Daily News | Crypto Soars on First Day of TradFi Trading in 2023, Solana Makes a Comeback with 13% Surge, Lido Finance TVL Beats MakerDAO

2023-01-03, 02:26

TL; DR

🥂 Good morning, today is Tuesday, Jan. 03, 2023.

Macro: European stocks saw a rally on Monday, while futures contracts for the S&P 500 rose slightly. The yen has strengthened towards 130 per dollar as the Bank of Japan works to depress yields on government debt. Meanwhile, China’s economy saw a major slump in December due to the surge of Covid cases and IMF Chief Kristalina Georgieva has warned that one third of the world may be in a recession this year.

Crypto: Most major markets were closed on the first day of trading in 2023, but the top 20 cryptocurrencies saw significant gains. Bitcoin saw a modest increase of 0.37%, while Ether experienced stronger growth at 1.14%. Ripple, Dogecoin, and Polygon also saw positive growth.
Solana saw the biggest increase at 13.85%, while Toncoin also saw a significant gain of 2.26%.

Topic of the Day: Lido Finance’s Liquid Staking Protocol Dominates DeFi Market, Surpassing MakerDAO and AAVE

Notable Headlines: Turkey is planning to use blockchain technology in the login process for its online public services portal, E-Devlet; Financial services providers in Hong Kong are for waiting for licensing requirements of new legislation focused on retail investors; Ethereum Name Service (ENS) recorded 2.2 million registered domains in 2022…

Macro at a Glance

The start of the year brought with it a sense of hope for the global economy as European stocks saw a rally on Monday, shaking off some of the turmoil from last year. In contrast, Australian stocks opened unchanged, while futures contracts for the S&P 500 rose slightly by 0.3%. However, not all markets had a positive start to the year, as South Korean stocks fell 0.5% and Brazilian shares tumbled 3.1%. This mixed performance follows the significant swings in the market that occurred in 2022, leading to the worst run for global equities since the financial crisis and a 16% loss in value for bonds, the biggest decline since at least 1990.

As the market continues to fluctuate, the yen has strengthened towards 130 per dollar, a level not seen since June, as the Bank of Japan works to depress yields on government debt. This strengthening of the yen indicates that traders believe the central bank will be forced to reduce its easy policy settings due to rising inflation. Meanwhile, US stocks fell on the last trading day of 2022, causing the S&P 500 to end the year down almost 20%. The tech sector, represented by the Nasdaq 100, was hit particularly hard, losing a third of its value in 2022.

Looking to the East, China ended the year in a major economic slump as business and consumer spending plummeted in December due to the surge of Covid cases in the country. Data from the past weekend revealed that the decline in manufacturing worsened last month, while activity in the service sector saw its largest drop since February 2020. While the virus has likely peaked in some areas and economic activity is beginning to rebound, it is still spreading rapidly throughout the country. IMF Chief Kristalina Georgieva has even warned that one third of the world may be in a recession this year.

As we move forward, investors will be keeping an eye on key data releases, including the China purchasing managers index, Australian house prices, and German unemployment claims, all set to be released today.

💡 Today’s Markets at Jan. 02 23:52 UTC

BTC +0.37% at $16,680; Ether +1.14% at $1,213.

Asia: Australia -0.46%; Japan Closed; Hong Kong Closed; China Closed; India +0.51%.

Europe: London +1.72%; Paris +1.87%; Frankfurt +1.05%.

US Spot Indices: Dow Closed; S&P Closed; Nasdaq Closed.

US Index Futures: Dow +0.29%; S&P +0.27%; Nasdaq +0.23%.

US Two-year Treasury down 2bps at 4.407%.

US Ten-year Treasury down 5bps at 3.831%.

UK Ten-year Gilt Bond up 1bp at 3.671%.

US Dollar Index unchanged at 103.12.

FX in 24hrs: GBP: -0.20%; EUR: -0.21%; JPY: -0.24%; CNY: +0.01%.

Gold +0.31% at 1,829; Light Crude +0.30% at 80.50.

🧠 Catalysts this week

Tuesday: China Caixin Manufacturing PMI, Germany Inflation Rate

Wednesday: France Inflation Rate, US ISM Manufacturing PMI, US JOLTs Job Openings, FOMC Minutes

Thursday: Japan Consumer Confidence, Germany Balance of Trade, Italy Inflation Rate, Canada Balance of Trade, US Balance of Trade

Friday: Eurozone Inflation Rate, US Non Farm Payrolls, US ISM Non-Manufacturing PMI

Crypto Daily Digest

As European markets rallied and most markets remained closed on the first day of trading in 2023, the top 20 coins also saw impressive gains without a hinge. U.S. markets were closed on Monday, with trading set to resume today. But just like during Christmas, some active traders moved their activities from TradFi to Crypto which may explain the sudden rise in volatility.

Bitcoin is up a modest 0.37% at 16,680, while Ether is seeing stronger growth at +1.14% at 1,213. Ripple (XRP) is experiencing a solid boost at +2.38% at 0.347 while Dogecoin (DOGE) is seeing a strong performance at +2.47% at 0.0716.

L2 network Polygon (MATIC) is having a particularly good day at +3.11% and Polkadot isn’t far behind at +3.14%. Similar performance can be seen in Uniswap (UNI) and Avalanche (AVAX). On the other hand, Solana is up significantly at +13.85% at 11.30, and Toncoin continues to rally +2.26% after seeing a nearly 8% gain the day before.

On Friday, the Nasdaq and S&P 500 saw dips of 0.11% and 0.25% respectively. Coinbase experienced a 1.8% increase over the week, though its shares hit an all-time low. Block saw a 4.95% increase, while Silvergate’s shares rose over 4%. MicroStrategy, on the other hand, saw a 14.5% drop after selling almost $12 million worth of Bitcoin for the first time.

🌐 Top 20 Coins Performance

BTC +0.37% at 16,680; ETH +1.14% at 1,213.

BNB +0.87% at 245; XRP +2.38% at 0.347; DOGE +2.47% at 0.0716.

ADA +1.83% at 0.254; MATIC +3.11% at 0.780; DOT +3.14% at 4.19.

TRX +0.57% at 0.0552; SHIB +0.95% at 0.00000820 LTC +5.80% at 78.84.

SOL -13.85% at 11.30; UNI +3.31% at 5.40; AVAX +3.16% at 11.15.

TONCOIN +2.16% at 2.27; GT +3.03% at 3.10.

Topic of the Day: Lido Finance’s Liquid Staking Protocol Dominates DeFi Market, Surpassing MakerDAO and AAVE

Lido Finance has experienced impressive growth in the DeFi space, with its total value locked (TVL) now surpassing that of MakerDAO and AAVE. The liquid staking protocol currently has a TVL of $5.9 billion, thanks in part to its model that allows users access to liquid Ether staking without the traditional 32 ETH minimum.

The success of Lido and other staking solutions can be attributed to the demand for yield-bearing instruments following Ethereum’s shift to proof-of-stake. In contrast, MakerDAO saw its revenue drop 86% in Q3 of 2022 due to weak loan demand and few liquidations. Lido has reportedly been collecting $1 million in fees per day since October of 2022.

Lido Finance (LDO) $1.2122 (+0.16%)

LDO Overview:

Closest weekly support zone: 1.173 - 1.054
Closest weekly resistance zone: 1.173 - 1.322
Key Level: 1.322 (Monthly Low of Jan. 2022)

LDO Weekly Outlook: Chart Link

LDO Weekly Resistance zones

1.173 - 1.322
1.440 - 1.510
1.617 - 1.905

LDO Weekly Support zones

1.173 - 1.054
1.032 - 0.968
0.930 - 0.864

If you’d like us to cover any specific token or macro data, feel free to reach out to us by dropping a message in our Reddit community.

Notable headlines

🔹 Bitcoin developer Luke Dashjr said his Bitcoin was hacked after a PGP exploit. Dashjr’s wallet had four outgoing transactions on Dec. 31, totaling over 200 BTC.

🔹 Financial services providers in Hong Kong are reportedly seeking advice on licensing requirements in anticipation of new legislation that will allow retail investors to trade in virtual assets. Currently, digital asset trading is restricted to professional investors or traders with at least $1 million in bankable assets. The amendment to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance has been pushed back from March to June.

🔹 Turkey is planning to use blockchain technology in the login process for its online public services portal, E-Devlet. The country’s vice president announced that citizens will be able to use a blockchain-based digital identity to access e-wallet applications. The country has been working on a national blockchain infrastructure since 2019, but aside from a few proof-of-concept projects and a central bank digital currency test, its blockchain plans have yet to come to fruition.

🔹 Ethereum Name Service (ENS) recorded 2.2 million registered domains in 2022. ENS allows users to map human-readable names to machine-readable information, such as cryptocurrency addresses and URLs. In September 2022, major exchange operator Coinbase integrated ENS, allowing users to claim language-based usernames using the Coinbase Wallet browser extension.

🔹 The Dogecoin Foundation has announced a new fund worth about $360,000 to support the development of the Dogecoin platform. Dogecoin developers have denied rumors of an immediate switch to a proof-of-stake consensus mechanism, stating that they are only planning to release a proposal on the issue.

🔹 SushiSwap has announced plans to deprecate its Kashi lending service and MISO launchpad in early 2023. The decentralized exchange’s CTO cited poor design and a lack of resources as reasons driving the decision.

Author: Peter L., Gate.io Researcher

*This article represents only the views of the researcher and does not constitute any investment suggestions.

*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.

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