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The Suspense Is Palpable

It was another week of green for the crypto market, though gains were pared back as we approach next week’s highly-anticipated Federal Reserve meeting. 😬

In today’s Litepaper, we take one final look at inflation before the next interest rate decision, provide an update on the Celsius Earn situation, and update the top 10 market cap staking yields. Buckle up; we’ll run through this so you can enjoy your weekend. πŸ‘

Here’s how the market looked at the end of the trading day:

Filecoin (FIL)
Cosmos (ATOM) $13.24 +1.78%
OKB (OKB) $36.37 +1.35%
Bitcoin (BTC)
Litecoin (LTC)
Monero (XMR) $178.71 +3.62%
TRON (TRX) $0.0637 +3.26%
NEAR Protocol (NEAR) $2.53 +0.55%
Cronos (CRO) $0.081 -0.11%
Chainlink (LINK)
Altcoin Market Cap
$560 Billion
Total Market Cap $1.04 Trillion +1.31%

Some ‘Good’ News For Celsius Earn Customers? Featured Image

According to their attorneys, the bids for Celsius’s ($CEL.X) various assets are “not compelling.” Or shite. Poo. Ass. πŸ’©

The most recent solution brought to the bankruptcy judge is to create a new token called an AST (Asset Share Token) – which represents the value of a creditor’s assets.

What does that mean for the customers? The lawyers said customers would receive a one-time distribution not in the AST but in liquid crypto ($BTC.X, $ETH.X, stablecoins, etc).

Attorney Ross Kwastaniet said the distribution would be at a ‘discount’ – fancy shmancy speak for “ya, you’re not getting back everything you lost.”

Kwastaniet did expand a little more on that topic with a more positive spin saying, “… they’re (Earn customers) going to be entitled to a significant return of value here. The fact that Earn is the property of the estate doesn’t mean that we can go out and have a party with it. It goes back to the customers.”

What the lawyers and the bankruptcy judge consider a significant return of value remains to be seen.Β 

We’ll keep you updated. πŸŽ™οΈ

One Final Inflation Reading Featured Image

Whether we like it or not, the Fed’s decisions will have an impact on crypto prices next week. So, let’s recap today’s economic data, as it included the last inflation reading before the Fed makes a decision on rates.

The Federal Reserve’s preferred inflation metric came in better than expected in December, continuing the disinflation trend. πŸ”»

The personal consumption expenditures (PCE) price index rose 0.1%, matching November’s gain. The 5% YoY increase fell from November’s 5.5% advance to its smallest YoY gain since September 2021. Core PCE, which excludes food and energy prices, rose 0.3% MoM and 4.4% YoY, registering its smallest gain since October 2021. 🌑️

Disinflation continues, but core inflation remains well above the Fed’s 2% long-term target. As a result, many expect another 25 bp hike at next week’s meeting and potentially another in March before the Fed pauses to allow observe how higher rates impact the economy.

The other economic data that’s been coming out also supports this view. For example, let’s look at consumer incomes and spending.

U.S. consumer spending fell 0.2% in December, its second-straight monthly decline. That’s because November’s number was revised lower to a 0.1% loss. Meanwhile, wage growth was 0.3%, matching November’s number. Real disposable income increased by 0.2%, and the savings rate hit a seven-month high of 3.4%. πŸ’Έ

Consumer sentiment remains historically low. However, it recently began to tick up on lower gasoline prices and inflation expectations. With that said, concerns over the economy remain, with many consumers stepping up their savings to prepare for a potential recession.Β 

And finally, let’s touch on housing. In December, U.S. pending home sales posted their first gain in seven months. The index rose 2.5% MoM but was still down 33.8% YoY. With mortgage rates pulling back and recession fears moderating, analysts expect the transaction trough is likely behind us. As we saw yesterday, new home sales rose for the third straight month in December. 🏘️

Labor news typically involves layoffs, but today we heard Boeing is set to hire 10,00 workers in 2023 as it ramps up its production.

CNBC’s Kelly Evans makes several interesting points about seemingly positive GDP data. Definitely worth a read. πŸ‘

Overall, crypto and other risk assets sure seem optimistic about all this. We’ll have to wait and see if the Fed plays ball next week. 🀷

The table below is the current (January 27, 2023) staking yield rates of the top ten Proof-Of-Stake cryptocurrencies by market cap.Β 

Staked % is what percent of the total supply of that cryptocurrency is currently used to earn staking rewards – sometimes called ‘Lock-Up.’

The Lock-Up Period is how long crypto must stay staked before you can withdraw it and/or any rewards earned.Β 

Nominal Yields are the rewards listed, whereas Real Yield is the expected return when factoring in other costs, factors, or changes like inflation rates (not listed).Β 

It should also be noted that calculations and factors for Real Yields can vary substantially from one week to the next. Additionally, the Nominal Yield may have an expected range but is not guaranteed. For example, Polkadot’s ($DOT.X) Nominal Yield is advertised/listed between 8% to 14%.Β 

Another factor to consider is that the rewards are not in US Dollars but in token/crypto your stake. Staking Cardano ($ADA.X) rewards you in ADA and so forth.Β 

This table is updated weekly.Β 

Crypto Nominal Yield % Real Yield % Staked % Lock-Up Period
Ethereum (ETH) 3.86% (+0.07) 3.99% (+0.10) 14.08% (+0.14) 12+ Months
BNB (BNB) 2.31% (+0.04) 8.61% (+1.26) 96.64% (-0.97) 7 Days
Cardano (ADA)
3.40% (+0.10)
71.69% (-0.36)
Polygon (MATIC)
4.35% (-0.33)
2.26% (-0.23)
39.65% (+0.27)
21 Days
Polkadot (DOT) 14.50% (-0.02) 6.94% (-0.03) 44.67% (+0.14) 28 Days
Chainlink (LINK)
5 Days
3.58% (-0.01)
1.54% (-0.01)
44.82% (-0.04)
3 Days
Avalanche (AVAX)
14 Days
Algorand (ALGO)
6.60% (+0.03)
2.66% (+0.04) 56.13% (-0.28) 90 Days
Near Protocol (NEAR)
9.58% (+0.01)
4.44% (+0.02)
43.70% (-0.03)
1 Day


Staking on Chainlink’s blockchain was activated on December 6, 2022 and data is still pending.

$DOT.X and $BNB.X continue to offer the highest Real Yields.Β 

BNB saw the highest bump in its Real Yield compared to its peers.

$ADA.X continues to show a negative real yield.Β 


Bullets From The Day:

πŸ‘ͺ Mama, Dada, and little brother Bankman-Fried might have to talk to FTX’s lawyers. The bankrupt firm’s attorneys requested that the judge allow them to interview SBF’s immediate family (under oath) to find out what kind of financial benefits they received from FTX. And they’re not alone. It’s reported that former executives and employees may also face FTXs lawyers to find out what they did or did not receive while at the exchange. Cointelegraph has more.

😱 *Gasp* the SEC denied Ark Investment and 21Shares spot Bitcoin ETF. It is the second rejection from the SEC for the ARK/21Shares spot Bitcoin ETF – the first rejection occurred last April. The SEC raised the same concerns about transparency and manipulation as they’ve raised in the past. But thankfully, there are ETFs for assets that are paragons of transparency and non-manipulation, like Gold, Silver, and Oil. The SEC’s rejection letter can be read here.

πŸ‘ The U.S. House of Representatives might finally give the crypto market some regulatory clarity this year. A new Subcommittee on Digital Assets, Financial Technology, and Inclusion is reportedly tackling the issue of who should regulate the space. The Chairman of the new subcommittee, Representative French Hill (R-Arkansas), said it was not clear whether the SEC or the CFTC should regulate crypto markets – but it’s something that they will “sort through this year.” Analysts and pundits are hopeful that, because of broad bipartisan support for crypto, some clarity will occur in 2023. Regarding what crypto topic their first target is, it is reportedly stablecoins. CoinDesk has more.

Credits & Feedback

Today’s Litepaper was written by Jon Morgan. Let him know how he did: