Weekly Recap: Markets Crater on Macro Woes

Happy weekend Defiers!

Crypto markets pulled back sharply this week as macro concerns resurfaced. While U.S. GDP figures came in better than expected, PCE data showing persistent inflation weighed on investor sentiment.

Amid the volatility, DeFi remains resilient, with the stablecoin sector surpassing $280 billion for the first time, and active onchain loans topping $40 billion.

Meanwhile, Hyperliquid was in the spotlight again after large buys on its XPL pre-market wiped out the orderbooks and resulted in significant liquidations. Despite the incident, HYPE surged to an all-time high this week.

Finally, SOL is outperforming as investors anticipate a wave of buying from treasury companies.

Enjoy!

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Bitcoin Slips Under $109,000 as US Inflation Data Weighs on Sentiment

Crypto markets pulled back on Friday, with total capitalization dropping 3.5% to $3.83 trillion as macro concerns weighed on risk assets. The latest data suggests U.S. inflation is sticking around, reducing the chances of imminent rate cuts.

Bitcoin (BTC) fell 3.8% to $108,383, while Ethereum (ETH) dropped 4.5% to $4,340.

Ethena’s USDe Outperforms as Stablecoin Market Surpasses $280 Billion

The stablecoin market has crossed the $280 billion mark for the first time ever, adding about $2.8 billion in the last week alone.

Ethena’s USDe has been the standout, growing its market capitalization by more than 200% since August 2024. By comparison, over the same timeframe, Circle’s USDC grew 87% and Tether’s USDT by 39.5%.

Jupiter Lend Attracts $500 Million in TVL as Onchain Lending Hits All-time High

Jupiter Lend, a new lending protocol from Solana’s leading DEX aggregator, surpassed $500 million in total market size in less than one day after its beta debut. It’s now the second-largest lending platform on the network, trailing only Kamino Finance.

HYPE Hits New All-Time High as Hyperliquid Dominates DeFi Revenue

Decentralized perpetuals exchange Hyperliquid’s HYPE token crossed the $50 mark this week to a new all-time high. July marked a landmark month for the ecosystem as Hyperliquid accounted for 35% of all blockchain revenue.

The exchange also faced some controversy this week, however, after a group of whales cleared out its XPL pre-market orderbooks, triggering mass liquidations.

It’s also unclear if HYPE will be able to sustain its momentum with $500 million in monthly unlocks slated to begin in late November.

Solana Leads Major Altcoins as Buyers Pile In Ahead of Treasury Companies

Solana is outperforming in anticipation of digital asset treasury companies (DATs) accumulating its native token.

SOL is up 15% over the last week, while BTC is flat and ETH is up just 6%, driven by speculation and news of multiple DATs emerging, led by notable investors such as Multicoin Capital, Pantera, and Galaxy Digital.

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