The TIE
February 16, 2021

The TIE Weekly Insights (Feb 15, 2021)

Some highlights from last week:

Checkout our recent 3-in-3 video

Market Overview

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.

Market Overview

Trending Topics

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.

Bitcoin Price vs Sentiment

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.

Bitcoin Twitter Users

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.

LINK Price vs Twitter Users

IOTA

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.

IOTA Price vs Tweet Volume

Iota Partners with Dell Technologies

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.

Google Trends

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%.

Weekly Performance of Top 20 DeFi Tokens

Band, Loopring, and Cream Secure a Slice of DeFi with New Partnerships

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.

Bal Price vs Tweet Volume

Three Arrows Capital and DeFiance Capital Buy $5M of BAL

Day of Week Effects for Top DeFi Tokens

AAVE Price vs Sentiment

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

Tweet Volume by Sector

Notable News

Nigeria's SEC Suspends Planned Crypto Regulations Amid Central Bank Ban

Why Mastercard is Bringing Crypto to its Network

Contact us for a demo of our SigDev platform to view all market-moving events in real-time.

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