Macro Economic Influences on Crypto: The Fed raised interest rates by 25 bps in July but didn't in September, influencing the 10-Year Treasury Bond Yield to reach 4.79%, a rate not seen since 2007.
Economic stagnation in the EU contrasted with positive economic signs in the UK, with the lowest inflation level in a year.
Digital assets have displayed remarkable resilience. Over the past four weeks, even as equities trended downward, the majority of digital asset sectors remained in positive territory. Notably, the narrative around AI has been particularly favorable for tokens related to infrastructure applications. Among different classes, DeFi saw substantial growth (+13%), largely driven by AAVE and MKR, which capitalized on yield income from US Treasuries.
The crypto stocks (Coinbase, Galaxy, the miners etc.) were leading up in Q2 and had a horrible Q3. These stocks were indicating institutional demand as they acted as a proxy for crypto exposure for those who can’t buy coins.
Bitcoin isn't behaving like a traditional macro asset. When examining cross-asset correlations, Bitcoin demonstrates an almost zero correlation with other assets.
Within crypto, basically large cap tokens are outperforming the small cap token.
Ethereum's Scaling and L2 Network Development. Ethereum's scaling strategy is being embraced as Layer 2 networks gain traction. Leading Ethereum scaling platforms have seen a triple increase in active users from 2022 to 2023.
Growth of Tokenization and Integration with Traditional Finance: Chainlink demonstrated tokenized carbon credit units' purchase. Prominent players in the crypto space collaborated to form the Tokenized Asset Coalition to advance the concept of tokenizing world assets.
The MarketVectorTM Figment Ethereum Staking Reward Reference Rate (MVETHSSR) allows market players to develop products that offer a comprehensive return perspective. Additionally, this rate can serve as the foundation for key derivatives that facilitate risk shifting between those looking to hedge and those aiming to speculate.