SEC enforcement action creates a silver lining in GMX, Lido(LDO) and Maker price

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As the U.S. Securities and Exchange Commission cracksdown on the crypto industry, traders are shifting to decentralized solutions such as GMX and LDO. Market Analysis Buy this piece of history. Collect this article as a NFT. The United States Securities and Exchange Commission has intensified its crackdown on crypto industry. Recent enforcement actions had a negative effect on crypto prices last week and this week. The SEC is focusing its efforts on stablecoin-issuers. The SEC issued a Wells Notification to Paxos Trust Company on February 13, which was the latest SEC stablecoin crackdown. This company is the issuer of Binance USD. Paxos claims that BUSD is not a security, but some lawyers claim that it is. This raises concerns that other stablecoin issuers, such as Circle’s USD Coin, could be subject to the SEC’s scrutiny. The SEC is also questioning centralized exchanges (CEX), to see how they can use customer money as qualified custodians. A five-member SEC panel will decide whether to make it harder for crypto firms to own digital assets. The SEC has also been looking into centralized staking platforms. Because staking programs offer investors yield, the SEC considers these offerings securities. The SEC reached a $30 million settlement with Kraken over Kraken’s earn program on February 9. Traders have not taken a risk-off approach to recent SEC activity. Maker (MKR), Lido(LDO), and GMX (GMX) are all soaring. Let’s look at the decentralized service providers. Paxos outflows benefited Maker’s DAI stablecoin. After the Wells Notice was sent by the SEC to Paxos, BUSD redemptions soared to $342 millions in 24 hours. Redemptions from BUSD and Paxos, burning the outstanding debt token. Binance stated that they will continue to support BUSD. However, the market cap of BUSD will decrease as Paxos is prohibited from minting new tokens. Stablecoin market cap caps. Source: NansenWhile drawdown has slowed down, the BUSD market cap dropped from $16.2 million before the February 13 SEC announcement to $15.4 miliarde on February 14. The market cap of $15.4 billion marks a monthly low for third-largest stablecoin. Source: CoinGeckoMaking the decentralized DAI stablecoin Maker, the issuer, has seen an increase both in usage and fees since the SEC’s enforcement actions. Over a seven-day period Maker fees increased 8.37% and soared to $667,000 on Feb. 13, in just 24 hours. Token holders and maker fees. Source: Token TerminalMaker is the top-10 most performing token on Coingecko, according to percentage returns. It gained over 8.8% in just 7 days. Maker’s fees may continue to rise due to uncertainty surrounding large stablecoins such as USDC. Token TerminalMaker, the native token for the GMX derivatives exchange, has historically benefited from high outflows on major centralized exchanges. GMX is prone to seeing a rise in its fees and token price. Binance net outflows surpassed $788 million within 24 hours of the February 13 SEC announcement. GMX prices reached a new all time high at (insert GMX Price). Binance daily net flow. Source: DuneOn February 10, GMX reached its all-time record of receiving fees, reaching $5.7 Million. The outflow from Binance could lead to continued growth for the budding exchange, with daily active users rising 16.2% to 2150. GMX is the ninth most popular token in February 2014 by 7-day returns. Investors are betting on its growth. GMX key metrics. Source: Token TerminalLido is poised to grow its market share in the next months. After the $30 million settlement by the SEC with Kraken, BTC, altcoin and other prices fell, while LDO prices soared. LDO gained 13.2% within 24 hours of the February 9 SEC announcement. Investors seem to believe that Lido will repeat this action, as it is one of the top twelve performing tokens with 16% daily gains. Lido’s use as a decentralized staking portal has increased dramatically, with $35.8 million in 30-day fees. Lido key metrics. Source: Token Terminal. Although Lido has not seen an increase in daily active users, future enforcement actions against Coinbase could result in Lido having a greater market share among Ether investors. These opinions, thoughts, and views are solely those of the authors and do not necessarily reflect the views or opinions of Cointelegraph.
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