Tuesday, 24 May 2022

Market Summary

Market Summary 24 May 2022

Bitcoin Price: US$ 29,109.15 (-3.91%)
Ethereum Price: US$ 1,973.32 (-3.42%) 


GMX Users Increase

  • GMX is a DEX and margin trading platform that utilizes an oracle pricing model to allow for optimal on-chain execution of trades.
  • Arbitrum users have been growing rapidly since the integrations on multiple DEX aggregators like 1inch and Paraswap. This grew DAU to around 600-1400. However, the increase in userbase isn’t reflected in its volume as swaps continue to hold 3-9% of daily volume on GMX.
  • June is looking bright for GMX as there will be integrations of a delta-neutral USDC vault by Umami Finance done through hedging of GLP. Moreover, GMX has partnered with Rook, allowing them to arbitrage between GLP and other DEXs. 80% of profits from the arbitrage will be directed to GMX and split between GLP and GMX holders.


The Lord of Badgers, and Alchemix’s New Tokenomics

  • Alchemix tweets about their new tokenomics model.
  • Bancor v3 launches.
  • TreasureDAO discusses how they are prepared to face a bear market.
  • TrueFi begins the process of decentralization — launching its on-chain governance and asking for delegates.
  • Synopsis: Badger is discussing adopting a new council model with clearly delineated responsibilities and processes for the members. Broadly, the proposer divides the model into four parts:
    • Part 1 establishes the Badger-Improvement-Process.
      • Proposals move from creation to forum signaling, to snapshot voting, and finally to implementation. Each section of this process has requirements that proposals need to meet before moving on to the next.
    • Part 2 creates a system of checks and balances for council decisions.
      • The two oversight structures are a Core Team Oversight Board that oversees the council and a process for the community to dissolve the council in its entirety.
    • Part 3 defines the roles and responsibilities of council members.
      • The council will consist of seven members – two from the core team and five from the community. There are additional roles, including the amazingly named position of ChairBadger, and a process to bring in outside expertise.
    • Part 4 presents the council budget and remuneration.
      • The council remuneration consists of two parts, 1-year locked BADGER and a monthly stipend. The breakdown below was presented in the forum.


Monero enters ‘overbought’ danger zone after XMR price gains 75% in two weeks

  • Monero (XMR) price may witness a sharp pullback by June because its 75% rally in the last two weeks has left the gauge almost “overbought.”
  • Downside risks have been mounting due to XMR’s relative strength index (RSI), which almost hit 70 this May 23, indicating that the market is considered overvalued. An oversold RSI could amount to a bout of declining moves, as a rule of technical analysis.
  • Additionally, Monero is also painting a bearish reversal pattern, dubbed the rising wedge. Rising wedges form when the price moves inside a range defined by two ascending, converging trendlines.


Genomics company explores NFTs in hopes of advancing precision medicine

  • For those unfamiliar with the term, precision medicine refers to “an emerging approach for disease treatment and prevention that takes into account individual variability in genes, environment, and lifestyle for each person,” according to the Precision Medicine Initiative.
  • Specifically speaking, Cao believes that tokenizing genetic profiles can help patients maintain data ownership and transparency into their insights while receiving many benefits that are not typically associated with traditional genomic testing. He explained:
  • For example, Genetica, a genomic company catering to the Asia Pacific region, recently partnered with Oasis Labs, a Web3 data management firm, to tokenize genomic profiles. Tuan Cao, Genetica’s CEO and co-founder, told Cointelegraph that the goal behind this partnership is to advance precision medicine by giving patients data ownership and rights through GeneNFTs.
  • “This may be one of the most important NFT applications in the world. Our genetic profile is unique and it should be represented by an NFT. GeneNFTs are the tokenized ownership of one’s genetic data. This enables each of us to truly take control and benefit from our data contribution.”
  • According to Cao, traditional genetic testing companies like 23andMe, for example, rely on intermediaries to collect patient data for research. As such, users must trust centralized entities to safely store sensitive health information. Moreover, users do not receive any incentives for opting to share their data with third parties. Yet, tokenizing genomic data in the form of an NFT has the potential to transform this model entirely.


Do Kwon shares LUNA burn address but warns ‘LUNAtics’ against using it

  • The recent Terra revival plan announced by Do Kwon, the co-founder and CEO of Terraform Labs, received mixed reactions as many questioned the effectiveness of a hard fork in reviving the fallen prices of Terra (LUNA) and TerraUSD (UST) tokens. Instead, the part of the community recommended burning LUNA as the most plausible way to achieve a comeback.
  • Kwon’s proposal to preserve the Terra ecosystem involves hard forking the existing Terra blockchain without the algorithmic stablecoin and redistributing a new version of the LUNA tokens to investors based on a historical snapshot before the death spiral. However, several crypto entrepreneurs, including Changpeng “CZ” Zhao, opined that:
  • “Reducing supply should be done via burn, not fork at an old date, and abandon everyone who tried to rescue the coin.”
  • Upon a persistent request from the crypto community, Kwon went against his initial plan and publicly shared a burn address for LUNA on Saturday. Every LUNA token sent to this address will be burned immediately, effectively reducing the circulating supply of LUNA tokens.


Fed report finds most Americans who own crypto tend to be high income hodlers

  • The United States Federal Reserve Board has included data on cryptocurrency in its new Economic Well-Being of U.S. Households in the 2021 report. The Fed’s ninth annual report looked at survey results from 11,000 people questioned in October and November 2021. 
  • The report indicated financial wellbeing is the highest it has been since reporting began, with 78% of U.S. adults “doing okay or living comfortably financially.” That is an increase of 3% over the last three years. As a diagnostic of financial fitness, the report cites the 68% of Americans who say they could cover a $400 emergency expense using cash or its equivalent alone.
  • The report looked at cryptocurrency usage for the first time. It found that 12% of U.S. adults held or used crypto in 2020, with 11% holding it as an investment, 2% using it for a purchase or payment and 1% sending it to friends or family. Investors holding crypto “were disproportionately high-income, almost always had a traditional banking relationship, and typically had other retirement savings.” Forty-six percent had annual incomes of $100,000 or more and 89% of those who were not retired had retirement savings. Twenty-nine percent had incomes under $50,000.


fUSD stablecoin launch and rumors of Cronje’s return send Fantom (FTM) price higher

  • After a strong 2,000% rally in early 2021, Fantom (FTM) price collapsed alongside multiple altcoins and even though the blockchain has an impressive capability, it has yet to find mass adoption due to the lack of a compelling use case. FTM price hit an all-time high at $3.46, only to collapse to its pre-bull market lows under $0.25 after the failure of the Solidly DeFi project and the departure of developer Andre Cronje.  
  • Three reasons for the uptrend in FTM price are the launch of the first native stablecoin on the Fantom network, new protocol upgrades and partnership announcements, which bring new functionality to the network, and speculation that Andre Cronje is working with decentralized finance (DeFi) protocols on Fantom.


WEF 2022: Most DeFi protocols aren’t really decentralized, says European Parliament VP

  • Most decentralized finance (DeFi) protocols aren’t truly decentralized, which means we need proper regulations in place to understand the inner workings of this emerging technology, according to European Parliament vice president Eva Kaili. 
  • In an exclusive interview with Cointelegraph at the World Economic Forum Annual Meeting in Davos, Switzerland, Kaili was asked to outline her definition of DeFi. By definition, DeFi is “completely decentralized,” she said, which means that “nobody can control or […] manipulate a blockchain.”
  • Achieving decentralization is no easy feat. “Most of them are […] saying they are, but they are not, Kaili said, referring to existing DeFi protocols. She further explained the need to define ecosystem players as part of a broader regulatory framework:
  • “We need to have safeguards to understand who is a developer, who controls that, what are the keys, if somebody can change the code or not, where is the jurisdiction. We have to make sure we understand how it works. It’s not an easy exercise. This is what disruption is. It’s out of the box challenges that we need to see what are the benefits and ensure we work around that with smart regulation.”


WEF 2022: Terra were offering unsustainable yields; DeFi can support financial inclusion

  • Reporting from the inaugural day of the Blockchain Hub Davos 2022 conference, Cointelegraph’s editor-in-chief, Kristina Lucrezia Cornèr hosted a panel discussion centered around decentralized finance (DeFi) titled “Programmable Money is Here — and It’s Changing the World as We Know It.”
  • Panelists included chief partnership officer of SwissBorg, Alexander Fazel; Global Markets lead of Kraken Europe, Lucian Aguilar; co-founder and CEO of CasperLabs, Mrinal Monahar; and managing partner of Coral Capital, Patrick Horsman.
  • In the opening remarks, Aguilar reflected upon his attendance of the event two years ago, assessing the differences in receptiveness and attitude to crypto. He also noted how the prevailing narrative has evolved, stating: “Last time [there were] a lot of projects here that were trying to sell and present. This time, when I look around, it’s more talking about building, adopting and innovating.”
  • Coral Capital’s Horsman shared that the Terra (LUNA) crisis partly occurred because “they were essentially offering yields that were unsustainable, and [that] there were venture capital firms that were bootstrapping those yields in order to bootstrap an ecosystem.” He noted that his firm decided to withdraw funds from the project in November–December 2021 after their reserve modeling data predicted worrying calculations for the future.

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