What's Driving Token Prices? March 20, 2024

Katie Talati
Mar 20, 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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  • NEAR (-14%)—The co-founder of Layer-1 protocol, Near, spoke at Nvidia’s AI conference this morning and was the only crypto project to receive a speaking slot. Near's token has risen 92% in the last month in the lead-up to the conference. Its upcoming AI product, Near Tasks, designed to offer high-quality data for training AI models, is also credited with propelling Near into the AI spotlight.
  • WIF (-3.5%) - Solana memecoins have been the latest craze this past week, but one stood out above the others. Dogwifhat (WIF) surged on Monday after the original photo that inspired the memecoin was sold as an NFT for $4.3M. The NFT was purchased by Gigantic Rebirth Ventures (GCR), a notable crypto trader on Twitter. Last week, the WIF community also successfully raised $650k in funds to display the WIF image on the Las Vegas sphere for a week. Although the token surged 39% on the NFT sale, the token has since given back most of its gains with the market and is down -3.5% for the week.
  • ETHFI (+1.1%) - On Monday, liquid restaking protocol, Ether.fi, airdropped its native governance token ETHFI to its community who staked ETH on the protocol. The protocol, which has been live for about a year, allows users to deposit ETH or a liquid staking token such as stETH, which is then deposited in EigenLayer. The user, in turn, receives a “Liquid Restking Token” (LRT), a derivative token representing their staked ETH in EigenLayer. Ether.fi has been the most successful restaking protocol, boasting $2.8B in TVL. The initial airdrop allocation announced on Friday was later adjusted and expanded after the community pushed back on last-minute depositors who earned an outsized portion of the airdrop. Specifically, Tron’s founder, Justin Sun, reportedly deposited 120K ETH one day before the airdrop snapshot, earning him about 3.4M ETHFI tokens (or ~5% of supply). In response, the Ether.fi team expanded the airdrop amount from 6% to 6.8% of the total supply. 
  • RNDR (+3.2%) - The parent company of Render, OTOY, announced a partnership with StabilityAI, one of the largest open-source-focused AI companies, with the CEO Emad joining the board of Render. Render, a decentralized GPU DePIN project, has been pushing into AI as demand for GPUs has increased with several companies rushing to train individual AI models that require GPU chips.

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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