The TIE Weekly Insights (May 10, 2021)

Despite BTC choppy price action, ETH reaches $4k ATH and Alts surge. Elon Musk Talks Dogecoin on SNL.

Highlights from last week:

  • Elon Musk’s SpaceX Accepts Dogecoin as Payment to Launch a Lunar Mission Next Year
  • Goldman Sachs Leads $15M Investment Round in Coin Metrics
  • VanEck and BetaShares apply for Aussie crypto ETFs as family offices snap up BTC
  • Goldman Sachs Launches Bitcoin Derivatives Trading as ‘Institutional Demand Continues to Grow Significantly’
  • Iran Central Bank Bans Trading of Foreign-mined Bitcoin
  • FBI Puts Warning Signs on Bitcoin ATMs in This US County Following a Scam
  • NYDIG Hires CFO of Bridgewater Associates
  • A New Bitcoin ETF Has Gone Live in Canada
  • Superstar Quarterback Tom Brady Joins Team Bitcoin
  • Defi Project Rari Capital Hacked for $10M
  • Asset Management Giant VanEck Files for Ethereum ETF
  • New SEC Chairman Unveils Policies for Cryptocurrencies, Calls Bitcoin ‘Scarce Store of Value’
  • Gary Vaynerchuk is Launching Art NFTs Linked to Ethereum

Trending Topics in the Media

Market Overview

The total cryptocurrency market cap increased by +12% this past week, climbing from $2.29T to $2.57T. All major assets, besides XRP (-1.3%), performed positively with a median 7 day return of +21.3%. DOGE (+52.3%), BCH (+45%), and LTC (43.5%) experienced the biggest gains. Long-term sentiment remains positive for the majors. With most assets seeing strong break outs, trading volume was up big this week (+66.5%). Tweet volume was up +3.9% with DOGE conversations surging by +184%.

Weekly Performance of the Crypto Market

Similarly to last week, Currencies led the market and experienced the strongest performance throughout this week (+32.3%). Dogecoin was a large contributor to those gains. DeFi (-1%) and NFTs (-13.4%) were the only two sectors to see negative returns. 

Bitcoin Chops While Altcoins Run

The price of BTC traded within a 12.4% range this past week, from the low of $53,000 to the high of $59,559. Bitcoin moved in a rather choppy fashion as it continues to consolidate while altcoins move in a highly volatile manner. Despite a lack of enthusiasm in the charts, we certainly got our fair share of exciting news events. Last week when it was first announced, price reacted positively and moved higher to CME groups announcement of micro Bitcoin futures. On Monday when this product went live, BTC sold off from $58,489 to $53,000 (-0.4%). This news coincided with S&P launching a Bitcoin Index on the same day. Price and sentiment reacted to several other significant developments throughout the week as well.

Ethereum Reaches $4,000

Institutions have become more and more interested in Ethereum as adoption for the asset has steadily grown this year. This week S&P launched a new series of digital asset benchmarks called the S&P Digital Market Indices, which includes S&P Bitcoin Index, Ethereum Index, and Cryptocurrency MegaCap Index. Additionally, VanEck has submitted SEC filings to create an ETH-centered ETF. These recent announcements have helped push ETH to a new all time high of $4,213, giving it a YTD return of +476%. 

Elon Musk Talks Dogecoin on SNL

Dogecoin flooded mainstream media this week after several Elon Musk doings. Musk joked about DOGE calling it a “hustle” during his appearance on SNL. Not only that, but his company SpaceX has announced that it will be launching the “DOGE-1 Mission to the Moon” in Q1 of next year. This mission will be paid for in DOGE. All of this media attention has caused Dogecoin Twitter activity to skyrocket. This weekend we saw almost double the amount of Tweets about DOGE (116k) than about BTC (62.8k).

Solana Ecosystem Passes $1.6B TVL

The Solana ecosystem has seen tremendous growth so far this year, as scaling solutions and competing L1s have been a key theme with the rise in ETH gas fees. With unmatched speeds and low transaction costs, Solana has found itself with a thriving community that seems to be expanding every day with exciting new project launches. Total Value Locked (TVL) in the Solana ecosystem has surged past $1.6B. Raydium, an automated market maker (AMM), currently has the highest TVL at $850M.

Uniswap V3 Mainnet Launch

The highly anticipated Uniswap V3 Mainnet launch has arrived! On Wednesday, Uniswap made the announcement that V3 has went live on Ethereum mainnet. Since the announcement, UNI Tweet volume surged by +65%, despite the price of UNI falling from $42.9 to $38.6 (-10%).

Futures Curve                                          

Image courtesy of @btc_status

Little change from last week’s curve for most exchanges. The CME curve is showing an interesting disconnect as traders sell Sept and buy Oct, possibly discounting volatility for this quarter as Ethereum takes the lead.

Funding                                                                      .

Image courtesy of CryptoQuant

Aggregated funding peaked at 0.07% early Monday morning before plummeting to 0.03% as Ethereum continues to soar while Bitcoin remains relatively stable.



Coinbase and Korean Premiums

Image courtesy of CryptoQuant.com

The Coinbase premium briefly traded at a nearly -$100 discount. Discounts continue to be buying opportunities for Bitcoin despite slow action relative to Ethereum.

The Korean BTC premium remained flat and traded at a stable 10% throughout the week.


Aggregated Open Interest and Liquidations              .

Image courtesy of bybt.com

Open interest remained stable across all exchanges as the story remains dominated by, you guessed it, Ethereum. 

Ethereum Reserves on All Exchanges           

Ethereum reserves on exchanges tells us that there is an ever-decreasing amount of spot Eth available for investors to purchase, as the narrative for scaling heats up this summer.