Crypto Market Pulse (16/01/2023)

El Salvador passes bill to sell bonds backed by BTC. Societe Generale taps MakerDAO for US$7M DAI loan. Polygon blockchain to undergo a hard fork.

Weekly Market Index

Last week’s crypto market prices rose significantly by +23.12%. Volume and volatility also increased by +99.69% and +238.74%, respectively.

Weekly Performance

Cryptocurrencies continue to gain momentum across the board. Bitcoin (BTC) and Ethereum (ETH) were up +23.6% and +22.0% in the past seven days, respectively.

News Highlights

• El Salvador has passed a bill that will allow the country to sell bonds backed by Bitcoin. US$500 million of proceeds from those bonds will be put toward a proposed plan to build a “Bitcoin City”. 
• U.K.’s Economic Secretary to the Treasury said that a digital pound currency is being considered and a public consultation on the attributes of a digital pound would be launched in the coming weeks.
• French investment bank Societe Generale took out a loan of US$7 million in the stablecoin DAI from MakerDAO, in what is seen as a significant direct transaction between a TradFi firm and a DeFi project. The bank used home loan bonds as collateral.
• Polygon (MATIC) announced a proposed hard fork to its blockchain. If approved, the upgrade is set to occur on 17 Jan. It will address gas fee spikes and chain reorganisation.

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Catalyst Calendar

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Research and Insights Team

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