The TIE Weekly Insights (Mar 31, 2021)
Some highlights from last week:
- Bakkt Launches Its Bitcoin Payments App
- CME to Launch 0.1 Bitcoin Futures Contracts
- PayPal Launches Bitcoin Checkout Service
- Cardano Introduces Rollout Plan for Smart Contracts
- Enjin Secures $18.9M Funding for Polkadot-based NFT Blockchain
- Blockstream to Launch Bitcoin Mining Security Token
Crypto Topics Trending in the Media
The total crypto market cap increased by 8.6% over the past week, growing from $1.75T to $1.9T. BTC dominance has fallen to 59.1%, the first time it's dropped below 60% in weeks. Theta has reached a market cap of $13.1B putting the token at #9 in market cap rankings to pass Litecoin. Major assets saw a median weekly return of +4.4%, led by THETA (+28%), ADA (+7.5%), and BNB (+6.7%). Long term sentiment remains highly positive for all the majors (median score of 73). Trading volume was up a slight 1.1, as THETA and UNI experienced big surges. Tweet volume decreased by -3.2% over the course of the week.
Weekly Performance of the Crypto Market
The crypto market moved in a highly correlated fashion over the past week. Prices consolidated for a day before selling off until the 25th, where all sectors bounced and continued to climb to finish out the week. The privacy sector performed the best, returning just over 10%.
As the price of BTC has dropped from it's all time high, so has its average daily sentiment score. This score has fallen to 47.9, its lowest point since reaching 47.7 back in September of 2020 when BTC was at $10,225.
ADA was one of the top performers of the week. On Friday, Cardano introduced rollout plans for Smart Contracts. This announcement sparked excitement within the community, causing Tweet volume to reach a high of 5,830. The Price of ADA spiked over +12% within a few hours after the news.
THETA has reached a $13.1B market cap, passing LTC for to become the 9th largest cryptocurrency. THETA’s market cap has increased by a staggering 560% YTD! Not only has the price of THETA reached an all time high, but so has the number of Twitter users talking about the token.
With spot gaining steam around $58,000, Binance’s September contract stands out, creating a bowed structure relative to other exchanges’ more linear premium. This could be due to two mechanisms;
- Binance traders are capturing more yield between July - September as July shows the highest premium relative to other exchanges and September the lowest
- Binance traders are more bullish for Bitcoin in July and bearish September, causing an imbalance in the premiums.
Image courtesy of @btc_status
Based on latest Cryptoquant data from March 28th, aggregated funding rates stayed low throughout the week as prices dropped below $52,000, with peak values of 0.0285% and last recorded values of 0.0146%. Aggregated funding should continue to rise if Bitcoin can stay above $58,000.
Image courtesy of CryptoQuant
Coinbase premiums surged on the dip this week and peaked at $100, pushing Bitcoin back above $56,000. Spot premiums went negative in expectation of a retrace during the weekend before surging Monday morning back above $50 as Bitcoin reclaims $58,000.
Grayscale closed the week at -7.27% premium, after starting the week at -8.25%, closing the gap slightly. Pictured below is a chart of Grayscale inflows and outflows YTD. The biggest outflow last week was -110 as Bitcoin dipped to $54,000. Other outflows have been negligible.
Image courtesy of bybt.com
Korean premiums in both BTC and ETH surged to record highs on the dip below $54,000 last week. As prices plummeted, Asiian investors aggressively scooped up Bitcoin and Ethereum, creating record breaking 9.48% and 9.61% premium percentages over Western exchanges year-to-date.
Open Interest and Liquidations
Total open interest is unchanged from last week, Bybit continues to lose total volume share as Binance and Huobi accumulate some of that lost value and continue to grow their own volume share.
As Bitcoin dipped below $52,000, longs took an aggregated $2.23B haircut with Binance taking the lion’s share with half the liquidated volume of $1.1B. Bybit and Huobi make up the rest with $411.44M and $469.43M longs liquidated respectively.
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This Week's Podcast Episodes
Deep Dive into DeFi with Hassan Bassiri (Arca)
Hassan Bassiri (VP Portfolio Management at Arca) joins The TIE's Fundamental Value Podcast to discuss Binance Smart Chain, Solana, AVAX, and the heating up L1 race, trading DeFi at scale, and managing risk in a bull market. Listen here