01 Feb 2023 REPORT
Market Overview:
This report provides an update on our portfolio for the month of January 2023.
- The administration is mitigating cryptocurrency risks by developing a framework for safe, responsible digital asset development and ramping up enforcement through guidance and redoubled efforts to fight fraud and illicit finance.
- Congress is urged to expand regulators’ powers, enhance transparency, fund law enforcement, and limit financial system risks through cryptocurrencies.
The administration supports secure, beneficial technological innovations and is driving forward its digital-assets framework while working with Congress for safeguards. - US Senate Banking Committee to Hold ‘Crypto Crash’ Hearing This Month
The US Senate Banking Committee will hold a hearing on Feb. 14 to examine financial system protections from the dangers seen in digital assets.
The panel calls the hearing “Crypto Crash: Why Financial System Safeguards are Needed for Digital Assets”
The hearing demonstrates the urgency of crypto issues in Congress and aims to create a bipartisan regulatory framework for digital assets. - India, as the current president of the G-20, has revealed details of the ongoing work on crypto regulations with the IMF’s involvement.
- The IMF is working on a paper, in consultation with India, that will focus on aspects of monetary policy and the policy approach to crypto assets.
India’s goal is to bring the progress of the IMF paper from consensus at the G-20 to the Financial Stability Board’s crypto assets working group and then to all countries for a global policy on crypto assets. - Berkshire Hathaway Vice Chairman, Charlie Munger, has called for a ban on cryptocurrencies in the United States.
- Munger compared cryptocurrencies to gambling contracts and believes they are a result of a gap in regulation.
He has consistently expressed skepticism towards cryptocurrencies in the past, calling them an “investment in nothing”. - Amazon is launching a digital assets enterprise, including a NFT initiative in the spring.
The initiative focuses on blockchain-based gaming and NFT applications, with plans to engage Amazon customers in playing crypto games and earning NFTs.
The platform is set to run out of Amazon proper, and details about it, including personnel and goals, are still unfolding.
Digital Assets
01 Feb 2023 REPORT
Bitcoin
Ordinals: new project that lets users put NFT-like assets on Bitcoin blockchain. Surging activity this week: largest number of single-day mints. Network fees growing due to increased activity.
FDV: $483.48b a +37.46% increase in the last 30 days
Fees: $8.14M monthly revenue from fees paid by users. a -3.50% decrease in the last month. Transaction fees are paid to miners.
Active addresses, The sum count of unique addresses that were active in the network either as a recipient or originator of a ledger change): 944,348 a +12.12% change from 30 days ago. All parties in a ledger change action (recipients and originators) are counted. Individual addresses are not double-counted.
Ethereum
Ethereum has launched a new testnet called “Zhejiang” to test withdrawal functionality before implementation on the main network.
Ethereum is the second largest cryptocurrency with a market capitalization of $190B and a +30.46% increase in the last 30 days.
Ethereum is a leader in decentralized finance with $28.17B locked in DeFi and a +25.18% increase in the last month, representing 59.45% of total value locked in all chains.
High demand for Ethereum services is evidenced by increased monthly revenue from fees paid by users ($113.82M, +56.74% increase).
Ethereum has over 519,000 active addresses participating in the network, representing a 9.79% increase from 30 days ago.
Ethereum is an ever-growing platform of decentralized applications and services.
Polygon (Matic)
Polygon is among the biggest gainers in the year’s first month after recording significant wins.
Polygon remains in the top 10 cryptocurrencies by market capitalization with a value of $9.5 billion.
The recent price action is due to widespread anticipation for the mainnet release of Polygon’s zkEVM upgrade, which is expected to verify large transactions faster and put Ethereum on par with Visa in terms of transaction processing speed.
FDV is at $10.80 billion, +43.16% increase in the last 30 days, and Total Value Locked in DeFi is at $1.21 billion, +22.66% increase in the last month.
Revenue continues to grow with $38.75k in monthly revenue from fees paid by users, which are partially burnt and partially paid to validators. MATIC holders take a cut of the transaction fees.
The network has 82,730 active addresses and is in a state of rapid growth, with partnerships with major companies including Disney, Starbucks, etc.
Polygon is actively developing cutting-edge technology such as NFTs, AR, and AI to expand its reach and capabilities.
01 Feb 2023 REPORT
Uniswap
A16z voted against a proposal to deploy the latest iteration of Uniswap on the BNB Chain, using all 15 million of its UNI. The proposal would use the Wormhole bridge for the deployment, while A16z supports LayerZero. The vote will conclude on Feb 10 and the debate is partly about security, with the involvement of two major VC firms, A16z and Jump Crypto, also a topic of discussion.
FDV stands at $6.36B with a +24.29% increase in the last 30 days and TVL has increased by +15.79% to $3.80B.
In the last 30 days, the trading fees paid by traders were $37.50M.
All metrics show a clear trend of growth for Uniswap and the decentralized finance ecosystem as a whole.
Aave
Aave recently launched version 3 of its platform on Ethereum
The update includes improved risk management, increased capital efficiency, and lower gas fees. Features an optimized flash loan function, increased leverage ratio in eMode, and was audited by Open Zeppelin and PeckShield. Aims to enhance the platform and improve user retention
Total Value Locked (TVL) in the last 30 days is $4.47B with a FDV of $1.30B, a 56.10% increase
Monthly fees paid by users have increased by 10.49% with a total monthly revenue of 24.53%
14,464 active addresses in the last month
Synthetix.
The Synthetix network has seen an increase in value and usage in the last 30 days
55.41% increase in Fully Diluted Value (FDV)
53.78% increase in Total Value Locked (TVL)
Locked value into the protocol’s smart contracts reached $385.83 million
The increase was driven by the growing demand for derivatives and exposure to real- world assets by users
The protocol saw $108 million in monthly fees being paid by users in the last 30 days. All fees are taken as revenue by SNX holders who own and govern the protocol
Active addresses increased to 4,967, indicating a growing user base
The overall trend in the past 30 days has been bullish
The increase in value locked, fees, and revenue, as well as the growing active address base, suggests the Synthetix network is well-positioned for continued growth and providing users with innovative financial products.
Chainlink
Chainlink has a fully diluted market cap of $6.91B, with a 22.94% increase in the last 30 days
The network is supported by 141,497 active addresses and a total value secured of 11.17B, representing 45.75% of all total value secured in oracles
Early Stage
01 Feb 2023 REPORT
Umee:
Released its latest upgrade, v4.0.0, including Historacle, an on-chain tool to prevent price manipulation
Historacle calculates a true, manipulation-resistant price based on data from multiple sources and periods, stored on-chain
Soon to be enabled on Ojo blockchain as a data feed product for Cosmos DeFi ecosystem. The upgrade will allow for the listing of more IBC tokens, including Liquid Staking tokens and Cosmos stablecoins. Making the Cosmos DeFi ecosystem more dynamic
Picasso Network:
Trading of PICA on Pablo began on December 28th. First time users can trade PICA on a DEX, marking a new era of liquidity within the Composable ecosystem
First teams in the Cosmos ecosystem that are testing Centauri’s Picasso <> Cosmos: Osmosis, Stride, Babylon, Duality.
Subsocial:
Won auction #37 on the Polkadot blockchain with a self-funded bid of 15,000 DOT
First step in the team’s journey to Polkadot and a major milestone for the Subsocial project, showing commitment to building a secure, vibrant, and censorship-resistant social network
CLST:
Completed a multi-million dollar raise led by Spartan Group, Coinbase Ventures, Kraken Ventures, and top-tier investors
Funds to be used to expand CLST’s presence in the institutional digital asset lending space and its mission to provide institutional-grade access and liquidity to digital assets The raise will help CLST continue its mission of providing institutional-grade access and liquidity to digital assets.
DefiYield
Integrated 45 chains; Despite the bear market, the company has been working on improvements and has integrated 45 chains.
Building network monitoring tool
Hired 3 more developers to enhance team capabilities.
Despite the bear market, the company has been working on improvements and has integrated 45 chains.
DY Built an alpha version of a security browser extension, added support for 10 more chains and NFTs to its security tool, and is building a network monitoring tool real-time monitoring and alerting solution which listens for abnormal on-chain activities.
DefiYield had completed its private token sale but has delayed its TGE (token generation event) due to the down market, as they aim to maximize value for investors.
The team is committed to a long-term approach and will launch the TGE when the market shows signs of strength.
The company will continue to provide updates on its progress through its blog.
https://drive.google.com/file/d/1hR3AkGoTrNgxWBKKSXWH5q_ljihO6gfO/view?usp=sharing
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