Trading Desk Market Update: 5/19

May 19, 2022

BTC is currently trading around $29,600 and ETH around $1,950. Notable gainers in the last 24 hours are TRX, FLOW, and AR. The global crypto market cap is $1.32T, down 0.2% over the last day. DeFi Total Value Locked is ~$109b and BTC dominance is around 45%.

Equity market performance deteriorated rapidly through the afternoon yesterday with the S&P 500 (-4.0%) realizing its worst day in nearly two years. All sectors were down on the day, but consumer names felt the brunt of the force as challenging earnings releases from Target and Lowes brought down the sector as a whole. While crypto markets have been increasingly correlated to equities and broader risk markets in recent periods, yesterday showed a distinct decoupling as bitcoin (+0.3%) was very stable in comparison. Global equity markets continue to display their fragility today and appear to be headed for another down session. 

Other notable news includes: a US appeals court ordered the SEC to bring enforcement actions to jury trials; the CFTC revealed that they are adding more resources to better monitor crypto markets; the Biden administration revealed plans to require crypto exchanges to segregate client funds; SEC Chair Gensler warned that more actions against unregistered crypto exchanges could be on the way; a Russian minister confirmed the country will eventually allow crypto payments; Tether remains in the spotlight as $9b worth of redemptions have now occurred; early voting on Terra’s proposed fork revealed ~85% support; a proposal was made on Curve to end CRV token emissions to all UST pools; the Socios fan token rallied 40% on their mainnet upgrade and token burn plans; E&Y and Polygon launched the mainnet beta of their hybrid rollup solution, Nightfall; Aave launched a decentralized, NFT-based rival to Twitter on the Polygon network; Ripple signed a new partnership with FINCI to use XRP for international money transfers; Ethereum’s Ropsten public testnet is targeting a June 8th merge, a key step ahead of mainnet’s future merge; the floor price of BAYC NFT’s has fallen by more than 50%; Chainalysis revealed a new product ‘Storyline’ to follow the money in crypto crimes; FTX US debuted an integrated zero-fee stock trading platform that allows investors to fund their account with USDC; a trademark application revealed that Meta may be intending to launch a crypto platform; Coinbase unveiled Coinbase Institute, a new crypto ‘think tank’ in an attempt to help shape digital assets policy; Coinbase revealed that they are backing the development of the first institutional liquid staking protocol that brings KYC checks to DeFi; crypto VC firm Hashed allegedly took a $3.5b hit from Terra exposure; Block revealed that they expect Bitcoin and the Lightning network to disrupt legacy payments; Universal Music Group partnered with LimeWire to bring music NFTs to the mainstream; Revolut’s planned crypto token will aim to reward customers for their loyalty; a16z launched a $600m gaming fund with a focus on Web3 and metaverse games; Web3 hackathon firm DoraHacks raised $20m from FTX and others; and, Mike Novogratz said his LUNA tattoo is a constant reminder that VC investing “requires humility”. 

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