35288 88% $1.4 Billion

In collaboration with Covalent Issue 26 July 3 – 15, 2021 Market Insights $35,288 88% $1.4 billion the highest price of of total stablecoin invested in DeFi, fintech, Bitcoin after dropping swaps are powered mining, and digital asset below $30,000 in June by Uniswap V2 management sectors COINTELEGRAPH CONSULTING MARKET INSIGHTS ISSUE 26 Groundhog days in the crypto market: Major events between July 3 – 15 Key Takeaways VC Activities ā The crypto market still showed no evident signs of bullish activity in the past week, except The money flows in the VC funding seem to remain consistent, too. Following the big for a brief period when Bitcoin reclaimed the $35,000 level on July 4 — but only to find money, we again see a megaround as NFT platform Sorare raises $528 million. And like in itself back to $32,900 four days later. ETH was no different. After closing twice above the previous weeks, the majority of the smaller rounds tend to go to DeFi startups, with $2,300 last week, Ether back sank below $2,000 and is presently trading at $1,900. roughly $95 million VC funding poured into the segment in the last two weeks. However, the market could see a new wave of funding rounds soon as mining companies would need ā The Bank of France and the Monetary Authority of Singapore have successfully carried out cash to relocate from China after its ban on cryptocurrency mining. their CBDC experiment. Other countries such as the United Arab Emirates and Vietnam have commenced their CBDC development. Jamaica, on the other hand, looks set to Fantasy soccer NFT platform Sorare is closing in on a $532 million funding round led by SoftBank, implement its CBDC project as early as August. along with participation from Atomico, Eurazeo, and Blisce funds. Visit Page ā Data reveals that Uniswap v2 still powers 88% of stablecoin transactions in the first half of the year, and there appears to be an institutional avoidance of Tether. As the market remains depressed, we investigate stablecoin transactions in this issue of our newsletter. Shenzhen-based crypto mining firm, Bit Mining, is raising $50 million to fund an expansion out of the Chinese market. The firm has entered into an agreement with select institutional and ā Like the general digital asset market seems to be stuck in the loop, the situation in the accredited investors to raise $50 million through a private placement. Institutional crypto landscape also repeats itself. The US SEC postpones the decision on Visit Page another Bitcoin ETF — this time on Wisdom Tree‘s, while the watchdogs outside of the US approve crypto ETF — this time Brazil’s securities regulator steps into the digital asset field. Overall, the institutional crypto investment vehicles is enhancing as S&P Dow Jones Cryptocurrency wallet provider Phantom has secured $9 million in Series A financing led by launches 4 new cryptocurrencies indices, 21Shares brings its cryptocurrency ETPs to Andreessen Horowitz, with participation from Variant Fund, Jump Capital, DeFi Alliance, and savings accounts for 3 million Germans and Grayscale’s digital large cap fund becomes a Solana Foundation to launch a new multi-chain wallet. SEC-reporting company. Visit Page 2 Stablecoin Activity Dropping: A Closer Look at Stablecoin Activity in the First Half of 2021 Market Analysis Stablecoin Analysis The digital asset market is still fighting to recover from the massive sell-off in late May. Evolving at a breakneck speed prior to the market downturn, total stablecoin supply is now at roughly $110 billion and counting, according to the Block. However, the stablecoin growth slowed down since May. Data from Covalent reveals that the stablecoin swap volume declined as well. Data suggests that the daily stablecoin swaps reached its peak at $2 billion on May 19, the day that marks the storm and a subsequent wave of liquidations on the DeFi market. The record divides the chart into two parts: before the market turmoil and after it, with the averages before the drop sitting significantly higher than the current daily swap stablecoin volumes. Data shows the average post-drop stablecoin volume has fallen by roughly 60% since the market crash. 4 Market Analysis Stablecoin Analysis To understand who are the users that transfer the stablecoins, we take a look at the average swap value per stablecoin on Ethereum. Dai is the heavy hitter, peaking near $50,000 per swap in May and averaging 64% more dollars per swap than Tether (USDT). USDT is the choice of small retail accounts averaging only $6,600 per swap. This is interesting to note because it reflects the institutional avoidance of USDT. 5 Market Analysis Stablecoin Analysis Data shows TerraUSD (UST), meanwhile, is an interesting outlier. Ranking second after Dai by the average per swap at $10,668, TerraUSD seems to be used by some big fish, which could be significant. However, UST only ranks fourth by the number of swaps, comprising just 2% of the swaps facilitated by the leader, USDT. Equipped with all the data, we understand that the stablecoin volume has dropped, USDT leads in total transactions, and USD Coin (USDC) has the highest dollar volume. Data provides a take on where the bulk of these transactions originated. Data suggests that 88%, or roughly 0.9 million swaps per day, is powered by Uniswap v2. SushiSwap lags far behind as it provides many added incentives for up-and-coming tokens and, as a result, does not contribute much to the stablecoin volume. Therefore, if you are looking to provide stablecoin liquidity, the best place to be is most likely Uniswap. This analysis was prepared by Covalent, a blockchain data indexer that provides APIs to support Learn more use cases such as network analysis, wallet management, and tax documentation. 6 Market Analysis BTC Daily Exchange Trading Volume and Price ý BTC held a steady course from the first two weeks of July and managed to stay above $32,000, allowing the market some respite from the downturn it had the month before. BTC appreciated by as much as $35,300 on June 4 and fell as low as $31,800 on July 15. ý The trading volume, however, dropped to nearly half and was down to $20 billion from $38.7 billion on July 2. 7 Market Analysis BTC 30-day Annualized Volatility and Price ý BTC exhibited a decline in volatility since the third week of June. Massive price swings seem to have eased after the successive sell-offs in May and early last month. The 30-day annualized volatility remained below 100% as BTC trades between just under $36,000 and below $32,000. 8 Market Analysis BTC – DXY ý The price movements of BTC and DXY continue to diverge as the market enters July. BTC – DXY's average correlation has slipped to 0.008 and is on the verge of exhibiting a negative relationship. Last week, BTC lost −1.24%, while DXY with only −0.45% 9 Market Analysis BTC – Gold ý BTC – Gold's correlation since the start of July has been inching higher, albeit still largely uncorrelated. Both assets traded higher in the first week of July but were at their extreme opposites last month. The average correlation between the two is as of late is −0.17. 10 Market Analysis BTC – S&P 500 ý The correlation between the S&P 500 and BTC continues to decline as stocks maintain its uptrend while BTC hovers near 6-month lows. S&P 500 and BTC's average correlation holds at −0.09 on July 9. 11 Market Analysis BTC – ETH ý ETH shed off as much as −4% from July 3 to July 11 and closed as high as $2,324 on July 6. While BTC experienced a similar losing streak, the price movements between the 30- day moving average correlation between the two slipped below 0.7 on July 3, and by July 10 was only 0.63. That figure got a little bit of a boost on July 11 as both BTC and ETH closed the day with a 1.31% and 1.30% gain, respectively. 12 Institutional, Venture Capital & M&A, Professional Blockchain and Regulatory Activities Institutional Activities SEC delays decision on Wisdom Tree Bitcoin ETF Brazilian securities regulator approves Ether S&P Dow Jones Indices launches new ETF cryptocurrency indexes The United States Securities and Brazil’s Comissão de Valores The S&P Dow Jones Indices has Exchange Commission pushed back Mobiliários, the country’s securities launched a new cryptocurrency its decision on Wisdom Tree’s Bitcoin regulator, has approved an Ether index. The S&P Cryptocurrency exchange-traded fund with a request ETF. The fund, which trades under Broad Digital Market Index (BDM) for public feedback. The SEC is asking the ticker QETH11, will use the same tracks more than 240 digital assets for comments on whether the public Ether index as that used by CME at launch. In addition to BDM, the believes that the proposed Bitcoin ETF would be susceptible to Group and will use institutional custodial services provided by company also launched four other crypto-focused indexes, manipulation and whether the exchange’s proposal is designed Gemini. each tracking various components of the broad digital market to sufficiently prevent fraudulent and manipulative acts and benchmark. JUL 14, 2021 Visit Page practices. JUL 13, 2021 Visit Page JUL 15, 2021 Visit Page 21Shares partners with German brokerage to BNY Mellon to provide ETF services for BREAKING Stablecoin firm Circle to go public offer crypto ETPs for savings accounts Grayscale’s Bitcoin Trust in $4.5B blank-check deal Investment product issuer 21Shares BNY Mellon has signed an agreement USD Coin principal developer and has joined forces with Comdirect, a with cryptocurrency asset manager Goldman Sachs-backed Circle leading online brokerage in Germany, to Grayscale Investments to provide a announced its plans to go public bring its cryptocurrency exchange- set of services to its flagship Bitcoin and list its shares on the New York traded products (ETP) to savings investment product.

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