🟣 Perpmuda

Despite the drawdown yesterday, BTC continues to hold onto the $28.8k level. According to Technical Analysis Wizards out there, this is an important level to hold in order to see continued strength. As much as we like to talk about fundamentals (yes, even in crypto), the market is mostly a human psychology barometer. Remember, the market is dictated by the marginal sellers and buyers. Even if you don't believe in the TA religion, enough people do that it often creates a self-fulfilling prophecy.

Despite the drawdown yesterday, BTC continues to hold onto the $28.8k level. According to Technical Analysis Wizards out there, this is an important level to hold in order to see continued strength. As much as we like to talk about fundamentals (yes, even in crypto), the market is mostly a human psychology barometer. Remember, the market is dictated by the marginal sellers and buyers. Even if you don't believe in the TA religion, enough people do that it often creates a self-fulfilling prophecy. On the back of increased regulatory scrutiny here in the US, it was announced yesterday that Coinbase received its Bermuda regulatory license and plans to launch an offshore derivatives exchange that will offer perpetual futures as soon as next week. Crypto derivatives make up as much as 60% of all crypto trade volume, and are 80% of Binance's total trade volume alone.  There is clearly an appetite for crypto derivatives, and as the most trusted name in the space, Coinbase has a real opportunity to eat into its competitors' market share as long as it can execute. Nothing I say is financial advice, but in my personal opinion, this is bullish COIN stock. In interplanetary spaceflight news, SpaceX's long-awaited Starship test launch resulted in a "rapid unscheduled disassembly before stage separation." I think that's fancy talk for "oops…it blew up." Mind you, this was a test flight and likely wasn't supposed to go perfectly smoothly. The team will take back their lessons learned from this with plans of a future test launch in the coming months. What does this have to do with crypto? Haven't you learned, everything remotely related to Elon Musk has to do with crypto! In particular, the eighth largest cryptocurrency by market cap, DOGE. Unsurprisingly, DOGE is down -5% since the SpaceX blow up..err, I mean, the "rapid unscheduled disassembly before stage separation." Unlike DOGE, PEPE has no baggage from a future trillionaire. Bullish PEPE tbh.  To end on a serious note, in our Tuesday newsletter we brought up the recent exploit that has drained countless wallets for over 5000+ ETH, in addition to many other tokens and NFTs across mulitple chains. The exploit has yet to be figured out, but it has affected people in the industry with great understanding of wallet security.  Make sure to always use a hardware wallet and never store your seed phrase on your computer, phone, or on the cloud. Do not give a sketchy app permission to your main wallet, and always double check you are sending assets to the correct address. In an open source world, exploits will unfortunately continue to happen, and there are a lot of bad actors out there. Always stay diligent and never compromise on your wallet security. - EffortCapital   If you remember the NFT boom of 2021, you will remember the ridiculous NFT sales that occurred. Pictures of rocks were going left and right for high 5 figures, those Gundam-inspired NFTs in the MekaVerse collection were selling for 500 ETH a piece, and land with good locations on the Axie Infinity map were going for a million dollars. NFTs aren't as hot today. If anything, they are pretty dead. Most collections that were trading for 6 figures during the peak bull market are likely trading at a few hundred dollars today. The picks and shovels that the initial NFT craze was built on, OpenSea, has seen its daily traders drop down to pre-summer 2021 NFT craze numbers.  Perhaps there are a few reasons for that. Everyone is likely still a lot poorer now than they were in the middle of 2021, and they don't have stimulus checks to chuck at digital images of monkeys. We don't have 3AC's NFT fund, Starry Night Capital, buying up all the NFTs. In fact, all the NFTs tied up in the 3AC collapse will be sold by Sotheby's, meaning that we will see some of the rarest Ringers and Fidenzas hit the open market soon for you to buy.    Or perhaps, it's because the latest NFT collections look like this. Admittedly, even though I went to art classes as a child and am definitely not good at drawing anything, I think I can safely say that regardless of whether you're a fan of romanticism, impressionism or contemporary art, the Krusty Kritters collection above looks less than ideal. But alas, art is in the eye of the beholder, I'm just glad I'm not a holder.   DAO treasuries had a rough 2022. Many DAO's had more than 90% of their treasuries in their native tokens, which are all essentially high beta ETH. So when the market started tanking, this meant that these DAO treasuries experienced a slow grind down to a shell of what they once were. Having a high beta is not nice when the market is going down, but certainly much preferred when the market is going up. In fact, DAO treasuries have increased by $12.3B in the past month and stand at a total of $26.2B today. The largest DAO treasuries today are Optimism at $6.3B, Arbitrum at $5.3B, and BitDAO at $2.6B. Perhaps it is time for DAOs to put their treasuries to use, or at the very least start thinking about treasury diversification and management. If a publicly listed company had 100% of its balance sheet in its own stock, I'm pretty sure shareholders would have sued them to the end of the earth when the entire stock market was tanking. Silent Protocol: Enabling Confidential DeFi on Ethereum Silent Protocol aims to bring privacy to Ethereum dapps without sacrificing application composability or UX. Read More → Skip Protocol: Sovereign MEV Skip Protocol is building toward a sovereign MEV value chain where a protocol, and its community, decide how a block is constructed and how to distribute MEV across all stakeholders. Read More → 'Safe Harbor' Proposal Resurfaces in CoinFund President's Call for Crypto Laws Legislation must form the bedrock for digital financial policy, the CFTC Global Markets Advisory Committee member said, and laws around stablecoins could be first Read More → Web3 Onboarding Just Got Easier: ENS Users Can Buy .ETH Name With Fiat MoonPay accepts 43 different local currencies and is in over 160 countries Read More → The insights, views and outlooks presented in the report are not to be taken as financial advice. Blockworks Research analysts are not registered broker/dealers or financial advisors. 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