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This week we’re back with regular coverage on the space. We dive into the recent bull market, which has been seeing several crypto-assets hit new all-time highs and their increasing correlation with traditional markets.
We also look into the rise and fall of Shiba Inu, analyzing key metrics and events behind the recent price action of the meme token.
Weekly Fees - Sum of total fees spent to use a particular blockchain in a week. This tracks the willingness to spend and demand to use Bitcoin or Ether.
Bitcoin's blockchain fees where in line with last week's as price also remained within the same range
Ethereum's network revenues grew for the sixth week straight, reaching over $500M in a week for the second time in its history
Exchanges Netflows —The net amount of inflows minus outflows of a specific crypto-asset going in/out of centralized exchanges over the past seven days. Crypto going into exchanges may signal selling pressure, while withdrawals potentially point to accumulation.
Both Bitcoin and Ether saw billion dollar outflows from centralized exchanges, though smaller than in the previous week
Markets Record Wave of New ATHs
Both crypto and traditional markets continued setting new highs this week. In crypto, the total market cap is quickly approaching $3 trillion driven by new highs across several smart contract platforms' tokens.
Key stats -
6 out of the 10 largest crypto-assets (excluding stablecoins) recorded an all-time high over the past 30 days
SOL, DOT, LUNA and AVAX all recorded gains of 20%+ and hit new highs within the last 7 days
Meme tokens did not face the same fortune, with SHIB and DOGE dropping 30% and 12% respectively
Behind the bull market - while crypto presents a generational paradigm shift in technology, the recent price action also has to do with real world economics. This is evident in the increasingly high correlation crypto has had with traditional markets indices.
Macro talk - Ether's price reached record high correlations versus the Nasdaq 100 and S&P 500. All three of these also set new all-time highs this week shortly after the federal reserve's meeting on Wednesday.
Markets continued their risk-on positioning following Jerome Powell insisting on the inflation rate still being "transitory", pointing interest rates likely remaining at zero for the near future
Bond purchasing was reduced as expected, decreasing the feds' investments by $15 billion a month from $120 billion in October
The bottom line - The strong U.S. economy is starting to push the breaks from the multi-trillion stimulus package following the covid-19 recession. However, a slower than expected end to quantitative easing appears to be driving risk-taking behavior reflected in new highs throughout both traditional and crypto markets.
Following an increase of over 800% in October, Shiba Inu (SHIB) has dropped 40% from its recent highs. It still remains one of this year's highest returning assets, increasing 63,000,000% year-to-date.
The dog-themed meme token registered one of the largest speculative rushes in months with hundreds of thousands buying at the recent all-time high.
Despite the vast speculation, Shiba Inu appears to have one of the largest communities with 895k addresses holding it. However, the recent rally appears to have stalled as an address transferred out $4 billion worth of SHIB.
The address from above previously bought $3,400 worth of SHIB in August 2020, which increased to as much as $5.7 billion in late October 2021
The unknown owner of the address has now transferred out all of his SHIB holdings to four other addresses, which sparked fears of selling
Receiving addresses do not appear to be associated with centralized exchanges and do not show the owner swapping SHIB for other tokens yet
Overall, while it remains unclear if the mysterious SHIB billionaire sold, it is evident that Shiba Inu had one of the largest speculative episodes in markets, even by crypto's standards.
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