0/ How has the recent volatility affected DeFi lending?
In today’s Delphi Daily, we examined on-chain leverage, stablecoin growth, ZK-rollup’s increased usage, and Ethereum DEX aggregators.
For a deeper dive 🧵👇
1/ Stablecoins grew substantially the past month, with the Top 5 Stablecoin Marketcap growing from $129B to just under $150B.
$USDT and $USDC were responsible for most of the supply growth, with USDC growing by $7.8B and USDT by $6B.
2/ With the ZK-Rollup narrative popping off the past few weeks, we can see that users are moving funds over to projects like @Loopringorg and @zkSync to test it out.
Since the start of Nov, unique users grew by ~85k and deposits grew by ~$74.5M, the fastest pace seen yet.
3/ Given the volatile markets over the past month, it seems that on-chain leverage users are relatively unfazed.
@MakerDAO has seen consistent loan growth (~$1B) since the beginning of November while @Aaveaave and @Compoundfinance have been generally flat over the same period.
4/ @1inch has been one of the go-to DEX aggregators on Ethereum since last year.
@Bancor has been more reliant on having its volume referred by 1inch, floating between 15-30% of volume daily; @Sushiswap and @Uniswap were on the lower end at 5-10%.
0/ Terra is now the third largest blockchain by TVL.
In today’s Delphi Digital, we analyzed TVL on different L1 blockchains, the p/s of the main DEXs, $UST supply, and @lidofinance benefitting from $LUNA price.
It’s important to note that TVL numbers are highly reflexive alongside native token prices as they are commonly used as collateral in DeFi and as base pairs for DEXes.
2/ The increase in $UST Supply from under $3b to $7b across mid-November was due to this proposal to mint UST with $LUNA in the community pool to grow the Terra ecosystem through UST usage.
UST did another ~$1b of growth in circulating supply after 19th November.
In today’s Delphi Daily, a full post-mortem on the recent volatility. We examine the data on open interest, bid-ask spreads, and funding rates.
For more 🧵👇
1/ Leveraged longs took a senseless beating over the last week and it was perhaps overdue.
BTC’s open interest on perps/futures fell from just under $30B in late November to just over $15B today.
Sentiment has taken a turn for the worse.
2/ From the November peak to today, $BTC open interest is down a whopping 50%.
Too many leveraged longs and a lack of spot buying is a sign that a market is peaking. When there’s nobody left to buy/long, price momentum to the upside is severely limited.
0/ Jerome Powell’s hawkish comments sent markets for a spin.
In today’s Delphi Daily, we explore the results of Fed Chairman Jerome Powell’s comments, $LUNA ATH, monthly $ETH emissions, and Ethereum DEX trading volume.
For a deeper dive 🧵👇
1/ US equity markets opened higher today, recovering from yesterday’s dip incited by Chairman Powell’s comments.
This doesn’t mean the Fed will stop expanding its balance sheet, but rather implies an acceleration of the rate at which they plan to decrease their monthly purchases
2/ $LUNA hit a fresh all-time high yesterday.
LUNA’s circulating supply saw a sharp spike on Nov. 11, caused by an increase in the amount of LUNA to be burned from the community pool over the next two weeks.
Approximately 88.675M LUNA will be burned over this period.
0/ ETH/BTC has shown strength, but can it break out from here?
In today’s Delphi Daily, we analyzed ETH/BTC testing trendlines, open interest, market sentiment, and @loopringorg’s L2 growth.
For a deeper dive 🧵👇
1/ ETH/BTC is testing the upper trend line for the third time in the past year.
ETH/BTC has shown considerable strength as of late, having mostly stayed around the upper bound of its established range.
$ETH generally outperforms $BTC when market sentiment is positive.
2/ Crypto markets have been ravaged by fear in the past month, but futures traders seem to be unfazed by it.
With BTC retracing the past week, the Fear & Greed Index nearly hit a state of extreme fear. However, after a little dip, OI bounced back hard within a few days.
In today’s Delphi Daily, we examined the price action of the top 10 crypto assets, analyzed options & implied volatility, and looked at recent trading volumes.
For more 🧵👇
1/ When it rains in crypto, it pours. And while $BTC holding up well isn’t a surprise, seeing $BNB and $ETH find strength during these conditions definitely is.
$AVAX, which was the top performer until a few days ago, has taken quite the beating.
2/ The DVOL index, which measures implied volatility (IV) on a 30-day forward basis, has actually gone down in recent days.
IV is a measure of market uncertainty; when things get dicey, it tends to rise, and when things look unidirectional, IV usually falls.