Welcome to our October 2023 monthly crypto market recap!

In October, the crypto market embarked on a tumultuous journey, as both traditional and digital financial landscapes encountered a series of notable events.

The global financial markets navigated turbulent waters, with major equity indices declining in response to developments in the Israel-Hamas conflict. The S&P 500 and the Dow Jones Industrial Average, in particular, dropped to levels last witnessed back in May. This geopolitical backdrop adds an extra layer of complexity to an already volatile market.

On the macroeconomic front, some signs of stability have emerged. Key economic indicators such as jobs data, inflation, and GDP have largely remained within the expected range. These figures suggest that the control measures implemented by the US government in recent months are beginning to take effect, potentially offering some respite from the broader economic uncertainties.

Meanwhile, in the crypto realm, optimism and enthusiasm have been palpable. This upbeat sentiment stems from the positive developments surrounding BlackRock’s Bitcoin Spot ETF. Notably, this news has not only influenced Bitcoin and its associated tokens but has also injected fresh momentum into the entire crypto market. As we delve deeper into this month’s market recap, we will dissect these dynamics, explore their implications, and provide insights to help you navigate this ever-evolving landscape.

Join us in unraveling the highs and lows of October and gaining a clearer perspective on the narratives behind this month’s winning tokens! Additionally, stay informed with our comprehensive monthly market recaps at Treehouse Insights and our daily market analysis with Treehouse Daily, providing valuable insights and analysis to navigate the dynamic world of cryptocurrencies!

Injective (INJ) ⏶73.92%

INJ is the native token of Injective Protocol, a blockchain protocol optimized for trading assets across different blockchains. It specializes in tokenized derivatives, including stock tokens – cryptocurrencies pegged to the price of stocks like Apple and Google. Leveraging the Cosmos SDK and Tendermint consensus, it is an open and interoperable layer-one blockchain that prioritizes scalability, security, and composability.

INJ’s performance this month can be attributed to the debut of a novel product feature on Helix, a decentralized order book exchange operating on the Injective blockchain. Specifically, Helix released the pre-launch futures feature which permits users to trade tokens ahead of their official debut. Historically, pre-launch access to prominent crypto tokens has been exclusive to early investors and insiders via complex derivatives and OTC agreements. Helix’s initiative seeks to revolutionize this practice by offering broader, community-driven trading access to these anticipated cryptocurrencies, which indicates a progressive step that may have amplified the demand around INJ.

Moreover, Injective has successfully integrated with Google Cloud’s BigQuery through the Analytics Hub. This integration allows for incorporating core on-chain data for Injective on BigQuery, accessible to the public via Injective Nexus, the blockchain’s official data integration protocol. This collaboration offers developers and businesses the opportunity to access custom datasets within the Injective ecosystem, encompassing real-time financial data. Furthermore, it empowers Google Cloud customers to utilize tailored blockchain datasets to create DeFi applications, institutional trading strategies, and machine learning. This development follows Google Cloud’s recent addition of support for BigQuery datasets from 11 other blockchain networks, beyond its initial backing for Bitcoin and Ethereum.

Mina Protocol (MINA) ⏶63.15%

Mina is a Layer-1 blockchain that will stay at 22KB with zero-knowledge smart contracts (“zkApps”) written in TypeScript. Mina Protocol uses zero-knowledge proofs to build a blockchain architecture with the entire chain history required to verify the current consensus state of these networks. Notably, Mina recently announced that it will introduce advanced ZK smart contracts to its mainnet.
The primary catalyst for MINA’s surge was their announcement of the token’s listing on Upbit, Korea’s leading cryptocurrency exchange. This substantial increase underscores the potential and attractiveness of the MINA token to investors. Before this development, the Mina Protocol gained attention when it was highlighted as a UDC participation project at the annual Upbit Developer Conference, an event renowned for introducing innovative crypto projects. It’s noteworthy that of the 66 projects showcased at UDC, 37 had their tokens listed on the KRW Fair before their UDC involvement.

Bitcoin SV (BSV) ⏶55.53%; Stacks (STX) ⏶36.49%

Bitcoin SV (BSV) is the native token for the BSV blockchain which emerged from a hard fork of Bitcoin Cash (BCH) in 2018. It aims to continue the vision of the original Bitcoin protocol, emphasizing increased transaction speeds and scalability. The project has faced controversy and debate in the cryptocurrency community due to these claims and its approach to scalability. In specific, Bitcoin SV has significantly larger block sizes and is designed to process more transactions per second compared to Bitcoin (BTC).

Stacks (STX), on the other hand, is the native token of the Stacks Network that serves as a Layer-2 on the Bitcoin blockchain, allowing for the creation of decentralized applications (dApps) and smart contracts. Stacks aims to enhance Bitcoin’s functionality and adoption by providing modular dApps and smart contracts without altering Bitcoin’s features. The platform uses a unique consensus mechanism known as Proof of Transfer (PoX) and offers a secure and predictable smart contract language called Clarity. Stacks also features a Gaia storage system and a marketplace for non-fungible tokens (NFTs).

Their outstanding performances in October were largely driven by the positive sentiments towards Bitcoin, which were initially triggered by Cointelegraph’s fake news release regarding the SEC’s approval of Blackrock’s BTC spot ETF. Subsequently, another round of positive sentiments materialized as the aforementioned Blackrock ETF was listed on the DTCC official website. This listing is often seen as a prerequisite to the official listing of the ETF in the United States, amplifying the enthusiasm among investors.

Both BSV and STX directly benefited from these positive sentiments towards BTC since BSV, as a hard fork of Bitcoin, shares a close connection with the original cryptocurrency, and STX stands out as one of the most prominent layer-2 solutions for Bitcoin with its value being intrinsically tied to Bitcoin’s performance. Historically, both tokens also closely tracked BTC performances, akin to leveraged BTC instruments.

Looking ahead, heightened market volatility looms as numerous spot ETF applications approach their approval deadlines. Whether the final decisions are favorable, BSV and STX investors should exercise caution as these tokens not only mirror BTC’s performance but also generally experience amplified movements in response to BTC’s fluctuations.

Render (RNDR) ⏶54.25%

Render (RNDR) is a blockchain that streamlines GPU rendering, particularly for the crypto metaverse. It allows users to contribute unused GPU power in exchange for RNDR tokens, simplifying rendering processes. With scalability, optionality, and IP protection, it offers a flexible and secure solution. Users operate on a Proof-of-Render (PoR) model and use RNDR tokens to pay for GPU rendering services. Render’s decentralized network can benefit various industries, focusing on providing efficient computational solutions for digital realms.

RNDR’s boost in October can be primarily driven by the anticipation of RNDR 2.0‘s imminent release. The upcoming version, expected to migrate to Solana, is generating excitement in the crypto community. RNDR 2.0 promises a host of additional features, including a token burn-and-mint model, holographic streaming, APIs, and more. Many speculate that this pivotal announcement will be made during the Solana Breakpoint event, scheduled to take place from October 30 to November 3 in Amsterdam.

This surge in optimism is corroborated by on-chain metrics. @santimentfeed has noted a substantial accumulation of RNDR tokens in whale and institutional wallet addresses. Simultaneously, there has been a notable outflow of tokens from exchanges. These trends foster a positive long-term outlook, reinforcing the bullish sentiment surrounding RNDR.

PEPE (PEPE) ⏶51.00%

PEPE (PEPE) is a cryptocurrency inspired by the iconic Pepe the Frog meme. Launched on April 16 without any presale or imposed taxes, it swiftly achieved a market cap of $1 billion in a mere three weeks, even in the absence of utility functions.

The outstanding performance this month was largely driven by the recent decision made by the PEPE development team to burn approximately 6.9 trillion tokens, equivalent to around 1.64% of its total supply valued at $5.5 million, a response to concerns surrounding the multi-sig wallet that was initially raised back in August. This news also coincides with the prevailing market sentiment from the listings of BlackRock’s Bitcoin spot ETF on DTCC, creating a leveraged effect similar to the trend typically associated with meme coins.

After the “lordkeklol” account was compromised and used to swindle the Telegram group, the PEPE team kept its Twitter account as the sole official communication channel. However, it’s noteworthy that there are imminent plans to revive and secure the group in the near future, which should act as an important upcoming development that investors should keep an eye on.

Solana (SOL) ⏶50.68%

Solana is a Layer-1 blockchain platform known for its high scalability and fast transaction speeds. These features make it an attractive option for developers looking to build decentralized applications, especially when considering the gas fee challenges faced on platforms like Ethereum.

On October 13th, the FTX estate staked 5.5 million SOL, valued at $122 million, with Figment, a staking validator firm. This reduced the concerns about FTX liquidating a position amounting to $1.16 billion of Solana (SOL) — equivalent to about 57 million tokens and roughly 16% of the token’s total supply, which led to SOL pumping more than 10% soon after the news was released.

Staking activity on Solana has also gained momentum in general, with the staking ratio reaching a notable 72% and platforms such as Jito and Marinade Finance playing a pivotal role in enhancing the appeal and utility of the Solana ecosystem.

Reflecting on its historical trajectory, Solana’s commitment to innovation is clear. Further strengthening its position is the upcoming October conference from 31 Oct to 2 Nov, an event historically linked with positive price surges for Solana. Its unique features like state compression and facilitating cheaper on-chain data storage make Solana’s future extremely promising.

Rollbit (RLB) ⏶46.52%

Rollbit Coin ($RLB) is the native token of the Rollbit gaming platform, which features casino games like roulette and blackjack. RLB extends benefits such as 10% increased casino rakeback, up to 60% reduced crypto trading fees, and a free lottery game. The RLB follows a unique deflationary model, using a percentage of revenue to buy back RLB to burn. While the token has a fixed supply of 5 billion tokens, approximately 2 billion have already been burned. The casino captured a revenue of $44 million in the past 30 days and had a steady number of new wallets accumulating RLB, which saw the total number of holders of RLB surpassing 10K.

Earlier this month, Lucky, Rollbit’s founder, announced the crypto casino made $38 million in revenue in September, and in adherence to their “buy and burn” strategy, burnt 1.265% of the circulating RLB token supply, representing over $5 million in value. This action subsequently propelled RLB to surge by around 23% over the next day.

On October 25, Rollbit’s Crypto Futures also posted unprecedented revenue for the casino in excess of $1M, driven by the positive sentiments around BTC’s rally. This surge in futures trading led to the purchase and subsequent burning of another $400K worth of RLB. Notably, this is the inaugural instance where Futures revenue has surpassed that of the Casino segment, a statistic corroborated by Lucky via a recent tweet. Lucky’s tweet again appears to hold sway over RLB, as the token posted another rally of approximately 20% over the next day.

Chainlink (LINK) ⏶41.62%

Chainlink operates as a decentralized oracle network that bridges the gap between smart contracts and external data sources, enabling these contracts to securely interact with off-chain real-world events and data. LINK is the native token of the Chainlink network, and it is used as both a reward for node operators and as collateral to ensure honest and reliable data delivery to smart contracts.

The unveiling of Chainlink Staking v0.2 heralds a significant evolution for Chainlink. Capitalizing on the massive success of v0.1, which saw its staking pool filled in mere hours post-General Access, v0.2 introduces a series of enhancements. These include a new unbonding mechanism offering greater flexibility for stakers, augmented security guarantees for Oracle services through stake slashing, a future-ready modular architecture ensuring seamless upgrades, and a dynamic rewards system tailored to incorporate new reward sources down the line.

On another note, during the 2023 SmartCon event, ANZ’s @AnuragSoin showcased Cross Chain Interoperability Protocol (CCIP’s) capabilities in real-time settlements, highlighting its adeptness in managing cross-network and cross-currency transactions. Using a scenario where a New Zealand stablecoin holder aims to buy the ‘reef credit’ tokenized asset with payment in Australian dollars, he emphasized CCIP’s role in facilitating these transactions. The protocol not only encodes transaction details but also manages the efficient flow of data across decentralized Oracle networks. This process underscores the future of financial exchanges, underscoring CCIP’s instrumental role in streamlining capital market tokenization.

THORChain (RUNE) ⏶31.77%

RUNE functions as the native token within the THORChain decentralized liquidity protocol, empowering the transfer of cryptocurrency assets across various networks without the need for external bridge solutions. Within the THORChain system, RUNE plays a vital role as both a means for staking and enhancing security. Individuals have the opportunity to stake RUNE in order to earn rewards by participating in network security, where RUNE serves as collateral to discourage any malicious activities.

RUNE embarked on an eventful journey during the past month. Initially, THORSwap was discovered to be used by the FTX exploiter to move stolen funds and engage in money laundering activities. This led to some turbulence in the RUNE market, especially when THORSwap, a prominent cross-chain DEX built on the THORChain protocol, temporarily paused its services and entered into maintenance mode, triggering a significant price decline for RUNE.

However, THORSwap resumed its services after six days, accompanied by a change in its Terms and Conditions, which stated that “THORSwap reserves the right to terminate your access to the THORSwap Services at any time, without notice, for any reason whatsoever, including without limitation a violation of these terms.” While this move raised concerns about centralized censorship in the DeFi community, the reopening of THORSwap had a positive impact on RUNE’s price, leading to a 15% surge in value.

On another positive note, the THORWallet DEX, a non-custodial wallet enabling cross-chain transactions through the THORChain Protocol, achieved a remarkable milestone by reaching a trading volume of $200 million. This achievement reinforced the overall health and growth of the THORChain ecosystem.

Closing Remarks

As we draw the curtain on October, it’s reassuring to see the crypto market turning green, even in the face of global challenges.

Despite the complex global landscape, the crypto market has demonstrated its resilience. As we approach the final stretch of the year, there’s a sense of optimism in the air. We eagerly await further developments regarding the various BTC spot ETFs, which could inject new vitality into the crypto industry. We look forward to seeing how these developments will shape the crypto market.

Looking ahead to November, we have a lineup of exciting events, including Solana Breakpoint, Decentralized 2023, and the Paris Blockchain Summit. These events are set to inspire new ideas and unveil cutting-edge developments in the crypto and blockchain sphere. We’re eager to explore the possibilities these gatherings will offer and to witness the innovation they’ll bring.

In summary, as we turn our attention towards November, our unwavering commitment to delving into the ever-changing world of crypto remains unchanged. We remain steadfast in our dedication to providing in-depth analysis and navigating these dynamic landscapes. Stay tuned for our ongoing exploration of the ever-evolving crypto world through the Treehouse Daily Newsletter and Treehouse Insights Research!

Disclaimer

This publication is provided for informational and entertainment purposes only. Nothing contained in this publication constitutes financial advice, trading advice, or any other advice, nor does it constitute an offer to buy or sell securities or any other assets or participate in any particular trading strategy. This publication does not take into account your personal investment objectives, financial situation, or needs. Treehouse does not warrant that the information provided in this publication is up-to-date or accurate.

Hyperion by Treehouse reimagines workflows for digital asset traders and investors looking for actionable market and portfolio data. Contact us if you are interested! Otherwise, check out Treehouse Academy, Insights, and Treehouse Daily for in-depth research.

October 2023 Market Recap

Authors: Charles Lim

Enjoyed Our Research Insights?