Happy Friday! The Weekly Market Highlights is an initiative from the Binance Research team to round up the week, summarizing key market events and views from the team. 

🔎 Macro / TradFi

  • Stocks tumbled this week, despite upbeat economic data. Expectations are that the Federal Reserve will continue to lift borrowing costs to fight inflation. The bad performance of equities was deepened further by weak earnings reported this week. Thinner, year-end trading conditions were also a factor behind the drop as the holidays are just around the corner.

  • Bank of Japan shocked the market with a policy tweak, changing the yield-curve-control 10-year JGB target from 0.25% to 0.5%. The decision indicates that the Japanese central bank is willing to tolerate more yield upside and reduce bond purchasing.

🔎 Crypto

L1/L2:

  • OP Labs will move Optimism's Goerli testnet to Bedrock on January 12. The team is working with node operators to guarantee a seamless transfer without impacting users. Bedrock is a new decentralized Rollup architecture that reuses high amounts of Ethereum code, infrastructure, and design principles. It will lower prices, add ZK proofs, and enable multiple execution clients for Optimism. 

DeFi:

  • The Uniswap community voted to reduce off-chain Snapshot votes to one and raise the Snapshot poll yes-vote threshold from 50k $UNI to 10m $UNI. It also proposes a 7-day "Request for Comment" process before the Snapshot vote to allow the community time to generate views and submit feedback. 

  • Sushi DAO is likely to direct exchange trading fees from token holders to the project's treasury for about a year. The Snapshot voting page shows 58.95% support, with Golden Tree and Cumberland providing 10 million Sushi DAO governance tokens to pass the vote. Combined, their votes accounted for 91% of the 11 million tokens in favor of the proposal.

Others:

  • Binance joins the Chamber of Digital Commerce Executive Committee, a leading blockchain and cryptocurrency trade association. 

  • ⁠Brazilian president signs the crypto bill into law. The law included digital currencies under the definition of legal payment methods in Brazil and established a licensing regime for virtual asset service providers.

🔎 Latest Binance Research Publications 

Check out our latest publications:

Explore our Binance Research website for more project and macro research reports.
For more frequent market updates and insights, follow us on Twitter @BinanceResearch. 

 

Have a minute? Please share with us any feedback you may have via this form.

That’s a wrap!

Binance Research

About Binance Research: Binance Research is the research arm of Binance, the world's leading cryptocurrency exchange. The team is committed to delivering objective, independent, and comprehensive analysis and aims to be the thought leader in the crypto space. Our analysts publish insightful thought pieces regularly on topics related but not limited to, the crypto ecosystem, blockchain technologies, and the latest market themes.

General Disclosure: This material is prepared by Binance Research and is not intended to be relied upon as a forecast or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities, cryptocurrencies or to adopt any investment strategy. The use of terminology and the views expressed are intended to promote understanding and the responsible development of the sector and should not be interpreted as definitive legal views or those of Binance. The opinions expressed are as of the date shown above and are the opinions of the writer, they may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and non-proprietary sources deemed by Binance Research to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Binance. This material may contain ’forward looking’ information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader. This material is intended for information purposes only and does not constitute investment advice or an offer or solicitation to purchase or sell in any securities, cryptocurrencies or any investment strategy nor shall any securities or cryptocurrency be offered or sold to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the laws of such jurisdiction. Investment involves risks.