What's Driving Token Prices? June 26, 2024

ETHFI (-6.9%)—Liquid staking protocol ether.fi voted last week to institute a token buyback using 5% of the protocol’s revenue. The initial vote went through, and an overwhelming 99% of voters said yes. The governance discussion suggested starting the buyback using only 5% of revenue, but it could be increased by up to 50% over time. The repurchased tokens will provide liquidity for ETHFI on DEXs and other venues.
CHZ (-3.9%) - Sports blockchain Chiliz Chain announced it had reached 1 billion CHZ tokens staked yesterday, marking just over 11% of the supply locked in staking. The increase in CHZ staked is likely in response to the tokenomics upgrade made to the protocol a few weeks ago, which added new inflationary rewards to the supply schedule that can be paid out to validators who stake on the network. The European Cup is also putting Chiliz in the spotlight as it has initiated its burn campaign, which will burn the fan tokens for teams based on the number of goals scored by a team scores during the tournament. So far, tokens for Portugal ($POR) and Italy ($ITA) have been burned..
SOL (+0.1%) - Layer-1 protocol Solana had a news-filled week beginning last Thursday when the first Canadian SOL ETF proposal emerged. Then, on Friday, Helius Labs announced a ZK compression system for Solana, which can potentially compress transactions by 10,000x. This would massively increase the scaling potential for Solana, which has recently faced congestion and higher fees. Finally, yesterday, Solana introduced “Blinks” and “Actions,” which allow users to trade crypto directly through social apps. Blinks are blockchain links that turn an on-chain action into a shareable link, creating an easier way for users to interact with the blockchain. Actions are APIs that can return Solana transaction information, simplifying the signing and sending process.

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