2 June 2023
Happy Friday! The Weekly Market Highlights is an initiative from the Binance Research team to round up the week, summarizing key market events and views from the team.
🔎 Macro / TradFi
The U.S. senate has passed a bill to raise the debt ceiling, sending it to President Joe Biden’s desk and putting it on course to avoid a U.S. default. This comes just days before the Treasury Department’s June 5 deadline.
🔎 Crypto
L1/L2:
Fantom will reward high-quality projects with 15% of the gas fees they produce, giving developers extra income. As part of the dApp Gas Monetization Program, the aim is to retain talented creators, and support Fantom’s network infrastructure.
Scroll, an Ethereum L2 zk-rollup, disclosed that it will go live on Mainnet in early August.
Rocket Pool, an Ethereum liquid staking protocol, has been deployed on zkSync Era. It is the first Ethereum liquid staking protocol to deploy on the newly launched Layer 2 network.
DeFi:
Jimbos Protocol, a liquidity protocol on Arbitrum, was exploited, resulting in the loss of 4,000 ETH (~US$7.5M). According to security firm PeckShield, the hack occurred due to the lack of slippage control on liquidity conversions.
The Uniswap community voted against an initial snapshot poll to turn on the protocol fee. Opponents of the proposal cited tax and regulatory concerns for rejecting the proposal.
Stablecoins:
A new MakerDAO proposal is being discussed to raise the DAI stablecoin savings rate from 1% to 3.33%.
Tether, the issuer of USDT, has invested resources into energy production and sustainable Bitcoin mining operations in Uruguay. This comes after Tether announced plans to allocate a part of its profits to bitcoin investments, including regular purchases of BTC and funding infrastructure.
Circle announced that it will launch USDC natively on Arbitrum.
NFTs:
Users can now migrate their Ethereum ERC-721 NFTs to the Bitcoin blockchain with the launch of the BRC-721E standard. According to the Ordinals Market website, Ethereum-based NFT holders can burn their tokens and inscribe them onto a satoshi on the Bitcoin network.
Others:
Hong Kong and the United Arab Emirates’ (UAE) central banks have agreed to strengthen financial cooperation in three major areas, including virtual asset supervision and development.
1 June marked the day that the Hong Kong's Securities and Futures Commission (SFC) began accepting applications for crypto trading platform licenses.
Blockchain analytics firm, Nansen, has announced a 30% layoff. The firm cited rapid scaling which “led the organization to taking on surface area that’s not truly part of Nansen’s core strategy” and the brutal market conditions as reasons for the layoffs.
🔎 Latest Binance Research Publications
Check out our latest publications:
Explore our Binance Research website for more project and macro research reports.
For more frequent market updates and insights, follow us on Twitter @BinanceResearch.
Have a minute? Please share with us any feedback you may have via this form.
That’s a wrap!
Binance Research
About Binance Research: Binance Research is the research arm of Binance, the world's leading cryptocurrency exchange. The team is committed to delivering objective, independent, and comprehensive analysis and aims to be the thought leader in the crypto space. Our analysts publish insightful thought pieces regularly on topics related but not limited to, the crypto ecosystem, blockchain technologies, and the latest market themes.
General Disclosure: This material is prepared by Binance Research and is not intended to be relied upon as a forecast or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities, cryptocurrencies or to adopt any investment strategy. The use of terminology and the views expressed are intended to promote understanding and the responsible development of the sector and should not be interpreted as definitive legal views or those of Binance. The opinions expressed are as of the date shown above and are the opinions of the writer, they may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and non-proprietary sources deemed by Binance Research to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Binance. This material may contain ’forward looking’ information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader. This material is intended for information purposes only and does not constitute investment advice or an offer or solicitation to purchase or sell in any securities, cryptocurrencies or any investment strategy nor shall any securities or cryptocurrency be offered or sold to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the laws of such jurisdiction. Investment involves risks.
