Weekly Web3 Research | MakerDAO Approved and Implemented Proposals to Increase the DAI Savings Rate and the Spark Protocol Debt Ceiling, PayPal Launched the US Dollar Stablecoin PYUSD

2023-08-11, 02:15

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<a href="/price/vechain-vet" target="_blank" class="blog_inner_link">VeChain</a>
## Weekly Trend Overview
In the past week, the crypto market has shown some recovery compared to last week. Although the overall change is not significant, it has indeed stopped the downward trend for two to three consecutive weeks this week.

The top 100 crypto projects have shown a 50% rise and fall trend within seven days, with a price increase accounting for 48%. Most of the top-10 tokens are showing an upward trend, with SOL increasing by 8.5%. In terms of decline, <a href="/price/xrp-xrp" target="_blank" class="blog_inner_link">XRP</a> is still the most obvious, with a weekly decline of -5%.

In this week's market trend, due to some positive external news and the crypto market entering a volatile cycle, after stopping the downward trend, the overall market began to achieve a small-scale rebound.

The biggest external impact on the crypto market this week came from the actions of various institutions and ecosystems. There was less external information that could directly impact the crypto market this week, which is also one of the reasons why the overall market performance was good this week.

The weekly fluctuations of BTC and ETH are between 0.7% and 0.8%, and BTC and ETH have achieved slight growth at a pace consistent with the overall upward trend of the market.

Currently, the global cryptocurrency market cap is $1.22 trillion, with little overall change in this quarter. The crypto market still lacks significant liquidity. According to on-chain data, 69% of BTC supply has been dormant for over a year, and this situation is expected to change in the last quarter of 2023.
## Crypto Market
🔥MakerDAO has passed and implemented proposals to increase the DAI savings rate and the Spark Protocol debt ceiling, raising the DAI savings rate on Spark to 8%.

🔥Spark Protocol prevents users using VPN from causing controversy.

🔥The deadline for Curve to repay the funds has passed, and a 10% bounty has been provided to the public. The founder has approximately $48.7 million in remaining debt on four platforms.

🔥PayPal has launched the US dollar stablecoin PYUSD, issued by the Paxos Trust. The Chairman of the US House Financial Services Committee stated that the stablecoin is expected to become a pillar of the payment system.

🔥Lazarus Group stole $37 million from CoinsPaid through a social engineering hack.

🔥The BTC Volatility Index fell to a historic low of 37.08 on the 6th and is still sluggish.

🔥Etherscan launches the Web3 chat application Blockscan Chat on the mobile end.

🔥The in_script_ion ordinals of Eth_script_ions have exceeded 1 million.

🔥CoinGecko's top 15 NFT traders have accumulated a profit of $299 million.

🔥The mysterious whale address nd4.eth transferred one of its NFTs, such as BAYC and MAYC, into a black hole for destruction, subsequently destroying approximately $3.3 million worth of <a href="/price/gmx-gmx" target="_blank" class="blog_inner_link">GMX</a> and GNS tokens.
## Regulatory Policies
🔥The former chairman of the US CFTC stated that PayPal stablecoin has value beyond encryption, but Democratic Party leaders expressed deep concern about PayPal stablecoin, indicating that the current attitude of the US political community towards cryptocurrencies has shown polarization.

🔥18 venture capital firms, including Temasek, Sequoia Capital, and SoftBank, as well as law firm Fenwick&West, have faced class action lawsuits over FTX. Even though the FTX restructuring plan has not yet been implemented, the judicial controversy over the FTX incident continues.

🔥The US SEC will file an interlocutory appeal against the Ripple case ruling.
## Macro Economy
🔥There will be no direct macroeconomic impact information released this week, and the global crypto market is still following external overall economic trends.
## Crypto Market Highlights 
⭐️In the past week, there has been a lot of positive news in the crypto market. Although many projects have started to take off, the crypto market as a whole is still in a relatively stable state, and the lack of liquidity is a long-term problem.

⭐️PayPal's launch of the US dollar stablecoin PYUSD has attracted unanimous attention both inside and outside the cryptocurrency market, which means that cryptocurrencies are further moving toward the mainstream.

⭐️After the previous surge, XRP has stabilized within the $0.6 range as a whole, with a 5% decline this week. However, XRP has followed the market's small increase this week, and its payback cycle may have ended.
![](https://gimg2.gateimg.com/image/article/16917200681.png)
(Data Courtesy Of CoinGecko)

## BTC & ETH Weekly Performance
### Bitcoin (BTC)
![](https://gimg2.gateimg.com/image/article/16917200802.png)
(Data Courtesy Of TradingView)

BTC reached a high of $30,250 this week and has shown a fluctuating upward trend since last week's continuous decline.

Impacted by the market cycle, BTC prices have walked out of a relatively fierce upward curve this week, returning to a range of $30,000 plus. However, the rebound has already begun, and it seems that the biggest resistance level has reached $29,500.

Based on the week's situation, most of the hot news in the crypto market this week is positive news, but the stimulus is limited. Currently, the overall market liquidity is insufficient. After this small wave last week, the price of BTC is likely to hover between $29,000 and $30,000 for a period of time.
### Ether (ETH)
![](https://gimg2.gateimg.com/image/article/16917200903.png)
(Data Courtesy Of TradingView)

The trend of ETH during this week is generally consistent with that of BTC, and the reasons are basically the same. From the $1,800 range where it reached its lowest point last week, ETH prices have rebounded to $1,880.

As predicted by BTC, the price of ETH has now returned to the $1,850 stage, and it is currently difficult to determine whether there will be a slight increase in its future. However, the greatest possibility is that it will remain stable for a period of time within the current range, with resistance levels around $1,860.
## Web3 Project Trend
Most of the projects in 7 sectors have shown a slight upward trend this week, and due to the good performance of the SOL ecosystem this week, the main growth projects of the LSD sector this week are all related to it. The growth and changes of the MEME track are very frequent every week, which is somewhat related to its tendency towards marketing hype. The increase this week was relatively good. Overall, due to the positive news this week and the return of market cycles, various Web3 project tracks have experienced slight growth, but investment still needs to be cautious.

| Project category  | 7d Change  | Top 3 Gainers  | Comment  |
| ------------ | ------------ | ------------ | ------------ |
| Layer 1 |  1.0% | HMND, NEXA, CUDOS| The Layer-1 projects have been impacted by various positive news and market cycle changes this week, and the overall trend is showing a rebound. However, whether the upward trend can be stabilized is a significant criterion for judging the development of the sector in the future. |
| Layer 2  | -0.4%  | BROCK, DG, LAI | The Layer-2 sector has hardly seen any relevant project actions this week, and there has been a lack of special positive news, with a slight decline and almost no significant overall changes. |
| DeFi  | 1.5%  | CAP, FSW, AXIAV3 | The overall growth of the DeFi sector has not been too high, but it has indeed stopped the previous downward trend. Within the normal scope of capital <a href="/price/flow-flow" target="_blank" class="blog_inner_link">Flow</a>, the DeFi sector should not experience more intense ups and downs. |
| NFT  | 1.0% | NAVI, WRLD, HUSL | The situation in the NFT market is basically consistent with other tracks, with a small increase caused by external factors. Given the large share of the decline in the early stage, the overall trend in the future should be upward for a considerable period of time. |
| MEME  | 7.9%  | KAT,HER,NORMIE | The MEME track performed well this week, and compared to other tracks, the MEME sector is more significantly influenced by external information, so it is reasonable for the changes to be drastic. |
| LSD  | 2.4% | JITOSOL, MSOL, STSOL | The LSD projects have received impressive performance from the <a href="/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a> ecosystem this week, showing unilateral growth. The top-3 projects are all within its ecosystem. Investors eye Solana's subsequent actions. |
| BRC-20  | -0.8% | TRAC, SATS, BANK |  The BRC-20 sector showed a slight decline due to almost no relevant project information being disclosed this week. |

<div class="blog-details-info">
<div>Author:**Charles T.**, Gate.io Researcher
<div>Translator:Joy Z.
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>