What's Driving Token Prices? (June 01, 2022)

Katie Talati
Jun 1, 2022
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.
 

  • OP (-72%) - Optimism, the Layer 2 scaling solution that uses optimistic rollups, saw its token hit the market and immediately sink 70%. The token was airdropped to over 200,000 wallets, including early Optimism users and active Ethereum users. Interestingly, after initially announcing the airdrop to 248,000 wallets, they retroactively removed 17,000 of these addresses, as they believed they were gaming the airdrop.
  • MIR (-32%) - Mirror Protocol, a synthetic stock trading protocol built on Terra, suffered an exploit over the weekend that resulted in $2 million in stolen funds. The protocol is still running on Terra Classic, the original Terra chain following the network hard fork. The exploit is due to a faulty price oracle on the Terra Classic chain.
  • IMX (+5%) - Layer 2 scaling solution Immutable is rolling out protocol fees in anticipation of the launch of staking this month. The fee, which doesn’t have to be paid in IMX tokens, will be split between IMX stakers and Immutable. Although Immutable is introducing fees, they will still be lower than gas fees paid on Ethereum for minting and trading NFTS. In addition, Immutable announced a $40 million blockchain developer fund with Kongregate and an integration with the NFT platform Rarible. Volumes on Immutable X are down 75% MoM.
  • MPL (+17%) - Institutional lend/borrow protocol Maple Finance launched MPL staking yesterday. Users have two options to stake their MPL tokens: one where they earn 50% of protocol revenues and the other where they become the first loss reserve tranche along with earnings in yield plus MPL rewards. For context on potential staker earnings, Maple’s 30-day annualized revenues are $72 million.
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 here

You May Also Like

These Stories on Investing Themes

No Comments Yet

Let us know what you think

©2020 by Arca Funds Past performance is not indicative of future results. Past performance is not indicative of future results. Investors should carefully consider the investment objectives, risks, charges and expenses of funds sponsored by Arca Funds (the "Funds"). Other important information about the Funds are in each respective Fund's offering documents. A Fund's offering documents should be read carefully before investing. Disclaimer: This commentary is provided as general information only and is in no way intended as investment advice, investment research, a research report or a recommendation. Any decision to invest or take any other action with respect to the securities discussed in this commentary may involve risks not discussed herein and such decisions should not be based solely on the information contained in this document.