GM, Anon! Welcome to this week's Crypto Market update. The latest market movements feel surreal, with insane price pumps underway, and it's astonishing that the retail sector hasn't even arrived yet. Surprisingly, BTC hasn't crossed the $40K mark, but it seems like it's on track to do so before the year's end, potentially reaching prices of $42K and $45K. Let's dive right in and assess how the market is performing in light of the recent pullback.

Quick note on the BlackRock ETF. On November 15th, BlackRock took a significant step by submitting an S-1 application to the SEC for its Ethereum ETF, specifically targeting the spot market. This S-1 filing is a crucial registration statement that companies must submit to the SEC when seeking to list their ETFs. In summary ETF SOON.

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Alpha Take Of The Week

Don’t be scared of pullbacks anon, it’s all part of the game.

Narratives of the Week: Market Cools Off, How Are Things Looking?

After a few weeks of some pretty crazy price action, the market has taken a few steps back and things are cooling down. Though this isn't true for every coin, TIA skyrocketed after the market initially showed very little interest in it after the airdrop. Let’s make sense of all the recent chaos and reflect on how some crucial on-chain metrics are looking. 

TLDR

• Digital asset investment products had $293M in net inflows last week, bringing the 2023 total to $1.14B.

• Major crypto exchanges experienced significant increases in trading volumes and website traffic in October.

• Retail interest in crypto is still low, indicating the early stages of a potential bull market.

• Various blockchain networks have seen increased activity, with Solana, Polygon, Thorchain, and Avalanche performing well.

• DeFi dominance is on the rise, and derivatives platforms are seeing increased user activity.

• Developer activity has decreased but may pick up as the market recovers.

• Liquid staking remains strong in DeFi, with a market value of around $26B.

• Fee generation has surged, particularly on platforms like Uniswap after the introduction of its fee switches.

Digital asset investment products witnessed net inflows of $293M last week, bringing the year-to-date inflow to $1.14B. This surge in inflows marks 2023 as one of the years with the third-highest yearly inflows on record, largely driven by the past three weeks, which saw nearly $900M in net inflows.

In October, major crypto exchanges experienced significant increases in both spot and derivative trading volumes, as well as website traffic, indicating continued growth and activity within the crypto market. Spot trading volume on major exchanges rose by 57.5% month-on-month, reaching a new high since April of the same year.

Google trends indicate that retail and general interest is still almost non-existent at the moment. This is likely the very early stages of the bull market and expectations should be managed accordingly. 

Volume across most chains has increased in the last 7 days significantly. Some of the best performers include Solana, Polygon, Thorchain, and Avalanche amongst others. It’s curious to note that chains that had been experiencing significant volumes prior such as Stark and zkSync due to their planned airdrops have seen a pullback. Users are chasing gains on other chains and taking advantage of all the activity in the different spheres such as trading, gaming, and NFTs.

Take note that Arbitrum is leading the way with L2s, its volume is surging again, this could be due to the ongoing Arbitrum Odyssey for users, and the incentivized use of Arbiturm protocols in return for $ARB. 

Volume across all the most popular DEXs is up significantly. Solana native DEXs such as Orca and Raydium are worth noting. Solana has been one of the best performers in this recent surge. 

DeFi dominance is rapidly climbing with the increased activity and volume across most chains. 

Derivatives platforms have seen a noticeable increase in user activity, while many options protocols have surprisingly seen a drop in user volume, with Aevo, Rysk Finance, and Typus Finance being the exceptions.

Full-time developer activity across all chains has seen a noticeable decrease in numbers. This is concerning, but it is possible this metric picks up as capital flows back into the market and protocols begin releasing new products and grow their teams once again. 

Liquid staking continues to dominate the DeFi market, with the entire LST market being valued at around $26B. Most protocols have experienced inflows in the last 7 days, but have experienced a slight downtick since the market cooled off. 

The amount of fees being generated by protocols and chains over the last 30 days has experienced a surge. Uniswap has experienced a noticeable increase since the introduction of its fee switch on certain pools. 

In summary, critical metrics that are indicative of the market's overall health are mostly positive, suggesting growth and renewed interest in the market. Currently, this activity appears to be limited to experienced crypto users with a higher risk tolerance, while retail investors have yet to join the market. 

Important indicators like developer activity have not yet shown positive trends, but it is likely that by the time these metrics improve, the signs of a bull market will be evident to all. The most lucrative gains and advantageous positions often occur during these early stages before a significant surge in activity and flood of retail.

Project Spotlight: Ondo Finance

The recent developments involving Ondo Finance and Axelar are significant for several reasons, so Ondo Finance is in the spotlight this week! 

• Introduction of Ondo Bridge: This is a cross-chain solution that allows for the easy movement of tokenized assets, like USDY, across different blockchain networks. The Ondo Bridge, inspired by Circle’s Cross-Chain Transfer Protocol (CCTP), represents a significant step forward in simplifying the transfer of tokenized financial instruments across various blockchains.

• USDY Stablecoin: USDY is a stablecoin backed by short-term U.S. treasuries and bank demand deposits. This backing by real-world assets adds a layer of security and stability to the coin, differentiating it from other stablecoins that may not have such strong backing.

• Cross-Chain Functionality and Security: By partnering with Axelar, Ondo Finance can manage USDY supply across different blockchain networks. This is done through a "burn-and-mint" mechanism, which ensures that tokens remain native to each network and mitigates the risks typically associated with wrapped assets. This functionality is crucial for maintaining the integrity and stability of the token across various platforms.

• Enhanced Liquidity and Arbitrage Opportunities: The integration allows for unified secondary market liquidity, meaning traders can capitalize on token price differences across decentralized exchanges. This encourages price stability and opens up new opportunities for arbitrage.

• Broader Implications for DeFi and Traditional Finance: The collaboration between Ondo and Axelar, and the introduction of stablecoins like USDY, signifies a growing demand for stable, yield-generating financial instruments in the DeFi space. This trend bridges the gap between traditional finance (with assets like U.S. Treasuries) and decentralized finance.

• Ondo’s Market Position: Ondo Finance, with a significant market share in the tokenized securities niche and over $200M in total value locked, is positioned as a leading player in this space. Their approach to tokenizing real-world assets and offering secure, yield-bearing instruments could set a precedent in the industry.

In summary, these developments highlight a significant advancement in integrating traditional financial instruments with the flexibility and innovation of decentralized finance, potentially leading to greater stability, security, and market efficiency in the DeFi sector.

DeFi, L1s & L2s

News

• Ether.fi 's liquid staking token, eETH, has gone live on mainnet. Currently, only whitelisted users can mint eETH. ether.fi will continue to whitelist more users to mint over the upcoming days. 

• Ondo Finance has established a partnership with Axelar to create a short-term US Treasury bill-backed yield-bearing stablecoin.

• Uniswap Labs has made over $1M in the 27 days since turning on the 0.15% fee switch for the Uniswap Protocol last month

• Tensor reveals snapshot of holders for potential airdrop.

• Baby Shark Universe is coming to Sei.

• Aave resumed business as usual following security concerns.

• Opyn co-founders step down.

• Near Foundation partners with Eigen Labs. 

• South Korean crypto exchange Bithumb is reportedly planning an IPO on Kosdaq in the second half of 2025, with Samsung Securities chosen as its underwriter

• Reddit token surged following admin plans to move forward.

• JPMorgan's JPM Coin now offers a new feature allowing companies to automate fund transfers based on preset conditions, enhancing their ability to manage cash flow and respond to financial requirements efficiently.

• Nasdaq files proposal seeking SEC rule change to allow spot Ethereum ETF.

• Midas is introducing a new stablecoin backed by U.S. Treasuries, aiming to participate in the DeFi space by offering tokenized ownership of these assets.

• Ryan Wyatt, formerly President at Polygon Labs and previously Head of Gaming at YouTube for seven years, has assumed the role of Chief Growth Officer at Optimism.

• Vertex Protocol, a derivatives decentralized exchange (DEX) operating on Arbitrum, has unveiled the tokenomics details for their upcoming native token, VRTX.

• Pika Protocol to retire Pika token.

• Dopex V2: CLAMM is live.

• Nocturne is now live on mainnet.

• ENS launch EVM gateway.

• Butter Finance cancels launch.

• Circle has launched version 2.2 of its USDC and EURC stablecoins, incorporating enhancements in account abstraction, security, and reduced gas fees.

• Ankr partners with Optimism to launch a rollup as a service product .

• JP Morgan’s Onyx taps Avalanche for tokenized funds.

• CoinMarketCap is introducing CMC Labs, a Web3 startup accelerator program.

• EigenLayer community selects its next LSTs.

• Sushi is now live on Filecoin.

• Stephane Gosselin, co-founder of Flashbots and now CEO of Frontier Research, has introduced "Alfred," a Telegram bot designed to simplify token swaps on the Ethereum network while guarding against MEV.

• RepubliK is making significant updates to both its $RPK token and RepubliK platform, focusing on anti-bot measures, content quality, and user engagement.

• Infrared and Kodiak chosen to partner with Berachain.

• ZachXBT has disclosed that the Twitter account associated with the GROK token had previously been utilized in at least one other fraudulent scheme.

• A proposal to retroactively fund successful Arbitrum STIP (StarkWare Improvement Proposal) submissions concluded on the November 14th at 2:00 PM UTC. 

• A fake report of a filing for a BlackRock iShares XRP Trust entity in Delaware circulated. Upon initial dissemination through prominent crypto news outlets, XRP experienced a +20% surge but later retraced.

There has been a notable decline in BTC and ETH holdings on exchanges: This development highlights users' growing caution about prolonged asset storage on these platforms, likely stemming from recent hacking incidents, particularly evident following the FTX crash

On-chain metrics such as volume and fees indicate that the Bitcoin system is heating up, and activity is increasing.

Recent data analysis has revealed that around 70% of the Bitcoin supply has remained inactive for over a year, reaching an all-time high in terms of dormancy. This trend is not limited to a single cohort but is observed across various timeframes, with 57% of the supply untouched for over two years, 41% for three years, and even 30% for over five years. 

Blue Chip and Majors Overview

Solana

Solana has exceeded expectations by delivering an impressive return of approximately 312.76% since its June lows. The Solana ecosystem has demonstrated exceptional performance across various metrics, with notable gains in the gaming and NFT sectors, exemplified by collections like Mad Lads. Furthermore, at one point Grayscale’s Solana Trust (GSOL) was trading at around 283% premium compared to the spot SOL price, it has since pulled back in the recent cool down though. 

Moreover, the top 10 protocols on Solana have experienced significant appreciation, accompanied by surges in both volume and liquidity. Two noteworthy tokens are Orca and Marinade which have appreciated +348% and 166% respectively. 

The quantity of Sol within the ecosystem has witnessed a noticeable increase, while daily active addresses have begun an upward ascent.

Celestia has emerged as one of the recent standout performers, defying initial expectations. Over the past week, TIA has experienced a remarkable appreciation of approximately 152%, despite a subdued start following the airdrop, during which its price traded within a narrow range for a period. 

What is particularly remarkable is the relatively low level of activity observed within the ecosystem, indicating that it is still in its early stages of development. Many anticipate that this token will continue to reach new highs, with a strong possibility of securing a position among the top 50 or even the top 20 cryptos during the upcoming bullish market cycle.

• CEL the native utility crypto of the now-defunct Celsius Network,  witnessed a substantial rise of 128% in the last 30 days, reaching levels not seen since April.

• LUNA recently surged by 35% in a single night and is poised to re-enter the top 100 cryptos by market capitalization.

• HEX increased by over 160% in the past month. It's worth noting that HEX founder Richard Heart is facing securities fraud charges by the SEC.

• Shiba Inu has experienced a 10% surge in its price over the past week, showing notable growth since October.

• The recent performance of Dydx has been nothing short of remarkable. With the launch of version 4, it has seen tops of nearly 2x. 

• FTT stands out as one of this week's top performers, registering a staggering 240% increase in value, driven by news speculating about the potential restart of FTX. While the viability of this option remains uncertain, users are taking the gamble. 

• Matic has appreciated around 86% since October, and the ecosystem has seen a dramatic increase in activity, especially with gaming. 

• It appears that investors are gravitating towards assets commanding a Grayscale premium, with FIL being another notable play by investors. FIL has garnered attention likely due to endorsements from influential figures like Arthur Hayes.

Degen Corner

• Useful testnets and betas that users can check out include Fantom Sonic Open Testnet,  ibMEV beta, and Synonym Testnet

• Ethena is introducing a novel concept by enabling users to stake ETH and create digital bonds, uniquely denominated in the world's primary currency, the US Dollar. Listen to the latest podcast on this new protocol that has been endorsed by industry leaders such as Arthur Hayes. 

• BONK has appreciated almost 2000% since October.

• Appetite for newer tokens among smart money is declining, and a shift from meme coin investments to more fundamental projects is evident.

• Smart money made significant investments in tokens like GROK after a dip caused by negative news related to the token after ZachXBT revealed that the project was created by an account associated with scams. 

• STARBASE, a new launch, attracted $64k in smart money investments but retained only 16% of investors.

• Notable new launches include Possum, Dogeai, and Mubi, each receiving $220k+ in smart money investments, with Possum offering upfront yield on LSTs and Mubi acting as a bridging project.

• The new launch of AI.com attracted $72k in smart money interest but sold most of its holdings.

• Key smart money holdings remain consistent with BANANA, GROK, Real Smurf Cat, BITCOIN, JOE, PEPE, RLB, OLAS, and SPX, with no newer projects having significant smart money holdings except for PAAL, which stands out with over $1mm in smart money holdings.

NFTs & Gaming

News

• LootRush releases update to allow users to list NFTs securely for rent.

• EverQuest,  Call of Duty vets unveil metaverse game Avalon.

• PancakeSwap release NFT gaming marketplace.

• Phantom Galaxies launches in early access on Epic Games Store and Steam.

• Aptos Foundation is partnering with Seoul Land, a leading South Korean amusement park and media group.

• Gaming keys giant G2A launches 'Geekverse' NFT marketplace.

• Disney to launch NFT Platform in partnership with Dapper Labs.

• Immutable announce zkEVM Testnet Regenesis.

• NHL breakaway hockey NFT collectibles platform opens to the public.

• 'Mutant Ape Planet' NFT developer pleaded guilty in $3M fraud.

Traffic to NFT-related site have experienced a slump in the last 30D. Only Magic Eden and Top Shot experiencing an increase in volume.

Project Spotlight: Lens V2

Lens V2 is a significant advancement in the world of crypto social networks, aiming to redefine ownership in the realm of social media. Launched in early 2022, Lens Protocol, built on the Polygon blockchain, introduced a revolutionary concept where creators can retain ownership of their social connections, shifting away from centralized and siloed social networks. 

• With the introduction of Lens V2 in July 2023, this protocol takes a major step forward in enhancing the user experience and solidifying its role as a user-owned, portable, and immutable social graph.

• Lens V2 brings about several key improvements. It shifts social operations from address-based to profile-based interactions, simplifying interactions within the network. 

• Profiles are now managed as ERC-721 NFTs, providing greater flexibility, and profiles themselves can act as wallets, enabling direct value accrual from various actions. 

• Additionally, Lens V2 introduces Open Actions, allowing developers to integrate external smart contract actions directly within the Lens platform, promoting innovation and flexibility. 

• Moreover, the concept of Collective Value Sharing fosters a collaborative environment where all participants within the social graph can benefit from the value generated within the ecosystem, encouraging growth and engagement.

In summary: While Lens V2 is currently in a closed beta phase, it represents a notable advancement in the crypto social space, challenging traditional social media platforms by reimagining digital interactions, decentralizing control, and offering new opportunities for creators and developers. If you wish to partake in the Lens ecosystem be sure to buy a Lens handle on Opensea. 

Blue Chip Overview

Traditional NFTs have been on a steady ascent, mirroring the overall market's upward trend. In an unexpected twist, Mad Lads has dethroned Bored Ape Yacht Club from its top position in terms of trading volume.

Ethereum maintains its stronghold on trading volume, while it's worth highlighting the noticeable surge in Bitcoin's trading volume. The growing trend of NFTs on the Bitcoin network appears to be a lasting and significant development.

Alien Worlds has garnered significant attention from users as an NFT metaverse game, residing primarily on the WAX blockchain. It's worth noting that this intriguing game also offers functionality on other blockchain networks, including Ethereum and BNB Smart Chain.

Last week, we delved into the top games on Ethereum, Polygon, and BNB blockchains. This week, let's shift our focus to the exciting world of GameFi as it unfolds on Arbitrum. Currently, the statistics might not paint the most optimistic picture for Arbitrum, but there's hope on the horizon with the introduction of its dedicated Nitro chain, designed with gaming and various user experiences in mind, so this trend could reverse and pick up. 

Degen Corner

• Genopets has introduced a significant update, featuring a new racing mini-game, an in-app shop, and enhanced meal and toy options. This expansion of the Solana-based app indicates its evolving role as a comprehensive ecosystem for Genopets enthusiasts.

• The Walking Dead Empires has initiated an ongoing playtest, introducing new features and player progression. This never-ending playtest is a significant step towards the official release, marking the beginning of permanent game persistence. Players can utilize their NFTs in this playtest, with the requirement to migrate them to the Gala Chain first, a process that incurs minimal ETH transfer fees.

• Pixelmon has exciting news to share as they unveil a strategic partnership with Horizen Labs Venture, the same company behind the successful ApeCoin launch. For NFT owners, this partnership may bring exciting benefits and opportunities in the future.

• CryptoSlam has introduced an innovative NFT-related solution called SlamAI, providing users access to their vast web3 data reservoir.

• Splinterlands has announced the official release date for Land-based gameplay in their 1.5 update. While this launch is just the beginning of their broader plans, landowners will have the opportunity to stake cards on their plots, enabling them to harvest Grain, SPS tokens, and research points. 

• Gods Unchained is streamlining their login process by adopting the Immutable Passport in late November/early December. Players will need to use this new login method, which simplifies sign-in without requiring passwords or reCAPTCHA. Early adopters may receive a special Passport Cardback as a reward. This initial phase focuses on login convenience and doesn't require the Immutable Passport as a wallet for gameplay. Signup for a passport here. 

• The gaming sector continues to sizzle this week, showcasing impressive performances from tokens like ILV (+36%), IMX (+45%), PRIME (+48%), RON (+30%), and MC (currently migrating to BEAM, with a +80% gain).

• NFTFi, a platform for NFT lending on Ethereum, has witnessed remarkable growth, boasting a substantial TVL  increase of 103.14%.

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