CRYPTO MARKET UPDATE 03/11/21

After reaching new All-Time-Highs on Bitcoin 2 weeks ago, price has begun to stabilise, with $58,000 holding as support. Price action is firming up for a run toward $82,500, however, we are not out of the woods just yet.

BTC DAILY TIMEFRAME

Ethereum, on the other hand, looks a lot more primed for a leg higher as we continue to print new highs. The counter trend line & last level of resistance have both been cleared and we continue to see ETH dominance climb, now at 20.95% – A new All-Time-High this year.

ETH DAILY TIMEFRAME

An interesting development has been seen this year, seeing ETH supply on exchanges continue to decrease. The supply has reached new lows that were last seen May 2018.

ETH SUPPLY ON EXCHANGES

While we see this metric continue to grind lower, we are seeing supply in smart contracts growing. Investors are staking their ETH for a yield and thus “removing” it from the market, creating a greater supply crunch.

ETH SUPPLY IN SMART CONTRACTS

On-chain activity is climbing, however, this has caused network congestion and gas fees have gone well above levels we saw a few months back. Although this is a pain for those transacting on the network – ETH burning is extremely bullish & there are massive opportunities in the Ethereum ecosystem.

MEDIAN GAS PRICE

Think of it as busy cities; New York, London, Singapore. They’re all extremely busy & much higher cost of living, but people still want to be there as it is more appealing and/or has more opportunities.

This upswing in gas fees has also caused Ethereum’s first ever deflationary week. Since EIP1559 has gone live, we’ve seen an average burn rate of 5.75E/min. In the last 7 days, we’ve seen the burn rate sitting at 10.46E/min.

ETH BURNT SINCE EIP1559

All eyes are on scaling solutions for Ethereum & how quickly these layer 2 solutions can be adopted. Once centralised exchanges allow for withdrawals directly to L2, we will likely see mass migration from L1 to L2. A fast implementation would avoid capital fleeing to alternative chains like Solana, which has seen strong demand this year – now surpassing Cardano in terms of market cap.

At 4PM (UTC+2) today, Thorchain will have its largest cap raise ever of 5M RUNE, allowing for +$100M new liquidity. RUNE’s value is directly tied to the growth of the platform – For each $1 of non-RUNE assets in a pool, there must be:

  • $1 of RUNE staked
  • $2 of RUNE bonded to secure the network

Therefore, the floor value of RUNE’s market cap is 3x the value of non-RUNE assets staked.

RUNE DAILY TIMEFRAME

This fundamental factor as well as the expectation of main net launching in December has caused the recent run-up.

TIMES SQUARE

Shoyu went live early this morning with a first look at the metaverse art galleries, which look incredible. Not all features are available, but the experience is immersive.

For those not familiar, Sushiswap, the community-owned DEX have launched a metaverse experience & NFT marketplace. It will be interesting to see if this project can become the “community-owned” Opensea.

100% of the fees (2.5% of all trades) goes to xSUSHI holders. To acquire xSUSHI, stake your SUSHI on the dApp at sushi.com

SHOYU NFT

Although NFTs cooled off, this is not a fad and we can see the interest & demand for the Metaverse. It is evident in recent events; Facebook’s rebranding to Meta, Sandbox raising $93m in a round led by Softbank or the extreme inflows we’ve seen in Decentraland’s token MANA.

MANA CIRCULATING MARKET CAP

Another interesting project in the NFT/Blockchain gaming space is Yield Guild Games. This is a DAO (Decentralised Autonomous Organisation) which seeks to provides on-ramps to Play-to-Earn gaming. They are creating virtual economies using yield-generating strategies in the form of scholarships. The barrier to entry for some of these individuals may be too high – YGG aims to fix this by acquiring the scarce, productive NFTs to lower the barrier to entry for all participants.

They are also actively investing in the sector, whether that be blue chip NFT projects like Axie Infinity or new start ups. In that case, the YGG token could be a potential “index” for the blockchain gaming space.

For those subscribed to our Youtube, you would have seen our video on Sandclock’s launch. $QUARTZ will begin trading on Sushiswap today around 6PM (UTC+2), as well as the rewards on Sushi Onsen Programme will go live with APYs around 100% (not finalised).

SANDCLOCK

The dApp ideally launches mid to late November, however expect a launch within 5-6 weeks as well as potentially being launched on Olympus Pro. For more news on the latest projects, head over to our YouTube channel, subscribe & hit the notifications bell icon to receive notifications on our next upload & for more updates like the one above, subscribe to our blog for updates directly to your email.

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