Welcome to the Everything Rally πͺ
GM and welcome to another edition of CoinStats Scoop! π₯Β Hereβs an overview of this weekβs newsletter:
The usual broad market update with insights into the strong market this week πͺ
Reading, thinking through, and analyzing where we stand in the current market & highlighting long-term goals
Updates on the impactful news and developments of the week
Exploring the resurgent markets and learning a lesson from it
Wrapping things up with predictions & takeaways
Market Overview
Wheeewww! Building back on last weekβs momentum weβre in the green across the board, and flashing green shoots appear in every corner of the crypto market!!! π€
A few things about our amazing CoinStats App stand out this week including: the red volume down 50% is only the result of taking the screenshot on the Sunday afternoon - the total crypto market cap is once again in the 4 comma club surpassing one trillion after a massive low volume Saturday rally (!!), and our partnership with CoinLedger, will help compute your taxes seamlesslyand maximize your refund! πΒ
Now, on this weekβs amazing green markets! As stated, the total crypto market rallied hard on the back of strong weekβs from Bitcoin and Ethereum. BTC and ETH had incredibly strong weeks as they both gained around 23%.
This week the entire crypto ecosystem rallied as hard as before, with several key sectors enjoying explosive growth a few weeks after the recent market lows. These sectors can generally be boiled down to:
Alternative Layer 1 Tokens β (blockchains other than ETH), liquid staking tokens (protocols allowing users to stake their L1 tokens and receive a token representing that stake back)
Scaling solutions (generally ETH-based protocols)
DeFi (the decentralized finance protocols you know and love)
Gaming (protocol tokens working towards building immersive crypto platforms)
Other Notables ( important protocols and tokens that donβt generally fit into one of the categories).
With the classification out of the way, letβs get to incredible percentage gains!! π€
Alt-L1s β SOL +78%, APT +110%, FLOW +55%, AVAX + 43%, FTM +42%, NEAR +40%, ATOM +27%, XTZ +29% , DOT +26%
Liquid Staking Tokens β LDO +50%, RPL +40%, SWISE +25%
Scaling β OP +69%, IMX + 38%
DeFi β FXS + 67%, CRV +52%, AAVE +43%, SNX + 29%, MKR +17%, RUNE +26%
Gaming β GALA +115%, MANA +98%, SAND + 58%, STEPN +97%, MAGIC + 54%
Other Notables β FIL +43%, GRT +36%, AR + 31%, BIT +27%
Leading weekly tokens on the CoinStats app
News & Developments
Abu-Dhabi based Venom Foundation & Iceberg Capital partner to launch billion dollar (!!) fund for investing in Web3 applications including DApps, DeFi, & gaming Β
Congoβs National Park weathers the COVID storm and layoffs by installing a hydro-powered BTC mining facility that helps the park keep operating, fund jobs, conservation, and infrastructure
Crypto is the βlongest-term playβ for BNY Mellon, one of the oldest and most influential U.S investment banks that confirms its commitment to digital assetsΒ
MetaMask, worldβs most popular crypto wallet enables users to connect to Lido (LDO) and Rocket Pool (RPL)Β to stake their ETH and receive liquid staking tokens directly from the staking provider within the Web3 app
Quasar, a DeFi interchain, decentralized asset manager platform, raises $5.4M @ $70M valuation
Ava Labs, the AVAX token and blockchainΒ developer, partners with Amazonβs Web Services (AWS) to bring blockchain technology to the masses
Ondo Finance, a new DeFi protocol, announces theyβve tokenized U.S. Treasuries and investment bonds enabling their on-chain purchase for crypto users
Mastercard, a dominant global payments provider, partners with Polygonβs MATIC to launch a Web3-focused incubator to help artists connect with fans.Β
The Resurgent Markets
As we covered in the Market Overview, crypto markets have rallied incredibly well for the second straight week! While, itβs difficult to parse the reason for such rallies, weβll outline some key trends and indicators that have led to the recent upward momentum as well as check on alternative Layer 1 blockchains, including AVAX, ATOM, SOL, and FTM.
This week, markets had remained relatively calm while trending slowly upward again until the market tapped into some rocket fuel starting from Wednesday. πΒ From Wednesday morning to Friday evening, BTC rallied from 17k to over 21k in the span of only two days! As is often the case in crypto, the upward trend was caused by short liquidations that resulted in the markets exploding to the upside.
While massive short liquidations are part of the reason weβve recovered so well in recent weeks, theyβre also the reason why BTC and the general crypto marke, have been oversold since the fall of LUNA, 3AC, and FTX. As the tweet below shows, BTC hit an all-time low in the realized profits vs. losses ratio on Wednesday! π€―Β If this doesnβt signal oversold and due for a rally then weβre not sure what else does.
Besides BTC, ETH and its previous fundamental upgrades that weβve covered many times before have been the main focus and driver of crypto growth recently. Over the past week, ETH was on the path to becoming a deflationary asset as on-chain activity, transaction fee burns, and ETHβs recent switch to Proof-of-Stake continue to drastically reduce its selling pressure!
Speaking of ETH, during its recent surge, many market participants have written off alternative L1 blockchains as viable competitors.Nonetheless, the teams and developers working on alt L1s have continued to develop and improve the future outlook of their chains! Below, weβll briefly look into some alt L1s and their recent developments including:
AVAX (+38%) β previous partnerships with established financial institutions such as KKR along with continued advancement in their subnet scaling technology culminated in an announced partnership with Amazon Web Services this week!
SOL (+62%) β continous improvement in the chainβs reliability and uptime through the introduction of priority fee markets leading to processing 3k+ transactions per second! SOLβs NFT ecosystem remains incredibly impressive and fosters a growing community throughout the chainβs various ecosystems.
FTM (+36%) β Fantom has come and gone from the alternative L1 spotlight several times over the recent years. This time Andre (one of the best blockchain developers out there) is back again and seems committed to advancing FTM.
ATOM (+17%) β ATOM and the Cosmos ecosystem have been relatively quiet in recent weeks, but the chainβs long-awaited Interchain Security update coming soon is pretty big. It will enable chain and dapp building on ATOM to inherit the Cosmos Hubβs security, which will benefit both individual chains and ATOM at large.
Alright, this was our overview of the main tokens that drive the crypto market forward led, as always, by BTC & ETH! πͺ As ETH rallies, alternative L1 chains follow its strength and, as we just outlined, continue to build their respective ecosystems despite the previous down trending markets. Hopefully, this crypto momentum and the green charts we enjoyed in recent weeks will continue! π€
Read of the Week
βHas Crypto Failed?β β Joel John
Our read this week touches on the rough 6-month period of crypto we experienced. Itβs written by Joel John who said he was βtrying to understand where we are with crypto as an asset class, how it relates to emerging technology cycles from the past and whatβs next for us.β
Joel is active across many verticals of crypto. He has been investing in and scaling early-stage crypto teams at Decentralised.com while also being the venture lead at Ledger Prime. Ultimately, Joelβs answer to the articleβs question is no, crypto hasnβt failed. But the importance of focusing on the long-term building that leads to crypto adoption canβt be overstated! π
βIt is easy to suggest that web3 is a market of speculators and that the tools we build donβt matter outside. But it ignores that all technologies are speculative in their early stagesβ¦While we must admit that there were excesses, it is just as necessary to understand that we have made an incredible amount of progress. Bubbles are a feature, not a bugβ¦the first flight was a few hundred feet long. Almost redundant in that you would rather walk that distance than sit on metal wings strapped to a loud engine. Blockchains are somewhat similar. Clunky and almost redundant. But in less than 70 years since that initial flight, we stepped foot on the moon. All technologies follow a similar arcβ¦maybe, we should not obsess over how short these flights are and miss out on literally making it to the moon.β
In his incredibly well-written long essay, Joel echoes exactly what weβve been preaching here at CoinStats Scoop: Always prioritize the long game. Crypto has a unique ability to foster FOMO (fear of missing out), but the underlying building that pushes the industry forward continues despite what the numbers say. πͺ
We remain committed to the future of the crypto space and are confident weβll land on the moon! π Our dedication is shared by tens of thousands builders working tirelessly every day.
Tweets & Memes
ETHβs fundamental changes over the past year are just beginning to take affect.
BTC is approaching a key level, potentially signifying more fireworks ahead!
Solanaβs NFT ecosystem continues to explode, providing relief for the ecosystem.
Our upcoming new look is as bright as the future of crypto! π€«
Wrapping Up
There are signs that 2023 will be amazing for the crypto market. On this positive note, we'll conclude this edition of CoinStats Scoop! π«
This week, we covered the incredible rally across crypto markets, explained crypto's hot start to 2023, read and thought about the importance of focusing on the long-term impact of crypto, discussed ETH, BTC, and alternative L1 token momentum, and summed up the 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! π