The TIE Weekly Insights (Feb 8, 2021)
Some highlights from last week:
- Paypal Launches Business Unit Dedicated to Cryptocurrency
- Tether Announces Loan Repayment by Bitfinex
- Wyoming Senator Sees Bitcoin as Great Store of Value
- Gemini Launches Interest-Earning Program for Bitcoin
- CME Group Launches Ether Futures
- ConsenSys and Securosys Launch New Long Term Ether Staking Protocol
- German Police ‘Seize’ $63M in Bitcoin, Don’t Have Password
- US Senate Bill Re-Introduces Suspicious Activity Reports for Social Media
- Nigeria’s Central Bank Orders Financial Institutions to Close Crypto Exchanges Accounts
- Twitter CEO Announces Running His Own Bitcoin Node
- Canadian Firm Files for Bitcoin ETF on Toronto Stock Exchange
- CrossTower Launches Bitcoin Fund to Compete with Grayscale GBTC
- River Financial Launches Mobile App
We saw a market wide rally this past week as the price of multiple assets hit new all time highs. The total cryptocurrency market cap increased by 33%, surging from $1.03T to $1.38T. The major assets saw a median +20% return, with DOGE (+109%), ADA (+89%), and BNB (+55%) leading. Investor sentiment has continued to remain positive for the past few weeks now. Trading volume was up 10.3%, despite BTC volume dropping by -9.1%. Tweet volume was up 36.4% for the majors.
Performance of the Cryptocurrency Market
All crypto sectors performed positively this past week, but once again DeFi leads the way at +35.5%. The privacy sector fell from strongest to weakest performer at +13.5%.
The price of Bitcoin traded within a 26.8% range this past week, starting from the low of $32,296 that was set on Monday, all the way up to the high of $40,955 set on Saturday. Investor sentiment stayed positive throughout the week as price trended higher. MicroStrategy has continued its goal of pushing crypto to institutions as it hosted their Bitcoin for Corporations event on Thursday. This could lead to a new wave of investors being interesting in crypto.
Ethereum Reaches New All Time High
The price of ETH has reached a new all time high of $1,760, after consolidating for several days under the previous ATH of $1,440. This has come after a record breaking month in January, as Ethereum Tweet volume surpassed 500,000 for the first time in its history. Earlier this week CME Group launched Ether futures, further expanding its crypto derivatives offerings in this emerging asset class.
Cardano Responds to Significant Developments
There were three significant developments that contributed to the price of ADA hitting a new all time high of $0.71. On Monday, the redesign of ADA wallet Daedalus 3.2.0 caused investor sentiment to spike from 35 (low) to 86 (very high). Bitfinex launched perpetual swaps for ADA on Wednesday. And lastly, Friday’s announcement of the first group of Cardano Ambassadors sparked excitement as we saw the price spike shortly afterwards.
There have been over 200k more tweets sent out about Dogecoin than Ethereum so far in 2021.
Relative search interest for popular crypto terms is at an all-time high on Google Trends. Terms like “Buy Crypto”, “Best Crypto App”, and “Best Crypto Exchange” have surged since the new year has started. Whether this is due to the recent price rallies that we’ve seen, speculative traders from Reddit looking to leave their mark on more assets, or even a macro shift in the way investors are searching for a hedge against inflation, one thing is clear. There is a rapidly growing interest in crypto and new investors are looking for the best way to get into the ecosystem.
Weekly Performance of DeFi Tokens
The median DeFi token saw a +28% return this past week as all 20 of the top tokens performed positively. UMA (+153%), LUNA(+114%), and ZRX (+101%) all had triple digit increases.
DeFi Social Conversations Surge
DeFi tweet volume has surged +60% Thursday to reach a new yearly high of 13,900! This is the first time this year that aggregated tweet volume for the top 15 DeFi tokens has surpassed 10,000 tweets in a single day.
The growth in DeFi tweets can largely be attributed to UNI and AAVE. These two tokens have been racing head-on since the new year started, with both tokens sitting at 68.8k total tweets YTD. There's a large gap down to SUSHI at 13k, the 3rd most popular DeFi token on Twitter.
Aave Soars as Adoption Continues to Grow
The price of AAVE has surged over 90% within the past week and a half as adoption for the token has continued to grow. Billionaire Mark Cuban recently spoke about the “unlimited upside” of DeFi and according to a snapshot of his on-chain portfolio, he is an AAVE whale holding more than $150,000 worth of the token. It seems as if big players and institutions are becoming increasingly more interested in DeFi. Grayscale recently filed more than a dozen altcoin trusts with Delaware's corporate registry, one of those altcoins being AAVE. Additionally, Bitwise added AAVE to their Bitwise 10 Large Cap Crypto Index. These announcements have caused investor sentiment to reach a new YTD high of 87.9 (very high).
Contact us for a demo of our SigDev platform to view all market-moving events in real-time.