Research Summary
The report discusses key events and trends in the crypto market, focusing on various projects and tokens such as $MKR, $FXS, $CANTO, $ARB, $GMX, $GNS, $RDNT, $GRAIL, $PENDLE, $JOE, $DYDX, $ETH, $BTC, $SOL, $DOT, $AVAX, $gBTC, $RLB, $AXS, $YFI, $LOOKS, and $RDPX. It covers topics such as interest rates, token distribution, protocol upgrades, digital asset distribution, crypto holdings liquidation, token unlocking, lawsuits, buybacks, and tokenomics updates.
Key Takeaways
Stablecoin Projects and Interest Rates
- Interest Rate Environment: Stablecoin projects like $MKR, $FXS, and $CANTO that share off-chain yields with token holders and capture a portion for revenue and value increase of their native tokens are well-positioned in a “higher for longer” interest rates environment.
Token Distribution and Protocol Upgrades
- Token Distribution: 50M $ARB will be distributed to eligible ecosystem projects, potentially attracting capital and users to Arbitrum. $FXS is expanding into RWA with its FRAX V3 upgrade, allowing users to access US T-Bills on-chain.
- Protocol Upgrades: dYdX Chain will launch soon with $DYDX as its native token and protocol revenue shared between validators and stakers. However, 87% of the circulating supply will be distributed to insiders in December.
Digital Asset Distribution and Crypto Holdings Liquidation
- Digital Asset Distribution: Celsius is expected to distribute up to $3B in digital assets, mostly in $ETH and $BTC, to compensate creditors by year-end.
- Crypto Holdings Liquidation: FTX estate will liquidate its $2.5B crypto holdings over the next months, with $SOL being their largest holding at $1.3B. Only $350M is liquid, with the remaining locked and vesting linearly until 2028.
Token Unlocking and Lawsuits
- Token Unlocking: 99m $DOT worth $403M from crowdloans will be unlocked on October 24th. $AXS will unlock 11.5% of the circulating supply worth $68M on October 20th.
- Lawsuits: The decision on Grayscale’s lawsuit against the SEC to convert the $gBTC trust into a spot $BTC ETF is expected to be announced on October 13th.
Buybacks and Tokenomics Updates
- Buybacks: $RLB has started to do the buybacks and burn onchain, using a portion of revenue to purchase. So far, 37.21% of the circulating supply has been burned and it is on track for a $100M yearly burnt $RLB.
- Tokenomics Updates: $YFI tokenomics upgrade will take place on October 19th, introducing veYFI that will enable protocol revenue-sharing with stakers. $LOOKS has recently implemented a tokenomics update, with 50% of platform fees used to buyback $LOOKS.
Actionable Insights
- Investigate the Potential: Consider the potential of stablecoin projects like $MKR, $FXS, and $CANTO in a “higher for longer” interest rates environment.
- Monitor Token Distribution: Keep an eye on the distribution of $ARB and the launch of dYdX Chain with $DYDX as its native token.
- Assess Digital Asset Distribution: Evaluate the impact of Celsius’s expected distribution of up to $3B in digital assets by year-end.
- Track Crypto Holdings Liquidation: Monitor the liquidation of FTX estate’s $2.5B crypto holdings over the next months.
- Watch Token Unlocking: Pay attention to the unlocking of 99m $DOT worth $403M from crowdloans and 11.5% of the circulating supply of $AXS worth $68M.
- Follow Lawsuits: Follow the decision on Grayscale’s lawsuit against the SEC to convert the $gBTC trust into a spot $BTC ETF.
- Observe Buybacks: Observe the buybacks and burn onchain of $RLB and the tokenomics updates of $YFI and $LOOKS.
