspa’s KAS has been one of the stronger performing tokens this year, rising 691% so far. The project claims its GHOSTDAG protocol allows it to be the fastest, most decentralized, and fully scalable L1 on the market. Risk-on markets continue to face headwinds from a strong dollar, which is on track to gain for the 6th straight week, up 4% in the same period. Short term rates continue to press higher, with the US 2-year at 5.04%. Longer term rates also remain elevated, with the 10-year and 30-year bonds currently trade at 4.33% and 4.4% respectively.

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The crypto market declined overnight, with BTC 2.07% dropping from $63k to $61k, SOL 1.43% from $150 to $145, and ETH 0.26% dipping below the $3k mark once again. The likely cause of the drawdown was upward pressure on the DXY N/A% and a lack of follow-through in flows. Among the few outperformers of the day were RUNE 7.16% , the native token of the cross-chain swapping protocol Thorchain, and Ethereum Classic (ETC 2.28% ), possibly driven by...

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