What's Driving Token Prices? (Mar 23, 2022)

Katie Talati
Mar 23, 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.

WDTP Thumbnail

  • JOE (+17%) - Trader Joe, a decentralized exchange built on Avalanche, deployed its updated tokenomics, veJOE, this week. The upgrade, which adopts the popular “vote-escrowed” tokenomics, allows users to maximize tokens earned through yield farming if they agree to lock them up in voting contracts for specified amounts of time (up to multiple years), ultimately creating a supply sink on new token issuance. . Although the DEX’s volumes have underperformed the broader sector, they are still capturing 6% of multichain market share.

  • SUSHI (+20%) - Decentralized exchange Sushiswap released a v0 version of its new long-awaited product, Trident, on Polygon. The release includes constant liquidity pools built on top of Bentobox and will create a routing system for Sushiswap transactions. Yesterday, former Sushiswap lead, 0xMaki released a proposal to enable Sushiswap integration into Stargate. Stargate is a newly launched cross-chain liquidity protocol built on Layer 0 (a competitor to Cosmos and Polkadot).

  • AVAX (+22%) - Layer 1 protocol Avalanche kicked off its first conference yesterday in Barcelona. The conference is expected to be packed full of announcements for Avalanche and other projects built on top of it (Crabada, Trader Joe, Benqi, Yield Yak). At the conference, they announced the launch of a new wallet called Core, with bridging capabilities to Bitcoin.

  • AAVE (+23%) - Decentralized lending protocol Aave launched its long-awaited v3 version last week. The v3 upgrade allows smoother cross-chain transactions, reduces gas costs, and allows for greater borrowing power. The ability of dapps such as Aave to offer cross-chain support is increasingly important as many users often use more than one blockchain for transactions. Currently, Aave is utilized across 7 chains and Layer 2 protocols and holds over $12B in TVL.


DISCLAIMER: This commentary is not intended to be investment advice, investment research, or a recommendation. Please consult your investment professional for your own circumstances."
To learn more or talk to us about investing in digital assets and cryptocurrency
call us now at (424) 289-8068.

Watch Our Founders Video




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