What's Driving Token Prices? January 29, 2025

Katie Talati
Jan 29, 2025

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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  • ANIME (-74%) - Last Thursday, the Azuki NFT collection launched its fungible token Animecoin (ANIME) in an airdrop launch. The token itself is considered a “culture coin” (which means it intrinsically has no value) and with 50% distributed to the community: two-thirds to holders of the Azuki NFT and related NFT collections and another third for Hyperliquid stakers, Kaito yappers, and Arbitrum communities. Ultimately, Azuki is aiming to build a web3 anime network which will be built on layer-2 Arbitrum and use the Animecoin for gas. The token initially launched at a $614M market cap but ultimately fell and is now at $257M.
  • ARC (-36%) - AI Rig Complex (ARC), a newly launched AI agent framework, announced yesterday that it is one of the Solana Foundation’s partner AI projects. This means ARC will be providing targeted grants to developers to build using the framework on Solana; those same teams will also directly benefit from resources at the Solana Foundation. ARC differentiates its agent framework as it is written in the Rust programming language, making it easier for Web2 developers to learn and use. Although only launched in December, it has quickly gained traction and is now the third most starred framework on Github. The ARC token initially shot up 30% on the announcement but has since retraced and is now down -36% for the week. 
  • RUNE (-34%) - Remember how we discussed some issues over at Thorchain two weeks ago? Well these problems are already rearing their head again. Two weeks ago I covered how Thorchain’s lending product, ThorFi essentially was unable to meet obligations to repay collateral if users redeemed. That issue has again been exacerbated with a community member announcing that “Thorchain is insolvent”. Since this announcement, the protocol has been paused again as community members and developers work together to come up with a solution. A proposal released last night proposes unwinding the protocol altogether and offering what are essentially IOU representations of the debt, which will be made down over time using revenues, as a long term solution. The proposal is still in discussion with nothing further decided. 
  • JUP (+35%) - Over the weekend, decentralized exchange Jupiter held its Jupiter Conference with a number of bullish announcements. Jupiter acquired a majority stake in Moonshot, a memecoin trading platform, and fully acquired SonorWatch, a DeFi portfolio tool. A new version of the Jupiter platform has launched in beta with updated UI and new order types; Jupnet, a product that will allow for multichain aggregation is currently in testnet. Finally, the project announced it would do a buyback of tokens using 50% of protocol fees and to top it off a proposal was posted to burn one-third of the total supply. The timing of this conference and all these announcements is no coincidence with Jupiter’s first unlock coming up on Friday and delivering a giant 185% to circulating supply.

  • 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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