Sam Martin

<div id="highlights-block_617725d07bf3f" class="highlights">
        <ul>
                <li>The ETH-to-BTC ratio has been trending upwards as ETH gains momentum</li>
                <li>ETH market structure implies bullish price action could be nearing</li>
            </ul>
    
</div>



<p>ETH continues to outperform BTC as the digital asset market recovers from last weekend&#8217;s sell-off.</p>



<p>ETH issuance continues to decline post-EIP-1559 implementation.</p>



<p>92% of all Ethereum addresses are in a state of profit.</p>



<p>Perpetual funding rates show relatively neutral sentiment among traders, except for Bitmex where traders are getting aggressive.</p>



<p>A look into the latest prices for top NFT collections.</p>



<h3 class="wp-block-heading"><strong>Latest in Macro:</strong></h3>



<ul class="wp-block-list"><li>S&amp;P 500: 4,701, +0.31%</li><li>NASDAQ: 15,786, +0.64%</li><li>Gold: $1,783, -0.04%</li><li>WTI Crude Oil: $72.65, +0.83%</li><li>10-Year Treasury: 1.528%, +0.048%</li></ul>



<h3 class="wp-block-heading"><strong>Latest in Crypto:</strong></h3>



<ul class="wp-block-list"><li>BTC: $50,174, -0.39%</li><li>ETH: $4,384, +2.42%</li><li>ETH/BTC: 0.0874, +2.63%</li><li>BTC.D: 40.56%, -1.42%</li></ul>



<h3 class="wp-block-heading">Ethereum</h3>



<p>ETH continues to outperform BTC as the digital asset market recovers from last weekend&#8217;s sell-off. The ETH/BTC ratio has broken out of a multi-month range after firmly breaking out over the .08 level on Dec. 4. The trend has continued and is running toward levels not seen since early 2018. </p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="601" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ETHBTC_2021-12-08_17-47-25-1024x601.png" alt="" class="wp-image-12356" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ETHBTC_2021-12-08_17-47-25-1024x601.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ETHBTC_2021-12-08_17-47-25-1024x601.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ETHBTC_2021-12-08_17-47-25-1024x601.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ETHBTC_2021-12-08_17-47-25-1024x601.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ETHBTC_2021-12-08_17-47-25-1024x601.png?w=2048 2048w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ETHBTC_2021-12-08_17-47-25-1024x601.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ETHBTC_2021-12-08_17-47-25-1024x601.png?w=445 445w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ETHBTC_2021-12-08_17-47-25-1024x601.png?w=373 373w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ETHBTC_2021-12-08_17-47-25-1024x601.png?w=80 80w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Trading View</figcaption></figure></div>



<p>Ethereum issuance has fallen since the implementation of <a href="https://www.cnbc.com/2021/08/04/what-to-know-about-the-ethereum-london-hard-fork-eip-1559-upgrade.html" target="_blank" rel="noreferrer noopener">EIP-1559 back in August</a>. 1.147 million ETH has been burned over that period, leading to a net reduction of 68.35%, according to data from <a href="https://watchtheburn.com" target="_blank" rel="noreferrer noopener">watchtheburn.com</a>. </p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="588" height="760" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-4.30.09-PM.png" alt="" class="wp-image-12341" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-4.30.09-PM.png?w=588 588w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-4.30.09-PM.png?w=232 232w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-4.30.09-PM.png?w=199 199w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-4.30.09-PM.png?w=202 202w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-4.30.09-PM.png?w=169 169w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-4.30.09-PM.png?w=62 62w" sizes="auto, (max-width: 588px) 100vw, 588px" /><figcaption>Source: watchtheburn.com</figcaption></figure></div>



<p>61.52 million addresses holding ETH, or 92% of all addresses, are in a state of profit according to data from <a href="https://app.intotheblock.com/coin/ETH/deep-dive?group=all&amp;chart=all" target="_blank" rel="noreferrer noopener">intotheblock.com</a>.</p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="683" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ITB_eth_historical_in_out_of_the_money_2021-12-08T21_44_32.021Z-1024x683.png" alt="" class="wp-image-12350" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ITB_eth_historical_in_out_of_the_money_2021-12-08T21_44_32.021Z-1024x683.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ITB_eth_historical_in_out_of_the_money_2021-12-08T21_44_32.021Z-1024x683.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ITB_eth_historical_in_out_of_the_money_2021-12-08T21_44_32.021Z-1024x683.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ITB_eth_historical_in_out_of_the_money_2021-12-08T21_44_32.021Z-1024x683.png?w=386 386w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ITB_eth_historical_in_out_of_the_money_2021-12-08T21_44_32.021Z-1024x683.png?w=392 392w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ITB_eth_historical_in_out_of_the_money_2021-12-08T21_44_32.021Z-1024x683.png?w=329 329w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ITB_eth_historical_in_out_of_the_money_2021-12-08T21_44_32.021Z-1024x683.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ITB_eth_historical_in_out_of_the_money_2021-12-08T21_44_32.021Z-1024x683.png?w=1200 1200w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Intotheblock.com</figcaption></figure>



<p>Perpetual funding rates for ETH hold a slightly positive bias across all exchanges, except for Bitmex where traders are getting a bit aggressive according to data from <a href="https://app.laevitas.ch/dashboard/eth/derivs/overview" target="_blank" rel="noreferrer noopener">laevitas.ch</a>. The higher the funding rate, the more expensive it is for longs to keep positions open.</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="365" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.44.47-PM-1024x365.png" alt="" class="wp-image-12353" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.44.47-PM-1024x365.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.44.47-PM-1024x365.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.44.47-PM-1024x365.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.44.47-PM-1024x365.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.44.47-PM-1024x365.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.44.47-PM-1024x365.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.44.47-PM-1024x365.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.44.47-PM-1024x365.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.44.47-PM-1024x365.png?w=2048 2048w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Laevitas.ch</figcaption></figure></div>



<p>A <a href="https://genesistrading.com/wp-content/uploads/2021/12/Genesis-Market-Monthly-November-2021-1.pdf" target="_blank" rel="noreferrer noopener">Genesis report</a> noted some layer-2 developments over the month of November include:</p>



<ul class="wp-block-list"><li>Metis, an Optimism fork that allows data to be stored on IPFS, launched a $100 million ecosystem fund at the beginning of the month22.</li><li>And StarkWare, which relies on a different layer-2 technology (ZK rollups), raised $50 million at a $2 billion valuation23&nbsp;to accelerate expansion of the network.</li></ul>



<h3 class="wp-block-heading">Non-Fungible Tokens (NFTs)</h3>



<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 below:</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="330" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.43-PM-1024x330.png" alt="" class="wp-image-12354" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.43-PM-1024x330.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.43-PM-1024x330.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.43-PM-1024x330.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.43-PM-1024x330.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.43-PM-1024x330.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.43-PM-1024x330.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.43-PM-1024x330.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.43-PM-1024x330.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.43-PM-1024x330.png?w=2048 2048w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Top Ethereum Projects</figcaption></figure></div>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="280" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.52-PM-1024x280.png" alt="" class="wp-image-12355" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.52-PM-1024x280.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.52-PM-1024x280.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.52-PM-1024x280.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.52-PM-1024x280.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.52-PM-1024x280.png?w=2048 2048w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.52-PM-1024x280.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.52-PM-1024x280.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.52-PM-1024x280.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.52-PM-1024x280.png?w=80 80w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Top Solana Projects </figcaption></figure></div>



<p>If you made it this far, thanks for reading! I am looking forward to catching up on tomorrow.</p>



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



<p><strong>Get the day’s top crypto news and insights delivered to your inbox every evening.&nbsp;<a href="https://cms.blockworks.co/newsletter/" target="_blank" rel="noreferrer noopener">Subscribe to Blockworks’ free newsletter</a>&nbsp;now.</strong></p>



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


burn

Newsletter

Blockworks Research