The TIE Weekly Insights (Oct 6)
Some highlights from this week:
- Regulatory crackdown:
- CFTC charges BitMEX with operating an illegal derivatives platform
- The Southern District of NY charged Founders & Executives at BitMEX with violating the Bank Secrecy Act
- SEC ordered Salt Lending to return $47M raised from ICO back to investors
- Kik loses case against SDNY, must return investors funds
- SEC charges John McAfee with fraudulently touting ICOs
- Uniswap becomes the 4th largest crypto exchange by monthly volume
- Flamingo Finance surpasses $1.6B TVL
- Grammy winning producer RAC launched $RAC
The Revenge of Cryptocurrency Regulators ft. Jorge Pesok:
The total crypto market cap decreased by $6B this week while returns were mostly negative. XRP was the best performer out of the top 10 with a 3.32% return as well as being the only coin with an increase in relative tweet volume. Relative trade volumes were down besides BTC, which saw an increase of 123%. Litecoin continues to be the only top coin with a low long-term sentiment score.
Crypto Topics Trending In The Media This Week
Media coverage of DeFi has decreased this week while a few different exchanges seemed to be the topic of conversation.
Bitcoin traded within a 5.82% range this week, from the low of $10,375 to the high at $10,980. This is well below the historical weekly average of 16.60%, despite the regulatory news regarding BitMEX. Following the news, conversations on Twitter about Bitcoin started sparking. Tweet dominance, which tracks the percentage of overall crypto related tweets that an individual coin accounts for, increased from 40% to 45%.
Following the announcement, the price dropped -3% within minutes. This tanked sentiment as well. Traders then rushed to remove their funds from the exchange. BitMEX saw over $334M withdrawn, its largest day of net outflows in its history. Open Interest has been decreasing as well.
Uniswap continues to grow month over month. Trading volume has increased every month since the launch of the decentralized exchange and makes up 65% of all reported DEX volume. Over $15B of volume was traded in September, almost $10B more than August. This makes Uniswap the 4th largest crypto exchange by volume, surpassing Coinbase.
While the Total Value Locked (TVL) in the entire DeFi ecosystem decreased from $11.22B to 10.92B this week, TVL in Uniswap has increased 9.6% from $2.08B to $2.28. The amount of ETH locked in Uniswap hit a new all time high of 3.21M.
Coinbase Adds Two More DeFi Tokens
On October 1st, Coinbase announced that Balancer (BAL) and Ren (REN) will be launching on Coinbase Pro. They continue to add more DeFi tokens as the popularity grows. Shortly after the announcement, both BAL and REN saw their token’s price increase over 20%, before retracing the entire move back to its origin. Exchange listings for popular tokens tend to offer a quick trading opportunity.
Millions on MetaMask
The most popular Ethereum wallet MetaMask has reached 1 million active monthly users. The wallet is often used as a gateway to DeFi and this week they have introduced the ability to swap tokens directly on the app. They will source liquidity across decentralized exchanges with the aim of providing the best exchange rate and spreads available. In addition to that, MetaMask hopes to lower transaction costs for Ethereum users by allowing one-time token approvals. This should be an overall net positive for the DeFi community as it has the ability to convert many users into the ecosystem.
Flamingo Finance (FLM), an interoperable full-stack DeFi protocol built on Neo, is aiming to optimize the user experience by integrating platforms for improved liquidity. Within one week after the launch, TVL in Flamingo had surpassed $1.6B. Binance, FTX, and Huobi were quick to list the asset.
This Week's Podcast Episodes
Ep. 16 - Arbitrage with Carlos Betancourt of BK Coin Capital
In our sixteenth episode, Carlos Betancourt discusses market-neutral systematic arbitrage strategies, DeFi security concerns, Bitcoin in a macro context, and risk management. Listen here
Ep. 15 - Bringing Crypto to the Masses with Aaron Malone (Crypto101)
In our fifteenth episode, Aaron Malone discusses building a following of tens of thousands of everyday users, simplifying crypto for all, and why community is the most fundamental valuation mechanism for crypto. Listen here