Top Crypto News This Week: US CPI Data Release, $230 Million Token Unlocks, and More

This week, the crypto market is bracing for significant developments, with the US Consumer Price Index (CPI) data release and substantial token unlocks totaling over $230 million taking center stage.

These events are expected to drive volatility and shape the market’s direction.

MakerDAO’s Spark Tokenization Grand Prix Set to Commence on Monday

MakerDAO, a major player in the decentralized finance (DeFi) sector, is kicking off its Spark Tokenization Grand Prix on August 12, 2024. This initiative aims to onboard up to $1 billion in tokenized assets, focusing on US Treasury Bills and similar products. It also showcases MakerDAO’s strategic efforts to bolster its DeFi ecosystem.

Participants in the competition will be evaluated on pricing, liquidity, and alignment with SparkDAO’s vision. The goal is to identify proposals that promote innovation and financial inclusion.

Maker Governance will review the competition results. They will make final decisions on which assets to onboard while ensuring compliance with global financial regulations.

The Spark Tokenization Grand Prix has already garnered interest from major issuers of tokenized treasury bills. In an email to BeInCrypto, representatives from Superstate and OpenEden expressed their intention to participate with their flagship products, USTB and TBILL. Other reports indicate that BlackRock will also join the competition with its BUIDL token.

Read more: What is The Impact of Real World Asset (RWA) Tokenization?

US CPI Report Looms Over Crypto Market Sentiment

The July US Consumer Price Index (CPI) report is scheduled for release on August 14, 2024. Market participants expect the data to confirm a continuation of the disinflation trend seen in recent months.

Analysts believe that unless the CPI data reveals a significant uptick in inflation, the Federal Open Market Committee (FOMC) is likely to proceed with the anticipated interest rate cut in September. Such a rate cut could increase liquidity in the market, potentially driving up asset prices, including cryptocurrencies.

In June, the CPI data indicated a modest 0.1% monthly increase in core inflation, with an annual inflation rate of 3%. Meanwhile, projections from the Federal Reserve Bank of Cleveland and the prediction market Kalshi suggest that July’s CPI will continue to indicate a cooling economy.

Notably, the broader crypto market experienced a sharp decline last week, with Bitcoin dropping to as low as $49,000. Although it has since rebounded to around $60,000, the upcoming CPI data is expected to determine whether this recovery will continue or if further volatility is in store.

Ethena Labs to Reveal Details on Using Solana as New Backing Assets

Ethena Labs has expanded its synthetic dollar, USDE, to the Solana network as of August 7, 2024. This integration allows Solana users to transact in USDE while earning native rewards through sUSDE.

Alongside this integration, Ethena Labs also plans to incorporate Solana’s SOL token as a backing asset for USDE. The process is currently waiting for governance approval, which is anticipated to happen sometime within this week.

“SOL as a backing asset for USDe will be proposed to governance for implementation next week and open up an extra $2-3 billion of open interest across major exchanges, improving USDe’s scalability even further,” the Ethena Labs team said on their X (Twitter).

Read more: What Is Ethena Protocol and its USDe Synthetic Dollar?

The Sandbox (SAND) and Other Major Token Unlocks This Week

This week, the crypto market will see significant token unlocks exceeding $230 million, with The Sandbox and Arbitrum leading the charge. The Sandbox will release 205.59 million SAND tokens, which account for 9% of its circulating supply.

These tokens, valued at approximately $55.84 million, will be allocated to team members, advisors, and the company reserve. This allocation also marks the final unlock for SAND’s private investors.

SAND Token Unlocks.SAND Token Unlocks. Source: token.unlocks

Similarly, Arbitrum will unlock over 90 billion ARB tokens, valued at around $53.5 million. Read this article for further detailed information on major crypto token unlocks this week.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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