The Wolf Den #200 - Two Hundred Issues!
All Hail Sushi From IntoTheBlock
In this report, we bring to you the latest in on-chain cryptocurrency analysis. We look at the blockchain directly and analyze balances, transactions, and the overall activity of market participants. This gives us a unique insight into the future of the market.
This section is written in conjunction with IntoTheBlock (ITB). ITB is an intelligence company that leverages machine learning and advanced statistics to extract intelligent signals tailored to crypto-assets. IntoTheBlock tackles one of the hardest problems in crypto: to provide investors with a view of a crypto asset that goes beyond price and volume data.
The Wolf Den research team uses IntoTheBlock to dig deeper and get the most important insights about the crypto market.
All Hail Sushi
DeFi tokens have been leading the 2021 rally, and out of the highest performing assets, SUSHI has stood out.
SUSHI’s price has increased by 843% since the beginning of 2021, hitting a new all-time high of $23.4 on March 13. Along with this price action, the most-closely followed metric for DeFi’s fundamentals has also increased remarkably.
See the IntoTheBlock’s DeFi Insights
Currently, SUSHI sits as the fourth-ranked DeFi platform by Total Value Locked, which measures the aggregate dollar amount deposited into DeFi applications. The Total Value Locked for SUSHI set a new ATH this Sunday of $4.84 billion.
See the IntoTheBlock’s DeFi Insights
Going deeper into the protocol metrics, in just 75 days of 2021, SushiSwap’s aggregated volume is $30.987 billion and has done over $92.9 million in fees. This means that on a daily basis, SushiSwap is averaging $413 million in traded volume and $1.23 million in fees.
Following the recent momentum of the protocol, the demand for the token has also grown exponentially. IntoTheBlock’s Daily Active Addresses indicator tracks the number of total active addresses on any given day.
As can be seen in the graph above, the number of Daily Active Addresses (DAAs) and price movements in SUSHI are highly correlated, pointing to the likelihood of active addresses following price rather than using the crypto-asset.
And how well are SUSHI’s investors doing? The Global In/Out of the Money (GIOM) classifies addresses based on if they are profiting (in the money), breaking even (at the money) or losing money (out of the money) on their positions at current price.
The Global In/Out of the Money is useful to obtain a holistic view of the profits of all addresses/tokens on the blockchain.
At the time of writing, SUSHI’s price is trading at $19.37, and 83.05% of the addresses currently holding SUSHI are in the money or experiencing profits,
Bitcoin Thoughts And Analysis
Bitcoin is... doing nothing. Sometimes it's difficult to analyze an asset every single day, when little changes in 24 hours. We have had some decent moves up, then drops again. Chop, chop, chop. This is the time when traders lose their money trying to overtrade with leverage. Be careful, nothing is going on here that is worth paying much attention to in the short term
DAILY CHART
Yesterday's candle was beautiful - a bullish hammer with a wick down and a nice large body, closing near the daily highs. As I often mention, a single candle is effectively meaningless. It is really confirmed by the next day, so we need to see price rise from the current prices before the daily close today.
4-HOUR CHART
Price broke out of the descending channel that I discussed, but it was uninspiring at best. I think the more important story is the trading range in red. Price is currently struggling below the equilibrium (EQ, dashed 50% line). Ultimately, traders who use ranges would want to short a clean break below or long a clean break above. Everything inside is sideways chop.
Altcoin Charts
Altcoins still look choppy and risky to me, so not many charts worth watching today. 1INCH and ATOM have both done well since I posted them this week, which is great. I am taking a look at EGLD and ETH, because ETH is often a harbinger for what's happening with alt markets.
EGLD/USDT
It's time for EGLD to make a decision. I am NOT telling you to buy this here - I know we have some new people, but I never tell you what to do. I provide info for you to work with and fit into your own style. That said, it is holding support here and approaching a breakout of the blue line. A breakout with volume should send price back up to the top of that blue line with some time. We do not want to start seeing candles close below $127.278, as we have seen a few wicks below but candles continuing to close above. It's getting tight between these two key lines. If it breaks support, extend the blue line and watch for when it eventually breaks.
ETH/BTC
I find the daily ETH chart against BTC encouraging. We called the bottom here, this bounce out of the demand zone, and it currently appears to be flipping the top of that zone back to support. Ultimately, the real signal here would be a break of the descending line, so watch closely for that.
Twitter Hacker Sentenced to 3 Years In Prison
The hacker behind last July’s, massive Twitter has been found guilty and sentenced. The internal breach forced major accounts like Barrack Obama, Apple, Elon Musk, Uber and many more to solicit Bitcoin deposits to the hackers wallet. My account was also compromised in the incident. This was one of the rare situations where no level of security could protect you - the hacker completely stunned Twitter.
Over $100,000 were stolen and Bitcoin received a lot of FUD the next week. Completely randomly, my best childhood friend Andrew Warren, the State Attorney of Hillsborough County, had the pleasure of officially arresting and prosecuting the culprit behind the hack. It's a small world. After making a plea deal, Graham Ivan Clark, the mastermind, will serve 3 years due to his younger age and the nature of the crime committed. Justice has been served.
Investment Firm NYDIG Says Adoption Is Coming
According to Robby Gutmann, CEO of NYDIG and co-founder of Stone Ridge Capital, “we can expect to see announcements from some of the firm’s strategic partners that will drastically change the traditional financial landscape.” NYDIG just raised $200M from an investment round supported by Morgan Stanley, New York Life, MassMutual, Soros Fund Management, and FS Investments.
Gutmann went on further to say, “[The announcements] are going to mark progressively new points in Bitcoin adoption, Bitcoin availability, Bitcoin products and services within the existing traditional financial landscape.”
These announcements are supposed to start within the next week or two and come from the firm’s strategic partners.
If you are wondering who the partners are, look above. It is likely the group that supported the fund raise. This means we should be seeing some significant Bitcoin announcements soon from major players. To further emphasize how big NYDIG is, they are also competing in the Bitcoin ETF race here in the U.S.
These are the players that have the capital to move the market.
eToro Is Going Public
eToro has maintained a noticeable presence over the years and has capitalized on their ability to stay ahead of the curve. They pivoted to crypto in 2017, before many other major companies. eToro is now going public after a $10B SPAC deal with FinTech Acquisition Corp V. There is no doubt that investors will look to eToro for secondary exposure to crypto markets, even if they do not hold Bitcoin directly on their balance sheet.
PolkaFoundry Is Live
PolkaFoundry’s public presale went live yesterday, meaning the PKF token is available on Uniswap.
PolkaFoundry is a one-stop production hub for DeFi applications on Polkadot. PolkaFoundry blockchain offers great alternatives if you have been unsatisfied with the DeFi services you have been using in the past. It has near-zero gas fees, high scalability, and cross chain interoperability - picking up the slack that Ethereum is struggling to overcome.
One of my favorite parts about PolkaFoundry is they have made their use cases extremely clear, something that is often confusing in emerging DeFi projects. PolkaFoundry works to provide open lending platforms, decentralized insurance, cross-chain DEX, DeFi derivatives, prediction markets, and auction and marketplaces. The last thing I felt worth mentioning is their growing fundamentals, they still have a roadmap of developments upcoming for 2021, including a mainnet launch which will potentially be a huge boost for the project. Here is a GREAT ONE PAGER on the project.
My Recommended Platforms And Tools
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The views and opinions expressed here are solely my own and should in no way be interpreted as financial advice. Every investment and trading move involves risk. You should conduct your own research when making a decision. I am not a financial advisor. Nothing contained in this e-mail constitutes or shall be construed as an offering of financial instruments or as investment advice or recommendations of an investment strategy or whether or not to "Buy," "Sell," or "Hold" an investment.