This Week in Crypto
Dear Houdini,
Markets entered another week of resistance, with Bitcoin closing at $20.6K on Monday, close to where it started a week before. Despite a brief jump over the $21K and $1.6K marks that lasted for three days, Bitcoin and Ethereum barely moved over the past week, increasing by 0.5% and decreasing by 0.2% respectively. The biggest winner of last week’s rally was Polygon, which increased in returns by 43% after getting monumental institutional recognition as JPMorgan traded tokenized cash deposits on the Polygon blockchain last week, which we’ll delve deeper into in the DeFi section. Other winners, as seen in the figure below were Binance Coin and Lido which increased in returns by nearly 4% and 13% respectively.
Figure 1: TVL and price development of major crypto sectors
Artboard 1
Source: 21Shares, Coingecko, DeFi Llama
Key takeaways:
Binance Acquires FTX
The Fed seized more than $3B in Bitcoin stolen from the Silk Road in 2012.
Hetzner kicks one-fifth of Solana validators off the cloud hosting platform
JPMorgan and Singapore’s Central Bank testing DeFi’s Infrastructure
Spot and Derivatives Markets
Figure 2:
glassnode-studio_bitcoin-futures-perpetual-funding-rate (1)
Source: Glassnode
The chart above plots the average funding rate (in %) set by exchanges for perpetual futures contracts. A negative funding rate means that short positions have to pay long positions periodically and usually indicates a bearish sentiment since more short traders are dominant, and vice versa. As seen in Figure 2, the funding rates of most exchanges have risen above the zero mark over the past week, except for those of Kraken and FTX, who are currently at a down downtrend, with the latter getting acquired by Binance.
On-chain Indicators
Figure 3:
glassnode-studio_ethereum-percent-of-supply-in-smart-contracts
Source: Glassnode
The amount of Ethereum powering smart contracts are on the rise, as shown in Figure 3. Nearly 30% of the total supply of Ethereum is held in smart contracts. This indicates that the utility behind Ethereum’s value is intensifying, which means that the cryptoasset’s dollar figure will in turn follow suit.
Next Week’s Calendar
CAL_Nov8
Read full report here
The information provided does not constitute a prospectus or other offering material and does not contain or constitute an offer to sell or a solicitation of any offer to buy securities in any jurisdiction. Some of the information published herein may contain forward-looking statements. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those in the forward-looking statements as a result of various factors. The information contained herein may not be considered as economic, legal, tax or other advice and users are cautioned to base investment decisions or other decisions solely on the content hereof.
21Shares, Pelikanstrasse 37, Zürich, Switzerland 8001, Switzerland
Manage preferences
This Week in Crypto
Dear Houdini,
Markets entered another week of resistance, with Bitcoin closing at $20.6K on Monday, close to where it started a week before. Despite a brief jump over the $21K and $1.6K marks that lasted for three days, Bitcoin and Ethereum barely moved over the past week, increasing by 0.5% and decreasing by 0.2% respectively. The biggest winner of last week’s rally was Polygon, which increased in returns by 43% after getting monumental institutional recognition as JPMorgan traded tokenized cash deposits on the Polygon blockchain last week, which we’ll delve deeper into in the DeFi section. Other winners, as seen in the figure below were Binance Coin and Lido which increased in returns by nearly 4% and 13% respectively.
Figure 1: TVL and price development of major crypto sectors
Artboard 1
Source: 21Shares, Coingecko, DeFi Llama
Key takeaways:
Binance Acquires FTX
The Fed seized more than $3B in Bitcoin stolen from the Silk Road in 2012.
Hetzner kicks one-fifth of Solana validators off the cloud hosting platform
JPMorgan and Singapore’s Central Bank testing DeFi’s Infrastructure
Spot and Derivatives Markets
Figure 2:
glassnode-studio_bitcoin-futures-perpetual-funding-rate (1)
Source: Glassnode
The chart above plots the average funding rate (in %) set by exchanges for perpetual futures contracts. A negative funding rate means that short positions have to pay long positions periodically and usually indicates a bearish sentiment since more short traders are dominant, and vice versa. As seen in Figure 2, the funding rates of most exchanges have risen above the zero mark over the past week, except for those of Kraken and FTX, who are currently at a down downtrend, with the latter getting acquired by Binance.
On-chain Indicators
Figure 3:
glassnode-studio_ethereum-percent-of-supply-in-smart-contracts
Source: Glassnode
The amount of Ethereum powering smart contracts are on the rise, as shown in Figure 3. Nearly 30% of the total supply of Ethereum is held in smart contracts. This indicates that the utility behind Ethereum’s value is intensifying, which means that the cryptoasset’s dollar figure will in turn follow suit.
Next Week’s Calendar
CAL_Nov8
Read full report here
The information provided does not constitute a prospectus or other offering material and does not contain or constitute an offer to sell or a solicitation of any offer to buy securities in any jurisdiction. Some of the information published herein may contain forward-looking statements. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those in the forward-looking statements as a result of various factors. The information contained herein may not be considered as economic, legal, tax or other advice and users are cautioned to base investment decisions or other decisions solely on the content hereof.
21Shares, Pelikanstrasse 37, Zürich, Switzerland 8001, Switzerland
Manage preferences
Arabic
French
Spanish
Portuguese
Deutsch
Turkish
Dutch
Italiano
Russian
Romaian
Portuguese (Brazil)
Greek