Jan 15

4 min read

[REVAMPED] Tokenlon Weekly (Jan 7 — Jan 13)

From the Tokenlon team

This will be the first of our revamped weekly newsletter that provides more market insights in addition to current developments from Tokenlon. Do let us know if you enjoyed it, or have any feedback or suggestions!

You can reach us directly on Discord or Twitter.

Market insights

Market Summary

The U.S. CPI for December has been announced recently, up 6.50% year-on-year as projected, and expectations for substantial interest rate hikes have slowed down. This was the smallest year-on-year increase since October 2021, and the CPI fell 0.1% monthly, the first monthly decline in two and a half years.

Affected by various aspects of the market, the market has improved slightly this week. BTC and ETH reached $18,000 and $1,400 in the middle of the week, respectively, and their increases exceeded 10% in the past 7 days, respectively 11.7% and 12.5%. Overall DEX trading volume is up 65% this week after another 2 weeks of sharp declines.

The return of Solana

After many weeks of downtrend and trapped in a range, the market has took an upwards turn last week, with Solana leading the charge.

Solana experienced a 36% spike that might’ve been a direct result of a hyped memecoin $BONK, airdropped on the Solana network. The price movement might also have been kickstarted by Vitalik Buterin’s supportive tweet. Despite that, there was no fundamental drivers for the price appreciation.

Digital Currency Group (DCG) crisis

DCG owes Genesis $575 million worth of loans due in May 2023. Now, DCG is under investigation from the SEC over internal transfers at its lending subsidiary Genesis.

Genesis has already taken a lot of hits from the major events happening in 2022, from 3AC’s to FTX’s downfall. It would be interesting to see how much would it take to weather this storm.

Meanwhile, DCG is also the parent company of prominent news portal CoinDesk, and Luno cryptocurrency exchange.

We advise our users to be vigilant in doing your research, and stay safe.

Rising interest in Liquid Staking Derivatives

One major risk concern for staking is the locked liquidity during the staking period. ETH’s upcoming upgrade should enable withdrawals from the staking contact. Withdrawals will massively lower the risk of staking, and should result in more ETH being staked.

Lido and Rocket Pool are up 24% and 12% respectively as a result.

Did you know that you can stake your LON as well? For the previous week alone, the monthly APY was up to 33%!

Open Editions helped creators earn over 1300 ETH

Last week Open Edition NFTs on Manifold.xyz helped creators earn over 1300 ETH ($1.6M).

Open Edition NFTs are NFTs with no predetermined number of creations. Because the edition size is unknown, open editions don’t receive as much speculative attention, making it a relatively low-priced haven for fans and collectors who aren’t interested in flipping their holdings.

We expect to see Open Editions to grow in popularity slowly but surely, as the market matures.

NFT prices up

We’ve already seen a slow rise in NFT demand in December 2022, and that has continued into January. We believe a majority of the increased volume has been caused by Blur, as they’ve promised to airdrop their users with rewards. Meanwhile, Cryptopunk and BAYC historical cumulative volume has exceeded 1 million ETH.

While there may be dangers that this uptick is speculative and may or may not be sustainable, knowing that NFT flippers are abundant, the core values of NFTs are not going away. As we head into 2023, hype-based projects promising quick gains should slowly wither away, paving the way for NFTs with real-world use cases.

Tokenlon Product & Community

Limit Order deployment on mainnet entered market makers discussion
Consideration of price and candle charts forTokenlon Instant Swap Dapp
Completed NFT core functions for NFT platform
TIP 34 passed and executing next week
Blockpour AMA in planning
GMX x Dopex x Tokenlon campaign starting next week
Pass-type NFT research for Tokenlon NFT
DEX product & market in the past half year
LSD concept token liquidity research
Started talks of Defi product creation with Pionex
Officially onboarded 1 new market maker, providing better prices for all Tokenlon users

Tokenlon & LON weekly statistics

Important Risk Warning

LON token contract address:
0x0000000000095413afC295d19EDeb1Ad7B71c952
LON is Tokenlon’s native token, where holders will enjoy fee discounts and voting rights
Beware of fake Tokenlon imitations, the official website is: https://tokenlon.im
Please do not download any app or DApp from non-official Telegram, Whatsapp, Facebook, or Wechat

Tokenlon,

2023.01.06

Notes

Digital Assets are highly volatile and unpredictable. Please do your research before trading.