Quick Take

• Major memecoin launchpad recorded over US$8 billion in trading volume last week.
• U.S. spot BTC ETFs recorded $986 million in net inflows last week, up from $925 million in net inflows the week prior. U.S. spot ETH ETFs attracted $215 million in net inflows, down from $816 million in net inflows the week prior.
• U.S. Treasury yields hit new year-to-date peaks early in the week, with the 2-year and 10-year notes reaching 4.39% and 4.80% on Tuesday before easing. The 30-year yield finished Friday at 5.24%, near multi-decade highs and just under its recent 5.31% peak.
• The U.S. stock market experienced choppy, mixed trading from a tug-of-war between economic resilience and resurgent rate fears. Equities initially found their footing mid-week after dovish Fed comments, but a stronger-than-expected August jobs report on Friday sparked a classic "good news is bad news" selloff, leaving major benchmarks moderately lower for the week.
• • The Nasdaq Composite gained +0.40%, S&P 500 was flat (+0.09%) to 7,718.60, and Dow Jones Industrial Average declined 0.27%.
  • Key Market Drivers:
  • • Strong August Jobs Report: Nonfarm payrolls nearly tripled consensus forecasts, altering the macro narrative and raising implied odds for a September Fed rate hike above 60%. 
    • Federal Reserve Whiplash: Markets initially rallied when Fed Governor Christopher Waller suggested maintaining the status quo on rates. However, subsequent labor data completely neutralized that relief rally.
    • Surging Treasury Yields: Strong labor data and hawkish Fed rate pricing drove the 10-year Treasury yield to roughly 4.80%, its highest level since late 2023, pressuring equity valuations.
    • Geopolitics & Oil Spikes: Brent crude climbed back above $90/barrel following U.S.-Iran military exchanges in the Strait of Hormuz, fanning inflation fears.
  • Sector and Style Dynamics: The energy sector benefited directly from the geopolitical premium, riding crude oil’s spike on Middle East supply threats. Despite August’s strong run for AI-linked stocks, mega-cap tech and growth names faced headwinds by week's end as surging long-term Treasury yields compressed their multiples. While large-cap growth struggled, the small-cap Russell 2000 posted a slight counter-trend bid on Friday, reflecting some rotational appetite beneath the surface despite the broader rate fears.

Research Dashboard

According to our research dashboard, the price and volatility indices increased +1.44% and +12.49%,  respectively, while the volume index slid  -10.63%, last week.

Index tokens saw mixed performances last week. The BTC and ETH prices grew +3.44% and +4.05%, respectively. UNI led a trading volume surge, while ZEC saw the largest volatility spike.

Chart of the Week

Memecoins have recently gained significant momentum, driven by surging trading volume on memecoin launchpads. Combined daily trading volume across Pump.fun (Solana) and Pons (Robinhood Chain) has consistently exceeded $1 billion since August 30, with 7-day cumulative volume topping $8.3 billion from August 30 to September 5. Pons has led trading volume since September 2, averaging $625 million daily compared to Pump.fun’s $562.4 million. Furthermore, Pons generated over $36.4 million in trading fees over the past seven days, outperforming Pump.fun’s $9.4 million.

Weekly Performance

Top-cap tokens all saw bullish price action last week, with NEAR (+34.0%) leading the surge.

DeFi categories all spiked last week, with DEX driving the market cap surge (+33.3%).

News Highlights

Company News

• Crypto.com and PYMNTS announced an exclusive partnership to launch the first AI Predictions Market Contracts on the regulated OG Prediction Markets exchange. These financial instruments allow market participants to trade on independently measured data regarding global AI adoption, moving beyond indirect indicators like semiconductor sales or cloud spending.
• Prospect Prediction Markets Inc. (TSXV: MKT) executed a definitive agreement with OG Prediction Markets and Crypto.com | Derivatives North America (CDNA) to establish a regulatory framework for Prospect to launch a U.S. sports-native prediction markets platform in Q3 2026, ahead of the NFL and NBA seasons.

Regulation

• The U.S. Securities and Exchange Commission (SEC) proposed modernized transfer agent rules that formally recognize blockchain-based ownership records and update Forms TA-1/TA-2, subject to a 60-day comment period. Separately, the SEC scheduled a September 17 roundtable to address operational and regulatory requirements for 24/7 U.S. equity trading.
• The Monetary Authority of Singapore (MAS) proposed Payment Services Act amendments, requiring stablecoin issuers seeking the "MAS-regulated stablecoin" label to back 100% of circulating tokens in segregated reserve accounts while banning any yield, interest, or return payments to holders. Covering Singapore-dollar and G10-currency pegged stablecoins, the consultation runs until October 16 with no confirmed implementation date.
• Thailand's Securities and Exchange Commission (SEC) proposed rules allowing intermediaries to grant retail investors access to select overseas-traded crypto derivatives, provided they resemble domestic offerings and trade on centrally cleared, internationally regulated exchanges. Non-conforming products remain restricted to institutional investors. Additionally, finalized new Travel Rule regulations will require digital asset operators to verify self-custodial wallet ownership and retain transaction records for at least five years, effective February 27, 2027.
• South Korea set February 4, 2027 as the launch date for its tokenized securities market under Electronic Registration Act amendments. Phase 1 covers institutional money market funds, private corporate bonds, unlisted shares, and fractional investment securities, with later phases expanding to public securities and stablecoin payment rails. New issuers must hold at least $3 million in equity capital, with retail fractional investments capped at roughly $22,000 per subscription. Draft rules are due for public comment by late September.

Adoption

• A consortium of 21 global banks and asset managers, including Citi, Goldman Sachs, Bank of America, Wells Fargo, Fidelity, Deutsche Bank, UBS, and MUFG, announced plans to form a joint venture issuing a USD-backed stablecoin in H1 2027, followed by a euro-denominated token. Growing out of a 10-bank effort formed in October 2025, the project aims to align with the U.S. GENIUS Act and EU MiCA frameworks.
• Standard Chartered became the first Global Systemically Important Bank (G-SIB) to launch institutional spot Bitcoin and Ether trading in the UAE on September 3, operating through its Dubai International Financial Centre entity under DFSA regulation.
• CME Group launched two new crypto benchmark indices: the CME CF Crypto Market Index (includes Bitcoin and Ether) and the CME CF Emerging Crypto Index (excludes both). The Emerging index is a real-time, market-cap-weighted gauge tracking the 10 largest eligible altcoins, including XRP and SOL.

Catalyst Calendar

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