Markets Stabilize as Fed Holds Rates, BNB Chain Surges
Ryze Roundup
Market Commentary
This week marked a partial recovery from last week’s sharp sell-off, with Bitcoin up 5.8% and Ethereum gaining 7.3%. The rebound coincided with the Federal Reserve’s decision to hold interest rates steady at 4.25%-4.50%, as widely expected.
Markets reacted favorably to Powell’s measured and flexible tone, despite the Fed slightly raising its 2025 inflation forecast to 2.8%—largely due to Trump’s tariff policies. Powell acknowledged that tariffs are contributing to inflation but stopped short of outlining a policy response, maintaining a data-dependent stance.
The Fed reaffirmed its projection of two rate cuts in 2025, though Powell emphasized no rush to adjust policy given the economy’s current resilience.
However, economic uncertainty remains high, driven by Trump’s unpredictable trade policies, fiscal moves, and regulatory shifts. Goods from China are now subject to a 20% tariff, and April 2 marks the expiration of a one-month extension for USMCA-compliant goods, adding further trade uncertainty.
In a notable shift, the Fed announced it will slow its balance sheet runoff starting in April, reducing the monthly cap on maturing Treasuries from $25 billion to $5 billion, while keeping the mortgage-backed securities cap at $35 billion.
Markets took Powell’s tone as dovish, with risk assets rallying on Wednesday. Treasury yields fluctuated but ended with modest changes, with the 10-year yield ticking slightly higher.
For now, the Fed remains in wait-and-see mode, balancing inflation risks, trade disruptions, and economic resilience. With Trump’s policies continuing to shift, uncertainty remains unusually elevated, but the Fed’s cautious stance helped support risk assets this week.
Key News and Events
BNB Chain DEX Tops the Chart: CZ Ignites a Frenzy
BNB Chain saw a surge in activity this week, with DEX trading volume surpassing Solana for the first time, marking a significant milestone in its growing presence within DeFi.
Memecoins played a key role in this growth, with Middle East-themed tokens like Mubarak experiencing a rapid rise. At its peak, Mubarak’s market cap approached $200 million, with 24-hour trading volume hitting $61.6 million.
Social media engagement from Binance’s Changpeng Zhao (CZ) and He Yi also fueled the momentum. CZ’s use of the Arabic word Mubarak (meaning “blessing”) in a Binance retweet, along with his personal purchases of Mubarak and Test (TST) tokens for 1 BNB each, sparked speculation of an implicit endorsement—quickly driving prices higher.
BNB Chain’s ecosystem has rebounded across multiple fronts, from trading volume to community-driven growth. While Binance executives’ social media influence played a role, the chain’s growing adoption and investment interest in the Middle East signal continued momentum in the L1 landscape.
Ethena and Securitize Partner to Launch Converge Blockchain for Institutional DeFi
Ethena Labs and Securitize announced Converge, a blockchain designed to bridge traditional finance (TradFi) and decentralized finance (DeFi). Built on compatibility with Ethereum Virtual Machine (EVM), Converge aims to facilitate institutional adoption by providing dedicated infrastructure for stablecoin transactions and tokenized real-world assets (RWAs).
The blockchain is structured around two core functions: facilitating DeFi settlement and serving as a platform for regulated tokenized securities and stablecoins. Ethena’s USDe stablecoin and USDtb, backed by institutional-grade assets such as BlackRock’s BUIDL, will be integrated into the network.
Securitize, a leading issuer of tokenized RWAs, will leverage Converge for future asset issuance, aligning with its track record of tokenizing over $2 billion in assets across multiple chains. The platform will support both permissionless DeFi applications and permissioned institutional services, providing regulated entities with compliant access to DeFi.
The launch is supported by partnerships with DeFi protocols including Pendle, Morpho, Horizon by Aave Labs, and Ethereal, signaling broad industry collaboration. These integrations will expand institutional-grade financial products tailored for compliant on-chain interactions.
Institutional validators will stake ENA (via sENA) to secure the network, while USDe and USDtb will function as gas tokens for transactions. The Converge mainnet is set to launch in Q2 2025, backed by custody providers, oracle solutions, and interoperability frameworks, positioning it to capitalize on growing institutional interest in blockchain finance and asset tokenization.