What's Driving Token Prices? April 24, 2024

Katie Talati
Apr 24, 2024

Join Katie Talati, Arca’s Head of Research, weekly on Wednesday at 4PM EST / 1PM PST as she shares notable token activity over the past week and her insights on what market events drove these token price movements.

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  • SAFE (-8.7%) - The Safe Wallet, created and spun out by the Gnosis team, is considered the gold standard for multi-sig digital assets wallets and is widely used across the ecosystem. The project released a governance token, SAFE, in late 2022 via an airdrop. However, the token was non-transferable until today when a governance vote approved the token to be transferable and, therefore, sellable. The token was subsequently listed on Coinbase and has since declined in price by -8.7%. The token now sits at $1.97, putting the valuation at $1.9B. 
  • BTC (+5.1%) -  Unless you live under a rock, you have probably heard about Bitcoin’s fourth halving event last Friday. For those unfamiliar, Bitcoin’s issuance schedule is hardcoded to cut itself by half roughly every four years. When Bitcoin first launched, miners earned 50 BTC for every block they mined on the network. That has slowly reduced with each halving event, and now miners only earn 3.125 BTC for every block. However, this halving came with another important Bitcoin launch- a new token standard called Runes. Runes, developed by Casey Rodamor who created the Ordinals standard, went live on Friday causing quite a frenzy as several tokens launched and users raced to trade these new issues on the Bitcoin network. The resulting flurry of activity drove up Bitcoin’s network fees and, at one point, accounted for over 3x the fees earned via block rewards. Network fees have since come down and normalized as the mania around Runes has died down but many are pointing to the past few days of how Bitcoin’s network can become self-sustaining long-term on fees alone.
  • SHIB (+18%) - Shibu Inu, the memecoin project turned Layer-2 protocol, announced it had raised $12M this week for its new privacy-focused Layer-3 project. Companies, including Polygon Ventures, Mechanism Capital, Big Brain Holdings, Shima Capital, Animoca Brands, and others, invested in the yet-to-launch token, TREAT, which will function as a governance and utility token for the upcoming Layer-3. Shibu Inu has attempted to shed its memecoin background by launching various projects within its ecosystem, including Shibarium, a Layer-2 that uses the BONE token. 
  • AKT (+30%) - Decentralized compute project, Akash, saw its token shoot up this week due to an exchange listing and new partnership announcement. Brev.dev, which simplifies AI/ML models, partnered with Akash to use its decentralized GPU marketplace for its compute needs. The AKT token was also listed on Upbit, one of the largest crypto exchanges in Korea.

DISCLAIMER: This commentary is not intended to be investment advice, investment research, or a recommendation. Please consult your investment professional for your own circumstances."

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Disclaimer: This commentary is provided as general information only and is in no way intended as investment advice, investment research, legal advice, tax advice, a research report, or a recommendation. Any decision to invest or take any other action with respect to any investments discussed in this commentary may involve risks not discussed, and therefore, such decisions should not be based solely on the information contained in this document. Please consult your own financial/legal/tax professional.

Statements in this communication may include forward-looking information and/or may be based on various assumptions. The forward-looking statements and other views or opinions expressed are those of the author, and are made as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated and there is no guarantee that any particular outcome will come to pass. The statements made herein are subject to change at any time. Arca disclaims any obligation to update or revise any statements or views expressed herein. Past performance is not a guarantee of future results and there can be no assurance that any future results will be realized. Some or all of the information provided herein may be or be based on statements of opinion. In addition, certain information provided herein may be based on third-party sources, which is believed to be accurate, but has not been independently verified. Arca and/or certain of its affiliates and/or clients may now, or in the future, hold a financial interest in investments that are the same as or substantially similar to the investments discussed in this commentary. No claims are made as to the profitability of such financial interests, now, in the past or in the future and Arca and/or its clients may sell such financial interests at any time. The information provided herein is not intended to be, nor should it be construed as an offer to sell or a solicitation of any offer to buy any securities, or a solicitation to provide investment advisory services.

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