Demex Daily #122: Litecoin Soars as CFTC Classification Sparks Bullish Market Response

What’s Interesting Today:

Litecoin's price surged by 11% over 24 hours, becoming the second-best performer among the top 100 cryptocurrencies, following a statement by the Commodity Futures Trading Commission (CFTC) classifying it as a commodity. This classification, amidst a sluggish market, significantly boosts Litecoin's appeal by positioning it outside the stricter regulatory reach of the Securities and Exchange Commission (SEC). The price hike also reflects Litecoin's strong technical performance, with the coin showing bullish trends in various time frames and potential for further gains. The recent CFTC statement not only enhances Litecoin's market position but also opens opportunities for broader adoption and integration free from the concerns of SEC enforcement actions.

MakerDAO has approved an executive proposal to modify its lending protocol, which entails a 2 percentage point cut in stability fees for cryptocurrencies such as ETH, stETH, BTC, and WBTC. It also includes an increase in SparkLend's debt ceiling to $2.5 billion from the initial $1 billion, the allocation of $100 million DAI to liquidity pools on Morpho via Spark, a decrease in DAI’s savings rate from 15% to 13%, among other changes. This move comes after a previous decision to hike fees by 140% in response to a surge in DAI demand, aiming to align with the evolving market conditions and further MakerDAO's strategic goals, notably launching a new DAI market linked to Ethena’s USDe and sUSDe stablecoins.