{"id":552300,"date":"2023-02-15T22:02:56","date_gmt":"2023-02-15T19:02:56","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/sec-enforcement-action-creates-a-silver-lining-for-gmx-lido-ldo-and-maker-mkr-price\/"},"modified":"2023-02-15T22:02:56","modified_gmt":"2023-02-15T19:02:56","slug":"sec-enforcement-action-creates-a-silver-lining-for-gmx-lido-ldo-and-maker-mkr-price","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/sec-enforcement-action-creates-a-silver-lining-for-gmx-lido-ldo-and-maker-mkr-price\/","title":{"rendered":"# SEC enforcement action creates a silver lining for GMX, Lido (LDO) and Maker (MKR) price"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a373c8a8cce6\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a373c8a8cce6\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/sec-enforcement-action-creates-a-silver-lining-for-gmx-lido-ldo-and-maker-mkr-price\/#%E2%80%9D_SEC_enforcement_action_creates_a_silver_lining_for_GMX_Lido_LDO_and_Maker_MKR_price_%E2%80%9C\" >&#8221; SEC enforcement action creates a silver lining for GMX, Lido (LDO) and Maker (MKR) price &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/sec-enforcement-action-creates-a-silver-lining-for-gmx-lido-ldo-and-maker-mkr-price\/#Makers_DAI_stablecoin_benefits_from_Paxos_outflows\" >Maker\u2019s DAI stablecoin benefits from Paxos outflows<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/sec-enforcement-action-creates-a-silver-lining-for-gmx-lido-ldo-and-maker-mkr-price\/#GMX_hits_a_new_all-time_high_on_as_CEX_uncertainty_grows\" >GMX hits a new all-time high on as CEX uncertainty grows<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/sec-enforcement-action-creates-a-silver-lining-for-gmx-lido-ldo-and-maker-mkr-price\/#Lido_stands_to_gain_market_share_in_the_coming_months\" >Lido stands to gain market share in the coming months<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_SEC_enforcement_action_creates_a_silver_lining_for_GMX_Lido_LDO_and_Maker_MKR_price_%E2%80%9C\"><\/span>&#8221; SEC enforcement action creates a silver lining for GMX, Lido (LDO) and Maker (MKR) price &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-71a7a826>The United States Securities and Exchange Commission (SEC) has started ramping up its crackdown on the crypto industry and recent enforcement actions had a negative impact on crypto prices last week and at the start of this week.\u00a0<\/p>\n<p>The SEC is focusing on stablecoin issuers. The most recent SEC stablecoin crackdown was on Feb. 13 through the issuance of a Wells Notice to Paxos Trust Company, the issuer of Binance USD (BUSD). While Paxos denies that BUSD is a security, which would place it outside the SEC\u2019s jurisdiction, some lawyers say the answer is not so simple, which creates fear that other top stablecoin issuers like Circle\u2019s USD Coin (USDC) could be next. <\/p>\n<p>The SEC is also putting crosshairs on centralized exchanges (CEX) by questioning how they can use customer funds as qualified custodians. On Feb. 15, a five-member SEC panel will vote on whether to make it more difficult for crypto firms to hold digital assets. <\/p>\n<p>Centralized staking platforms have also come under the SEC\u2019s microscope and because staking programs provide investors with yield, the SEC believes these offerings are securities. On Feb. 9 the SEC began its assault on these programs by reaching a $30 million settlement over Kraken\u2019s earn program. <\/p>\n<p>Interestingly, traders have not adopted a fully risk-off position to the recent SEC activity, and certain decentralized solutions like GMX (GMX), Lido (LDO) and Maker (MKR) are soaring. <\/p>\n<p>Let\u2019s take a closer look at what\u2019s with decentralized service providers.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Makers_DAI_stablecoin_benefits_from_Paxos_outflows\"><\/span>Maker\u2019s DAI stablecoin benefits from Paxos outflows<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>After the Wells Notice was sent to Paxos by the SEC, BUSD redemptions surged to $342 million in 24-hours. Redemptions from BUSD to Paxos, burn the outstanding debt token. So while Binance said they continue to support BUSD, its market cap will decrease over time with Paxos barred from minting new tokens. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/59f52432-714a-42f6-b745-b75dfcbf39b6.png\"><figcaption style=\"text-align: center;\"><em>Stablecoin market caps. Source: Nansen<\/em><\/figcaption><\/figure>\n<p>While the drawdown has slowed, the BUSD market cap has dropped from $16.2 billion before the Feb. 13 SEC announcement to $15.4 billion on Feb. 14. The $15.4 billion market cap marks a monthly low for the third largest stablecoin.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/a314c2a1-d2f5-4965-a7b4-ced10457e91f.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>BUSD market cap. Source: CoinGecko<\/em><\/figcaption><\/figure>\n<p>On the heels of the SEC\u2019s enforcement action, the issuer of the decentralized DAI stablecoin, Maker has seen an increase in usage and fees. Over a 7-day period, Maker fees have increased 8.37% and skyrocketed on Feb. 13 to $667,000 in 24-hours. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/e0a495eb-935c-4832-9c18-5cc40992ef28.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Maker fees and token holders. Source: Token Terminal<\/em><\/figcaption><\/figure>\n<p>Maker is the top-10 performing token on Coingecko when sorted by percentage returns gaining over 8.8% in 7-days. With the uncertainty surrounding other large stablecoins like USDC after the SEC\u2019s enforcement announcement, Maker\u2019s fees could continue to increase.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"GMX_hits_a_new_all-time_high_on_as_CEX_uncertainty_grows\"><\/span>GMX hits a new all-time high on as CEX uncertainty grows<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>GMX, the native token of the GMX decentralized derivatives exchange, has previously benefited when a major centralized exchange saw high outflows. GMX tends to see a boost in fees and its token price. As Binance net outflows reached $788 million in the 24-hours after the Feb. 13 SEC announcement, GMX price rose to a new all-time high at (insert GMX price). On Feb. 15, Binance saw another $535 million in net outflows.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/9fc35acd-3ed4-4499-ac54-97631f3540b6.png\"><figcaption style=\"text-align: center;\"><em>Binance daily net flow. Source: Dune<\/em><\/figcaption><\/figure>\n<p>On Feb. 10, GMX hit its all-time high of fees received, reaching $5.7 million. And with the daily active users increasing 16.2% to 2,150, the outflow from Binance may lead to sustained growth for the budding exchange. <\/p>\n<p>Investors seem to be betting on GMX\u2019s growth, making it the ninth top token on Feb. 14 by returns in 7-days by gaining 12.9%. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/ae2db316-f6ad-471c-9af2-cc9dd58f308b.png\"><figcaption style=\"text-align: center;\"><em>GMX key metrics. Source: Token Terminal<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Lido_stands_to_gain_market_share_in_the_coming_months\"><\/span>Lido stands to gain market share in the coming months<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>After the SEC\u2019s $30 million settlement with Kraken, BTC and altcoin prices dropped, while LDO price surged. <\/p>\n<p>Within 24 hours of the Feb. 9 SEC announcement, LDO gained 13.2% and investors seem to believe that Lido can repeat this action as it is a top twelve performing token with 16% 7-day gains. <\/p>\n<p>In addition to price growth, Lido\u2019s usage as a decentralized staking platform has skyrocketed, seeing $35.8 million in 30-day fees. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/632ddbc0-1dad-44ee-a23c-1bf607a30f1a.png\"><figcaption style=\"text-align: center;\"><em>Lido key metrics. Source: Token Terminal<\/em><\/figcaption><\/figure>\n<p>While Lido has not witnessed an increase in average daily active users, the potential for future enforcement actions against Coinbase might translate to an increase in Lido\u2019s market share among Ether stakers.<\/p>\n<p>What is clear is that the string of recent SEC crackdowns on centralized staking, centralized exchanges and stablecoins are leading investors to position themselves in decentralized solutions like GMX (GMX), Lido (LDO) and Maker (MKR). <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<p class=\"post-content__disclaimer\">The views, thoughts and opinions expressed here are the authors\u2019 alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.\n<\/p>\n<p class=\"post-content__disclaimer\">This article does not contain investment advice or recommendations. 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