GMGM, happy Monday, let's get after it relentlessly this week. The weekend was filled with talk about ETFs, Solana, RWAs, and Arbitrum DeFi. Slightly positive price action has somehow led to euphoria among many crypto market participants (lol). The echo bubble is real, but it's nice to see some activity and green in the markets. We're so back. In the ETF world, shout out to VanEck, setting a stellar precedent for TradFi operating in crypto. This morning they launched $EFUT, an Ethereum futures-based ETF. Last week they announced that 10% of profit from this product will be directed to Protocol Guild, a collective of Ethereum contributors. Love the energy from VanEck #EthereumAligned. I think one question everyone is asking today is why Solana and its native assets are absolutely ripping? As astutely put by WestieCapital, the answer is clearly "more buyers than sellers." Maybe trying to tie events to price action is a misstep and rather this should be looked at as SOL and related tokens gaining value on fundamentals following an extremely tough year in the news for the ecosystem. Additionally, on the forming narrative front, it's interesting to see real world assets gaining steam in the common mindshare, with MKR leading the way. One pump we can ascribe some reasoning to is Arbitrum DeFi, as 50M ARB gets ready to be distributed to projects in the ecosystem. Camelot's $GRAIL is up ~50% in 7D, GMX at ~20%, $RAM at 200%, and plenty of other examples. We broke down every project that made a proposal in a spreadsheet. Notably, there is nearly 150M in ARB requested with only 50M to go around. Major proof of efficient market hypothesis in crypto as these incentives have been set to pass for weeks. -Matt Fiebach |
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$DYDX is up ~10% over the past week, as v4 is expected to go live during the second week of October. With v4 dYdX will transition into an application-specific blockchain in the Cosmos ecosystem. With this move, $DYDX will have a new mechanism for value accrual as a PoS token with trading fees distributed to stakers. Notably, the dYdX community approved a temperature check to allocate $20M in DYDX from the dYdX treasury for a 6-month Launch Incentives Program to incentivize deposits, trading and staking on v4. |
Vertex Protocol, a hybrid orderbook-AMM perpetuals exchange on Arbitrum we have covered extensively, is in its final epoch prior to token generation. Traders on Vertex receive pre-allocated $VRTX tokens based on their fees paid. $VRTX is Vertex's governance token, which will allow users to access revenue sharing and trading fee discounts. During the initial token phase, 9% of the total VRTX supply (90M VRTX) will be distributed to users. Currently, the majority of rewards are allocated to BTC-USD & BTC-PERP (20% of rewards) and ETH-USD & ETH-PERP pairs (20% of rewards). Following this, Vertex has earmarked 37% of the total VRTX supply to incentivize trading. Tokens accrued during this phase can be claimed immediately at a 50% discount - otherwise, they will vest linearly over 3 months. Notably, Vertex has also applied for a grant from Arbitrum Foundation (as part of Arbitrum's Short Term Incentives Plan) and could potentially be receiving up to 4.5M ARB - which they've proposed to be used to offset trading fees on their platform. This would make Vertex a potentially very lucrative farming opportunity. Current estimates have traders receiving 1 $VRTX per $0.08 in fees paid. According to Vertex's documentation, 21.5% (215M $VRTX) of supply will be circulating at genesis, which implies that traders are investing at $80M FDV and $17.2M MC. |
This analysis focuses on financial metrics for general-purpose L1 blockchains. In many ways, L1s should be viewed as an entirely new asset class more comparable to digital economies than traditional businesses. L1s are the core infrastructure enabling the creation of new-age businesses like onchain protocols. |
Base has doubled-down on its commitment to the Superchain vision, has shown early signs of success with nearly $400M in TVL, and has become home to novel dapps such as friend.tech which has seen significant traction. |
Filing comes after the firm's August court win against the SEC, and as fund groups get set to offer the first ether futures ETFs |
Coinbase said it views Singapore as a crucial market for growth of the crypto and Web3 economy |
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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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