Crypto.com introduced the initial version of its AI Agent SDK; Ethena Labs is developing a USTB stablecoin backed by BlackRock’s BUIDL; Visa is set to help banks issue fiat-backed tokens on Ethereum.
US spot Ethereum ETFs saw a US$85 million net inflow last week, while spot Bitcoin ETFs had a weekly net inflow of $1,107 million.
On the macro side, the US personal consumption expenditures (PCE) price index rose 2.2% year-over-year, the lowest since February 2021 and moving closer to the Fed’s 2% target. The latest CME FedWatch Tool showed a 100% probability of a November rate cut in the US (58% 25bps cut, 42% 50bps cut). In China, the central bank unveiled a stimulus package to boost the economy, which includes cutting the seven-day reverse repurchase rate by 20 bps to 1.5% and the reserve requirement ratio (RRR) by 50 bps. The package is expected to release CNY1 trillion (~$143 billion) of long-term liquidity into the market.
Notable updates: The Crypto.com App listed Hamster Kombat (HMSTR), UXLINK (UXLINK), and Moonwell (WELL).
Notable events in the coming week: Fed Chair Powell’s speech, US ADP employment change, EU core harmonised index of consumer prices
Weekly Market Index
The price index increased by +5.38% last week. Volume and volatility indices decreased by -7.32% and -66.53%, respectively. The volatility drop was led by APT (-76.26%) and BTC (-69.01%).
Chart of the Week
The US Federal Reserve announced a 0.5% interest rate cut in the September 2024 meeting, which coincided with a price rally for BTC. While rate cuts lower the cost of capital and generally push investors toward higher-risk investments like cryptocurrency, the relationship between cuts and BTC price action is not a straightforward one. Historically, rate cuts don’t always lead to positive price movement for BTC in the short term period (e.g. 7 days):
In July 2019, the rate was cut to the range of 2% to 2.25%, and BTC’s price dropped by ~2% in a seven-day period.
From September to October 2019, the rate dropped into the range of 1.75% to 2%, and BTC’s price rose by 26% in a seven-day period.
In March 2020, the rate was cut in response to COVID-19, and BTC’s price dropped by 30% month-over-month.
Weekly Performance
BTC and ETH increased by +4.9% and +3.5%, respectively, in the past seven days. Prices for all other selected top market capitalisation tokens increased. SHIB (+32.8%) led the increase.
Key categories were mostly up in market capitalisation in the past seven days except the NFT category. The meme category led the increase.
Crypto.com introduced its initial version of the Crypto.com AI Agent SDK — an artificial intelligence (AI) powered software development kit that can integrate natural language to blockchain functions across Crypto.com’s services and various blockchain protocols. The Crypto.com AI Agent SDK is now available in its beta version and will continue to be developed over time.
Ethena Labs is developing a new stablecoin, USTB, in partnership with BlackRock and Securitize. It will be backed by the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), giving it a value of $1 per token. The stablecoin is separate from USDe, a synthetic dollar stablecoin issued by Ethena.
Blockchain solutions provider Digital Asset and the Depository Trust & Clearing Corporation (DTCC) completed the US Treasury Collateral Network pilot project on the Canton Network. The project used tokenised US Treasury assets to satisfy margin calls and optimise collateral.
Research Roundup Newsletter [August 2024]: We present to you our latest issue of Research Roundup, featuring our deep dives into asset allocation with crypto, the decentralised perpetuals market, and the prediction market.
Alpha Navigator: Quest for Alpha [August 2024]: Cryptocurrencies were down in August; Fixed Income and Equities were up. New Zealand and Canada reduced interest rates; China and Australia kept interest rates unchanged.
Asset Allocation With Crypto: Adding BTC to portfolios helps increase yield by up to 2% annually without significant impact on volatility. The Modern Portfolio Theory is adopted to compile portfolios including TradiFi, BTC, and ETH.
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💫 Crypto.com introduced the initial version of the AI Agent SDK; Ethena Labs is developing a USTB stablecoin backed by BlackRock’s BUIDL
Crypto.com introduced the initial version of its AI Agent SDK; Ethena Labs is developing a USTB stablecoin backed by BlackRock’s BUIDL; Visa is set to help banks issue fiat-backed tokens on Ethereum.
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