What's Driving Token Prices? July 5, 2023

SUI (+0.7%) - Layer-1 protocol Sui Network suffered blowback last week after rumors swelled that the team and foundation sold locked-up SUI tokens. On-chain detectives followed SUI token distributions to multiple wallets that eventually ended up on Binance. The Sui Foundation denied these allegations, but up until that point, the company had never released an official token supply schedule. The foundation finally released a schedule at the end of last week, putting an end to questions about the circulating supply and unlocks.
DYDX (+3.6%) - Decentralized derivatives exchange, dYdX, announced last week that the testnet for its v4 upgrade will be available starting today. The v4 upgrade includes a number of new features, but most importantly, this version will only be available on dydx’s new chain, a Cosmos app chain. DYdX chose to move to their own chain (currently they are on Starknet, an Ethereum layer 2) after facing issues around scalability and transaction front-running. In addition, the DYDX token will be used for staking in order to provide security for the new chain. DYdX leads the decentralized exchange market with a 71% market share, posting over $36b in volume in June.
LDO (+12%) - Last week, decentralized liquid staking provider Lido passed a proposal to implement a tiered rewards program to users in exchange for helping grow the amount of stETH in the protocol. Contributors who help grow stETH over a 12-24 month period will be able to share the revenue that Lido DAO collects from stakers. Another proposal also passed was to stake all of Lido’s treasury ETH into stETH. This increased Lido’s TVL making Lido the second-largest holder of stETH with a 33k balance. Lido’s TVL is currently just north of $14b.

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