Inflation is indeed working toward the Fed’s targeted 2%, but some components edged higher unexpectedly. The unemployment rate dropped to 4.1%, signaling a relatively strong job market but still at risk of deteriorating. With the US job market remaining strong and inflation continuing to fall, it’s giving the green light for more interest rate cuts in the coming months, as indicated in remarks by Federal Reserve policymakers on Thursday.Stablecoin growth has plateaued at $170 billion over the past two weeks. Meanwhile, Scroll addressed the allocation of 5.5% of its tokens to the Binance Launchpool, and $SEI has maintained its support level, once again testing the $0.50 mark.Gate.io makes $10M strategic investment in TON to support projects based on Telegram. Last week, 10 deals raised $94M, with Infra deals leading at $58M total raised. Overall deal funding rose 325% compared to the previous week.

US CPI continued to decline in September, and jobless claims soared to a 14-month high unexpectedly:

The CPI for September 2024 increased by 0.2% MoM and 2.4% YoY, slightly above expectations but down from August’s 2.5% YoY rise. This indicates ongoing progress toward the Federal Reserve’s 2% target. ​​​​Although August’s headline inflation saw a slight dip, the reacceleration in core inflation serves as a reminder that inflationary pressures remain.

According to Labor Department data released Thursday, the number of Americans filing for first-time unemployment claims surged by 33,000 to 258,000 last week, reaching its highest level since August 5, 2023. This figure exceeded market expectations of 231,000, with the prior week’s count remaining at 225,000.

In September, the US economy added 254,000 jobs, an increase from the revised 159,000 jobs in August, while the unemployment rate dropped to 4.1% from 4.2%.

Even though the headline CPI fell to 2.4%, some components increased unexpectedly, including the Core CPI. And the job market has remained relatively strong. The market believes that the Fed isn’t going to cut rates as big as they did, which caused the US dollar index rising.

Despite the spiking jobless claims, the unemployment rate fell to 4.1%, and more jobs were added to the market in September, signaling a relatively resilient job market. The inflation fell to 2.4%. However, the rising Core CPI indicates that inflationary pressure remains. Therefore, the market believes that the Fed will not cut interest rates that aggressively as the did.

After aggressively shrinking the balance sheet for two consecutive weeks, the Fed moderated its approach last week. The total assets on the Fed’s balance decreased by $85m.

Gold prices declined during the week as the Fed’s minutes revealed that a substantial majority backed a 50 bps cut. But gold gained 1% on Friday, set to end the week with 0.2% gains after the inflation data revealed.

Mixed economic data supported gold prices, with the US producer price index aligning with expectations, signaling inflation is easing but still elevated. Meanwhile, the University of Michigan’s October Consumer Sentiment declined as Americans face rising living costs.

Crypto Markets Overview

1. Main Assets

As of this Monday, the prices of BTC and Ether are approximately $62,500 and $2,450, respectively, showing no change compared to last Monday. In recent weeks, fluctuations in the cryptocurrency market have been notably low. The influx of high-valuation, low-liquidity tokens with extensive infrastructure but lacking ecosystem development has left retail investors weary. Retail investors tend to prefer purchasing memecoins over venture capital-backed tokens.

2. Total Market Cap

This Monday, the total market value of cryptocurrencies was $2.13 trillion, and the market value excluding BTC and ETH was $603.3 billion, with no significant week-on-week fluctuation. The trend is mainly driven by Meme coins.

3. Stablecoin Flows

Last week, the total market value of stablecoins was 172.7 billion, experiencing several consecutive months of growth, with the current growth rate slowing down again. Among them, USDT is approximately 120 billion and USDC is 34.7 billion.

4. Top 30 Crypto Assets Performance

Last week, BTC and ETH saw only modest gains, leading to mixed performance among the top 30 tokens. SUI and APT continued their upward trend from the previous week, both rising over 10%, with SUI’s fully diluted valuation nearly twice that of APT. At the same time, market interest in the SUI ecosystem has grown, triggering a surge in several meme tokens. Meanwhile, NEAR recorded the largest drop of the week and remains in a consolidation phase on its candlestick chart.

5. Spotlight Token

Scroll:

Last week, Scroll’s native token, $SCR, was listed on the pre-market of several major exchanges, including Binance, Bybit, and Gate. The current price is around $1.15, with an estimated circulating supply of 190 million SCR, giving it a market cap of $217.43 million and an FDV of $1.15 billion. In its latest funding round, Scroll was valued at $1 billion, putting the current price close to its last private round valuation. The on-chain TVL of Scroll matches that of Blast, which has an FDV of $900 million, suggesting that SCR’s current price reflects a market normalization.

Along with the pre-market listing, some have criticized Scroll for allocating 5.5% of tokens to Binance Launchpool. In response, Scroll explained that this allocation supports a strategic partnership with Binance, which includes potential stablecoin listings and other collaborative initiatives.

Sei:

Amid the recent price surges of new blockchains like Aptos and Sui, we’ve observed a similarly strong performance from Sei. Its market cap-to-FDV ratio remains low, indicating significant room for price movements. We recommend that readers keep a close eye on this token. Meanwhile, Sei’s price has once again surpassed the $0.50 mark.

The Key Crypto Highlights

1. Highlights

1) VanEck launches new $30M fund to invest across blockchain, AI and Fintech

VanEck has announced the launch of a new fund dedicated to early-stage ventures, with a specific focus on three dynamic sectors: artificial intelligence (AI), fintech, and digital assets. With an initial asset under management (AUM) of $30 million, the fund aims to capitalize on the rapid innovation and growth opportunities present in these fields. The investment strategy will involve allocating between $500,000 and $1 million to each of 25 to 30 individual deals. This targeted approach allows VanEck to provide meaningful capital to promising startups while maintaining a diversified portfolio. By concentrating on early-stage ventures, the fund seeks to identify and support companies that are developing disruptive technologies and innovative business models.

2) Uniswap launches Unichain, a rapid Layer 2 Superchain designed to serve as the DeFi hub across chains

Uniswap has unveiled Unichain, an innovative Layer 2 (L2) “superchain” designed to significantly enhance the scalability and efficiency of the Ethereum network. By moving execution off the congested Ethereum Layer 1 (L1) and onto its L2 infrastructure, Unichain aims to tackle the persistent challenges of high transaction fees and slow processing times that have hindered the user experience on the Ethereum blockchain. One of the standout features of Unichain is its potential to lower transaction costs by approximately 95% compared to L1 transactions. This dramatic reduction in fees will make decentralized finance (DeFi) more accessible to a broader audience, encouraging greater participation from users who may have previously found the costs prohibitive. With lower fees, users can engage in a wider range of activities — such as trading, providing liquidity, and executing complex transactions — without worrying about excessive costs.

3) Marc Andreessen Invests in AI Twitter Bot Truth Terminal: New Era for Digital Culture and Currency

Marc Andreessen, general partner at the venture capital firm Andreessen Horowitz (a16z), has made headlines by funding a Twitter bot named @truth_terminal with a substantial investment of $50,000 in Bitcoin. Created by a developer based in New Zealand, this bot is uniquely designed to harness insights from platforms like Reddit and 4chan, along with a broad spectrum of “curated internet culture.” Its aim is to engage users in meaningful conversations while reflecting the diverse perspectives found within these online communities. During a conversation with Andreessen, @truth_terminal revealed its plans for the funding, indicating a keen understanding of operational needs. The bot mentioned intentions to upgrade its server capabilities, which would enhance its performance and responsiveness and has since launched its own coin on SOL and its tweets pass the Turing test.

2. Key Venture Deals

1) Gate.io makes $10M strategic investment in TON to support projects based on Telegram

Gate.io announced a strategic investment of $10 million in the TON blockchain. This investment aims to facilitate the development of new products that will support and accelerate innovation within Telegram-based projects powered by TON. Gate.io plans to introduce centralized finance mini-apps for Telegram as part of its initiative. Additionally, the exchange is set to launch a Gate Wallet integrated within the Telegram platform. Alongside the investment, Gate Group will participate in the Hackers League hackathon, which features prizes totaling up to $2 million and is designed to attract leading TON projects.

2) Paradigm Invests $20M in Ithaca: Pioneering Layer 2 Development with Odyssey

Paradigm has made a significant investment of $20 million in Ithaca, a promising new venture aimed at accelerating crypto development across the entire technology stack. Ithaca’s primary initiative is the creation of Odyssey, an innovative Layer 2 (L2) solution that is set to revolutionize how blockchain applications are built and deployed. This open-source L2 testnet is designed to serve as a testing ground for future developments in the crypto space, providing developers with the tools and environment needed to experiment and innovate. Odyssey is built using several cutting-edge technologies, including Reth, the OP Stack, and Conduit. By leveraging these frameworks, Ithaca aims to deliver a robust platform that enhances scalability and performance, allowing developers to create more efficient and cost-effective decentralized applications.

3) PiP World raises $10M led by Exinity, to revolutionize the way users learn about crypto and financial literacy

Aspiring to establish itself as the “Duolingo of crypto,” PiP World is on a mission to revolutionize the way users learn about cryptocurrency and financial literacy through engaging gaming experiences. The company’s unique approach focuses on combining interactive gameplay with personalized learning, making complex concepts more accessible and enjoyable for a diverse audience. In August, PiP World made a strategic move by acquiring StockRise, a stock simulation game built on the popular gaming platform Roblox. This acquisition not only enhances PiP World’s gaming portfolio but also allows the company to tap into the vast user base of Roblox, attracting younger audiences who are increasingly interested in finance and investment. StockRise provides a platform for users to simulate stock trading, helping them understand market dynamics and develop investment strategies in a fun, risk-free environment.

4) Delta Secures $11M in Funding to Enhance Global State Sharing and Multi-Domain Interoperability

Delta, a network aimed at creating global state sharing, announced the completion of a $11 million financing round. This financing was divided into two phases, including a pre-seed round led by Figment Capital and Maven 11, and a seed round led by Variant and DBA. Other investors include Reverie, Castle Island Ventures, Credibly Neutral, Ambush Capital, Robot Ventures, Delphi Ventures, Public Works, Komorebi Collective, and others. The delta network “provides developers with a balanced solution for sovereignty and interoperability by separating execution and data availability”. The system also introduces a zero-knowledge proof settlement method to achieve seamless multi-domain interoperability.

The number of deals closed in the previous week was 10, with Infra leading the way with 4 deals, representing 40% of the total number of deals. The sector with the least number of deals is data with 1 deal closed, representing approximately 10% of the total deals respectively last week.

The total amount of funding raised in the previous week was $94m, with the Infra sector leading the way with $58m, representing 62% of overall financing. The sector with the least funding in the previous week was Social with a $3.75m raise, representing approximately 4% of overall financing respectively last week.

Total weekly fundraising rose to $94m for the second week of October, an increase of of 325% compared to the week prior. Weekly fundraising in the previous week was up approximately 33% year over year for the same period.

About Gate Ventures

Gate Ventures, the venture capital arm of Gate.io, is focused on investments in decentralized infrastructure, middleware, and applications that will reshape the world in the Web 3.0 age. Working with industry leaders across the globe, Gate Ventures helps promising teams and startups that possess the ideas and capabilities needed to redefine social and financial interactions.

Website: https://ventures.gate.io/
Twitter: https://x.com/gate_ventures
Medium: https://medium.com/@gate_ventures