What's Driving Token Prices? (March 2, 2022)

Katie Talati
Mar 2, 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.
 

  • AR (+18%) - Arweave, a decentralized permanent storage solution, saw a massive increase in transactions over the last 2 weeks (up over 2x previous weeks). This growth was driven by millions of document and file uploads related to the Ukrainian crisis. You can actually view these documents on Arweave’s block explorer, Viewblock
  • SOLID (-24%) - The Fantom-based DEX Solidly (SOLID) has reached $2.3B in total value locked (TVL) in just over 2 weeks since launching, pushing it to #18 in TVL rankings. Solidly was conceived by Andre Cronje, the founder/developer behind Yearn Finance (YFI), and was designed to increase TVL to the Fantom network as users deposited assets to liquidity mine the SOLID governance token.
  • OSMO (+27%) - Osmosis, a DEX based on the ATOM blockchain, released its Carbon update this week. It included “Superfluid Staking,” which combines liquid derivative staking and liquidity provision into one step. A user can deposit tokens to provide liquidity on the Osmosis DEX while also providing security to the OSMO and ATOM. Users, therefore, earn trading fees from LPing and staking rewards for providing security. Osmosis, which is the 8th largest DEX by volume, has continued strong growth in the face of the market downturn, with 30-day volumes only down 12% versus the sector average of -25%.
  • RBN (-18%) - Decentralized options strategy protocol, Ribbon Finance, last week voted to implement vote escrowed (“ve”) tokenomics—a model popularized by stablecoin AMM Curve. After passing the new tokenomics, the protocol has launched a new governance portal and expects to introduce a protocol fee-sharing model in the future. Ribbon commands 7% of the decentralized derivative market share and is the second-highest in volumes after dYdX.

     

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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