New Crypto Protocols Launch Amid National Day Holiday, Driving Market Activity

Executive Summary

Major blockchain initiatives, including Momentum on SUI, Yield Basis on Kraken Launchpad, and the Canton Network's ecosystem expansion, are driving significant capital flows and increased attention across the cryptocurrency market during the National Day holiday period.

The Event in Detail

Multiple new crypto investment opportunities are emerging, signaling a period of heightened activity. These include developments within the SUI ecosystem, a significant institutional blockchain, and novel Bitcoin-native yield protocols.

Momentum, a decentralized exchange (DEX) on the SUI blockchain, has initiated a "HODL Yield Campaign" running from September 24 to October 19. This campaign, in partnership with Buidlpad, offers liquidity providers annual percentage yields (APYs) of up to 155% across stablecoin, Bitcoin (BTC), and SUI pools, alongside a 2x multiplier on Bricks rewards. Momentum, backed by Coinbase Ventures through both Seed and Strategic funding rounds totaling over $5 million in direct investment and a $100 million pre-valuation in its strategic round, aims to expand ecosystem liquidity. Participants can provide liquidity with pairs such as SUI–USDC, suiUSDT–USDC, LBTC–wBTC, xBTC–wBTC, and xSUI–SUI. A Token Generation Event (TGE) and distribution are anticipated following the campaign.

Separately, Yield Basis, a new Bitcoin-native yield protocol developed by Curve founder Michael Egorov, is launching through the Kraken Launchpad and Legion platform. The project enters the market with a fully diluted valuation (FDV) of $200 million, a substantial increase from its early 2025 funding round which valued it at $50 million. The protocol is supported by a $60 million crvUSD credit line from Curve DAO. Yield Basis plans a public token sale of 25 million tokens, representing 2.5% of its total 1 billion token supply, at a price of $0.20 per token. The sale imposes a hard cap of $10,000 per participant, with participation requiring Kraken's intermediate KYC verification. Access is compliant with MiCA regulations in Europe but restricted for users in the US, Canada, and Australia. The protocol aims to offer sustainable BTC yields through precise 2x leverage, addressing impermanent loss for tokenized Bitcoin and Ethereum holders.

Meanwhile, the Canton Network, an institutional public blockchain developed by Digital Asset, is expanding its native token Canton Coin ($CC) utility. The network, which has secured nearly $4 billion in funding from prominent traditional finance institutions including Goldman Sachs, IBM, and J.P. Morgan, alongside crypto-native firms like Yzi Labs, Paxos, Polychain, and Circle, focuses on privacy protection and multi-institution synchronous settlement. Unlike many blockchain networks, Canton Coin is designed to reward utility rather than function purely as an investment, with no presales or special pools for founders. Minting of $CC is tied to providing computation power or services to the network. Retail participation opportunities currently include an airdrop event by SEND (Canton Wallet) which requires purchasing a SENDTAG, holding 7000 $SEND, and staking 20u.

Market Implications

These launches signify a dynamic period in the crypto market, characterized by targeted capital inflows into specific ecosystems and innovative DeFi solutions. The Momentum campaign is expected to deepen liquidity within the SUI ecosystem, potentially driving increased network usage and token demand for related projects. Yield Basis's launch, particularly with its association with Kraken and Curve founder Michael Egorov, is poised to attract significant investor attention, potentially boosting the broader Bitcoin DeFi sector by offering new yield-generating strategies. The substantial increase in Yield Basis's valuation from $50 million to $200 million FDV in a short period underscores strong market interest but also introduces higher valuation risks for a new protocol still in testing. The Canton Network's continued expansion and the utility-driven design of Canton Coin suggest a deepening convergence between traditional finance and blockchain technology. Its focus on regulated finance and privacy could set new precedents for institutional adoption, potentially driving a new wave of enterprise blockchain solutions.

Expert Commentary

Market observers note a dual expectation for technological innovation and wealth generation surrounding projects like Yield Basis, largely driven by the historical performance of tokens launched on exchange platforms. However, analysts caution that while Yield Basis has the potential to attract traditional finance to DeFi, its success hinges on market conditions, adoption rates, and its ability to overcome technical challenges and competition. Concerns have also been raised within the Curve community regarding the $60 million crvUSD credit line extended to Yield Basis, with some stakeholders citing potential "systemic risks" related to its structure. For Canton Network, its distinctive approach to tokenomics, prioritizing utility and avoiding speculative structures, is seen as a strategic move to align with regulatory requirements and foster sustainable growth within institutional finance.

Broader Context

The simultaneous emergence of these diverse projects reflects several key trends in the broader Web3 ecosystem. The SUI ecosystem continues to attract developer activity and liquidity, positioning itself as a competitor in the smart contract platform space. The innovations from Yield Basis highlight the ongoing evolution of Bitcoin DeFi, seeking to unlock new value for BTC holders beyond simple holding. Furthermore, the substantial funding and institutional backing for Canton Network underscore a growing commitment from traditional finance entities to integrate blockchain technology into their operations, particularly for regulated applications. These developments collectively indicate a market moving towards more specialized, capital-efficient, and institutionally aligned blockchain solutions, while also grappling with the inherent volatility and risks associated with new protocol launches and high-yield campaigns.