Bounce with it. Crypto markets were shaken up by macroeconomic factors this week, as people feasted on new tokens following the arrival of numerous high-profile airdrops! What happened in the markets this week?
Bitcoin started the week at $63,000 and attempted to surpass the previous week's opening level of $65,000 before rejecting Tuesday's level and plunging below the key $60,000 limit that had supported the price over the previous two months.
Risk assets rose steadily throughout Thursday and exploded on Friday after poor jobs data suggested rate cuts could be imminent, allowing BTC to reclaim its key support level at $60,000 .
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While the total crypto market cap (TOTAL) narrowly avoided its fifth straight red week, many degens were recapitalized through a series of major airdrops this week, potentially providing the fuel needed to drive prices higher.
Ethereum Liquid Resumption Protocol Renzo and Solana money market Kamino both launched claims for their first airdrops on Tuesday, April 30, distributing a total of $200 million to early adopters at current market prices.
Late Thursday evening, ami.tech launched FRIEND, a platform utility token that generates exchange fees and can be used to purchase new “Club” keys, to coincide with the release of its V2. With 100% of the FRIEND supply going to users, the token launched at its fully diluted valuation and traded as high as $160 per coin during the early illiquid stages of price discovery, which involves a staggering FDV of $11 billion!
Unfortunately, FRIEND returned to orbit this morning as users decried the quality of the V2 upgrade and dumped their app holdings in the rush for release, draining a net 20,000 ETH from the app and leaving the token at a much lower amount of $120 million. FDV at the time of analysis.
Also revealed this week it was the EigenLayer drop. Although the token is not yet transferable or exchangeable, its arrival has certainly sent shockwaves through the crypto market…
Onchain yields continued to compress this week following the announcement, with the implied yield on the most liquid TLR pool on Pendle down more than 700 basis points since last Friday, to 23.8%.
Although the promise of airdrops fueled bull market narratives and prompted many to seek leverage to make the most of this opportunity, their arrival dampened speculative activity and led to a significant rise in yields over the course of the year. of the month of April. If yields continue to fall, there is a significant risk that prices will fall, given that holders could begin selling crypto assets once the yields they can generate are no longer enough to compensate them for their trading costs. 'opportunity.