ToE's Weekly Highlights #37

Digging up the grinds for the week.

Aug 21, 2023

Gm ToE readers!

Macro: Inflation persisting higher than the Fed would like, signs of slowing consumer demand and China's financial/property distress, all contribute to an uncertain economic picture weighing on markets.
Trends: This week saw strong performances by lending and gamefi tokens, as well as possible manipulation pumping certain altcoin prices. The launch of Sei also introduces a new layer-1 blockchain with trading focus and better token distribution compared to competitors.
Defi: Base getting a lot of spotlight, AI/Gambling coins are gaining good traction. Early project finds. Friend tech getting a good amount of signups.
Tools: Best way to store your crypto, Simulator bot, Gas tracker, Proposal tracker, AI newsletter, Deploy app in seconds
Spicy drama: Beware of Merlin refunds, Evergrande bankruptcy, Trump on Arkham, RLB CEO still around

If you have not read the previous week’s highlight, here it is:

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Segmenting the megathread of content into 5 parts:

Macro news
Trending narratives
Defi happenings
Educational resources and tools
Spicy crypto drama

1. Macro News

Inflation persisting higher than the Fed would like, signs of slowing consumer demand and China's financial/property distress, all contribute to an uncertain economic picture weighing on markets.

The July Fed minutes revealed officials remain worried about persistent inflation, though some pushed back on further rate hikes. Markets expect no more hikes this year, but await signals from Jackson Hole conference.
U.S. stocks fell as the minutes highlighted the Fed's inflation concerns while noting the risks of overtightening. Retail earnings were mixed, with Target's sales suffering from reduced discretionary consumer spending.
Asian equities also declined, impacted by the ongoing issues in China's economy and financial system
China's shadow banking sector is facing mounting distress, as seen in Zhongrong Trust missing payments, triggering protests. This highlights the broader strains on China's financial system from the property downturn.
There are worries about a negative feedback loop between real estate stress and financial sector turmoil, which could constrain credit and hurt growth. Beijing may need more aggressive intervention to restore stability.

@DisruptorStocks DISRUPTOR’s Macro Lookahead

@Delphi_Digital BTC price cycle

@fejau_inc having a bearish view

@reflexivityres on Bank of Japan shocked markets by announcing it would widen its Yield Curve Control policy band

@Glimmerycoin on BTC volatility

@tedtalksmacro on Chinese liquidity

@Foxi_xyz on quick market follow up

2. Trending Narratives

This week saw strong performances by lending and gamefi tokens, as well as possible manipulation pumping certain altcoin prices. The launch of Sei also introduces a new layer-1 blockchain with trading focus and better token distribution compared to competitors.

Thorchain's native token RUNE saw strong gains (+51%) likely due to the anticipation and launch of Thorchain Lending, despite some delays.
Akash Network's AKT also performed well (+50%) over the past two weeks, outpacing similar project Render Token (RNDR).
Lybra Finance's governance token LBR rallied (+57%) ahead of the impending launch of V2 of its lending protocol.
Possible manipulation led to price spikes in Livepeer (LPT) and Bluzelle (BLZ) based on a similar playbook.
There are signs of a revival in gamefi tokens like PRIME, POLIS, MC, and GOG as teams continue building in the sector after the 2021 hype died down.
The launch of Sei Network's SEI token presents a new high-speed Cosmos blockchain for trading, positioned similarly to Solana, Sui and Aptos but with more favorable tokenomics.

@insomniac_ac on Cross chain monday