What's Driving Token Prices? January 4, 2023

SUSHI (+0.75%) - Decentralized exchange Sushiswap announced plans to dissolve its lending protocol Kashi and its token launchpad, Miso. In addition, the team released an initial tokenomics proposal which includes using SUSHI incentives to attract long-term capital. The proposal consists of a mix of incentives for liquidity providers, protocol earnings for xSUSHI stakers who agree to timelocks, and a buyback and burn mechanism.
SOL (+31%) - Solana has been on a roller coaster the last week after tumbling 95% in 2022 following overall market contraction and the implosion of FTX. Recently, Solana has been plagued with more trouble as prominent NFT projects y00ts and DeGods announced they would move from Solana to Polygon and Ethereum, respectively. Both projects account for over 50% of the NFT volume on Solana; the move could be a blow to Solana’s burgeoning NFT ecosystem. Despite the decline, Solana bounced back about 30% in the last week after Ethereum founder Vitalik Buterin tweeted that “the chain has a bright future” and he hopes “the community gets its fair chance to thrive.” Finally, Solana saw a spike in interest following an airdrop for $BONK token which is a meme token inspired by DOGE/SHIB.
BIT (+40%) - BitDAO, the DAO that governs BIT (the token for centralized exchange ByBit), passed a proposal for the BIT purchase program last week. The proposal approved a daily $2M purchase of BIT tokens for the next 50 days for a total of $100M. Since the proposal was introduced (before Christmas), the token has increased 35%.
LDO (+43%) - Liquid staking derivative platform Lido has seen a meteoric rise in its token price over the past few days as the liquid staking derivative space has taken off in anticipation of the upcoming Ethereum upgrade that will enable staked ETH withdrawals. When withdrawals are enabled, platforms like Lido can realize and sell accrued staking rewards, which will increase their earnings. In the case of Lido, they hold $5.6M in stETH earnings.

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