Market Watch
Things to Watch This Week (August 31 - September 4)
· Markets Turn Cautious as Fed Rate Hike Expectations Rise
Global markets remained cautious as expectations for a September Fed rate hike increased following hawkish signals from Jackson Hole and stronger inflation data. Higher Treasury yields and a firmer dollar weighed on risk assets, while investors turned their attention to upcoming U.S. employment and inflation data for further clues on the Fed’s next move.
Random Musing This Week
Things to Watch This Week (August 31 - September 4)
Markets Turn Cautious as Fed Rate Hike Expectations Rise
Global markets remained cautious as expectations for a September Fed rate hike increased following hawkish signals from Jackson Hole and stronger inflation data. Higher Treasury yields and a firmer dollar weighed on risk assets, while investors turned their attention to upcoming U.S. employment and inflation data for further clues on the Fed’s next move.
Random Musing This Week
Dogecoin Without the Hype: What Actually Gives a Meme Coin Value?
Dogecoin has recently slipped outside the top ten cryptocurrencies by market capitalization, as newer assets such as Hyperliquid’s HYPE have risen rapidly. Yet perhaps the more interesting question is not why Dogecoin has fallen in the rankings, but why it remains so valuable at all. Created in 2013 as a joke based on the popular “Doge” internet meme, Dogecoin became the first major example of what is now known as a meme coin. Unlike traditional financial assets, meme coins generally have no underlying cash flows or productive assets, and unlike many blockchain projects, they often have limited technological utility. Their value instead depends heavily on community, cultural relevance, speculation and, above all, attention.
This dependence on attention also helps explain why most meme coins eventually disappear. The barriers to creating a new token have become extremely low, allowing new meme coins to emerge whenever a new internet trend, celebrity or cultural moment attracts attention. A successful meme coin can experience extraordinary price appreciation as social-media interest brings in traders and liquidity. However, the same process can quickly reverse when attention moves elsewhere. Without sustainable demand or another source of fundamental value to support the price, declining interest often leads to falling liquidity and sharp losses. In this sense, meme coins compete not only for capital but also for a scarce resource: investor attention.
Dogecoin, however, has proven remarkably different. Despite repeated market crashes, long periods of declining prices and the emergence of thousands of competing meme coins, DOGE has survived for more than a decade and remains one of the world’s largest crypto assets. Part of this resilience comes from its first-mover advantage and unusually strong brand recognition. Dogecoin also developed a large community long before meme-coin speculation became an established crypto sector, while years of exchange listings, liquidity and network activity created a network effect that newer tokens cannot easily replicate. Unlike many modern meme coins that exist simply as tokens on another blockchain, Dogecoin also operates its own proof-of-work network. Its association with prominent figures such as Elon Musk has further reinforced its cultural relevance. In other words, Dogecoin may have started without traditional fundamental value, but longevity itself has gradually created something valuable: a recognizable brand, a persistent community and a durable network effect.
Dogecoin’s survival therefore offers an interesting lesson for the future of meme coins. It suggests that an asset does not necessarily need conventional utility to retain value, but it does need something capable of sustaining attention beyond a short speculative cycle. Most meme coins can become viral; very few can remain culturally relevant for years. As the number of easily created tokens continues to grow, temporary attention may become increasingly abundant while lasting attention becomes increasingly scarce. Dogecoin may ultimately prove to be an exception rather than a model that other meme coins can easily reproduce. Perhaps the real lesson of DOGE is that, in meme-driven markets, attention itself can become a form of value — but only when it lasts long enough to become a brand, a community and eventually a network effect.
Recap of Top Stories (August 24 - August 28)
Top Story of the Week
U.S. State Banking Associations Plan to Launch Their Own Nationwide Blockchain Network
[Banking] [Blockchain] [Infrastructure] [Stablecoin]
On August 25, 39 U.S. state banking associations announced the BankChain Alliance, an initiative to build a nationwide blockchain network operated by the banking industry. The network is targeting a 2027 launch and is intended to support financial applications including smart payments, tokenized deposits and stablecoins within the regulated banking system.
The initiative is notable because it represents a coordinated effort by thousands of U.S. banks rather than an individual institution experimenting with blockchain technology. Described as “industry-owned, industry-designed and industry-governed,” the planned network would allow institutions of different sizes to access blockchain-based financial infrastructure while remaining within the existing regulatory framework. The group is currently seeking a technology partner and intends the network to be interoperable with other systems.
Also, In Focus
Coinbase Debuts Tokenized Stocks on Base Network, Joining Race to Bring Equities Onchain
[Tokenization] [Capital Markets] [Equities]
On August 24, Coinbase launched tokenized U.S. stocks on its Base blockchain, beginning with Apple, Nvidia, Meta and Alphabet. The products are available to eligible investors outside the U.S. and are backed 1:1 by underlying shares held with Alpaca, a regulated broker and custodian.
The tokens were launched under the Abu Dhabi Global Market regulatory framework, where Coinbase recently established its international tokenization hub, and can trade around the clock on eligible onchain venues. The move places Coinbase alongside other crypto exchanges seeking to bring traditional equities onchain as tokenization expands beyond Treasuries, private credit and investment funds.
SEC Resurrects U.S. Crypto Custody Rule the Previous Administration Failed to Land
[Regulation] [Custody] [Institutional] [Policy]
On August 26, the SEC took an initial step toward a new rule governing crypto custody for registered investment advisers, sending the initiative to the White House for review. The proposal is expected to modernize existing custody requirements for client and fund assets, explicitly addressing crypto assets while removing certain outdated regulatory burdens.
The move revisits a controversial 2023 proposal under former SEC Chair Gary Gensler, which would have significantly restricted where investment advisers could hold clients’ crypto assets by requiring them to use a narrow group of qualified custodians. That proposal was ultimately withdrawn, while the new effort under Chair Paul Atkins is expected to take a more industry-friendly approach and provide greater clarity for institutional crypto custody.
Visa Doubles Down on South Korea With Upbit Operator Dunamu on Stablecoin Payments
[Payments] [Stablecoin] [Asia] [Institutional]
On August 28, Visa and Upbit operator Dunamu agreed to explore stablecoin and AI-powered payment services in South Korea, expanding Visa’s digital-asset presence in one of Asia’s largest crypto markets. The agreement follows a similar partnership announced earlier in the week between Visa and Shinhan Financial Group.
The companies will explore payment and settlement models based on OUSD, an open-standard stablecoin, alongside infrastructure for agentic commerce, where AI agents can search for products and complete purchases on behalf of users. The partnership highlights how stablecoin adoption in South Korea is beginning to extend beyond crypto trading into mainstream payment and settlement infrastructure.
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