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.

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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.

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