What's Driving Token Prices? May 29, 2024

PRIME (-9.9%) - Trading card game Parallel, will see a large chunk of its PRIME tokens locked into a staking contract on its Wayfinder AI Agent protocol. The Parallel team, OSS Capital, and top holder, ParallelRevAI, announced a commitment to lock up their tokens long-term via Wayfinder staking last week. $PRIME token holders can stake over the next 3 years for a share of 45% of the WayfinderAI $PROMPT token. The move is likely in response to community criticism that the team and investors have been selling vested tokens on the open market over the past few months, dampening the price. Following the announcement, the token initially moved up 15% but has since retraced and is down -9.9% for the week.
ETH (+2%) - Last week, in a surprise move, the SEC approved the applications of 8 Ethereum ETFs last Thursday. While the SEC has approved the 19b-4 forms, the S1 registration statements for the ETFs still need to be approved before trading can go live. Many believed the ETH ETFs would be rejected since the SEC had not engaged with the ETF issuers before the deadline. However, last week, a group of Congressional members began pressuring the SEC to approve the ETF, potentially leading the SEC to change its long-held stance. Ethereum began trading up last Monday as news of the potential approval began circulating and is up 25% since last Monday..
UNI (+16%) - An on-chain vote is due to start on Friday for decentralized exchange Uniswap, to approve changes to its protocol that will allow the DeFi project to collect fees for token holders. The protocol change, long debated in governance forums, was finally pushed through an initial round of voting in February. The upcoming on-chain vote simply formalizes the changes that will be made to the protocol. Uniswap has recently been in the public eye for the Wells Notice it received from the SEC, and as a result, this on-chain vote may not pass as it could bring the UNI token closer to being classified as a security.
ENS (+17%)—Ethereum Name Service released a proposal to move the ENS project to a layer-2 scaling solution to lower gas fees, increase speed, and improve interoperability. ENS, a service that provides .eth domain addresses that can be used in place of a wallet address, would benefit from increased reach on other layer-2 rollups. This upgrade is still in the design phase and has no implementation date.

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