Top Crypto News: US CPI Data Release, $230 Million Token Unlocks

MakerDAO’s Spark Tokenization Grand Prix Kicks Off 

On August 12, 2024, MakerDAO, a prominent name in decentralized finance (DeFi), will launch its Spark Tokenization Grand Prix. The event aims to bring up to $1 billion in tokenized assets, particularly focusing on US Treasury Bills. This move is part of MakerDAO’s strategy to strengthen its DeFi ecosystem. 

SparkDAO will judge participants based on pricing, liquidity, and how well they align with SparkDAO’s vision. The competition seeks to encourage innovation and financial inclusion. Maker Governance will review the results, making final decisions on which assets to onboard, while also ensuring compliance with global regulations. 

The Grand Prix has already attracted interest from key players in the market. Superstate and OpenEden, major issuers of tokenized treasury bills, have confirmed their participation. BlackRock is also reportedly joining with its BUIDL token. 

US CPI Data and Its Impact on the Crypto Market 

The US Consumer Price Index (CPI) report for July will be released on August 14, 2024. Analysts suggest that unless the CPI data shows a significant rise in inflation, the Federal Open Market Committee (FOMC) is likely to proceed with a planned interest rate cut in September. Such a move could increase market liquidity, potentially driving up asset prices, including cryptocurrencies. 

In June, the CPI indicated a slight 0.1% monthly increase in core inflation, with an annual inflation rate of 3%. Projections from the Federal Reserve Bank of Cleveland and the prediction market Kalshi suggest that July’s CPI will show further signs of a cooling economy. 

Last week, the broader crypto market experienced a sharp decline, with Bitcoin falling to $49,000. Although it has since rebounded to around $60,000, the upcoming CPI data could determine whether this recovery continues or if more volatility is on the horizon. 

Ethena Labs Integrates Solana as Backing Asset 

As of August 7, 2024, Ethena Labs has extended their synthetic dollar, USDE, to the Solana network. This expansion allows Solana users to transact in USDE and earn rewards through sUSDE. 

Ethena Labs is also considering incorporating Solana’s SOL token as a backing asset for USDE. Governance approval for this integration will probably happen within the week. 

Major Token Unlocks Exceed $230 Million 

This week, significant token unlocks totaling over $230 million are set to occur, with The Sandbox (SAND) and Arbitrum leading the way. Nine percent of the total amount in circulation, or 205.59 million SAND tokens, will be released by the Sandbox. 

Team members, advisors, and the company reserve will distribute these tokens, among themselves. The tokens hold a value of approximately $55.84 million. This marks the final unlock for SAND’s private investors.