Notable Messari Intel Updates
Secret Network announced the launch of a $225M ecosystem fund targeting development at the application layer and a $175M accelerator pool designed to provide capital, grants, and ecosystem incentives to users and developers.
After a successful hardfork, EIP-1559 has gone live on Polygon Mainnet.
The Harmony blockchain halted as shard 0 could not produce blocks. An internal leader node became overwhelmed by spam traffic following a network upgrade, and the chain forked, resulting in consensus not being able to be met. After validators upgraded to a new binary, block production resumed and performance has since stabilized.
The Threshold Council deposited ~$20M into the Curve T+ETH pool and staked the LP tokens into Convex. A share of the resulting CRV/CVX rewards will accrue to the DAO, with the stated goal being to diversify the treasury and allow Threshold to build governance power in strategically relevant protocols as a way to facilitate the success of future tBTCv2 pools.
Notable Messari Governor Updates
Idle DAO submitted a proposal that aims to introduce new governance features to Idle Finance via the introduction of a gauge voting model and farming boost modules. Discussions are currently open.
The Sushi DAO has submitted a proposal that combines elements of both initial proposals from Arca’s Sushi DAO Restructure and Frog Nation to provide a final version of a proposed restructure of the Sushi DAO. Voting is currently active.
BitDAO has submitted a proposal that aims to allocate $200M to fund an Ethereum Scalability and Adoption DAO entitled zkDAO. Voting is currently active.
The Illuvium DAO failed to pass a proposal that aimed to reimburse users who lost funds in relation to the emergency DAO’s (eDAO) response to a Jan. 3, 2022, attack in which the eDAO minted a large amount of sILV to drive the price of the asset to zero in the Uniswap pool.
The Balancer DAO approved a proposal that seeks to include subDAOs within the Balancer DAO structure.
Sector Returns: Down Only
This week saw continued losses across all sectors ranging from -3.60% to -9.32%. The Currencies sector suffered the least, finishing -3.60% from the previous week. Interestingly, the highest and lowest market cap sectors had the most losses this week. Top assets ended the week with -9.32% returns and gaming with -16.10%.
Top Assets
All but one asset finished the week with negative returns this week. Dogecoin (DOGE) barely finished above water at 0.4% and possibly due to the fact that it rallied after Elon Musk tweeted that DOGE can now be used to buy Tesla merchandise. However, towards the end of the week, the momentum faded away and finished the week where it started. Avalanche suffered the heaviest losses this week, finishing with -12.5%.
DeFi Assets
All DeFi tokens finished the week in the red. The sector also had the widest range of returns (from -2.5% all the way to -29.0%). DeFi TVL is at a critical support line at $220B. TVL has remained above this line since October of last year and if it breaks below, the market could experience further drawdowns to the next closest support at $199B. Yearn Finance (YFI) replaced Thorchain (RUNE) on the top ten DeFi assets and finished the week in second place with a return of -4.1%. Coming in last was Loopring, taking a heavy loss of -29.0% on the week.
Smart Contract Platforms
Yet another sector with all assets finishing the week in the red. Losses within this sector ranged within -0.7% and -14.6%. Cardano (ADA) and Terra (LUNA) were tied for first place as they barely took losses at -0.7%. This week, anticipated Cardano DEX SundaeSwap launched creating network congestion while LUNA established the Luna Foundation Guard, a non-profit tasked with building reserves to better safeguard the UST peg during adverse market conditions. The rest of the assets did not have a similar fate experiencing more significant declines with Algorand finishing last of the smart contract platforms with a drawdown of -14.6%.
Currencies
Monero (XMR) and Dogecoin (DOGE) were poised to have a double digit return week but lost their momentum and halfway through the week found themselves dancing within the double and single digit returns. They were not able to return to double digit areas but were the only two assets of the group that finished the week with positive returns. Monero (XMR) performed best on the week with a return of 1.5% while Dogecoin (DOGE) followed with a 0.4% return. Stellar was the laggard of the group, finishing the week with a -13.5% loss.
Web3
Web3 tokens traded with very high correlation compared to the other sectors all the way through the middle of the week. Afterwards, three tokens broke off the pack while the rest traded downwards in unison. One of the assets that broke off from the pack was Stacks (STX). The Bitcoin-linked blockchain was recently listed on Coinbase which prompted a 29.9% jump but quickly lost ground and ended the week in third place with a loss of -5.4%. Arweave (AR) traded below the pack for most of the week and ended in last place with a -20.1% decline.
Gaming
As a sector, gaming was the clear loser of the week. All of the assets suffered a sharp decline right after the weekend, which led to seven of the ten top gaming assets by market cap to finish the week with double digit losses. Contrary to last week, gaming traded with high unison throughout his week, having no clear outliers within the group. Axie Infinity (AXS) experienced the least decline ending the week with -6.6%. The rest of the assets ended the week in the -9.3% to -19.0% performance range with PLA (PLA) taking the last spot.
