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29 Sep, 11 tweets, 4 min read
0/ In today’s Delphi Daily, we examine the near-term bull case for ETH, and offer the slightest bit of hopium.

We analyzed ETH open interest, options buying, and usage levels.

For a deeper dive 🧵👇
1/ Market Update-

🔹It’s a relieving sight to see green across the board for crypto today, although it isn’t a very convincing bounce for majors such as BTC and ETH.

🔹Coins like DYDX (+12.1%), AR (+11.6%), AXS (+10.5%), and BNB (+10.3%), are leading this bounce at the moment
2/ OI for ETH futures and options is down nearly 40% since the start of September. The market is crippled by fear, but, thankfully, there is a silver lining.

Options open interest fell as dramatically as it did at the end of this month due to a large number of recent expiries.
3/ A large amount of put buying in the Oct. 8 options expiry caused the short-term put-call skew to shoot up.

As a result, for one week and one month options, buying calls provide a better risk-reward than usual. And, calls are implied to be cheaper than puts.
4/ With realized volatility higher than implied volatility for one month options there is a variance discount.

Those buying options are able to do so at a cheaper volatility than the market is actually seeing.

There’s an opportunity for ETH bulls who believe a bounce is due.
5/ Key on-chain data points for ETH still look fairly bullish.

Transaction fees are still on the higher side, albeit fairly volatile.

Daily interactions with smart contracts have stabilized at an elevated level.
6/ Tweets of the day!

@Ripple launches $250M ecosystem fund to drive NFTs on the XRP Ledger

7/ @Sushiswap’s NFT marketplace completes 3 security audits

8/ After the NBA and La Liga, @DapperLabs has partnered with the NFL

9/ For the full report that inspired today’s thread 👇👇

delphidigital.io/reports/an-oun…
10/ Crypto moves fast. Delphi has you covered. Sign up here to get Delphi's free daily newsletter delivered right to your inbox every weekday

delphidigital.io/daily/

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More from @Delphi_Digital

Delphi Digital Profile picture
28 Sep
0/ Today’s Delphi Daily focused on Bitcoin’s current market structure, miner fees, and lightning Network activity.

For a deeper dive 🧵👇 Image
1/ Market Update-

Virtually all of crypto is in the red today.

The Sep. 21st bottom remains intact, but the market still looks fairly weak.

For now, the signs point to a ranging market, so it’s probably wise to prepare yourself for some incredibly frustrating price action.
2/ Last Friday saw the largest expiration of BTC options since Apr. 2021. This isn’t all too surprising, as quarter-end expirations tend to be larger than regular monthly expirations.

However, OI tends to recover quite dramatically over the course of the month post-expiration. Image
Read 11 tweets
Delphi Digital Profile picture
27 Sep
0/ In today’s Delphi Daily, we examined ETH retesting range heights and the market’s current fear.

In addition, we analyzed @dydxprotocol flipping @coinbase’s total volume and Perp DEX token shining.

For a deeper dive 🧵👇 Image
1/ Market Update-

🔹Macro and regulatory fears continue to linger as most of the market has been in the red today.

🔹Crypto markets dipped on Friday following news that China banned crypto (again), before recovering slightly heading into Monday. Image
2/ Unless a clear catalyst or shift in market structure takes place, ETH is likely to continue trading within this broad range.

Note that ETH is currently trading near the range high, which means if the market continues ranging, then a swing back to the lows is likely. Image
Read 11 tweets
Delphi Digital Profile picture
23 Sep
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.
Read 12 tweets
Delphi Digital Profile picture
22 Sep
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 Image
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. Image
Read 11 tweets
Delphi Digital Profile picture
21 Sep
In today’s Delphi Daily, we looked at some signs of seasonal market exhaustion.

We examined historical BTC trends, the recent short-term basis spike, market sentiment, and the performance of L1 tokens.

For a deeper dive 🧵👇 Image
1/ Market Update-

🔹Today was yet another dicey day for crypto, with a second (and furious) leg down at midnight UTC.

🔹Since then, markets have bounced a bit.

🔹A handful of tokens are in the green today, but the majority are down as fear cripples investors across the globe
2/ Q4 is usually a good quarter for markets after a slow, consolidated Q3.

But considering this year deviated from otherwise strong quarterly trends, there is, of course, a possibility that Q4 ends in tears as well. Image
Read 11 tweets
Delphi Digital Profile picture
20 Sep
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 🧵👇 Image
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. Image
Read 11 tweets

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