Weekly Market Highlights 9 December 2022 Happy Friday! The We | Binance Research

Weekly Market Highlights
9 December 2022

Happy Friday! The Weekly Market Highlights is an initiative from the Binance Research team to round up the week, summarizing key market events and views from the team.

Latest Binance Research Publications

Check out our releases this week:

1) GameFi Tokenomics - Deep Dive
https://research.binance.com/en/analysis/gamefi-tokenomics

2) Web3 Social - Road to Mass Adoption
https://research.binance.com/en/analysis/web3-social

Macro

- The U.S. ISM non-manufacturing PMI came out stronger than expected, at 56.5 compared to expectations of 53.3. While stronger PMI numbers may be good news for the growth outlook, it has reignited concerns of a potentially more restrictive Fed policy. The release of the U.S. PPI data later today will be a key event to watch. U.S. stocks are on pace for a losing week, and the U.S. treasury curve continues to flash red as the 2-10 treasury spread fell to multi-decade low at -0.84%.

L1

- Ether turned inflationary again after weeks of being deflationary. Network activity has slowed, and there are now more ETH issued than burned since the Merge. Nonetheless, the current inflation rate of +0.009% is still well below the pre-Merge inflation rate (~+3.58%). Separately, Ethereum core developers have set a tentative target of March 2023 for the Shanghai upgrade which would allow the withdrawal of staked ether.

- Upcoming Layer 1, Sui, announced the successful completion of their Wave 1 testnet. Wave 2 is expected to launch in early 2023 and brings the network yet another step closer to the mainnet launch.

DeFi

- SushiSwap has a significant deficit in the Treasury which threatens the DEX’s operational viability. To extend the runway of the DEX which is currently estimated to be ~1.5 years, SushiSwap CEO, Jared Grey, proposed to divert 100% of the DEX’s trading fee to the treasury multisig for one year, or until new tokenomics are implemented. This proposal has been met with mixed reactions and is currently being discussed by the community.

- The Uniswap community will get to vote on the long-awaited “fee switch” proposal in the next week or so (pending technical diligence). If passed, a 10% fee will be set for the ETH-USDT, DAI-ETH, and USDC-ETH pools.

Stablecoins

- Tether announced the launch of its offshore Chinese Yuan (CNH₮) to the Tron blockchain. Initially available only on Ethereum, CNH₮’s launch on Tron makes it the second blockchain on which CNH₮ can be obtained, traded, and held. Tether supports four different stablecoins CNH₮, USD₮, EUR₮, and MXN₮.

NFTs

- Starbucks launched the beta version of its Web3 “Odyssey” loyalty program, allowing members to earn and purchase digital stamps (NFTs) that will unlock access to new benefits. This represents a big step by a prominent brand to leverage Web3 technology to provide users with new benefits and experiences both physically and digitally.

Other

- ConstitutionDAO2 is not giving up without a fight. Inspired by ConstitutionDAO which previously attempted but failed in its bid for an original copy of the U.S. Constitution, the unaffiliated ConstitutionDAO2 will attempt to buy the U.S. Constitution.

- Following privacy concerns raised by the community last month, ConsenSys, the developer of MetaMask, said it would reduce its retention of user data such as wallet addresses and IP addresses to seven days.

- A proof-of-reserves and proof-of-liabilities assessment of Binance’s Bitcoin reserves released by Mazars this week stated that Binance controlled in-scope assets in excess of 100% of their total platform liabilities. The exact percentage was 101%.


That’s a wrap!
Binance Research