What's Driving Token Prices? (Mar 9, 2022)

Katie Talati
Mar 9, 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.

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  • LUNA (+15.1%) - Terra (LUNA) is an Ethereum competitor best known for its algorithmic stablecoin UST. Currently, there are 14 billion UST in circulation, with 900 million new UST minted over the past 7 days. As UST is minted, LUNA is burned, creating a powerful flywheel. This week, 10.1 million LUNA was burned—approximately 3% of the circulating supply.

  • ASTRO (+46.6%) - Astroport (ASTRO) is the main decentralized exchange on Terra. It is a direct benefactor of LUNA's growth and continued adoption of the Terra ecosystem. Since the token release, ASTRO has gone straight down from $2 to $.60 due to overall market weakness, lack of discoverable metrics, and because the Astro Assembly tokenomics are not yet live. However, Coingecko began reporting Astroport's volumes, indicating that it is the second-largest exchange behind Uniswap. That revelation and the recent strength of LUNA has driven ASTRO back towards its all time highs.

  • LDO (+11.7%) - Lido (LDO) is a liquid staking solution for Ethereum, Terra, Solana, and Kusama, which allows users to earn yield while still allowing staked assets to interact with other DeFi applications. Currently, Lido’s Ethereum staking derivative, stETH, represents 21.43% of all ETH staked and owns 86% of the liquid staking market share. This week, Lido announced that a16z invested in the project and was using Lido to stake a portion of their ETH.

  • FTM (-25.1%) - Fantom (FTM), an L1 ETH competitor, recently saw a significant rise in TVL as projects and users competed to earn an allocation of Solidly Exchange’s token SOLID. Popular developer and founder of Yearn Finance (YFI), Andre Cronje, built the project. On Sunday, Andre’s colleague and former Senior Solutions Architect for the Fantom Foundation, Anton Nell, announced that he and Andre would no longer build any other DeFi projects and would end support for the front-end interfaces of the 25 projects they have developed, including Solidly Exchange. As a result, in the past 7 days, TVL for Fantom has fallen 37.79%.


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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