What's Driving Token Prices? June 5, 2024

Katie Talati
Jun 5, 2024

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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  • GNO (-2.2%) - Gnosis, the prediction market product responsible for the SAFE wallet and CoW protocol, has a vote this week to execute a buyback of its GNO token at book value. Despite having many various business lines including its own chain (Gnosischain), its governance token GNO is trading 48% below the value of its treasury (with some assumptions around their venture positions and LP positions in 1kx). The proposal recommends that $30M of treasury assets (about 5% of the total treasury value) be used to buy back the token and bring it back to book value. The proposal is up for an initial snapshot vote which ends next Monday.
  • MPL (+14%) - Last week, Maple Finance, a lending protocol, launched a new institutional DeFi product called Syrup. The protocol enables users to deposit USDC, which is then lent out as part of a secured loan to “institutional investors in crypto.” Maple will further integrate Syrup into DeFi applications by promoting the integration of its syrupUSDC LP token (the IOU token users receive for depositing USDC). Finally, Maple plans to replace its MPL token with SYRUP later this year and will run a “Drip” campaign for users to earn SYRUP tokens by participating in the new protocol. 
  • AR (+15%) - Last week, Arweave, a decentralized data permanence project, announced the launch of a token for its newest AO protocol.  The AO token will replicate Bitcoin’s supply schedule and fair launch. Users can earn new AO tokens by holding $AR in their wallet, bridging tokens to AO, or building on AO. AO is designed as a scalable smart contract execution layer for Arweave’s layer-1 solution. While technically very different from other smart contract platforms, the design can be used in many application use cases, such as AI. 
  • STG (+32%) - Stargate, the bridge built by Layer Zero, launched its v2 last week. The v2 introduces “Hydra Chains,” which essentially allow additional integrations of Stargate with other chains. This should result in lower bridging costs as transactions can be combined into one transaction. Layer Zero serves as the messaging rails for inter-blockchain communication and has hinted that its token will be released soon.

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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