September 28, 2020

The TIE Weekly Insights (Sep 28)

Some highlights from this past week:

Market Overview

The total crypto market cap remained unchanged this week. Weekly returns were mostly negative, with LINK standing out as the top performer. Volumes were up, finishing off September strong. Long-term sentiment scores are high for 7 out of the top 10 coins. Litecoin is the only asset that has a low sentiment score. Open Interest in BTC options reached a new all-time high of $2.3B.

Weekly Market Stats

BTC saw a -0.7% return this week while trading within a 8.43% range, only half of its historical weekly average of 16.63%. Sentiment was low for the first half of the week while price traded below the Volume Weighted Average Price (VWAP). Once price broke above the VWAP, hourly sentiment increased from 47 to 64 before eventually nose diving on Sunday.

Bitcoin Price vs. Hourly Sentiment

A score >50 implies that conversations have been positive, while <50 implies that conversations are becoming more negative.

The Hype Continues

DeFi continues to be the most frequently discussed topic on Twitter related to Ethereum. Cryptocurrency media headlines mentioning DeFi have surpassed ETH. Coverage of non-fungible tokens is at an all-time high.

DeFi vs. Ethereum Mentions in Crypto Headlines

Mentions of NFT in Crypto Headlines

Weekly Performance (BTC vs. ETH vs. XRP vs. BCH vs. LINK)

Billion Dollar Club

The race to $2B in Total Value Locked (TVL) has ended with Uniswap passing Maker for a last second win. This is a very impressive feat considering TVL in Uniswap was only at $230M on August 27th. That’s a 768% increase in 30 days. The surprise UNI token airdrop that was equivalent to the US government issued stimulus check (or more, depending on when/if you sold) had a big impact on the growth of the platform, as well as many other projects.

Total Value Locked (USD) in DeFi

As the hype surrounding DeFi continues, new money has consistently flooded into these projects. The Top 5 Tokens have all seen double digit increases in TVL this week, with 4/5 sitting above $1b.

Top 5 DeFi Projects by TVL

Aave Governance Released on Mainnet

The lending platform Aave has released Aave Governance on mainnet. The first Aave Improvement Proposal (AIP1) is the proposal to migrate from LEND token to AAVE token via Genesis Governance vote. The amount of ETH locked in Aave has grown by 113% this week, increasing from 212,708 to nearly 500,000.

ETH Locked in Aave

Positive Returns Bring More Conversations

Aggregate monthly crypto tweet volume hit a YTD high of over 1.5M tweets in August. This is 200,000 more than the average monthly tweet volume of 1.3M. With only a few days left in September, that number has dropped to ~1.2M.

Aggregated Tweet Volume by Month

This may be due to September returns being mostly negative across the board. When looking at Bitcoin Returns vs. Avg Tweet Volume, we can see that tweet volume drastically increases as positive returns increase.

Bitcoin Returns vs. Tweet Volume

Aggregate trading volumes set a new 4 month high of $2.8T in September. This is still below the average monthly trading volume of $3T.

Aggregate Monthly Trading Volume

Notable News

Binance Announces $1 Trillion in YTD Trading Volume

Bitcoin NFT Artwork Smashes Records Sells for 100k

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This Week's Podcast Episodes

Ep. 14 - Crypto Dark Pools with Danny Kim (SFOX)
In our fourteenth episode, Danny Kim discusses the launch of SFOX's dark pool, order routing, liquidity, and the institutionalization of digital assets. Listen here

Ep. 13 - Valuing a Community with Lou Kerner
In our 13th episode, Lou Kerner discusses the rise of stablecoins, his attempt to purchase Facebook in 2004, the value of communities, and crypto fundamentals: Listen here