This week is a big one for the economy and crypto. The Federal Reserve’s expected interest rate decision could shake up global markets, and Donald Trump is gearing up to launch a new cryptocurrency platform called World Liberty Financial.
Additionally, Solana’s Breakpoint event and MakerDAO’s transformation to Sky are adding to the excitement in the blockchain space. The release of several high-risk tokens led by Arbitrum is also expected to increase market volatility. This week promises to be an exciting development in the crypto space as political, economic, and blockchain developments all converge.
How will the Fed's interest rate decision affect short-term cryptocurrency prices?
This week, the Fed’s rate decision has generated a lot of speculation, especially for risky assets like cryptocurrencies. CME Group data suggests a 59% chance of a 50bp cut and a 41% chance of a 25bp cut. Historically, interest rate changes have had a big impact on assets like Bitcoin, which struggled in September.
Analysts at Kaiko point to Bitcoin’s “September effect,” which has seen the cryptocurrency fall in September in seven of the last 12 years. The trend continued in 2024, with a 7.5% drop in August and a further 6.3% drop in September.
Read more: How to Protect Yourself Against Inflation Using Cryptocurrencies
Volatility is soaring on both Bitcoin and Ethereum. Bitcoin’s 30-day volatility has jumped to 70%, nearly double last year’s levels. Meanwhile, Ethereum’s volatility is also increasing, triggered by events such as the launch of an Ethereum ETF.
“On the positive side, the increase in cryptocurrency volatility has been accompanied by increased market participation, at least in the Bitcoin market. Cumulative Bitcoin trading volume in the first eight months of 2024 is approaching $3 trillion, up nearly 20% from its previous high in 2021,” the Kaiko analysts noted .
Donald Trump Launches New Cryptocurrency App Ahead of US Presidential Election
Former US President Donald Trump is gearing up to launch his new cryptocurrency platform, World Liberty Financial, live from Mar-a-Lago on Monday at 8:00 PM ET. Trump’s platform aims to be a leader in the cryptocurrency space and promises to revolutionize finance by offering an alternative to the traditional banking system.
“We are embracing the future with cryptocurrency and leaving behind the slow, old-fashioned big banks,” Trump said in a promotional video posted to X (Twitter).
The timing of the launch has sparked conversation about the intersection of Trump’s political and business ambitions, but critics have raised concerns about the potential for him to use government influence to benefit his family’s businesses.
'Breakpoint 2024' to be held... Will Solana's price rise?
Solana will be hosting the highly anticipated Breakpoint event in Singapore on September 20-21. Hosted by the Solana Foundation, this multi-day event will bring together developers, industry leaders, creators, and blockchain enthusiasts from around the world to explore the latest innovations in the Solana ecosystem. Breakpoint 2024 promises to be more exciting than ever, with discussions on the state of the Solana network and Solana 2.0, as well as keynotes from influential figures like Raj Gokal and Balaji Srinivasan.
Attendees can expect workshops, interactive talks, and networking opportunities highlighting Solana’s vision for the future of blockchain technology. Attendees will also receive exclusive updates on the development of FireDancer, Solana’s next-generation validator client, and other breakthroughs in the ecosystem .
Sky (MakerDAO) Rebranding and New Token Launch
Another major development in the decentralized finance (DeFi) space is MakerDAO’s rebrand to Sky , which will take effect on September 18. Along with the new brand identity, two major tokens will be launched: USDS and SKY.
SKY’s leadership sees this change as necessary to improve scalability and accessibility within the DeFi ecosystem. The USDS token provides a more robust and scalable alternative while maintaining the same 1:1 exchange rate as DAI. Meanwhile, the SKY token introduces new governance features.
This rebrand is part of Sky’s broader “endgame plan” to address key challenges in DeFi, including regulatory compliance and scalability. By introducing “Sky Stars,” a decentralized project that fosters innovation, and Sky.money, a non-custodial platform that simplifies accessibility, Sky aims to lead the next phase of DeFi development.
Eigenlayer Season 2 Stakedrop: What You Need to Know
On September 17, Ethereum’s re-staking platform EigenLayer will begin distributing its Season 2 Stakedrop . The platform will reward stakers, ecosystem partners, and community members with Eigen tokens. Approximately 70 million Eigen tokens, equivalent to 4.2% of the total initial supply, will be distributed to participants who actively stake and run nodes during Season 2. Rewards will be calculated based on each staker’s ETH-hours percentage accumulated during the snapshot period on August 15, 2024.
For ecosystem partners, up to 10 million Eigen tokens, equivalent to 0.6% of the total supply, will be allocated to contributors who have supported EigenLayer. They have played a role in Active Validated Services (AVS), Layer-2 rollups, and other decentralized services. Meanwhile, community members, including early supporters, open source contributors, and supporters since the founding of EigenLayer, will receive approximately 6 million Eigen tokens, equivalent to 0.35% of the total supply.
To claim these rewards, community members must verify their social identity through the platform portal. This mechanism ensures that only genuine participants have access to tokens.
ARB and other major tokens released this week
This week, the crypto market will witness over $11.6 billion worth of token releases, with Arbitrum leading the way. Arbitrum’s scheduled token release will be on September 16, releasing approximately 90 billion ARB tokens, which is equivalent to approximately $49.87 million. These tokens will be distributed to the project’s team, advisors, and early investors.
Read more: How to buy Arbitrum (ARB) and all the information you need
Other notable token releases include ApCoin and Space ID, which are also releasing significant tokens to the market. Token releases often increase market volatility, and while new tokens create liquidity, they can also create selling pressure. For more information on major cryptocurrency token releases this week, read this article .
