While #Solana's outperformance has waned in the past month, it is still the best-performing network in the past 12–18 months by a country mile. Do the fundamentals justify the outperformance, or is it just a result of market hype and speculation?
🧵on Solana's network health and frameworks for valuing #blockchain assets. While narratives and information asymmetry still have primacy in #crypto markets, the nascent field of blockchain fundamentals provides investors with a framework to cut through some of the noise and evaluate asset performance and relative valuation within the ecosystem.

#Bitcoin is facing some macro headwinds, with several indicators in my macro state regime model turning negative in recent weeks. However, the longer term liquidity cycle remains extremely favorable for $BTC and #crypto in general.

Lets dive in 🧵 Over the past several weeks, most of the macro/ liquidity-related factors relevant to the Bitcoin price have turned lower.

Some of these factors are more important than others.

The #Bitcoin energy narrative is flipping! A new note out this morning on the Bloomberg Terminal looks at the rapid rise of sustainable energy sources in $BTC mining
🧵 Since 2016, I have noticed the attacks on Bitcoin's energy usage intensify. I will put aside the piousness of the argument that one form of energy use is better than another (that's a thread for another time)

Liquidity & #Bitcoin are inexorably linked. For in-depth analysis on this topic you cant go past @42MacroWeather @RaoulGMI @crossbordercap @MacroAlf

This 🧵 explores one specific liquidity measure in order to understand whether it it has "signal value" for $BTC @42MacroWeather @RaoulGMI @crossbordercap @MacroAlf Firstly, there is no settled definition of liquidity and opinions on the topic vary wildly. The US Financial Liquidity Index is the most widely vaunted on Twitter, so I have chosen this as the focus. You can find it on the @TheTerminal by running the ticker {.US_LIQI G Index}

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Just when the #DeFi was potentially forming a bottom, the $CRV exploit exposes chronic flaws with the system. Ultimately, its 100% human error - the code itself & the founder's greed. This could impact valns as DeFi generates substantial fees (rev's) for L1s 2/4
DeFi % of Fees has increased from 30 to 50% this yr. Whilst everyone is chasing stops to force liquidate boosting DeFi activity (revenue), the fiasco is causing contagion, undermining confidence in one of PoS blockchain's major primitives
@Artemis__xyz

Introducing Bloomberg Intelligence's new Crypto Ecosystem (PoS Assets) Fundamentals Dashboard. We're expanding coverage beyond the two assets that we considered to be institutional-grade quality (BTC, ETH) to the wider proof-of-stake (PoS) ecosystem. A 🧵 on why 2/8 Blockchain S-curve Still in Infancy:
Beyond speculation, only a fraction of the 200-300m estimated users are using it for other use cases. This is about to change! Zkproofs for privacy, ETH Layer-2s for scaling...

Is Ethereum's cycle low in the rearview mirror ?

For a couple of reasons YTD positive price momentum indicates that the capitulation low last June was likely the cycle trough for the asset

🧵 In the last cycle, ETH hit its cycle low 11mths after peak(-90%). It took 18mths of volatile sideways price action before it broke out following Bitcoin's halving in 2020. Our chameleon momentum indicator on the daily timeframe has turned positive (green)

Ethereum's Layer-2 Bull Cycle has begun. And with the supply side boost from the Merge in the rearview, the market should hone in on the demand dynamics, which are beginning to drive significant network effects. Ethereum on-chain fundamentals update 🧵 Given the severity of the global monetary tightening, Ethereum, over the last 12-months, has performed commendably across some of the network adoption metrics we analyze in our fundamentals dashboard.

The Bitcoin monetary network, ambivalent to the machinations of central bank policy, continues to grow stronger by the day. But with macro driving the marginal buyer of all risk assets lets explore the subtle global liquidity cues which will could forewarn of a cycle low 🧵 Despite the worst macro environment in decades, #BTCs hash-rate has hit a new all-time high, demonstrating a resilience that the fiat system has been short in throughout 2022.

US Equity market breadth is worth watching. If Advance/Decline Lines are leading, its a sign that price is likely to follow through in the direction of the A/D Line. Divergences tend to tell us when the prevailing trend is weakening/potential for a reversal 🧵 1. Nasdaq Comp Advance/Decline Line is leading price lower, breaking June support

#Ethereum demand has yet to turn a corner despite a spike in usage metrics over the past week, fueled by merge-related activity. We don't expect to see the price improve until the bleed in priority fees stabilizes.
#ETH Adoption Overview🧵 There was a Merge-related Spike as Demand-side metrics increased in our #Ethereum fundamentals dashboard this past week vs -22% price decline

What drives #crypto assets?
Answer: network adoption.
But drives network adoption?
Answer: Intrinsic (e.g. technology) & External (macro, societal) factors.
Today let's focus in on the external i.e. macro, and a critical indicator for liquidity🧵 Whilst the intrinsic & extrinsic forces are structural and mainly self-reinforcing, macro forces can periodically slow adoption and suppress network activity.