Sam Martin

ETH and BTC Cede Market Share to AVAX, SOL, LUNA and BSC: Markets Wrap

<div id="highlights-block_60c9fc7f1690b" class="highlights">
        <ul>
                <li>CPI gauge prints above expectations; labor market remains tight</li>
                <li>Bitcoin recovers quickly after a brief dip below $54,000</li>
            </ul>
    
</div>



<h3>Markets Wrap Highlights</h3>



<p>Macro news stole the spotlight today as CPI printed above expectations at 5.4% year-over-year.</p>



<p>The labor market remains very tight. </p>



<p>Meanwhile, the Bitcoin hashrate in China is officially at zero, and the bitcoin basis trade is alive and well. </p>



<p>Top NFT projects on Ethereum have surged in volume.</p>



<p>DEX volume topped out in May of this year.</p>



<p><strong>Latest in Macro:</strong></p>



<ul><li>S&amp;P 500: 4,363, +.30%</li><li>NASDAQ: 14,571, +.73%</li><li>Gold: $1,793, +1.86%</li><li>WTI Crude Oil: $80.60, -.05%</li><li>10-Year Treasury: 1.542%, -.038%</li></ul>



<p><strong>Latest in Crypto:</strong></p>



<ul><li>BTC: $57,492, +2.48%</li><li>ETH: $3,589, +2.84%</li><li>ETH/BTC: .0627, +0.65%</li><li>BTC.D: 45.23%, -.17%</li></ul>



<h3>Macro Highlights</h3>



<p>Consumer Price Inflation (CPI), which is a basket of goods that is tracked to obtain the rate of change in consumer prices, came in hotter than expected at 5.4% year-over-year versus the estimated 5.3%. Core inflation, which excludes anything food or energy related, came in as expected at 4.0%. Most notably, the housing component is putting upward pressure on the headline CPI number. The breakdown of Core CPI is shown below:</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img decoding="async" loading="lazy" width="788" height="378" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/CPI-heatmap-@AndreasSteno.png" alt="" class="wp-image-9341" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/CPI-heatmap-@AndreasSteno.png?w=788 788w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/CPI-heatmap-@AndreasSteno.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/CPI-heatmap-@AndreasSteno.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/CPI-heatmap-@AndreasSteno.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/CPI-heatmap-@AndreasSteno.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/CPI-heatmap-@AndreasSteno.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/CPI-heatmap-@AndreasSteno.png?w=80 80w" sizes="(max-width: 788px) 100vw, 788px" /><figcaption>Source: @AndreasSteno</figcaption></figure></div>



<p>As a result of higher inflation and low nominal rates on the 10-year Treasury, 10-year breakeven rates have been on the rise over the last month. The labor market also remains very tight as a record number of people have <a href="https://www.reuters.com/world/us/us-job-openings-fall-still-high-104-million-august-2021-10-12/" target="_blank" rel="noreferrer noopener">quit</a> their jobs, putting upward pressure on wage growth and exacerbating supply chain constraints. </p>



<p>The market is now pricing in a Fed rate hike in 2022 on expectations that higher inflation may persist. The below chart shows the National Federation of Independent business planned price hikes versus the median CPI numbers in the US. </p>



<h3>Bitcoin</h3>



<p>China has lost all of its hash power, which is viewed as a long-term positive by a vast majority of bitcoin supporters. Numbers from the Cambridge Center for Alternative Finance puts the hash power in the US at 35.4% as of August, up 16.9% from April, Blockworks<a href="https://cms.blockworks.co/chinas-global-bitcoin-hash-power-slips-to-0-heres-why/" target="_blank" rel="noreferrer noopener"> reported.</a> </p>



<p>&#8220;It&#8217;s great to hear that the US has overtaken China in terms of hash power. Regulators should be thrilled that the US is now an industry leader in bitcoin mining.&#8221; David Tawil, president of ProChain Capital told Blockworks. &#8220;Now, lawmakers need to collaboratively frame and develop regulations to protect market participants and support growth.&#8221;</p>



<p>Bitcoin price quickly recovered after briefly trading below $54,000 yesterday, providing tactically bullish traders stuck on the sidelines a solid spot for a long. </p>



<p>Futures open interest has been on the rise alongside basis. This could be indicative of institutional activity, given the risk-free basis trade that they can put on. </p>



<p>Noelle Acheson, head of market insights at Genesis Trading explained to Blockworks, &#8220;Since the spot price and the futures price have to converge as the futures contract expiry date approaches, investors can use the &#8216;basis trade&#8217; to lock in that basis difference as a risk-free return. They buy spot and simultaneously sell the futures contract. As the expiration date nears, they could unwind that trade by selling their spot and buying back their futures exposure to lock in the basis.&#8221;</p>



<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="525" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/basis-futz-1024x525.jpg" alt="" class="wp-image-9355" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/basis-futz-1024x525.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/basis-futz-1024x525.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/basis-futz-1024x525.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/basis-futz-1024x525.jpg?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/basis-futz-1024x525.jpg?w=2048 2048w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/basis-futz-1024x525.jpg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/basis-futz-1024x525.jpg?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/basis-futz-1024x525.jpg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/basis-futz-1024x525.jpg?w=80 80w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Skew.com</figcaption></figure>



<h3>Non-Fungible Tokens (NFTs)</h3>



<p>Solana floor prices are underwater today while volume traded of top Ethereum NFT projects has skyrocketed over the last 24 hours. It&#8217;s worth noting that CryptoPunks and CrypToadz seven-day volume remains down drastically in percentage terms. </p>



<p>Trading data from <a href="https://opensea.io/rankings" target="_blank" rel="noreferrer noopener">OpenSea</a> and <a href="https://solanalysis.com" target="_blank" rel="noreferrer noopener">Solanalysis</a> of some of the top Solana and Ethereum projects can be found in the photos below:</p>



<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="342" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-13-at-4.07.51-PM-1024x342.png" alt="" class="wp-image-9363" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-13-at-4.07.51-PM-1024x342.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-13-at-4.07.51-PM-1024x342.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-13-at-4.07.51-PM-1024x342.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-13-at-4.07.51-PM-1024x342.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-13-at-4.07.51-PM-1024x342.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-13-at-4.07.51-PM-1024x342.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-13-at-4.07.51-PM-1024x342.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-13-at-4.07.51-PM-1024x342.png?w=1261 1261w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Top Ethereum Projects</figcaption></figure>



<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="289" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-13-at-4.03.08-PM-1024x289.png" alt="" class="wp-image-9362" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-13-at-4.03.08-PM-1024x289.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-13-at-4.03.08-PM-1024x289.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-13-at-4.03.08-PM-1024x289.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-13-at-4.03.08-PM-1024x289.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-13-at-4.03.08-PM-1024x289.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-13-at-4.03.08-PM-1024x289.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-13-at-4.03.08-PM-1024x289.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-13-at-4.03.08-PM-1024x289.png?w=1232 1232w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Top Solana Projects </figcaption></figure>



<h3>Ethereum Decentralized Exchange (DEX) Volume </h3>



<ul><li>There was a narrative back in May when <a href="https://cms.blockworks.co/china-mining-exodus-seen-as-positive-for-bitcoin/" target="_blank" rel="noreferrer noopener">China banned Bitcoin</a> mining that DEX volumes were exploding due to the news. However, since then we have seen volumes flat from June through September. Please note that October is only half-way through, hence the seemingly low total in the final column on the graph below. </li><li>On May 17, Uniswap (UNI) had a 52.5% trading volume market share amongst DEXs. It has since grown its dominance to 68.8%. </li><li>Over the last seven days, Ethereum DEX volume is $15 billion. </li></ul>



<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="621" height="477" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/@Hagaetc.png" alt="" class="wp-image-9364" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/@Hagaetc.png?w=621 621w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/@Hagaetc.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/@Hagaetc.png?w=335 335w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/@Hagaetc.png?w=340 340w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/@Hagaetc.png?w=285 285w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/@Hagaetc.png?w=80 80w" sizes="(max-width: 621px) 100vw, 621px" /><figcaption>Source: Dune.xyz</figcaption></figure>



<h3>Other Notable News</h3>



<ul><li>US Securities and Exchange Commissioner Hester Peirce gave a <a href="https://www.sec.gov/news/speech/peirce-2021-10-08" target="_blank" rel="noreferrer noopener">speech at the Texas Blockchain Summit</a>. </li><li><a href="https://a16z.com/2021/10/13/an-agenda-for-the-future-of-the-internet/" target="_blank" rel="noreferrer noopener">a16z shared their take</a> on how future cryptocurrency regulation should be implemented.  </li><li>Coinbase wants a seat at the regulatory table, but others do too, <a href="https://cms.blockworks.co/coinbase-wants-a-seat-at-the-regulatory-table-so-does-everyone-else/" target="_blank" rel="noreferrer noopener">Blockworks reported earlier. </a></li></ul>



<p>That is all for today, folks. Let&#8217;s do this again at the same time tomorrow. </p>



<hr class="wp-block-separator"/>



<p><strong>Are you a UK or EU reader that can&#8217;t get enough investor-focused content on digital assets? <a target="_blank" href="https://cms.blockworks.co/events/das-london/" rel="noreferrer noopener">Join us</a>&nbsp;in London on November 15th and 16th for the Digital Asset Summit (DAS) London. Use code ARTICLE for £75 off your ticket.&nbsp;<a target="_blank" href="https://cms.blockworks.co/events/das-london/" rel="noreferrer noopener">Buy it now</a>.</strong></p>



<hr class="wp-block-separator"/>


Bitcoin Quickly Recovers After Dip; Macro Steals the Show: Markets Wrap

<div id="highlights-block_60c9fc7f1690b" class="highlights">
        <ul>
                <li>Coinbase plans to launch an NFT marketplace, challenging crypto native secondaries</li>
                <li>Bitcoin retreats with perpetual funding rates on the rise</li>
            </ul>
    
</div>



<h3>Markets Wrap Highlights</h3>



<ul><li>Bitcoin retreats below $55,000 while perpetual funding rates are on the rise.</li><li>A bitcoin ETF may not translate into rising prices.</li><li>Coinbase plans to launch an NFT marketplace, raising the question of what will happen to current market leaders such as Opensea, Solanart and Digital Eyes.</li><li>MetaMask posted impressive revenue numbers. </li><li>Binance creates $1 billion fund to further crypto adoption. </li></ul>



<p><strong>Latest in Macro:</strong></p>



<ul><li>S&amp;P 500: 4,350, -.24%</li><li>NASDAQ: 14,465, -.14%</li><li>Gold: $1,762, +.43%</li><li>WTI Crude Oil: $80.49, -.05%</li><li>10-Year Treasury: 1.568%, -.037%</li></ul>



<p><strong>Latest in Crypto:</strong></p>



<ul><li>BTC: $55,126, -3.67%</li><li>ETH: $3,479, -1.53%</li><li>ETH/BTC: .0625, +1.45%</li><li>BTC.D: 45.46%, -1.02%</li></ul>



<h3>Bitcoin Retreats</h3>



<p>Today, bitcoin retreats back below $55,000 after reaching a high of $57,833 on Monday. BTC has been notching higher-lows since breaching $30,000 back in July, so the general uptrend remains intact. With how volatile Bitcoin can be, it&#8217;s important to zoom out when looking at price momentum. </p>



<p>While the fundamentals discussed in <a href="https://cms.blockworks.co/bitcoin-outperforms-ftx-launches-nft-marketplace-markets-wrap/" target="_blank" rel="noreferrer noopener">yesterday&#8217;s wrap</a> remain unchanged, perpetual funding rates have crept higher despite the drop in price. When funding rates are positive, longs are paying the shorts to keep positions open. This tells us that speculators are getting aggressive &#8216;longing the dip&#8217;, setting BTC up for a short-term correction to wipe out the leveraged players. </p>



<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="942" height="338" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-2.43.22-PM.png" alt="" class="wp-image-9266" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-2.43.22-PM.png?w=942 942w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-2.43.22-PM.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-2.43.22-PM.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-2.43.22-PM.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-2.43.22-PM.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-2.43.22-PM.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-2.43.22-PM.png?w=80 80w" sizes="(max-width: 942px) 100vw, 942px" /><figcaption>Source: https://app.laevitas.ch/dashboard/btc/derivs</figcaption></figure>



<h4>Bitcoin ETF Update</h4>



<p>&#8220;To get a sense of what the market impact of a bitcoin futures ETF approval could be, we can look to Canada, where there are six listed bitcoin ETFs, two of which are based on futures. Going by AUM, these have significantly less interest from investors 一 indeed, they hardly appear on the map.&#8221; Noelle Acheson, head of market insights at Genesis told Blockworks. &#8220;This could indicate that US investors may also not have much interest in a bitcoin futures ETF even if approved this month, implying that its impact on the market could be less significant than many expect.”</p>



<p>&#8220;WHERE WE STAND: the SEC has a few days left to delay on bitcoin futures ETFs. If hear nothing, the first ETF filed (ProShares) will be free to launch on 10/18 as the 75 days req will have passed. That said, this is an unusual situation but no news is prob good news at this point,&#8221; said Eric Balchunas, Senior ETF analyst for Bloomberg, on <a href="https://twitter.com/ericbalchunas/status/1447899759663058944?s=21" target="_blank" rel="noreferrer noopener">Twitter</a>.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img decoding="async" loading="lazy" width="454" height="229" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/ETF.png" alt="" class="wp-image-9269" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/ETF.png?w=454 454w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/ETF.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/ETF.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/ETF.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/ETF.png?w=80 80w" sizes="(max-width: 454px) 100vw, 454px" /><figcaption>Source: @EricBalchunas</figcaption></figure></div>



<h3>Non-Fungible Tokens (NFTs)</h3>



<p>Coinbase plans to follow Binance and FTX in launching their own NFT marketplace, <a href="https://cms.blockworks.co/coinbase-plans-to-launch-nft-marketplace/" target="_blank" rel="noreferrer noopener">Blockworks reported</a>. This would provide easy access for Coinbases&#8217; 68 million verified users to join the NFT craze. To put that in perspective, there are currently only 538,000 traders on OpenSea, according to data compiled by @richardchen39 on <a href="https://dune.xyz/rchen8/opensea" target="_blank" rel="noreferrer noopener">Dune Analytics</a>. </p>



<p>This leaves NFT collectors and artists with the question: &#8220;Where does this put the current leading secondary marketplaces such as OpenSea, Solanart and Digital Eyes?&#8221; </p>



<p>Only time will tell if users prefer more crypto native platforms over centralized institutions such as Coinbase, <a href="https://cms.blockworks.co/ftx-launches-marketplace-for-solana-nfts-ethereum-next/" target="_blank" rel="noreferrer noopener">FTX</a> and Binance. But it should come as no surprise that centralized parties took notice of the NFT craze and wanted to capitalize on the action. OpenSea has now generated close to $600 million in total revenue over the last 180 days, having just reached escape velocity in Q3 of 2021. </p>



<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="788" height="563" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-3.11.25-PM.png" alt="" class="wp-image-9272" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-3.11.25-PM.png?w=788 788w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-3.11.25-PM.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-3.11.25-PM.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-3.11.25-PM.png?w=360 360w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-3.11.25-PM.png?w=365 365w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-3.11.25-PM.png?w=307 307w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-3.11.25-PM.png?w=80 80w" sizes="(max-width: 788px) 100vw, 788px" /><figcaption>Source: https://www.tokenterminal.com/terminal/projects/opensea</figcaption></figure>



<p>While NFT floor prices seem to be enjoying the news of opening up NFTs to a new set of users, volume traded has suffered. Solanalysis shows NFT volume for Solana-based projects down -13.63% over the last seven days. </p>



<p>Trading data from <a href="https://opensea.io/rankings" target="_blank" rel="noreferrer noopener">OpenSea</a> and <a href="https://solanalysis.com" target="_blank" rel="noreferrer noopener">Solanalysis</a> of some of the top Solana and Ethereum projects can be found in the photos below:</p>



<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="341" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-3.16.27-PM-1024x341.png" alt="" class="wp-image-9273" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-3.16.27-PM-1024x341.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-3.16.27-PM-1024x341.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-3.16.27-PM-1024x341.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-3.16.27-PM-1024x341.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-3.16.27-PM-1024x341.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-3.16.27-PM-1024x341.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-3.16.27-PM-1024x341.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-3.16.27-PM-1024x341.png?w=1251 1251w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Top Ethereum Projects</figcaption></figure>



<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="292" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-3.16.18-PM-1024x292.png" alt="" class="wp-image-9274" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-3.16.18-PM-1024x292.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-3.16.18-PM-1024x292.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-3.16.18-PM-1024x292.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-3.16.18-PM-1024x292.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-3.16.18-PM-1024x292.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-3.16.18-PM-1024x292.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-3.16.18-PM-1024x292.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-12-at-3.16.18-PM-1024x292.png?w=1232 1232w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Top Solana Projects </figcaption></figure>



<h3>MetaMask</h3>



<ul><li>More than $150 million in revenue has been generated via MetaMasks&#8217; .0875% swap fee in the last 12 months. </li><li>There are nearly 703,000 unique traders and over $18 billion in <a href="https://dune.xyz/momir/Metamask-Swap" target="_blank" rel="noreferrer noopener">cumulative volume traded</a>.</li><li>With other layer-1s such as Solana rising in popularity due to extremely low fees (often less than $.01), unique traders on MetaMask has fallen from 146,000 on August 1 to 65,000 on October 1.<ul><li><a href="https://twitter.com/phantom/status/1447941806818168837?s=20" target="_blank" rel="noreferrer noopener">Phantom</a>, a popular wallet extension for Solana users, has been adding 100,000 new users per week. </li></ul></li></ul>



<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="942" height="419" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Metamask-swap-fees.jpg" alt="" class="wp-image-9276" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Metamask-swap-fees.jpg?w=942 942w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Metamask-swap-fees.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Metamask-swap-fees.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Metamask-swap-fees.jpg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Metamask-swap-fees.jpg?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Metamask-swap-fees.jpg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Metamask-swap-fees.jpg?w=80 80w" sizes="(max-width: 942px) 100vw, 942px" /><figcaption>Source: Dune.xyz</figcaption></figure>



<h3>Other Notable News</h3>



<ul><li>XDEFI wallet is now live for the public to use. See the press release <a href="https://xdefi-io.medium.com/xdefi-wallet-public-release-7-0-6d79c3c5cefe" target="_blank" rel="noreferrer noopener">here</a>. </li><li>Pierre Rochard <a href="https://www.pierrerochard.com/auditing-bitcoin-supply/" target="_blank" rel="noreferrer noopener">responded</a> to JPMorgan CEO Jamie Dimon&#8217;s skepticism in regards to bitcoin&#8217;s 21 million supply cap, detailing out how to audit bitcoin&#8217;s supply.</li><li>Celsius is valued at $3.25 billion after a $400 million-dollar raise, <a href="https://cms.blockworks.co/celsius-valued-at-3-25b-after-400m-raise-amid-regulatory-headwinds/" target="_blank" rel="noreferrer noopener">Blockworks reported</a>. </li><li>Binance created a $1 billion fund in an effort to support Binance Smart Chain (BSC) and increase crypto adoption globally, <a href="https://cms.blockworks.co/binance-creates-1b-fund-to-accelerate-crypto-adoption/" target="_blank" rel="noreferrer noopener">according to a Blockworks report</a>. </li></ul>



<p>That is all for today, folks. Let&#8217;s do this again at the same time tomorrow. </p>



<hr class="wp-block-separator"/>



<p><strong>Are you a UK or EU reader that can&#8217;t get enough investor-focused content on digital assets? <a target="_blank" href="https://cms.blockworks.co/events/das-london/" rel="noreferrer noopener">Join us</a>&nbsp;in London on November 15th and 16th for the Digital Asset Summit (DAS) London. Use code ARTICLE for £75 off your ticket.&nbsp;<a target="_blank" href="https://cms.blockworks.co/events/das-london/" rel="noreferrer noopener">Buy it now</a>.</strong></p>



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Centralized Exchanges Make NFT Moves; Bitcoin Retreats: Markets Wrap

Jacquelyn Melinek

<div id="highlights-block_6165b1bd8971d" class="highlights">
        <ul>
                <li>Half of the billion dollars will go to investments, while the other $500 million will be divided across the remaining initiatives</li>
                <li>Binance aims “to disrupt traditional finance and accelerate global mass adoption of digital assets to become the first-ever blockchains ecosystem with 1 billion users,” CEO &#8216;CZ&#8217; Changpeng Zhao said in a statement</li>
            </ul>
    
</div>



<p>The blockchain and cryptocurrency giant Binance has launched its $1 billion Crypto Mass Adoption Fund to accelerate the number of people adopting digital assets and blockchain technology, the company said Tuesday.&nbsp;</p>



<p>Last year, Binance put up <a href="https://www.binance.org/en/accelerator" target="_blank" rel="noreferrer noopener">$100 million</a> to support projects on its <a href="https://www.binance.org/en" target="_blank" rel="noreferrer noopener">Binance Smart Chain</a> (BSC) with its BSC Accelerator Fund. BSC is Binance’s Ethereum-derived platform for decentralized applications, or dApps. Now the company is adding more support with this new investment.&nbsp;</p>



<p>Since its original $100 million fund was set up to grow the BSC ecosystem, it has funded over 40 projects and over 200 startups have received funding under hackathons and grant programs, Binance said in <a href="https://www.binance.org/en/blog/binance-launches-one-billion-binance-smart-chain-fund-to-reach-one-billion-crypto-users/" target="_blank" rel="noreferrer noopener">a blog post</a>. The community has over 1 million daily active users across 900 dApps, it said.&nbsp;</p>



<p>&#8220;BSC&#8217;s growth has attracted over 100 million users with its initial funding of $100 million,&#8221; Binance CEO &#8216;CZ&#8217; Changpeng Zhao said in a statement. &#8220;With the additional contribution of $1 billion, BSC will be better equipped to disrupt traditional finance and accelerate global mass adoption of digital assets to become the first-ever blockchains ecosystem with 1 billion users,” Zhao added.&nbsp;</p>



<p>The company did not respond to requests for comment from Blockworks about how the fund plans to use the capital to integrate and onboard users and developers to Web3.&nbsp;</p>



<p>However, Binance stated that the $1 billion will be divided across four initiatives: investments, its builder program, talent development, and liquidity incentives. Half of the billion dollars will go to investments, while the other $500 million will be divided across the remaining initiatives, with $300 million going to the builder program, $100 million to liquidity incentives and $100 million going to talent development, it said.&nbsp;</p>



<blockquote class="wp-block-quote"><p><strong>“The program is designed to boost the growth and innovation of projects and bolster the wider community and create a crypto-native pool of talent that will pave the future of crypto,” the company said.</strong>&nbsp;</p></blockquote>



<p>The ecosystem focuses mainly on the US, Europe, Russia, India, South East Asia and South America, it said. Going forward, it will work closely with other FinTech companies, crypto advisors and blockchain researchers to “spread the vision of financial inclusion and sovereignty,” the company said.</p>


Binance Creates $1B Fund to Accelerate Crypto Adoption

<div id="highlights-block_60c9fc7f1690b" class="highlights">
        <ul>
                <li>Bitcoin supply is becoming illiquid while CME futures activity picks up</li>
                <li>Bitcoin dominance continues its rally</li>
            </ul>
    
</div>



<h3>Expert Insight</h3>



<p>&#8220;We know at Genesis that the institutions are increasing their interest because we talk to them, but you know institutions take time to get all the due diligence. So, we know that the interest has been building. We also know that the liquid supply of Bitcoin has been declining because this is something you can see by simply looking at the on-chain data. </p>



<p>The buyers so far this year have mostly been long-term holders, which means that as more and more Bitcoin gets bought and tucked away in cold storage for investment purposes, there is less liquid supply for new buyers to purchase. So you have a growing institutional interest against the backdrop of declining liquid supply.&#8221;</p>



<p>-Noelle Acheson, Head of Market Insights at Genesis </p>



<h3>Bitcoin</h3>



<p>Historically speaking, the Bitcoin price and S&amp;P 500 have had a tight correlation. Since the beginning of October, that correlation has begun to weaken. Whether the trend will continue remains to be seen. </p>



<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="910" height="661" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/BTCUSD_2021-10-06_16-57-52.png" alt="" class="wp-image-9052" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/BTCUSD_2021-10-06_16-57-52.png?w=910 910w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/BTCUSD_2021-10-06_16-57-52.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/BTCUSD_2021-10-06_16-57-52.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/BTCUSD_2021-10-06_16-57-52.png?w=354 354w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/BTCUSD_2021-10-06_16-57-52.png?w=359 359w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/BTCUSD_2021-10-06_16-57-52.png?w=301 301w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/BTCUSD_2021-10-06_16-57-52.png?w=80 80w" sizes="(max-width: 910px) 100vw, 910px" /><figcaption>Source: Trading View</figcaption></figure>



<p>BTC futures open interest on CME, a futures exchange where a lot of institutional activity takes place, has <a href="https://www.forbes.com/sites/javierpaz/2021/10/06/as-bitcoin-passes-55000-cme-futures-data-even-more-bullish/?sh=6459c277778c&amp;utm_source=TWITTER&amp;utm_medium=social&amp;utm_content=5658840587&amp;utm_campaign=sprinklrForbesCrypto" target="_blank" rel="noreferrer noopener">risen 33% </a>from September 7th to October 5th. </p>



<p> &#8220;The other thing that screams that this is institutionally driven for me is the CME basis. The CME derivatives exchange offers the lowest leverage of any crypto derivatives exchange,&#8221; Noelle Acheson of Genesis told Blockworks. &#8220;And yet the basis, which is the difference between the futures price on the CME and the spot price, started shooting up this morning. It&#8217;s now even higher than the basis on some of the other higher leverage futures exchanges.&#8221;</p>



<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="959" height="536" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/CME-OI.jpg" alt="" class="wp-image-9054" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/CME-OI.jpg?w=959 959w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/CME-OI.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/CME-OI.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/CME-OI.jpg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/CME-OI.jpg?w=467 467w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/CME-OI.jpg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/CME-OI.jpg?w=80 80w" sizes="(max-width: 959px) 100vw, 959px" /></figure>



<h3>Ethereum</h3>



<p>With some of the other major Layer-1&#8217;s such as Solana ($SOL), Terra ($LUNA), and Binance Smart Chain ($BSC) underperforming and $ETH holding its ground, it appears that the rotation into the blue-chips of the digital asset industry is underway. </p>



<p>The put:call ratio for Ethereum sits at 0.647, according to <a href="https://app.laevitas.ch/dashboard" target="_blank" rel="noreferrer noopener">laevitas.ch</a>, signaling that traders are heavily favoring calls over puts. Perpetual funding rates are fairly high on some of the exchanges with the largest volume, indicating that traders taking a long position are paying hefty premiums to hold their position. It is currently at a 60.13% APR on the Binance ETH/USDT pair. </p>



<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="980" height="296" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.42.15-PM.png" alt="" class="wp-image-9056" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.42.15-PM.png?w=980 980w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.42.15-PM.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.42.15-PM.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.42.15-PM.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.42.15-PM.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.42.15-PM.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.42.15-PM.png?w=80 80w" sizes="(max-width: 980px) 100vw, 980px" /><figcaption>Source: https://app.laevitas.ch/dashboard/eth/derivs</figcaption></figure>



<h3>Non-Fungible Tokens (NFTs)</h3>



<p>NFTs continue their hot streak, notching $10 billion in sales for 2021 as of today according to a <a href="https://www.cnbc.com/2021/10/06/nft-trading-volume-hit-10-billion-2-reasons-why-people-are-buying.html" target="_blank" rel="noreferrer noopener">report from CNBC.</a> Bank of America also released an <a href="https://cms.blockworks.co/?p=9007" target="_blank" rel="noreferrer noopener">extensive report </a>on digital assets and had some interesting words on NFTs; “NFTs can be used instead of deeds, titles or anything currently needed to demonstrate ownership — and all without a middleman charging a fee”. Trading data from <a href="https://opensea.io/rankings" target="_blank" rel="noreferrer noopener">OpenSea</a> and <a href="https://solanalysis.com" target="_blank" rel="noreferrer noopener">Solanalysis</a> of some of the top Solana and Ethereum projects.</p>



<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="358" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.09-PM-1024x358.png" alt="" class="wp-image-9062" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.09-PM-1024x358.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.09-PM-1024x358.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.09-PM-1024x358.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.09-PM-1024x358.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.09-PM-1024x358.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.09-PM-1024x358.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.09-PM-1024x358.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.09-PM-1024x358.png?w=1274 1274w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Top Ethereum Projects</figcaption></figure>



<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="293" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.47-PM-1024x293.png" alt="" class="wp-image-9063" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.47-PM-1024x293.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.47-PM-1024x293.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.47-PM-1024x293.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.47-PM-1024x293.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.47-PM-1024x293.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.47-PM-1024x293.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.47-PM-1024x293.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.47-PM-1024x293.png?w=1235 1235w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Top Solana Projects </figcaption></figure>



<h3>DeFi</h3>



<ul><li>Fei protocol, a project that aims to create a decentralized stable coin, made a <a href="https://medium.com/fei-protocol/introducing-fei-v2-6f56afe7a1b5" target="_blank" rel="noreferrer noopener">large upgrade</a> to the Fei mechanism. </li><li>Lido Finance, a non-custodial staking solution, <a href="https://blog.lido.fi/vulnerability-response-update/" target="_blank" rel="noreferrer noopener">responds</a> to some vulnerabilities that were reported yesterday. </li><li>Olympus DAO unveils a new service that aims to share Olympus&#8217; bond innovation with treasuries across DeFi, <a href="https://twitter.com/chasedevens/status/1445800257325912064?s=20" target="_blank" rel="noreferrer noopener">per messari analyst, Chase Devens.</a></li></ul>



<p>Total Value Locked (TVL) in DeFi is hovering around all-time-highs. </p>



<figure class="wp-block-image size-large"><img decoding="async" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-6.19.58-PM-1024x340-1.jpg" alt="" class="wp-image-9065"/><figcaption>Source: Defi Llama</figcaption></figure>



<h3>What else we are looking out for&#8230;</h3>



<ul><li>Initial and continuing jobless claims on Thursday</li><li>Nonfarm payrolls, unemployment rate and average hourly earnings on Friday</li></ul>



<p>That is all for today, folks. Let&#8217;s do this again at the same time tomorrow. </p>



<hr class="wp-block-separator"/>



<p><strong>Are you a UK or EU reader that can&#8217;t get enough investor-focused content on digital assets?<a target="_blank" href="https://cms.blockworks.co/events/das-london/" rel="noreferrer noopener">Join us</a>&nbsp;in London on November 15th and 16th for the Digital Asset Summit (DAS) London. Use code ARTICLE for £75 off your ticket.&nbsp;<a target="_blank" href="https://cms.blockworks.co/events/das-london/" rel="noreferrer noopener">Buy it now</a>.</strong></p>



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