What's Driving Token Prices? (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.

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.

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