Tuesday, 1 March 2022

Market Summary

Market Summary 1 March 2022

Bitcoin Price: US$ 43,160.00 (+14.42%)
Ethereum Price: US$ 2,920.95 (+11.62%)

 

Convex Amassing Frax, Macro Trend Reversals, & On-Chain Derivatives

  • Frax is the first fractional algorithmic stablecoin protocol that uses USDC, FXS, and Algorithmic Market Operations (AMOs) to mint a USD pegged stablecoin.
  • Similar to Curve, Frax has adopted a similar “ve-token” model that allows users to lock Frax Share (FXS) for fee sharing, governance rights, and gauge votes on Frax’s platform.
  • Convex has been the key leader in acquiring veCRV voting power to boost its users’ Curve yield without the user having to lock up CRV for veCRV. Since Frax has a similar approach to their voting and yield boosts, it’s only natural for Convex to start accumulating FXS.
  • Convex implemented cvxFXS in December 2021 and has accumulated around 10% of FXS’s circulating market cap in just 3 months. This is mainly investors locking FXS for cvxFXS to gain entry to the FPI airdrop, which had its snapshot done on February 20th, 2021.
  • The yield farming pool of FXS/crvFXS has also opened up for yield farming and is currently netting an APR of 137% and a projected APR of 212%. You can check it out on the Frax Convex page!
  • In our GMMA study, we clearly see that the short-term grouping failed to break through the long-term grouping after a valiant effort. Price was rejected by the long-term grouping, and down we went, exacerbated further by this week’s geopolitical risks.
  • Let’s compare a range of decentralized trading venues to Vega. First off, it’s obvious that traction is the most important thing in the eyes of the market. Uniswap and dYdX both have governance tokens with lackluster value accrual mechanics, but their tokens are still highly valued by the market.
  • Uniswap is the leading on-chain spot market, with an average daily turnover of well over $1B over the last year. As the trading hub for the most liquid blockchain ecosystem – Ethereum – Uniswap commands a fairly steep valuation on a fully diluted basis (FDV).
  • Osmosis is a Cosmos Zone, meaning it’s an independent chain seeking to become the de facto liquidity and trading layer for the Cosmos ecosystem. Despite having far less traction than Uniswap, it commands a similar FDV because it’s a standalone L1 blockchain rather than a decentralized application (dApp).
  • dYdX is the leading on-chain derivatives market with a focus on perpetuals. No other on-chain exchange comes close to dYdX in terms of notional volume. Product traction is phenomenal, which creates a semblance of value and seemingly justifies the FDV of $7.4B. However, the DYDX token currently lacks strong value accrual mechanics, though this is being rectified with dYdX v4. dYdX is currently building a new iteration of the product – one that will be fully community-controlled. Currently, any revenue is earned by dYdX Trading, an incorporated entity. With v4, fees are expected to flow back to the community and token holders.

 

Wall Street open sends Bitcoin to $40K as latest BTC price surge passes 6%

  • Bitcoin (BTC) got a boost from the start of Wall Street trading on Feb. 28 as U.S. stocks opened to a defining week for markets amid geopolitical tensions.
  • U.S. stocks were meanwhile unexpectedly calm on the open in the wake of a sea change in relations with Russia, including the almost total ban on transacting with its central bank.
  • From here, the idea is that if BTC can break 39.5k I think 41.5/42.0k comes next, and I’d expect LUNA to continue outperforming. Keeping my focus on it as long as it works,” popular Twitter account Pierre wrote in a cross-crypto update.

 

Avalanche blockchain now accessible to 4.5M users across Wirex payment ecosystem

  • Wirex, a digital payment platform that enables users to spend 62 fiat and cryptocurrencies at more than 61 million locations worldwide via the Wirex platform, announced the integration of Avalanche (AVAX) into its ecosystem on Monday. With the move, users can receive, send, store and exchange AVAX tokens, and add custom tokens via the Avalanche blockchain. The company plans to onboard multiple AVAX based tokens over the next few months.
  • In addition, Wirex users will be able to earn 20% in annual interest on AVAX through the firm’s decentralized finance savings product, X-Accounts. The company has over 4.5 million users in more than 120 countries across its app, wallet and payment platforms. 

 

Crypto exchanges consider Ukraine’s call to freeze Russians’ Bitcoin

  • As the West continues to impose more sanctions against Russian banks following Russia’s invasion of Ukraine, one Ukrainian official has called for sanctions on Russians’ cryptocurrency holdings as well.
  • Mykhailo Fedorov, minister of digital transformation of Ukraine, took to Twitter on Sunday to urge the global cryptocurrency exchanges to block addresses of Russian users.
  • He emphasized that exchanges should freeze not only the addresses tied to Russia and Belarus officially but also to “sabotage ordinary users.”

 

USDT records new all-time high against Russian ruble as inflation hits

  • United States dollar-pegged stablecoin Tether (USDT) witnessed a spike of over 30% in five days against the Russian ruble — highlighting the negative and immediate impact of the ongoing war on the traditional financial system.
  • Data from Cointelegraph Markets Pro and crypto exchange Binance show that the ruble is undergoing inflation as the USDT/RUB trading pair — for the first time in history — crossed 105 rubles.

 

South Korea to invest $187M in national metaverse project

  • South Korea’s Ministry of ICT, Science, and Future Planning pledged 223.7 billion Korean won ($186.7 million) to create a broad metaverse ecosystem to support the growth of digital content and corporate growth within the country.
  • The ministry wrote in an official statement on Sunday that funds will be spent on completing four main objectives in creating what appears to be an all-encompassing metaverse ecosystem titled the “Expanded Virtual World.”
  • The government agency intends on using its metaverse as a platform for expanding the virtual industrial growth of cities, education and media.

 

Non-zero BTC addresses hit an all-time high of 40 million

  • On-chain statistics through February have suggested positive sentiment for Bitcoin (BTC) as addresses with a non-zero balance of BTC reached an all-time high.
  • Additionally, those wallets with a positive BTC balance are increasingly hodling their coins. The amount of BTC circulating supply last moved between three and five years ago reached a four-year high of just over 2.8 million BTC, according to data from on-chain analytics firm Glassnode.

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