Trakx Weekly Update: July 31, 2023

Key Crypto Market Figures

CTIs Weekly Performance

The crypto slumber continues with the Trakx Top10 Crypto CTI dipping 1% last week. Even the news that the Fed hiked interest rates by 25bp, taking them to a 22 year high, failed to elicit much of a response because the increase was firmly in line with consensus expectations.

Amongst the Trakx family of Crypto Tradable Indices, the best performer, adding 3% over the week, was the Lending CTI, while the weakest performer was the NFT Metaverse CTI, which slipped 6%.
Helping to propel the Lending CTI higher were solid gains in MKR – the governance token of MakerDAO – which rallied after the community overwhelmingly voted in favour of GOV 12.1.2. The proposal, which was submitted by co-founder Rune Christensen, seeks to offer an Enhanced DAI savings rate (EDSR) for early adopters as a means to bootstrap growth. Importantly, because the EDSR is a function of utilization, the proposal will only provide a temporary reward boost and once utilization is sufficiently high the EDSR will eventually disappear.

The other boost to the Lending CTI came from Compound, whose token price continued to rally amid ongoing speculation that token holders may be eligible for an airpdrop from Superstate, a short-term government bond fund established by Robert Leshner, who stepped down as Compound CEO early last month to start the new venture.

Finally, there was a great deal of focus on Worldcoin, the Sam Altman-backed crypto token that officially launched last week. The token, which is paid out to people who stare into an orb and provide the project with a copy of their iris, met with a luke-warm reception from both holders (the price dropped 70% from its market debut peak) and governments, who are concerned about potential privacy implications from this technology.

Sources: Trakx, Coingecko, Alphavantage

Market Trends

• MakerDAO Set To Introduce EDSR To Boost DAI Savings Rate To 8%: Coinstats.
• Curve Finance Exploit Puts $100M+ Worth of Crypto at Risk; CRV Token Tumbles: Coindesk.
• UK Privacy Regulator 'Making Enquiries' Into Sam Altman’s Worldcoin Amid Token Launch: Decrypt.
• SEC Told Coinbase to Stop Trading in all Cryptos Except Bitcoin Before Suing: FT: Coindesk.
• DOJ wants SBF’s bail revoked over witness tampering, diary leak allegations: Cointelegraph.
• Jason Lowrey’s book on the strategic significance of Bitcoin removed from circulation and MIT library for unknown reasons: Cryptoslate.

Trakx CTIs Performance

Sources: Coingecko and AlphaVantage

*Return of bitcoin is calculated since 01/05/2020, while CTIs performances were calculated since their respective launch date.
**Includes simulated performance.
***The risk signal is determined according to the historical volatility level, the higher the riskier.