What's Driving Token Prices? January 18, 2023

Katie Talati
Jan 18, 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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  • PSTAKE (+8.4%) - Persistence or pStake is a liquid staking derivative platform based on Cosmos. Last week, pStake launched its ATOM staking feature allowing users to deposit ATOM and receive a derivative version of the staked ATOM in return. With a compelling ~15% APY, TVL on Persistence is up 65% in the last week.

  • RON (+23%) - Ronin, the layer-2 scaling solution for blockchain game Axie Infinity, announced this week that it would replace wrapped ETH pairs on its decentralized exchange Katana with wrapped RON. Since the DEX serves anyone interacting in the Axie Infinity ecosystem, this move should greatly increase the liquidity of the RON token. At its height in February 2022, Ronin was doing over $700m a week in volume; today about $30m.

  • FTT (+33%) - FTX’s exchange token FTT surged over the last week on news that $5.5b in assets had been recovered as part of the FTX Chapter 11 bankruptcy proceeding. With estimates of FTX’s shortfall of around $10b, this implies that bankruptcy claims may be closer to 50%. FTT rallied on this news, however, with the release of the FTX Debtors presentation yesterday, it appears that of assets recovered, $635m of it is in SOL and $529m of it is in FTT tokens.

  • AAVE (+35%) - Rumors are flying that decentralized lend/borrow protocol Aave is slated to launch its v3 protocol upgrade on Ethereum potentially as early as this week. Although a formal activation vote will still need to go through governance, the v3 upgrade includes a number of new features including greater capital efficiency across all the chains Aave is deployed on, risk management tools to better manage liquidations and borrowing, updates to governance, and the Aave app interface. The new protocol version has already been deployed on other chains but the launch on Ethereum should be significant as it accounts for 88% of Aave’s $4.53b in TVL.

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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