0/ In today's Delphi Daily, we explore the relief rally occurring across markets, L1s battling for liquidity and L2s gaining steam.
For a deeper dive 🧵👇
1/ Market Update-
🔹 The relief rally could be partly driven by a perceived higher probability for government intervention to mitigate the potential spillover effects of an Evergrande collapse
2/ Over the past 30 days, ETH has struggled to keep up with other L1 tokens.
A likely cause for this has been the flurry of announcements regarding new incentive programs on these L1s to attract liquidity and users.
4/ @Avalancheavax’s TVL growth in particular has been steady, even amidst the broader market weakness that we’ve experienced in September.
At the application level, Trader Joe has seen the largest inflows, with its TVL having grown ~57% over the last 7 days.
5/ L2s have continued to gain steam, with them now comprising ~1% of total daily gas spend on Ethereum.
6/ An optimal L2 should offer high throughput off-chain and an efficient / small footprint on-chain.
dYdX has had incredible growth recently in terms of trading activity yet still only accounts for ~6% of total L2 gas consumption due to the efficiency of @StarkWareLtd’s proofs.
0/ In today’s Delphi Daily, we analyzed a wide variety of crypto topics
Long term holders remain unfazed as crypto slides alongside other asset classes, even as overall market sentiment shifts to fear. Meanwhile, NFTs continue to generate more interest than DeFi on Google search
1/ Market Update-
🔹Today was yet another volatile day for crypto. There was a furious leg down during the Asian open, followed by a V-shaped recovery.
🔹Since then, markets have been choppy and indecisive.
2/ Despite experiencing a heavy sell-off over the last few days, long-term holders seem to be unfazed and continue to HODL.
Therefore, this leg down was likely caused by speculators taking a risk-off stance in anticipation of macro and regulatory headline risk factors.
0/ In today’s Delphi Daily, we examined the current fear in the market and the minor leverage shakeout.
We looked at funding rates, liquidations, and volatility for this assessment of the market.
For a deeper dive 🧵👇
1/ Market Update-
🔹Today has been brutal across global financial markets, likely from fears surrounding China’s real estate market.
🔹The only non-stablecoin in the top 100 that avoided going into the red today was OMG.
2/ Ever since the correction a few weeks ago, funding rates for BTC perpetuals have been slightly depressed.
We noted last week that sentiment was fragile, and this is yet another sign of that. Price rebounded a bit from the lows, but funding is still negative.
0/ In today’s Delphi Daily, we examined the state of crypto derivatives.
We looked at open interest, BTC options, and trading of leveraged funds.
For a deeper dive into the state of derivatives 🧵👇
1/ Quick Market Update-
🔹BTC and ETH are finding strength, but what’s more surprising is today’s biggest winners are DeFi blue chips.
🔹DeFi coins have seen muted price action for months now, and a strong trend could catch several who ditched the sector.
2/ Looking at the global open interest, we see a concentration of capital at $50K, $60K, $80K, and $100K.
This doesn’t necessarily infer bullish sentiment, as for every ape buying an out-of-the-money call, there’s a seller who believes the option will expire worthless.