The Wolf Den #220 - Coinbase Goes Public
Ethereum Momentum In 3 Analytics - 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.
The recent Ethereum momentum explained in 3 analytics
Led by the imminent Coinbase launch, Bitcoin's momentum, and the upcoming network update known as “Berlin,” the price of Ether peaked at $2,400 today, with an impressive increase of 22.4% over the past week.
The recent surge in price caused an immediate effect on leverage traders, as the Perpetual Swaps Open Interest reached a record high of $7.92 billion.
See the Ethereum Derivatives Indicators
As the interest for leverage trading increases sharply, we also detected a new wave of investors coming into Ether. This chart is self-explanatory. IntoTheBlock’s Traders indicator shows active wallets that have been holding an asset for less than one month. The analysis for ETH shows considerable growth in the last month.
Within the last month, the number of traders in Ethereum increased by over 4.5%.
Another key aspect is that the Ethereum rally is not all about small trades. IntoTheBlock’s Large Transaction analysis provides an indicator of transactions that deviate from the normal average. The indicator reveals a significant increase in the number of large ETH transactions in the last month.
See the Ethereum Large Transactions Stats
The growth in the volume of on-chain transactions greater than $100k has been remarkable, averaging above $10 billion this week, reaching a new all-time high of $66.73 billion on April 7. The volume of these transactions represents an average of 77% of the total daily on-chain volume.
Ethereum continues to look bullish with significant momentum.
Bitcoin Thoughts And Analysis
I expected quite a bit of volatility around the Coinbase listing today, and have not been disappointed. Let's look at the charts
DAILY CHART
As you can see above, price finally exited the trading range to the upside yesterday, which is very bullish. Everyone loves a new all time high. Today has been volatile, with a quick dump in the past hour. Interestingly, the dump was significantly smaller on Coinbase than on Bitstamp - by about $1000. Important to remember that each exchange is effectively its own market, unless stocks. Chart where you trade. Here is the Bitstamp daily chart.
Traders on Bitstamp potentially caught a beautiful entry with a retest of the previous all time high as support. That is the area I highlighted on the Coinbase chart.
I am staying away from Bitcoin trading for now, I want to see the dust settle. Regardless, everything remains bullish and dips are for buying until we see otherwise.
Altcoin Charts
Little to see here! I am not touching alts today with the expected volatility around Bitcoin and the Coinbase listing. We will revisit them in the livestream and tomorrow, but too risky today in my opinion. The only thing I am watching is Ethereum.
ETH/BTC
Interesting to note that Ethereum is showing strength on the Bitcoin pair, even as Bitcoin is volatile. This is a good sign for alts in the coming days if it can maintain this movement. Price is currently breaking through an important local resistance at .03659. A close above should signal quite a bit of bullishness, and a retest of that level as support could be a great long entry with good risk/reward.
Ethereum Push Notification Service (EPNS)
EPNS is a decentralized notification protocol that enables users (wallet addresses) to receive notifications. Using the protocol, any dApp, service, or smart contract can send notifications to users in a platform-agnostic fashion (mobile, tablet, web, user wallets, etc).
Behind EPNS, is the $PUSH native governance token that just went live yesterday. Backed by 35+ top VCs and Web3 Angel investors, EPNS is also collaborating and innovating with some of the hottest projects in the space, including Uniswap and Unstoppable domains. The token can now be bought on Uniswap since the Polkastarter IDO is finished.
For more information, check out the medium above and the links below.
Check out their Twitter here: https://twitter.com/epnsproject
Check out their website here: https://epns.io/
Top DeFi Protocols Are Dominating In TVL
The top 3 DeFi protocols, Compound, Maker, and Uniswap account for almost half of the TVL (total value locked) in decentralized finance. Right now, the TVL is approaching $55B and of that, the top 3 together total $25.52B. If you add together the TVL from the top 4 protocols, together they total more than half.
DeFi has been booming, but the cream is rising to the top - the same pattern that has continued in the broader crypto market. Bitcoin and Ethereum’s market cap together account for 65% of the total $2.2T crypto market cap. And one final point, it's not just the top 3 protocols that work off the Ethereum chain, it is literally almost every single one. In DeFi, Ethereum still is the leader by leaps and bounds.
Hester Peirce Offers Good News On Securities Front
Token Safe Harbor Proposal 2.0, statement by Commissioner Hester M. Peirce, April 13, 2021
"Crypto Mom," one of the SEC’s commissioners, laid out a safe harbor rule for crypto back in February of 2020. Since then, her proposal has been tabled while we have seen a crackdown on XRP as a possible “security," leaving other projects wondering who could be next. Yesterday was a step in the right direction. After listening to the advice of the community, she proposed an improved 2.0 version to the rule.
In her revised plan, teams are given 3 years to either register as a security or work to improve the token so that it isn't a security. Peirce and the SEC will be looking for projects to decentralize, boost liquidity, and ultimately add utility. If the project team has a strong influence over price or inside information that can affect the public’s view, the token will be a security.
In short, Peirce is combatting the issue by forcing projects to decentralize, something that should already be happening in the first place. When Gensler is confirmed, this proposal should be hitting the desks of the other commissioners for a decision.
If you want to read more, the official proposal is linked.
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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.