Token Metrics Market Update - May 4th, 2024
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In this week’s edition, we'll delve into the top-performing cryptocurrencies, explore the growth trajectories of various crypto sectors, highlight major investments reshaping the digital assets landscape, and dissect regulatory updates influencing market dynamics. We will also examine macroeconomic trends impacting crypto markets and uncover exciting airdrops to participate.
Join Token Metrics as we navigate the ever-evolving world of digital assets, offering you the knowledge and foresight to make informed decisions in this exciting space.
Macroeconomic Developments
In its statement of May 1, the Federal Open Market Committee (FOMC) maintained its current interest rate target of 5.25-5.50%. The Fed Chair acknowledged that after the hot Q1 inflation data, it will take longer to gain confidence that inflation is on a sustainable path toward the 2% target.
However, Jerome Powell said that it was unlikely that the next policy rate move would be a hike. This, together with the announcement of slowing down the pace of quantitative tightening from June, gave markets much-needed relief. As a result, a significant bounce was observed in the equity and crypto markets after the FOMC statement.
Nevertheless, the chances of any rate cuts in the next two FOMC meetings remain very low. |
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Top Performers Of This Week
Bitcoin's price has dropped for the fifth consecutive week. On Wednesday, May 1, the pioneering digital asset plunged to a fresh two-month low of $56,552, triggering a massive sell-off in the altcoin market. Nevertheless, Helium (HNT,+33%), Optimism (OP, +20%), Wormhole (W, 13.9%), Axelar (AXL, 12.4%), and Starknet (STRK, 9.2%) emerged as the biggest gainers among the top 100 digital assets by market capitalization.
Helium (HNT) - +33%
Amid multiple announcements on mobile updates and voting results, Helium Network's native asset has gained 33% in the last seven days. With this surge, the digital asset has attained a market capitalization of $905 million. However, the HNT price remains 90% down from its all-time high. |
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Optimism (OP) - +20%
OP is the native token of Ethereum layer-2 Optimism. The network leverages optimistic roll-ups and currently boasts $880 million in TVL. OP is one of the few crypto assets that have shown resilience against Bitcoin in the ongoing downtrend. It is up 20% in the past week after finding strong support at $1.80. |
Wormhole (W) - +13.5%
Wormhole is a cross-chain messaging platform that allows developers to build decentralized applications that span all the major blockchain networks. The protocol’s native cryptocurrency is W, which is experiencing strong buying pressure and has been up 13.5% in the last 7 days. |
Axelar (AXL) - +12.4%
Axelar is a decentralized network designed to connect blockchain ecosystems, enabling seamless interoperability and asset transfer across multiple platforms.
AXL has surged 12.4% in the past week due to increased investor interest fueled by adoption and strategic partnerships. |
Starknet - +9.2%
Starknet is a permissionless, scalable layer-2 network for Ethereum that aims to solve Ethereum's scalability issues. STRK, the native token of Starknet, has emerged as one of the best-performing coins with a 7-day surge of 9.2%. |
Token Metrics Sector Analysis
Here is the performance analysis of the top 5 crypto sectors. Layer 1 is the biggest sector, with a total market capitalization of $693 billion. This is followed by DeFi, Infrastructure, Gaming and Metaverse. |
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Prominent Investments
Here are a couple of prominent investments in the VC space. These investments show which projects are getting the most funding from the industry veterans and which narratives are leading.
Paragraph -$5M
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Paragraph is a Web 3 publishing platform that empowers creators to monetize their content directly through newsletter subscriptions, on-chain social features, and messaging integrations.
They recently secured $5 million in fresh financing from Union Square Ventures and Coinbase Ventures. Paragraph has also acquired the web3 blogging platform Mirror.
OpenDelta Raises $2.5M |
OpenDelta, a Bitcoin-centric stablecoin company, has secured $2.15 million in funding. This pre-seed round, led by 6th Man Ventures, positions OpenDelta to capitalize on the red-hot trend of Runes.
OpenDelta is a delta-neutral, yield-bearing synthetic dollar powered by Bitcoin derivatives. Launching soon on Runes.
Agora Raises $5M |
Agora, a platform for managing decision-making across different blockchains, secured $5 million in seed funding. The round was led by HAUN Ventures, with notable investors including Coinbase Ventures, Seed Club Ventures, and crypto personalities like Balaji Srinivasan and Packy McCormick.
Agora leverages the unique attributes of blockchain technology to design the next generation of voting systems for governments and organizations.
Regulatory Developments
Binance Founder Gets Jail Time
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Binance founder CZ received a 4-month prison sentence after pleading guilty to money laundering lapses at the crypto exchange. This follows a $4.3 billion settlement with US authorities.
Consensys Sues SEC Over Ethereum’s Status |
Metamask developer Consensys has sued the SEC, claiming the agency is overstepping by labeling Ethereum a security. The lawsuit seeks clarity to avoid disrupting the blockchain network.
Industry News
Bitcoin And Ethereum ETFs Debut In Hong Kong |
Hong Kong's debut of Bitcoin & Ethereum ETFs saw muted trading, raising questions about Asian investor interest. The launch, much anticipated, fell short of US ETF volume, impacting both crypto prices.
Block To Buy Bitcoin Every Month
In a move to boost its bitcoin holdings, financial technology company Block will be reinvesting a portion of its bitcoin profits back into the cryptocurrency. This means that 10% of their monthly earnings from bitcoin products will go towards buying more bitcoin until the end of 2024. This adds to their current stockpile of bitcoin, which is valued at around $482 million.
Block, Inc. is a U.S. listed company founded by Jack Dorsey and Jim McKelvey in 2009.
Coinbase Integrates Lightening Network |
Popular crypto exchange Coinbase integrates the Lightning Network, enabling faster and cheaper Bitcoin transfers for users. This could boost Bitcoin payment adoption, but the impact remains to be seen.
Bitcoin ETFs Experience Record Outflows |
Bitcoin funds see record outflows on Wednesday, as investors pulled $563.7 million. BlackRock's IBIT fund recorded its first ever day of outflows. Fidelity's FBTC led outflows, shedding $191 million, followed by GBTC, ARKB, and IBIT.
Eigen Layer Airdrop Criteria Fumes Community |
EigenLayer, an Ethereum restaking protocol, plans to distribute approximately 28 million more of its native EIGEN tokens to over 280,000 wallets, shortly after its initial airdrop announcement. On Monday, EigenLayer disclosed its intention to allocate 15% of its total supply to the community, prompting criticism from some users who found certain aspects of its airdrop program restrictive.
In a May 2 update on X platform, the Eigen Foundation announced that additional EIGEN tokens will be airdropped to users who engaged with the protocol before April 29, extending the distribution to include initial airdrop claimants. |
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