What's Driving Token Prices? December 6, 2023

Katie Talati
Dec 6, 2023

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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  • OSMO/UX (+10%/+52%) - Defi app-chain, Osmosis, and borrow/lend protocol, UX Chain (fka Umee), have proposed a merger of both chains. Both Osmosis and UX Chain are app chains on the Cosmos ecosystem but this merger would migrate UX Chain’s lending logic into Osmosis’ decentralized exchange. The merger would commence once governance votes on both separate chains are approved and their TVLs would be combined to create a DeFi hub on the Cosmos network. The combined TVL for the new network would be $165m which is still considerably smaller than Ethereum’s Aave and Uniswap which each boast $6.4b and $3.9b TVL respectively.
  • MNT (+22%) - Layer-2 protocol, Mantle, launched its liquid staking protocol and liquid staking token on Monday, dubbed mETH. Mantle aims to differentiate itself by offering higher yields via maximizing MEV (i.e. focusing on ordering/executing of certain transactions that offer higher gas rewards or allow for transactions that offer a large arbitrage opportunity). The mETH token is similar in structure to Lido’s stETH, which rebalances with accumulated rewards every day. The DAO has also elected to stake their own ETH treasury to the protocol leading to just over $98m in TVL.
  • HNT (+48%) - Helium Mobile officially launched yesterday offering customers mobile 5G plans for $20 a month. Helium Mobile was born out of the Helium project which focuses on offering wireless internet access through its network of hotspots. Although the project initially focused on the IoT market, it has more recently pivoted to offer 5G wireless coverage similar to large telecom companies such as Verizon, T-Mobile, AT&T, etc. The wireless coverage will be provided by users who own hotspot devices. These users provide the wireless coverage using home internet and, in turn, are rewarded with newly mined HNT tokens. Those who want access to hotspots will pay to access the network of hotspots. Although Helium does not have hotspot coverage to cover the entire U.S., the introduction ofHelium Mobile is made possible through its partnership with T-Mobile who will provide coverage in areas that are not yet supported.

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.

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