Daily News | Powell Statement, AI Tokens, and LSD Protocols Lead the Way, ENS DAO Sold 10K ETH

2023-02-08, 02:58

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![](https://gimg2.gateimg.com/blog/166563293266894988220221013-114826.jpeg)

## Crypto Daily Digest: Powell Statement Calmed Markets, AI and LSD Coins Continue to Take Center Stage

Good morning, traders. We’ve reached the middle of the week and like always, let’s get after it relentlessly. 🚀

Equities in Asia are moving up following a rally in US shares at the end of Tuesday's trading. The S&P 500 and Nasdaq 100 both showed gains, with the latter outperforming other benchmarks by over 2%. The US futures market saw a slight decrease, while bonds in Australia declined after a fall in Treasuries.

Federal Reserve Chair Jerome Powell's statement that disinflation has started and more rate hikes may be necessary if the job market remains strong was similar to his comments made after last week's FOMC meeting. The Minneapolis Federal Reserve President Neel Kashkari noted that the Fed may have to raise rates to 5.4% at the top of its target range.

Meanwhile, cryptocurrency prices initially remained stable alongside other risk assets ahead of Fed Chair Powell’s speech but soon became volatile afterward. [Bitcoin](https://www.gate.io/trade/BTC_USDT) was up 228% at $23,317, according to TradingView data, while Ether rose by 4.06% to $1,686. From a technical perspective, the latter is closing in on a critical resistance zone of $1690 - $1720 of which we saw rejection on Saturday.

This week’s winners have been centered on AI-related tokens which include but are not limited to SingularityNet (AGIX), Fetch.ai (FET), The Graph (GRT), Ocean (OCEAN), and iExec (RLC) with gains between 30% - 100%. On the other hand, LDO protocols (Liquid Staking Derivatives) such as LidoDAO (LDO), RocketPool (RPL), Frax (FXS), StaFi (FIS), and BiFrost (BNC) have also increased significantly ahead of the much anticipated Ethereum Shanghai update in March.

## Topic of the Day: ENS DAO Funds Future with $13 Million USDC from 10,000 ETH Sale

The Ethereum Name Service (ENS) is a decentralized, open-source platform that allows users to associate human-readable names, such as domain names, with Ethereum addresses. The ENS DAO is responsible for governing the platform and has a treasury that holds funds in ETH. The recent vote to sell 10,000 ETH from the treasury was aimed at reducing the DAO's exposure to ETH and providing stability for its activities.

The decision to sell the ETH for USDC, a stablecoin pegged to the [US Dollar](https://www.gate.io/trade/USD_USDT), was taken to avoid the volatility of the cryptocurrency market. USDC is widely used as a medium of exchange in decentralized finance (DeFi) applications, making it a more stable and practical currency for the ENS DAO to hold. The sale of ETH for USDC will take place through CoW Swap, a decentralized exchange that provides seamless and secure trading of cryptocurrencies.

The funds raised from the sale will go towards covering the daily expenses incurred by ENS Labs, the Singapore-based project developer. ENS Labs receives a daily stream of $11,500 USDC from the DAO, which will accumulate to $8.4 million over the next two years. In addition, the funds will support the DAO's three core working groups, which could receive up to $6 million in the next two years.

The vote was carried out smoothly, with 89% of the participants voting in favor of the proposal. However, there was some debate among the USDC delegates over the best way to sell the tokens. Some delegates suggested breaking down the sale into smaller units and employing a dollar-cost averaging technique to get the best value. However, the final decision was to go ahead with a single swap, as this would have required multiple votes if the sale was broken down into smaller stages.

In conclusion, the recent vote by the ENS DAO to sell 10,000 ETH for USDC is a significant step for the project. The funds raised will provide stability and support for the project's activities and help the DAO to reduce its exposure to ETH. The vote was well received by the participants, and the ENS DAO is now poised to take the project forward with renewed energy.

##Ethereum Name Service (ENS) $16.153 (+0.66%) - Bullish Outlook

**Overview:**

- ***Closest daily support zone: 15.81 - 15.54***
- ***Closest daily resistance zone: 16.30 - 16.69***
- ***Key Level: 17.137 (Weekly Close Between Jan. 17 - 24, 2022)***

![](https://gimg2.gateimg.com/image/article/1675825088Untitled0208.png)

ENS has been trading at the edge of a symmetrical triangle pattern for a little less than two weeks. Although there have been three rejections so far, every time ENS moves back up. Notably, the 300EMA and the golden ratio (61.8%) are aligned, implying ENS has entered a critical resistance zone.

**Daily Resistance zones**

1. 16.30 - 16.69
2. 16.78 - 17.27
3. 18.04 - 18.78

**Daily Support zones**

1. 15.81 - 15.54
2. 15.50 - 15.19
3. 15.10 - 14.79

<div class="blog-details-info">
<div>Author:** Peter L.**, Gate.io Researcher
<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>