dYdX To Direct Fees to Stakers, Taiwan Introduces Crypto Bill
Market Update
- U.S. equity indices are mixed today despite U-Mich 1-Year inflation expectations rising to 4.2% vs 3.8% expected, and consumer personal spending rising 0.7% MoM vs. 0.5% expected. The SPY is down 0.36% while the QQQ has risen 0.62%. Crypto markets are cooling off after a strong week, with BTC (-1.65%) trading just below $33.6k and ETH (-2.76%) trading around $1,750. Total crypto ETP and OTC assets under management jumped 6.74% to $31.7 billion in October, marking the first increase since July. Products tied to SOL added 74.1% in value, rising to $140 million ahead of Solana Breakpoint. These numbers coincide with various crypto metrics discussed in our latest Crypto Strategy note, potentially signaling this rally has legs.
Source: CCData
- dYdX has successfully launched its v4 alpha mainnet, its own app-chain, marking a notable milestone for the decentralized derivatives platform. As part of v4, DYDX gains enhanced utility as all protocol fees, including USDC trading fees and DYDX-denominated gas fees, will be distributed to network validators. The increased utility should incentivize users to stake their tokens, supporting a secure network without relying on token inflation. The fee distribution will be managed through the Cosmos x/distribution module, promoting fair and efficient fee allocations. Additionally, tokens must be staked for participation in dYdX’s governance system, another step towards becoming a community owned chain. The alpha mainnet is more focused on battle testing the network and attracting validators, but dYdX plans to launch a trading-enabled beta version in the coming weeks. Investors have responded positively to the news with DYDX rising 6.68% today.
- Taiwan is taking its first steps towards regulating digital assets, with a new crypto bill getting its first read in front of the Legislative Yuan, Taiwan’s legislative body. The Virtual Asset Management Ordinance Draft hopes to determine definitions for virtual assets, set operational standards, and ensure customer protection. To date, Taiwan has left the industry alone, only ensuring that proper know-your-customer (KYC) and anti-money laundering (AML) laws were followed, but the bill is a larger move in bringing Taiwan up to speed with its neighbors in Hong Kong and Japan. A notable point in the bill mentions the unique properties of perpetual futures, acknowledging that current regulations may not properly address the product, potentially leading to derivative-specific regulation down the line. Additionally, the bill mentions that next steps should include regulators meeting with industry participants to develop proper internal controls and asset ratios.
Daily Technical Strategy
Mark L. Newton, CMT
Head of Technical Strategy
Polygon's upgrade was preceded by a meaningful bullish breakout of the downtrend since February 2023's peak, and MATIC has gained roughly 25% in just the last couple weeks. Looking back, the ability of MATIC to clear $0.5250 in early October provided some early technical warning on the possibility of further gains, and following some minor consolidation, has pushed up sharply since 10/19. Overall, ahead of its ticker change to the 2.0 version, MATIC looks attractive technically given the improvement in technical structure and momentum, and minor weakness should be buyable for a push up to $0.90 and then $1.00-$1.0340.
Daily Important Metrics
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All metrics as of October 27, 2023 12:04 PM
All Funding rates are in bps
Crypto Prices
| Symbol | Market Cap | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
 BTC | $658B | $33,700 | ↓ -0.46% | ↑ 103% | |
 ETH | $212B | $1,763 | ↓ -0.61% | ↑ 47% | ↓ -56% |
 SOL | $13B | $31.69 | ↑ 1.92% | ↑ 220% | ↑ 117% |
 ADA | $10B | $0.2861 | ↑ 0.06% | ↑ 16% | ↓ -88% |
 DOGE | $9.7B | $0.0686 | ↓ -3.25% | ↓ -2.18% | ↓ -106% |
 LINK | $6.1B | $10.93 | ↑ 3.68% | ↑ 97% | ↓ -6.57% |
 MATIC | $5.7B | $0.6105 | ↓ -2.04% | ↓ -20% | ↓ -123% |
 DOT | $5.2B | $4.10 | ↓ -2.17% | ↓ -5.59% | ↓ -109% |
 NEAR | $1.2B | $1.22 | ↑ 3.80% | ↓ -4.40% | ↓ -108% |
Exchange Traded Products (ETPs)
| Symbol | Premium to Nav | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
| GBTC | ↓ -16% | $25.69 | ↓ -0.31% | ↑ 210% | ↑ 106% |
| BITW | ↓ -35% | $17.56 | ↑ 0.17% | ↑ 227% | ↑ 124% |
| ETHE | ↓ -25% | $13.38 | ↑ 2.76% | ↑ 181% | ↑ 78% |
| BTCC | ↓ -0.05% | $6.19 | ↓ -0.48% | ↑ 104% | ↑ 0.86% |
News
QUICK BITS
The Block Kraken to share user data with IRS next month following June court order Crypto exchange Kraken will share user information with the Internal Revenue Service next month after receiving a court order in June. |
Decrypt.co Crypto ‘Not the Vast Majority’ of Terrorism Funding, Says US Treasury Deputy Secretary Bitcoin is just a natural next step to fund illicit activities, coming after PayPal and the traditional banking system. |
MARKET DATA
CoinDesk Crypto Assets Under Management Jump to $31.7B; SOL-Based Products Rise 74%: CCData Bitcoin-based products have increased their market share to 73.3% from 70.5% amid optimism over the possible approval of a spot-price exchange-traded fund. |
CryptoSlate Crypto dot com records highest Bitcoin inflow since FTX collapse Quick Take Crypto.com has recently experienced an unprecedented influx of Bitcoin, with the volume reaching around $50 million. Compared to the inflows seen by ... |
REGULATION
CoinJournal Standard Chartered-backed Zodia Markets gets VASP registration in Ireland Zodia Markets is a Standard Chartered-backed digital asset exchange and brokerage platform. The company has announced its registration as a Virtual Asset Servic... |
Bitcoinist Taiwan Proposes New Bill Requiring Crypto Firms To Apply For Permits – Details Amid the ongoing global crypto regulatory revolution, Taiwan has proposed a special law to regulate digital assets. The proposed law will require all cryptocurr... |
FUNDRAISING AND M&A
BTC Manager Moonveil raises $5.4m in seed funding for web3 gaming Moonveil Entertainment, a web3 gaming studio, has unveiled a $5.4 million seed investment round, co-headed by Gumi Cryptos Capital and Arcane Group. The investm... |
PRODUCT UPDATES AND PARTNERSHIPS
CoinDesk Floki Pounces on Trillion Dollar RWA Narrative With New TokenFi Platform “The tokenization industry is projected to be a $16 trillion industry by the year 2030,” Floki lead developer ‘B’ told CoinDesk in a Telegram message |
The Block DYdX Chain to distribute all network fees to validators and stakers The dYdX Chain will allocate all accrued fees to its network validators and stakers, while tokens will need to be staked to vote on governance matters. |
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