Daily Market Update: August 21, 2023

August 21, 2023

BTC is currently trading around $26,100 and ETH around $1,700. Notable gainers in the last 24 hours are RLB, OP, and HBAR. The global crypto market cap is ~$1.10T, down ~0.7% over the last day. DeFi Total Value Locked is ~$38b and BTC dominance is around 49%.

Equities and interest rates are inching higher while crypto is down modestly. Chinese equities notably diverged lower as policymakers unexpectedly held the 5y loan prime rate constant at 4.2% and made a smaller-than-expected cut to the equivalent 1y measure. It’s a slow start to the week elsewhere, but the Jackson Hole Economic Symposium kicks off on Thursday, with Fed Chair Powell delivering a speech at the conference on Friday.

Notable news includes: China is seeking to implement its social credit system with digital IDs in the Metaverse; Bitget announced the rollout of tighter KYC requirements due to regulatory concerns, and the exchange separately integrated with Copper’s ClearLoop to enable an off-exchange settlement solution; Hashkey is expected to debut retail crypto trading services in Hong Kong on Aug 28; reports indicate the SEC may simultaneously approve several Ethereum Futures ETFs to prevent becoming a kingmaker and giving a single issuer a head start as was previously done with BITO; Base activity soared past Arbitrum and Optimism amidst the friend.tech frenzy; MakerDAO’s money market, Spark Protocol, reached full borrow utilization for DAI just eight days after the debt ceiling was raised to $200m; THORChain processed record volumes after introducing ‘Streaming Swaps’ that break up cross-chain trades into smaller parts that are executed over a day; Kraken introduced support for PayPal’s PYUSD stablecoin; Yuga Labs revealed it would soon end support for OpenSea due to its royalty fee policy; friend.tech generated over $1m fees over 24 hours, surpassing the fees generated on Uniswap and the entire Bitcoin network; Securitize acquired $40b crypto fund manager Onramp; NFT platform Recur announced plans to shutdown despite previously raising $50m from big named backers; Bitcoin Ordinals NFT trading volume tanked 98% from May; and, SBF is seeking regular release from jail and may place blame on his lawyers in his defense.

Sign up to conveniently receive GSR crypto content in your inbox each morning.

Matt Kunke, Research Analyst | TwitterTelegramLinkedIn
Brian Rudick, Senior Strategist | TwitterTelegramLinkedIn

This material is provided by GSR (the “Firm”) solely for informational purposes, is intended only for sophisticated, institutional investors and does not constitute an offer or commitment, a solicitation of an offer or commitment, or any advice or recommendation, to enter into or conclude any transaction (whether on the terms shown or otherwise), or to provide investment services in any state or country where such an offer or solicitation or provision would be illegal.  The Firm is not and does not act as an advisor or fiduciary in providing this material.

This material is not a research report, and not subject to any of the independence and disclosure standards applicable to research reports prepared pursuant to FINRA or CFTC research rules. This material is not independent of the Firm’s proprietary interests, which may conflict with the interests of any counterparty of the Firm. The Firm trades instruments discussed in this material for its own account, may trade contrary to the views expressed in this material, and may have positions in other related instruments. 

Information contained herein is based on sources considered to be reliable, but is not guaranteed to be accurate or complete. Any opinions or estimates expressed herein reflect a judgment made by the author(s) as of the date of publication, and are subject to change without notice. Trading and investing in digital assets involves significant risks including price volatility and illiquidity and may not be suitable for all investors. The Firm is not liable whatsoever for any direct or consequential loss arising from the use of this material. Copyright of this material belongs to GSR. Neither this material nor any copy thereof may be taken, reproduced or redistributed, directly or indirectly, without prior written permission of GSR.