What's Driving Token Prices? February 7, 2024

Katie Talati
Feb 7, 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.

Watch Our Founders Video

  • OX (+6.2%) - Last week, OPNX, the exchange started by the founders of Three Arrows Capital, Kyle Davies and Su Zhu, abruptly announced it would be shutting down. Users were advised to close all positions by today (February 7) and withdraw all assets by February 14. As a quick history lesson, in mid-2022, hedge fund Three Arrows Capital blew up causing a massive strain on the crypto markets. The founders have been accused of mishandling client assets while running Three Arrows Capital and Su Zhu was even arrested in Singapore last September for failing to cooperate with the bankruptcy proceedings. OPNX, which was designed as a bankruptcy exchange, was launched less than a year ago and already received multiple cease-and-desist orders from Dubai’s crypto regulator. 
  • ENS (+16%) - Ethereum Name Service, which allows users to buy and use a “.eth” address in place of a public wallet, announced a partnership with GoDaddy this past Monday. The partnership allows users to link their Ethereum address to web domains for free, as long as the user owns the domain. For example, registering a web domain with an ENS address would allow a user to send ETH to “Amazon.com” and it would go to the associated Ethereum address. While this is a small integration that doesn’t drive any immediate value, it does show that Web2 companies are taking digital assets seriously in rolling out this partnership. 
  • DYM (+50%) - Rollup-as-a-service provider, Dymension, airdropped its token yesterday morning along with launching the mainnet of its product. However, the launch was anything but smooth with the mainnet unable to reach consensus due to a bad validator. In addition, it appears that Dymension’s connection to other blockchains through IBC, the Cosmos messaging system, was not functioning properly and therefore many users were unable to bridge their assets off the chain either to a DEX or centralized exchange. Finally, one of the validators currently has 35% of the tokens delegated to it which raised criticism that the network is not properly decentralized with one group holding an outsized amount of power. 
  • STRD (+63%) - The Cosmos liquid staking protocol, Stride, announced last week that it raised a $4M strategic round. The investors included 1confirmation, Modular Capital, Chorus One, Road Capital as well as a handful of angel investors. The raise announcement comes after the recent launch of stTIA, a liquid staking token for Celestia, which has already gained $29M in TVL. Stride currently supports liquid staking for ATOM, OSMO, DYDX and STARS with many more in the pipeline. 

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

Subscribe For the Latest Blockchain News & Analysis



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.

You May Also Like

These Stories on Investing Themes