Trading Desk Market Update: 8/10

August 10, 2022

BTC is currently trading around $24,200 and ETH around $1,850.  Notable gainers in the last 24 hours are LDO, XLM, and CEL.  The global crypto market cap is $1.19T, up 4.1% over the last day.  DeFi Total Value Locked is ~$67b and BTC dominance is around 41%.

US equities are higher, Treasury yields are lower, and crypto prices are up after this morning’s US CPI release that showed slowing headline inflation.  Specifically, prices rose 8.5% year-over-year in July, below both expectations for an 8.7% increase and June’s 9.1% rise.  The more tame inflation reading likely lessens pressure on the Fed’s rate hike plans.

In stablecoin news, USDC issuer Circle banned Tornado Cash addresses after the Treasury sanctioned the crypto mixer; Circle also stated plans to only support the Ethereum proof-of-stake chain after The Merge; stablecoin giant Tether officially confirmed its support for proof-of-stake Ethereum; trading firm Wintermute joined the Tron DAO Reserve to help stabilize and support the USDD stablecoin; former Terra-based project Kujira revealed plans to issue the USK stablecoin; and, MakerDAO is making contingency plans to execute an emergency shutdown should core smart contracts underpinning its DAI stablecoin be sanctioned by the US.

Other notable news includes: a UK parliamentary group is examining plans to turn the UK into the “global home of crypto investment”; Iran placed a $10m international import order using cryptocurrency and revealed plans to ramp up crypto-paid imports over the next month; Canadian regulators are reportedly working with the US SEC to investigate embattled centralized lender Celsius; California regulators issued a desist and refrain order against Celsius from selling securities in the state; German fintech Nuri, formerly known as Bitwala, filed for insolvency; crypto exchange CoinFLEX filed for restructuring in Seychelles; Reddit selected Arbitrum Nova as its scaling solution for its Community Points token program; Latin American e-commerce company Mercado Libre revealed plans to expand its crypto trading feature across the region; hardware maker Nvidia revealed a new set of developer tools focused on the metaverse; checkout.com is exploring a new crypto payments product; Coinbase reported 2Q earnings that included revenue of $803m vs. $1.17b in 1Q and $2.0b in 2Q21, flattish monthly transacting users, and a significant decline in assets on its platform; blockchain development platforms Alchemy and Infura blocked access to the recently-sanctioned Tornado Cash; mining firm Riot Blockchain delayed its quarterly earnings report; miner CleanSpark increased its year-end 2023 hashrate guidance to 22.4 EH/s and announced plans to exit the energy business; NFT marketplace Magic Eden submitted a proposal to the ApeCoin DAO to build an NFT marketplace for APE holders to help them save on fees; Ethereum scaling solution Arbitrum launched a second layer two chain called Arbitrum Nova that is optimized for gaming and social projects; the Fantom community is voting on a governance proposal that may reduce staking rewards; DEX aggregator 1Inch has integrated with South Korean smart contract blockchain Klaytn; and, stable swaps protocol Curve quickly resolved a hack after its front end had been compromised.

2022.08.10

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