Research Summary
This report discusses the latest developments in the cryptocurrency and blockchain industry. It covers the delay in spot Bitcoin ETF applications, the collaboration between Pudgy Penguins NFTs and Walmart, the introduction of Celestia’s native cryptocurrency, and the current state of DAI Savings Rate. The report also mentions other news such as Coinbase’s introduction of perpetual futures trading and Kraken’s plan to enter US stock trading.
Key Takeaways
Spot Bitcoin ETF Applications Delayed
- SEC Delays Decisions: The SEC has delayed decisions on several spot Bitcoin ETF applications, including those from Global X, Valkyrie, BlackRock, Invesco, and ARK 21Share. The delays are likely due to the impending government shutdown.
- Implications for Bitcoin: The delays could impact the Bitcoin market, as ETFs provide a regulated and safer way for investors to gain exposure to Bitcoin.
- Future Expectations: Despite the delays, it is expected that the remaining applications will also be delayed by the SEC.
Pudgy Penguin NFTs Collaborate with Walmart
- Physical Toys: Pudgy Penguins, an NFT collection, has collaborated with Walmart to sell toys modeled after the NFTs in 2000 retail locations across the U.S.
- Web3 Onboarding: The toys serve as an entry point into Pudgy World, a Web3 social platform, allowing users to interact with other collectors.
- Impact on NFT Market: This collaboration could redefine the business model for NFT collections, encouraging other NFT projects to explore traditional brand-building initiatives.
Introduction of Celestia’s Native Cryptocurrency
- Genesis Supply: Celestia Foundation has announced the issuance and distribution of 1bn TIA tokens, the native cryptocurrency of the Celestia blockchain.
- Token Utility: TIA tokens can be used for staking, voting on network parameters, and deciding how the assets in the community pool are spent.
- Impact on Blockchain Industry: The launch of Celestia is highly anticipated as it represents a pure application of the blockchain modularity thesis.
Current State of DAI Savings Rate
- DSR Retreat: The DAI Savings Rate (DSR) has retreated to 5% as utilization nears 3-year highs around 30.3%.
- Impact on MakerDAO: The high DSR-related costs have implications for MakerDAO’s economic health, as the DAO’s revenue funds the DSR.
- Future Expectations: The current state of DSR could lead to discussions about the sustainability of the mechanism.
Actionable Insights
- Monitor Bitcoin ETF Developments: Investors and market participants should keep an eye on the developments regarding Bitcoin ETF applications, as they could significantly impact the Bitcoin market.
- Explore NFT-Physical Goods Collaboration: NFT projects could explore collaborations with physical goods retailers, following the example of Pudgy Penguins and Walmart.
- Investigate the Potential of Celestia: Blockchain enthusiasts and developers should investigate the potential of Celestia and its native cryptocurrency, TIA, as it represents a novel application of the blockchain modularity thesis.
- Assess DAI Savings Rate: DAI users and MakerDAO participants should assess the current state of DAI Savings Rate and its implications for MakerDAO’s economic health.
