GM mi ladies and gents! Last week, the market did what it does best, i.e., moved. And hey, for once, the price action was positive. BTC is up ~13% within the past 7 days, with most of the returns being concentrated to the beginning of the past week. Investors hurried to get exposure to the asset on the back of positive expectations with respect to BTC spot ETF applications being approved by the SEC. As most tokens are just higher beta plays on BTC, the rest of the market has a tendency to outperform the largest token on a %-basis, but this didn't take place here. In addition to the market's future expectations becoming more positive, it seems that BTC experienced a gamma squeeze. Market makers were short gamma on BTC, which means that they had to buy more spot in order to stay delta-neutral as the price moved up, fueling the price appreciation even more so. Having said that, there are a few major tokens that have outperformed within the past few. LINK is up almost 50% in the past 14 days. This follows a marketing push by Chainlink to promote its upcoming Staking v0.2 update. Most notably, the update will enlarge the staking pool from 25M LINK to 45M LINK. An exact date for the Staking v0.2 launch hasn't been announced, but Chainlink has signaled the update will take place later in Q4 2023. The launch will happen in three phases, with existing stakers and certain stakeholders receiving priority. Another noteworthy outperformer is SOL, which is up ~50% in the past 14 days and ~70% in the past 30 days. There has lately been a lot of talk about Solana's tech, which seems to have pushed the token back on many people's lists of tokens to go long on. On September 13, Galaxy Asset Management was granted permission to start hedging and selling now insolvent FTX's SOL holdings, and the consensus back then was to short the asset. This trade never materialized as Galaxy didn't start liquidating the position. Now, the largest Solana conference, Solana Breakpoint, is taking place this week, which has historically been a positive catalyst for the token as it captures more mindshare. While the Soylana community is undoubtedly rejoicing, some noteworthy investors have begun advocating SOL as a great short opportunity. Their reasoning is that Galaxy is now incentivized to begin liquidating FTX's position to guarantee the best execution. Moreover, many short liquidations have taken place in recent days as a result of SOL's runup, meaning that trade isn't crowded anymore, and the aggregated funding rate has flipped positive for an extended period for the first since the middle of August. Volatility is on the rise—stay woke and have a great week, BWR fam <3 – Brick |
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We've recently launched governance alerts on GovHub! Don't want to miss important and emerging governance updates? You're in luck. You can now get alerts by email or in-app for assets you subscribe to, even filtering for asset and event types. Never miss another governance catalyst again. Check it out in our here! |
Data storage probably isn't the hottest thing in the depths of the bear market, but DePIN (if Arweave counts as DePIN) has definitely been making moves. For those who need a refresher, Arweave allows permanent data storage across a decentralized network of hardware for a one-time fee. Arweave is adding 4.8x more pieces of data onchain every week than it did at the start of the year, with more than 36M transactions over a week. The largest user of Arweave is RedStone Finance, an oracle service, which uses Arweave to store each data provider's track record and make it permanently available. The next largest users of Arweave are JSON files and images.
While we're on the topic of DePIN, we're trying Uber on the blockchain again. This time, it's Teleport, which has just released its mobile app in the iOS app store. For now, it's invite only, and you'll need a referral key. The value proposition is that in a decentralized system, participants can choose from a variety of apps and servers by many different vendors that communicate with each other. Good luck, and please bring Uber prices down in my city.
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Uniswap's temperature check to invest in Ekubo Protocol has passed. Ekubo is an AMM on Starknet with a similar design as Uniswap V4, featuring a singleton design and supporting extensions (hooks). The protocol is written In Cairo instead of Solidity. The founder, moody, proposed for Uniswap DAO to invest $12M in Ekubo in return for a 20% token stake post-TGE. Ekubo has done, checks notes, $12M in volume on a chain that has $33M in TVL. Granted, Ekubo does the most volume of any DEX on Starknet by a wide margin, but in the grand scheme of DEXs, it isn't that impressive. The largest voter on the temperature check was Jesse Walden from Variant, voting yes with 8M of UNI out of the 21M that voted yes. Given that Ekubo is looking for a $60M post-money valuation, I don't think this is the best deal for Uniswap. If Uniswap really wanted to deploy Uniswap on Starknet, I'm sure they could figure it out for much less than $12M, and they would be able to use their brand and own 100% of Uniswap on Starknet. |
ARB staking could act as a short-term catalyst for the ARB token and overall activity on the Arbitrum network. In the long term, it's a significant step towards transforming the ARB token from merely a governance token into a token with broader utility, at the cost of extra inflation. |
The onchain perps vertical within DeFi has proven its ability to generate substantial revenue and remains a sector poised for growth as more crypto activity migrates from CEXs to onchain venues. Can dYdX, the clear market leader today, thrive as a standalone appchain, or will implementation risk and large supply overhangs be too much for the protocol to overcome? |
Last week's $326 million of inflows into digital asset investment products was the largest since July 2022, with 90% going toward bitcoin vehicles |
In Friday testimony, Bankman-Fried contradicted some testimony from ex-Alameda CEO Caroline Ellison |
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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. Blockworks Research analysts may hold assets mentioned in this report, further outlined in the Firm's Financial Disclosures. |
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