What's Driving Token Prices? February 22, 2023

Katie Talati
Feb 22, 2023

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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  • CANTO (-3.4%) - Layer-1 blockchain Canto passed a 30% emissions reduction for stakers and liquidity providers. Canto differentiates itself by offering major apps that were built by the Canto team and do not have a separate token as “public goods” on its blockchains. Instead, gas fees collected on the blockchain are shared with those who developed code for specific applications on the chain. The Sushiswap CEO Jared Grey tweeted "#canto," implying Sushiswap may get involved with the chain. DAUs were down 46% week-over-week as NFT speculation eased, while TVL was down 5%.

  • MATIC (+3.1%) - Layer-2 scaling solution Polygon announced last week that it would launch its long-anticipated zkEVM product at the end of March. The Polygon zkEVM will allow projects to deploy compatible smart contracts on the layer 2 without having to redo their codebase (EVM means it is Ethereum Virtual Machine-compatible). Polygon also announced it would lay off 20% of its workforce in a consolidation effort. Despite the layoffs, the team has reiterated that it holds $250M in its treasury and 1.9B MATIC tokens. 

  • ANKR (+56%) - Ankr, the Web3 infrastructure provider, announced yesterday it had partnered with Microsoft to offer blockchain node infrastructure for enterprise clients. Between both of their technology stacks, clients will be able to access blockchain nodes through Ankr while relying on Microsoft’s cloud infrastructure for scaling. The program aims to allow enterprises to access blockchain data and understand how they can use the technology to solve real-world business challenges.

  • CFX (+184%) - Conflux, a layer-1 blockchain that claims to be the only regulatory-compliant public blockchain out of China, announced a partnership with China Telecom to launch blockchain-enabled SIM cards (or BSIMs). As the second-largest carrier in China, the partnership would open up Conflux to access China Telecom’s 390 million customers. The pilot will launch in Hong Kong and then roll out to mainland China. The BSIMs will be designed to securely store public and private key combinations on mobile phones so users can safely store digital assets on their phones. 

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.

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