The TIE Weekly Insights (Feb 15, 2021)
Some highlights from last week:
- Tesla Buys $1.5B in Bitcoin
- Mastercard to Facilitate Cryptocurrency Transactions in 2021
- BlockFi Officially Launches New Bitcoin Trust
- SEC Commissioner Peirce Thinks it’s Time for Bitcoin ETP
- Bitcoin ETF Receives Green Light from Ontario Securities Regulator
- Fed’s $3B Bitcoin Seizure Tied to Corrupt Federal Agents
- Jenet Yellen Says “Misuse” of Cryptocurrencies is a Growing Problem
- ValueLabs Announces Bitcoin Linked Options for Employees Globally
- JPMorgan Co-President Admits the Demand for Bitcoin Will Come
- Twitter CEO and Jay-Z Launch Bitcoin Endowment with 500 BTC Investment
- MicroStrategy Begins Hiring for Bitcoin Data Product
- Miami Officially Considers Putting Government Funds in Bitcoin
The total cryptocurrency market cap has increased by +9.3% this past week, growing from $1380B to $1509B. All major assets saw positive returns (+34.7%), with BCH (+63.6%), LTC (+42.5%), XRP (+41.7%) leading the way. Long term sentiment continues to remain positive with increasing prices. Trading volume (+28.1%) and Tweet volume (+17.8%) were up as well.
Bitcoin Nears $50,000
Bitcoin traded within a 30.85% range this week, from the low of $37,988 to the high of $49,707. Several key announcements help drive the price of BTC higher over the past 7 days, but the spike towards $50k can largely be attributed to Elon Musk.
Tesla announced on Monday that it had bought $1.5B in Bitcoin and is expecting to begin accepting payment for its cars and other products with BTC in the near future. This is very bullish for crypto as it ties the asset class to a nearly trillion dollar and highly visible company and opens the doors up for many other large companies and institutions to follow. This announcement caused price to surge by 22% and pushed it to a new all time high.
Tesla Announcement Creates Bitcoin Conversations
Not only did Tesla’s announcement impact the price of BTC, but also the social conversations surrounding the cryptocurrency. The number of unique twitter accounts talking about Bitcoin has hit a new all-time high of 69,000 in a single day.
Link Marines are Making a Comeback
As the price of LINK has surged to a new all time high of $34.2, the LINK Marines have started to re appear. Back in August of 2020 when LINK set its previous ATH, there were 2500 unique Twitter users talking about Chainlink on a daily basis. This number dropped to 1,000 as the price consolidated in a range for a few months. But, with rising prices comes increased social conversations. LINK averages about 2325 Twitter users per day talking about the cryptocurrency.
IOTA has surged back into the top 20 by market cap following the launch of oracles, a partnership with Dell, and Chrysalis updates. IOTA's tweet volume has hit an all-time high as the price has risen by 110% at its peak this week.
TVL in DeFi Passes $50B
The Total Value Locked (TVL) in DeFi has absolutely exploded in recent months as the crypto market has seen generous returns. TVL surpassed $40B for the first time in history, knocking down yet another milestone. This total started the year at $15.6B, giving us a total YTD increase of 162%! Seems as its only a matter of time before TVL passes $50B.
Weekly Performance of DeFi Tokens
To follow in last week's place, all 20 of the top DeFi tokens saw a positive return this past week. The median return was +19.6% over the past 7 days as CAKE (+115%), LUNA (+84%), and REP (+66%) all saw returns north of 50%.
Balancer Surges Past $50
The Balancer team had some exciting news this week as Three Arrows Capital & DeFiance Capital have purchased $5M of BAL ahead of Balancer V2 release. This has caused the price of BAL to surge 50% in 24hrs. Additionally, Tweet volume spiked 145%, helping push the price of BAL above $50 for the first time ever.
Day of Week Effects for Top DeFi Tokens
Tweet Volume by Sector
We saw record-breaking numbers in Jan 2021 for almost every sector. On average, crypto tweet volume is up +233% compared to a year ago!
Total Tweets since Jan 2020: Currencies: 17.9M Smart Contracts: 4.3M DeFi: 1.1M Web 3: 1M Privacy: 254k Exchange: 137k
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This Week's Podcast Episodes
Ep 36. Early Stage Crypto Investing with Wen Loong Lau (Tembusu Partners)
Wen Loong Lau (Associate Director of Tembusu Partners) joins The TIE's Fundamental Value Podcast to discuss early stage investing, crypto in Asia, and retail vs. institutional crypto growth. Listen here