Week 21 Mar - 27 Mar 2023
The point of inflection. Steady, lads! - Mars Captain
- Captain believes the market has bottomed and entered a stable status. The first time after the start of Russo-Ukrainian war a year-ish ago.
- Bitcoin trading, dominance, all metrics look healthy. Plus, narrative of a failing banking system is going strong. Once you go BTC, you never go back.
- Bullish on major Layer 1s and blue chip DeFi projects. After all, it is by far the ONLY viable business model in crypto. Meme coins would be the second. All NFT and metaverse WOKE stuff can go third. But whatever pro-regulation rubbish advocates and snitches should go south like the banking system. Choose your DYOR friend carefully, like SEAN is a good fren because SEAN is in the first category.
💵 Stablecoin & Market Landscape
- Stablecoin market share remains high in reference to the total crypto market capitalization. 11.43% of stablecoin (133.7B) on 1.16T crypto market.
Reminder: Mid-NOV 2021, this percentage was around 4ish% with a 3T total MC. Now we are at 12ish% with a 1ishT total MC.
- Now at 1.16T. Still hanging around on the 1T level. Going steady.
Reminder, June and Nov 2022 witnessed a bottom of 800ish B MC vis-a-vis the market’s top in NOV 2021 at 3T.
- Bitcoin domainance represents a lot about current market landscape.
- Oops, last time it was pre-the-Merge moment when it rose over 42%. In 3 weeks time, there will be Shanghai upgrade. Does this dominance imply more for Etheruem than Bitcoin?
- USDC is the foundation of the DeFi world. So, when the depeg happens, everyone naturally flows to Uniswap to get rid of their USDC.
- Zooming out, Uniswap's trading volume is comparable to Coinbase, meaning DeFi will simply get more and more popularity. The next bull will see some significant upside for blue-chip DeFi protocols.
- This is so embarrassing for those who promoted the Chinese retail entry via Hong Kong's seemingly crypto friendly framework. Crypto is still largely an American-driven thing, shall we say? Those who said the Chinese were buying should be unfollowed immediately.
- Again, when we DYDR, we are still doing it with English media. Sorry, ser, please don't FOMO China.
- Arbitrum and Layer 2s are hot. Zooming out, there is still a distance between them and Etheruem, though it's definitely something interesting to look at Arbitrum's ascension. Does it remind you of Polygon's narrative around 2 years ago?
- 🤔 BTC pumped almost unilaterally for 1 month. Altcoins haven't got the pump yet. And Fear index holding not bad. Still a bit high, but looking steady now.
- Very good indicator that BTC is coming back. 7 points higher than last week. At least this is a sign of the bear is dead, though bull hasn't returned.
📰 Current affairs
Starfish Finance (💙,🧡):
Layer 1s/ Major DeFi
Macro econ/ Regulations
Research reports/videos (DYOR)