GM, and welcome to our New Year edition of the CoinStats Scoop! 🥂 Here’s an overview of this week’s newsletter:
The usual broad market update with insights into outperforming tokens & things to watch
Reading, thinking through & analyzing potential crypto trends in 2023
Updates on the impactful news and developments of the week
Wrapping things up with predictions & takeaways
Market Overview
Happy New Year everyone and thanks for your support as we’ve gotten the CoinStats Scoop off the ground in recent months!! We don’t necessarily have a plan for the future of these weekly updates other than they’ll never stop. Cheers to you, our readers and supporters, and the bright future ahead for CoinStats and the crypto market at large! 🥂
Now, to the market update! Unfortunately, the market has been as boring as New Year’s Eve is exciting as it continues to wait for a signal in either direction. BTC and ETH continue to sit around 16.6k and 1.2k as BTC volatility has approached a new all-time low. 🤯
Volatility is not an indicator of future performance or anything, but it shows the range in which a specified asset has been trading. Ever since FTX’s demise, crypto’s volatility has trended downwards as ETH, BTC, and the broad crypto ecosystem wait for macro signals to choose their next direction.
On the bright side, the crypto space has grown large enough that certain sectors and tokens enjoy positive volatility despite BTC, ETH, and most of the rest of the crypto ecosystem remaining relatively stagnant! 🤑 This week, the standout tokens include Yuga Labs APE (+7%), Cosmos’ ATOM (+6.5%), Lido’s LDO (+10%) & Rocket Pool’s ETH liquid staking token RPL (+5%), BONE (+6%), and the market-wide leader BitDAO’s BIT (+20%) as the DAO passed a proposal to buyback $100 million worth of the protocol’s token!
Elsewhere across the ecosystem, SOL (-12%) was one of the week’s biggest losers as the downstream effects of FTX’s collapse continued to rock the ecosystem. Throughout the first issue of this newsletter, we’ve talked about SOL frequently, and our faith in its eventual recovery has yet to be shaken! 💪 While the future of SOL currently doesn’t look optimistic, two of the crypto space’s longest-term builders reiterated their support for the SOL ecosystem this week.
News & Developments
Fidelity, one of the world’s largest asset managers, continues pushing into crypto as they file three trademarks with the applications mentioning NFTs, virtual real estate investing, NFT marketplaces, crypto trading, and metaverse investment services
China plans to launch a state-backed NFT marketplace that will allow secondary trading titled “China Digital Assets Trading Platform”
Michael Saylor’s MicroStrategy continues its BTC bet after acquiring 2.4k BTC worth ~$43M from November 1st through December 21st
BitDAO (BIT) passes a governance proposal that will enable the DAO to buyback $100 million worth of its token — the process will begin on January 1st and last for 50 days as the DAO buys $2M of BIT per day
Bahamian regulatory authorities are holding $3.5 billion of FTX customer assets after they secured them during the hack/collapse
2023’s Potential
Knower is currently a research analyst at Reflexivity Research and has been a part-time employee or intern at some of the most respected crypto institutions. This week, he gave 23 predictions for the year 2023 ahead, and we’ve provided a selection of our favorites below!
BTC dominance will make new lows as ETH becomes more acceptable amongst institutions with a reputation similar to that of an established growth stock
DeFi TVL will reach $75 billion by the end of the year
Optimistic Rollups (ORUs) will hold the majority of market share relative to ZKRs
NFTs will see volumes continue to grow and potentially make new ATHs as liquidity gets better & Opensea alternatives see DAUs increase
ETH cements itself as the endgame for blockchains, thanks to modular scaling solutions like Eigenlayer, Celestia & Fuel
Cosmos (ATOM)/IBC/App-chain ecosystem experiences rapid growth in tandem with Ethereum
There will be 305 genuinely enjoyable on-chain crypto games that don’t rely on ponzinomics to deliver value
DeFi 3.0 will finally happen and bring about the death of DeFi’s bear market
Multiple DeFi protocols will airdrop 10k+ & will revive airdrop speculation
Numerous of Knower’s predictions have been highlighted throughout this newsletter’s history, including optimistic futures of ATOM, ETH, NFTs, DeFi, and rollups that are building to scale toward Ethereum’s future! 🤑 While the future may be dim to some, many participants throughout the crypto industry, including us at CoinStats, have never been more excited! 🌞
Read of the Week
“Year in Review: Emerging Narratives for 2023” — Steven Goulden
Steven is the Senior Research Analyst at Cumberland, a firm that has been at the forefront of cryptoasset trading since 2014. When Steven and other Cumberland employees speak or write, people typically take notes. This week, Cumberland was kind enough to provide sectors of the crypto industry along with a good macro overview they’re watching as we push into 2023 that includes:
“The past year has been beset with negative headlines for the DeFi industry, but we’d be remiss to not acknowledge the non-crypto headlines adversely impacting the industry as well. The Russia-Ukraine War, significant tech-sector layoffs and rapidly evolving monetary policy have impacted TradFi and DeFi markets alike…In 2023 we anticipate we’ll see meaningful green shoots break the surface in several key areas, which will pave the way for significant progress in the next 6-24 months.”
BTC/ETH as a reserve asset and/or global payment medium — “Even a small central bank allocation to BTC or ETH would be material and would likely lead to other exporting states following suit”
NFTs meet IP — winners MATIC, LOOKS, XMON — “NFTs have highlighted the power of digital ownership and demonstrated version 0.1 of an important use case for the capabilities of blockchain technology…Going forward, we believe NFTs will expand beyond this and become a go-to method of tokenizing IP”
Web3 begins to hit its stride — winners BTRST, HNT, RNDR, SOL — “We are beginning to see a number of genuinely useful ‘real world’ platforms emerge, many of which are on Solana”
Gaming — winners MATIC, IMX, FLOW, ENJ/EFI — “There are ~3b gamers in the world, of which around 200m are serious. The total addressable market (“TAM”) is around $200-300b, yet these users usually don’t own in-game items and have little control or governance over these gaming ecosystems.”
Once again, this newsletter feels vindicated as we’ve talked in depth about several of the verticals that Cumberland outlines and their potential future. It’s reassuring to see that a large fund, market maker, and active trading company within the space since 2014 agrees with our previous thoughts and is as bullish on the future of crypto as we are! 🤑
Tweets & Memes
Uniswap, Opensea, USDT, USDC, WETH, & ENS dominate ETH’s popular contracts
While it’s always different, it’s rarely as different (good or bad) as people think!
Banks are routinely fined billions, a sum that would be severely impactful to crypto
It’s been one hell of a year in crypto, but we remain as optimistic as ever moving forward!
Wrapping Up
Alright, with that positive note on the outlook for crypto in 2023, we’ll conclude this New Year’s edition of the CoinStats Scoop! 💫
This week, we covered the low volatility market conditions, outlined numerous trends and verticals to watch as we enter 2023, and provided a look at the usual news & developments of the week!
As usual, CoinStats will continue to guide you through the world of crypto and DeFi. We’ll see you next week for another edition of CoinStats Scoop! 😎
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