What's Driving Token Prices? May 29, 2024

Katie Talati
May 29, 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.

Watch Our Founders Video

  • 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.

DISCLAIMER: This commentary is not intended to be investment advice, investment research, or a recommendation. Please consult your investment professional for your own circumstances."

Subscribe For the Latest Blockchain News & Analysis



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.

You May Also Like

These Stories on Investing Themes