The TIE Weekly Insights (Apr 19, 2021)

Bitcoin hits record high days before Coinbase Nasdaq Listing. Elon Musk Sends DOGE Flying Once Again.

Some highlights from last week:

  • Bitcoin Approaches Record High Days Before Coinbase Nasdaq Listing
  • TIME Magazine Gets into Bitcoin: Partners with Grayscale, Will Hold BTC on Balance Sheet
  • Mick Jagger and Dave Grohl Collaborate with 3D Artist Extraweg on NFT Charity Auction
  • NSA Whistleblower Edward Snowden Sells NFT for $5.4M
  • Thailand’s Fourth-Largest Bank by Assets Exploring DeFi Offering
  • Bitcoin Investment Firm NYDIG Raises Additional $100M
  • Mike Novogratz’s Galaxy Digital Files for Bitcoin ETF
  • THORChain Launches Multichain Chaosnet, Enabling Cross-Chain Swaps
  • Republican House Leader says Regulators Shouldn’t Ignore Bitcoin’s Growth
  • DeFi Technologies Announces Co-Investment with Pomp Investments into SOVRYN

Coinbase Media Mentions

Media mentions of Coinbase surged to all-time highs ahead of its direct listing this week.

Market Overview

It has been a historic week for the cryptocurrency market. The price of Bitcoin climbed to record highs leading up to the highly anticipated Coinbase listing on Nasdaq. Coinbase, the largest U.S cryptocurrency exchange, closed at $328 per share in Nasdaq debut, valuing the crypto exchange at $85.8B. Despite this exciting event, the total crypto market cap slightly decreased by -0.65% over the course of the week. We saw prices retrace heavily over the weekend, wiping away any gains made throughout the week. The median weekly return for major assets was +1.4%, with DOGE (+323.5%) standing out as the clear star. Long term sentiment remains high, with a median sentiment score of 74.7. Trading volume (+44.9%) was up big this week, as every major asset increased in volume besides XRP (-5.5%). Tweet volume was up a mild +5.8%.

Weekly Performance of the Crypto Market

Only two sectors experienced positive returns throughout the week. Currencies were up +11%, with DOGE leading the way. Smart Contracts increased slightly by +1.3%. The NFT sector took the biggest hit at -13.3%.

Bitcoin Reaches a New All Time High Ahead of Coinbase Listing on Nasdaq

The price of Bitcoin traded within a 27.3%, or $14,000 range over the week, spiking early on Tuesday to a new all time high of $64,854 and then falling to the low of $50,931 on Sunday. Short term sentiment started off negative, only flipping positive after news broke of Mike Novagratz’s Galaxy Digital filing for a Bitcoin ETF. Then BTC climbed higher leading up to the Coinbase public listing, with sentiment surging around the event. The market took a turn on Wednesday, as we saw prices start slowing trending downwards with social conversations becoming increasingly more negative. Once the weekend hit, BTC nose dived under $55,000.

Elon Musk Sends DOGE Flying Once Again

All it takes is one Elon Musk meme to set off the DOGE community.

Dogecoin has seen outrageous returns throughout the early months of 2021, even racking up +237% so far in April. The latest spikes in DOGE’s valuation has been driven by high social media interest, with Musk sharing random tweets about meme coin that end up causing a frenzy. DOGE has become the 2nd most popular cryptocurrency on Twitter, currently accounting for 23.2% of total crypto tweets.

Here is a hilarious chart. If you had put each of the 3 U.S. stimulus checks into Dogecoin, it would be worth over $300,000 right now.

Solana Ecosystem’s Growth

The SOL ecosystem continues to strengthen with many new projects being built on the network along with the guided support of the entire Solana Foundation. The price of SOL has increased by an impressive +1694% YTD, climbing from $1.8 on January 1st to over $32.2 today. Additionally, the number of Tweets being sent out about SOL has surged by +996%, with over 600 Tweets being sent out on a daily basis.

Google Cloud Integrates Band Protocol

On Thursday, Band Protocol announced that Google Cloud has integrated the Band Protocol’s Standard Dataset, live on Google BigQuery, to enable immediate and accurate analysis of financial time series data. This news sparked excitement within the community, as the price of BAND surged +13.5% within an hour! Tweet volume has steadily climbed higher since the announcement, increasing +140% from 499 to 1,198.

Derivatives Overview

Futures Curve

Image courtesy of @cryptarbitrage

Futures premiums across the board reset and even went into backwardation for the first time since the March 2020 crash as the crypto market posted negative returns over the weekend. You only had moments to close the basis trade however, as premiums quickly rebounded and spreads tightened after the drop.

Chart: snapshot of backwardation in June contracts and futures dislocation during the sell-off

Funding

Image courtesy of CryptoQuant

Aggregated funding peaked above 0.2% as Bitcoin broke all-time highs, but quickly reset and plummeted to -0.046% amidst the sell-off.

Premiums

Coinbase premiums traded at a premium for most of the week as Bitcoin broke all-time highs. Binance priced $1500 below Coinbase off of excessive liquidations and created the premium spike you see in the chart above. Premiums are hovering between 0 and ~$50 as the market struggles to regain its footing.

The Grayscale premium showed little improvement during the week, ending at -11.38%. It continues to backslide after losing its premium in late February.

Image courtesy of bybt.com

Despite the sell-off, the Korean BTC premium expanded to 22% over the weekend.

Open Interest and Liquidations

Aggregated open interest dropped $6B since its peak on April 13th, with Binance taking a 32% haircut, dropping from $5.27B to $3.55B.

Over $8B in liquidations occurred in a 4-hour timespan on April 17th, $4.12B coming from Binance alone! FTX, Deribit and Bitfinex continue to be some of the most unlevered and safest exchanges to trade on.

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Notable News

Bitcoin Hits Record High before Coinbase Listing

TIME Magazine Gets Into Bitcoin: Partners With Grayscale, Will Hold BTC on Balance Sheet

Contact us for a demo of our SigDev platform to view all market-moving events in real-time.

This Week’s Podcast Episodes

Koinos: The Fee-less and Infinitely Upgradeable Blockchain Ready to Take Crypto by Storm
Andrew Levine (CEO of Koinos Group) joins The TIE’s Fundamental Value Podcast to discuss the limitations of smart-contract platforms today, the Justin Sun – Steem debacle, and why the Koinos team is so wholeheartedly convinced that a fee-less, modular upgradable, and multi-lingual blockchain is needed. Listen here Into the Metaverse with Marc Weinstein (Mechanism Capital)
Marc Weinstein (Head of Platform at Mechanism Capital) joins The TIE’s Fundamental Value Podcast to discuss why he thinks the metaverse is such a vast investment opportunity, identifying the next big early stage crypto project, maintaining conviction through volatility, and sizing positions. Listen here