Interest rates came in as expected, and the market rode the waves, but as many as 6 to 7 further hikes could be on the horizon. Meanwhile, Ethereum is a step closer to becoming proof-of-stake (PoS), and Ukraine legalizes crypto-assets across the board.
All that and much more.
- Results of the FOMC announcement.
- Market update.
- Newswatch (Ethereum upgrade, Ukraine).
- Notable events (Aave V3, Sushi Trident, Coinbase Pay).
- NFTs and metaverse (The Sandbox, ApeCoin).
The big story
Yesterday’s FOMC meeting confirmed the US Federal Reserve’s (Fed) much-anticipated rate hike of 25 basis points (bps); the first-rate hike since December 2018. The market took the news well, suggesting that it had been convincingly priced-in. Afterward, the press conference revealed some key points:
- Fed officials see inflation at 4.3% at the end of 2022, 2.7% for 2023.
- A majority of Fed officials see as many as seven rate increases in 2022.
- The Fed will begin decreasing the balance sheet in coming meetings.
Market update
Bitcoin (BTC) experienced a volatile day that saw it rally +4.67% to $41.1k during yesterday’s US trading session. The reaction to the FOMC meeting was generally positive, and traders will be watching to see if substantial volume can push the price towards, and through, a solid $45k resistance level.
Source: Trading View
Ether over bitcoin (ETH/BTC) price looks to test the downward trend line. ETH/BTC helps notify traders when the market becomes noticeably bullish and driven by altcoins instead of a bitcoin-driven market. In the previous three instances, a significant downward trend line was broken, ETH gained 34%, 25%, and 162% over bitcoin.
Source: Trading View
Notable gainers (24h) listed by marketcap
| Protocol (Coin) | Price ($) | Gain |
| Celo (CELO) | 3.27 | +33% |
| The Sandbox | 3.32 | +16% |
| THORChain (RUNE) | 8.41 | +12% |
| Arweave (AR) | 34.24 | +11% |
| Aave | 138.49 | +11% |
| STEPN (GMT) | 0.62 | +81% |
| Nano (XNO) | 2.37 | +37% |
| AIOZ Network | 0.23 | +25% |
| Tomb Shares | 3,325.65 | +17% |
| Bitcoin Fear and Greed Index: | 27 Fear (+3) |
| “Crypto” Google Trends: | 29 |
| “Bitcoin” Google Trends: | 37 |
Newswatch
- Ethereum (ETH) passes a significant test run on Kiln, a testnet for the Layer-1 protocol. The successful Kiln Merge puts Ethereum one step closer to a complete transition from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus blockchain. Predictions for the mainnet merge fall in a June-August 2022 timeframe.
- The President of Ukraine, Volodymyr Zelenskyy, signed a bill to legalize the cryptocurrency industry in the country. The bill creates a legal framework for regulating rights, ownership, taxes, and oversight. The statement comes after US$100m of crypto-asset donations to the country to help support the war effort. Source: Ukraine Government Portal
Source: Coin Metrics
Notable events
- The Sushi team behind SushiSwap (SUSHI) launched an automated market maker (AMM), Trident beta, on Polygon. Liquidity providers on SushiSwap can now migrate their positions to Trident. Trident will eventually integrate the features below:
- Let users create their liquidity pools similar to Uniswap V3.
- Allow for liquidity for different weighted amounts.
- Hybrid pools of similar assets such as stablecoins.
- New routing engine for swaps that will save on gas costs.
- Crypto exchange Coinbase launched Coinbase Pay, a Chrome extension that allows for wallet funding with a debit card directly from the browser. The process simplifies a process which usually takes users through various apps, websites, and transfers processes.
- THORSwap (THOR), a decentralized exchange on THORChain (RUNE), has released a roadmap. Their vision is to “Become the one-stop DeFi exchange in crypto.”
- Aave (AAVE) announces the Launch of V3 that “Brings ground-breaking new features that span from increased capital efficiency to enhanced decentralization.”
- MetaMask announces DAO and token, likely to be airdropped to wallet users on a future unknown date.
NFT and metaverse update
- The Sandbox (SAND) is currently hosting Alpha Season 2, including Snoop Dogg’s Foreplay level. Additionally, The Sandbox has teamed up with global bank HSBC.
- Yuga Labs airdrops ApeCoin (APE) to Bored Ape Yacht Club (BAYC) non-fungible token (NFT) holders. APE was immediately listed on Gemini, FTX, Coinbase and Kraken.
Banter’s take
Phew! The looming event of interest hikes is over, and markets ate it up. The market won’t be the same as 2021 but that doesn’t mean it won’t climb. Of course, we could be speaking too soon but let’s return to talking about ApeCoins and pertinent alpha.
The truth remains that crypto resides on a bigger stage than before, and geopolitics/rate hikes are part of the act. However, crypto has a side that remains engaging, exciting, and unpredictably quirky that we can still enjoy in between the serious acts.
Thanks for reading fam!
Gabri
