Crypto Market Pulse (11/09/2023)

ETH spot ETF applications are rolling in. FASB recommends recording crypto at fair market value. JPMorgan explores blockchain-based digital payment system.

Weekly Market Index

Last week’s crypto market prices fell slightly by -0.64%. Volume and volatility also decreased by -34.21% and -78.15%, respectively.

Chart of the Week

Developments continue in the stablecoin area, with recent highlights being the launch of PayPal’s own stablecoin, PYUSD, and Visa rolling out support for USDC payments on the Solana blockchain. In our latest monthly feature research reports, we explore the decentralised stablecoins landscape, how they compare to centralised stablecoins, and upcoming projects. Decentralised stablecoins have innovative stability mechanisms, typically making use of over-collateralised DeFi protocols and algorithms, however, centralised stablecoins currently dominate the market share.

Read the report: Decentralised Stablecoins.

Weekly Performance

Bitcoin (BTC) and Ethereum (ETH) prices were down slightly at -0.6% and -1.4%, respectively, in the past seven days. Price action for other selected top-cap tokens was also mostly negative.

Selected key categories were also down slightly on market cap change in the past seven days, although Real World Assets bucked the trend.

News Highlights

• Global payment processor Visa has rolled out support for USD Coin (USDC) payments on the Solana blockchain to settle fiat-based payments. Previously, Visa conducted a successful pilot with Crypto.com – check out the Visa and Crypto.com USDC settlement case study here.
• As the  US Securities and Exchange Commission (SEC) considers a swath of spot bitcoin ETFs and ether futures funds, Ark Invest and 21Shares aim to introduce their own spot ether offering to the market.
• The Financial Accounting Standards Board (FASB) has recommended recording crypto at fair market value on corporate balance sheets, removing possibly significant impairments but adding to volatility. The FASB is the organisation that sets accounting and reporting standards for companies that follow US Generally Accepted Accounting Principles (GAAP).
• JPMorgan Chase & Co. is reportedly exploring a blockchain-based digital payment and settlement system. JPMorgan developed much of the infrastructure for the project, which requires a digital deposit token, but can’t move ahead with system before getting the go-ahead from US regulators.

Recent Research Reports

• Research Roundup Newsletter [August 2023]: We present to you our latest issue of Research Roundup, featuring trending market insights in August, charts of the month, and our latest research on decentralised stablecoins.
• Alpha Navigator: Quest for Alpha [August 2023]: Asset classes dipped in August; BTC and ETH underperformed. No surprises from the central bankers summit at Jackson Hole. China intensifies economic stimulus.
• Decentralised Stablecoins: Stablecoins are well positioned to facilitate broader adoption of cryptocurrencies. We explore the key decentralised stablecoin projects and their innovative mechanisms.

Recent University Articles

• What Is Cardano (ADA)?: Learn about Cardano’s scalable, sustainable, and interoperable blockchain solution, as well as its native token, ADA.
• What Is PYUSD? PayPal’s New Stablecoin – and Where to Get It: PayPal has launched its own cryptocurrency: the PYUSD stablecoin. In this article, learn about its uses and tokenomics, plus how to trade it.
• What Is USD Coin (USDC)?: In this article, we explore Circle’s USDC, a leading stablecoin in the cryptocurrency market, diving into its tokenomics, backing, and utility.

Catalyst Calendar

Author

Research and Insights Team

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