Bessie Liu


<p>Blockchain data analytics platform Dune is partnering with cloud-based data warehouse solution Snowflake to launch Dune Datashare.</p>



<p>Despite raw blockchain data being on-chain and transparent, it is often difficult to interpret or analyze. The complex and fragmented nature of on-chain data can create barriers for businesses and researchers who seek to leverage blockchain data for insights, innovation or competitive advantage.</p>



<p>To address this, <a href="https://blockworks.co/tag/dune-analytics">Dune</a> has partnered with Snowflake, a cloud-based data warehouse provider, to streamline access to and analysis of blockchain data. This partnership aims to simplify the consumption of blockchain data by integrating Dune&#8217;s data curation capabilities with Snowflake&#8217;s data warehousing solutions. </p>



<p>Dune Datashare will be available on Snowflake Marketplace, offering curated crypto data to enterprises and institutions.&nbsp;</p>



<p><strong>Read more:</strong> <a href="https://blockworks.co/news/empire-web3-defi-tech-mainstream-institutions">The ‘next leg’ of DeFi users will be institutions, Blockchain Capital’s Larsen expects</a></p>



<p>The result is that data scientists, analytics professionals and businesses will gain easier access to a broad array of blockchain data, covering various protocols and blockchain solutions such as Arbitrum, Base, Bitcoin, Ethereum, Optimism and Solana, among others.</p>



<p>“The blockchain is designed to verify information that happens on it, but it is not particularly good at reading what has happened,” Dune co-founder Fredrik Haga told Blockworks. </p>



<p>However, Dune is designed in a way that enables community members to utilize its abstraction layer, Spellbook, to analyze raw blockchain data, which would otherwise be a challenging, lengthy process.</p>



<p>“What we’re coming in and doing is essentially making this data easy to read, then putting it in a database, and we let people come together and curate on top of that,” he said. “We’ve taken away a lot of these low-level concepts and made it a very human-readable straightforward thing which can be compiled into a dashboard.”</p>



<p><strong>Read more: </strong><a href="https://blockworks.co/news/the-importance-of-data-and-standardization-in-digital-assets">The importance of data and standardization within digital assets</a></p>



<p>This means that users can easily find information on two different exchanges and create unified logic on top of that data. This can assist traders in making informed trading decisions, for example.</p>



<p>It can also assist users in finding the volume of top-performing protocols that week and identify patterns within what would otherwise be incomprehensible data.</p>



<p>The launch of Dune Datashare will be the first time that institutional-level customers and Fortune 500 companies can interact with this type of data and have it directly integrated into their platforms.&nbsp;&nbsp;</p>



<p>“What we’ve also seen for quite a while is that many institutions and enterprise-type companies also care a lot about this data and are interested in learning about blockchain data and using it,” Haga said. “These players typically have their own data systems, so giving them access to this wave of community contributors is a pretty big deal.”</p>



<hr class="wp-block-separator has-alpha-channel-opacity"/>



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Dune partners with Snowflake to make blockchain data more accessible

Jacquelyn Melinek

<div id="highlights-block_61f9a7df672bd" class="highlights">
        <ul>
                <li>To date, over 10,000 analysts have created about 100,000 queries on Dune’s platform consisting of metrics on OpenSea NFTs to customized balance sheets for DAOs</li>
                <li>“It’s a clear validation of how big this opportunity is and the $1 billion displays how much the sentiment around the whole space has changed,” co-founder Fredrik Haga said</li>
            </ul>
    
</div>



<p>About two years ago, Dune Analytics co-founders Fredrik Haga and Mats Olsen took a trip to San Francisco to gather investors to close a $1 million seed round.</p>



<p>At the time, no one wanted to participate, Haga told Blockworks.&nbsp;</p>



<p>Fast forward to today, the Oslo, Norway-based company just closed its $69,420,000 Series B round, which raised its valuation to $1 billion. </p>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"><p><strong>“It’s a clear validation of how big this opportunity is, and the $1 billion displays how much the sentiment around the whole space has changed,” Haga said.</strong> </p></blockquote>



<p>Similar to <a href="https://cms.blockworks.co/sam-bankman-frieds-ftx-raises-precisely-420-69m/" target="_blank" rel="noreferrer noopener">FTX&#8217;s $420.69 million raise</a> in October, Dune&#8217;s funding round was totaled at those exact numbers for a playful effect, Haga said, giving homage to 420, which references the date April 20th — a holiday celebrating marijuana — and 69, which symbolizes something else you can Google.</p>



<p>The capital raise was led by Coatue with participation from existing investors like <a href="https://cms.blockworks.co/?s=multicoin#:~:text=Multicoin%20and%20Kraken%20Invest%20Millions%20in%20Crypto%20Startups" target="_blank" rel="noreferrer noopener">Multicoin Capital</a> and Dragonfly Capital. In total, Dune has raised almost $80 million, Haga said.</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/2022/02/20210812_Dune_18-1-1024x683.jpg" alt="" class="wp-image-16607" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2022/02/20210812_Dune_18-1-1024x683.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2022/02/20210812_Dune_18-1-1024x683.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2022/02/20210812_Dune_18-1-1024x683.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2022/02/20210812_Dune_18-1-1024x683.jpg?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2022/02/20210812_Dune_18-1-1024x683.jpg?w=2048 2048w, https://blockworks-co.imgix.net/wp-content/uploads/2022/02/20210812_Dune_18-1-1024x683.jpg?w=385 385w, https://blockworks-co.imgix.net/wp-content/uploads/2022/02/20210812_Dune_18-1-1024x683.jpg?w=391 391w, https://blockworks-co.imgix.net/wp-content/uploads/2022/02/20210812_Dune_18-1-1024x683.jpg?w=328 328w, https://blockworks-co.imgix.net/wp-content/uploads/2022/02/20210812_Dune_18-1-1024x683.jpg?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2022/02/20210812_Dune_18-1-1024x683.jpg?w=50 50w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Mats Olsen, Dune co-founder and CTO (left) and Fredrik Haga, Dune co-founder and CEO; Source: Dune Analytics</figcaption></figure>



<p>Dune provides on-chain crypto data tools that allow users on its community-driven platform to extract and query data to create real-time dashboards on five blockchains: <a href="https://cms.blockworks.co/?s=ethereum#:~:text=ConsenSys%20Acquires%20Open%20Source%20Ethereum%20Wallet%20to%20Expand%20MetaMask" target="_blank" rel="noreferrer noopener">Ethereum</a>, Polygon, Optimism, Binance Smart Chain and Gnosis Chain (formerly xDAI).&nbsp;</p>



<p>With the new capital, Dune will create an infrastructure that distributes financial rewards to content creators on the platform and attract up to 1 million additional Web3 analysts into its community.</p>



<p>“It’s hugely important to have the right tooling and also educate, reward and empower,” Haga said. “There are several individuals and companies building a business on top of Dune already. We want to further enable this and build the pipeline and more infrastructure.”&nbsp;</p>



<p>To date, over 10,000 analysts have created about 100,000 queries on Dune’s platform, ranging from metrics on <a href="https://dune.xyz/rchen8/opensea" target="_blank" rel="noreferrer noopener">OpenSea NFTs</a> to customized balance sheets for DAOs.&nbsp;</p>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"><p><strong>“This is an open opportunity,” Haga said. “Before this, data was used inside product teams or a set of analysts or banks had closed access to data. Now it’s open by default and has a public backend that people can create on.”&nbsp;</strong></p></blockquote>



<p>In the future, the platform also plans to add “all major blockchains” and incorporate layer-1 and layer-2 smart contract platforms as well, Haga said.&nbsp;</p>



<p>“As the space evolves, all these elements become more tangible,” he said. “So much has changed in the past year and with all the activity going on in Web3, it’s a tremendous opportunity.”</p>



<hr class="wp-block-separator has-alpha-channel-opacity"/>



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Web3 Data Firm Dune Analytics Hits Unicorn Status

Sam Martin

<div id="highlights-block_617725d07bf3f" class="highlights">
        <ul>
                <li>Bored Ape Yacht Club flips CryptoPunks in terms of floor price</li>
                <li>Axie Infinity remains the largest NFT collection by trading volume over the past 7 days</li>
            </ul>
    
</div>



<p>Bored Ape Yacht Club flips CryptoPunks in terms of floor price. </p>



<p>Opensea volume has rebounded during the month of December.</p>



<p>Axie Infinity is still the largest non-fungible token collection by trading volume over the past 7 days.</p>



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



<ul class="wp-block-list"><li>S&amp;P 500: 4,696, +1.02%</li><li>NASDAQ: 15,521, +1.18%</li><li>Gold: $1,803, +0.76%</li><li>WTI Crude Oil: $72.96, +2.60%</li><li>10-Year Treasury: 1.453%, -0.034%</li></ul>



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



<ul class="wp-block-list"><li>BTC: $49,214, +0.40%</li><li>ETH: $4,035, -0.10%</li><li>ETH/BTC: 0.0819, -0.17%</li><li>BTC.D: 40.37%, -0.74%</li></ul>



<h3 class="wp-block-heading">BAYC flips CryptoPunks floor price</h3>



<p>Popular NFT art collections Bored Ape Yacht Club (BAYC) and CryptoPunks have seen their floor prices, the lowest priced piece of art in a given collection currently for sale on a secondary market, converge over the past month.</p>



<p>Today the BAYC floor price officially ousted CryptoPunks as the most expensive NFT community to join, with its floor prices sitting at 52.84 ETH and 52 ETH, respectively, according to data from <a href="https://dune.xyz/hildobby/BAYC-vs-CryptoPunks" target="_blank" rel="noreferrer noopener">Dune Analytics</a>. </p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="916" height="365" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-2.02.20-PM.png" alt="" class="wp-image-13071" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-2.02.20-PM.png?w=916 916w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-2.02.20-PM.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-2.02.20-PM.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-2.02.20-PM.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-2.02.20-PM.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-2.02.20-PM.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-2.02.20-PM.png?w=80 80w" sizes="auto, (max-width: 916px) 100vw, 916px" /><figcaption>Source: Dune Analytics</figcaption></figure></div>



<p>The rise of BAYC can in part be attributed to high-profile celebrities such as <a href="https://cointelegraph.com/news/post-malone-features-bayc-nfts-in-new-music-video-with-the-weeknd" target="_blank" rel="noreferrer noopener">Post Malone</a>, <a href="https://nftevening.com/nba-legend-stephen-curry-buys-bored-ape-nft-for-180000/" target="_blank" rel="noreferrer noopener">Steph Curry</a> and <a href="https://www.yahoo.com/now/tv-host-jimmy-fallon-reveals-164716453.html" target="_blank" rel="noreferrer noopener">Jimmy Fallon</a> purchasing apes to become part of the community.</p>



<p> &#8220;We describe NFTs as stores of culture because they embody a moment in history,&#8221; Yat Siu, co-founder and chairman of NFT game developer Animoca Brands, <a href="https://cointelegraph.com/news/nfts-offer-a-new-way-for-society-to-store-culture-says-animoca-brands-ceo" target="_blank" rel="noreferrer noopener">said</a> in a Cointelegraph interview. </p>



<p>Many NFT market participants believe that these profile pictures are representative of their identities online and are not open to selling, even at a price tag equal to over $210,000. </p>



<p>&#8220;Heyy are you interested in selling me your pink Bored Ape? I&#8217;m absolutely in love with it,&#8221; billionaire Kylie Jenner messaged @WillyTheDegen, an anonymous NFT collector, on <a href="https://twitter.com/WillyTheDegen/status/1455708737847451657?s=20" target="_blank" rel="noreferrer noopener">Twitter</a>. </p>



<p>Willy <a href="https://twitter.com/WillyTheDegen/status/1455712522816819206?s=20" target="_blank" rel="noreferrer noopener">tweeted</a> in response to her direct message saying, &#8220;I hit delete message, by the way. Diamond hands baby,&#8221; and proceeded to block her, &#8220;for the culture.&#8221; </p>



<figure class="wp-block-embed aligncenter is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">For the culture <a href="https://t.co/CRnHjlpGiM">pic.twitter.com/CRnHjlpGiM</a></p>&mdash; Willy ₿ullish 🍌 (@WillyTheDegen) <a href="https://twitter.com/WillyTheDegen/status/1455721284927582208?ref_src=twsrc%5Etfw">November 3, 2021</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<p>While BAYC floor price has in fact flipped CryptoPunks, it is worth noting that the lifetime trading volume is more than double BAYC&#8217;s with nearly 670,000 volume of ETH traded, according to data from <a href="https://dune.xyz/hildobby/BAYC-vs-CryptoPunks" target="_blank" rel="noreferrer noopener">Dune Analytics</a>. </p>



<p>BAYC is also planning to launch a token in early 2022, which could be contributing to the price appreciation according to <a href="https://www.theblockcrypto.com/linked/119966/bored-ape-yacht-club-plans-to-launch-its-own-token-in-q1-of-2022" target="_blank" rel="noreferrer noopener">The Block</a>.</p>



<h3 class="wp-block-heading">Opensea volume rebounds</h3>



<p>Opensea volume has rebounded during the month of December, on pace to hit roughly $2.82 billion in monthly sales, according to data from <a href="https://dune.xyz/rchen8/opensea" target="_blank" rel="noreferrer noopener">Dune Analytics</a>.</p>



<p>If OpenSea&#8217;s trading volume maintains its current pace, this would mark the highest number since September. Daily volume has been tapering off over the past few days, but maybe those last-minute Christmas shoppers will push volumes higher.</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="264" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-4.29.31-PM-1024x264.png" alt="" class="wp-image-13080" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-4.29.31-PM-1024x264.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-4.29.31-PM-1024x264.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-4.29.31-PM-1024x264.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-4.29.31-PM-1024x264.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-4.29.31-PM-1024x264.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-4.29.31-PM-1024x264.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-4.29.31-PM-1024x264.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-4.29.31-PM-1024x264.png?w=1137 1137w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Source: @bit_hedge</figcaption></figure></div>



<h3 class="wp-block-heading">NFTs overview</h3>



<p>Despite a lot of action going on in the world of NFTs, Axie Infinity was still the top collection by sales according to data collected by the <a href="https://twitter.com/esatoshiclub/status/1473758238445350931?s=20" target="_blank" rel="noreferrer noopener">Satoshi Club</a>.</p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="798" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/top-5-last-week-1024x798.jpg" alt="" class="wp-image-13081" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/top-5-last-week-1024x798.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/top-5-last-week-1024x798.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/top-5-last-week-1024x798.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/top-5-last-week-1024x798.jpg?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/top-5-last-week-1024x798.jpg?w=2048 2048w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/top-5-last-week-1024x798.jpg?w=330 330w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/top-5-last-week-1024x798.jpg?w=335 335w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/top-5-last-week-1024x798.jpg?w=281 281w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/top-5-last-week-1024x798.jpg?w=80 80w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Source: @esatoshiclub</figcaption></figure>



<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="337" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-4.33.25-PM-1024x337.png" alt="" class="wp-image-13082" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-4.33.25-PM-1024x337.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-4.33.25-PM-1024x337.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-4.33.25-PM-1024x337.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-4.33.25-PM-1024x337.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-4.33.25-PM-1024x337.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-4.33.25-PM-1024x337.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-4.33.25-PM-1024x337.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-4.33.25-PM-1024x337.png?w=1235 1235w" 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="285" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-4.33.33-PM-1024x285.png" alt="" class="wp-image-13083" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-4.33.33-PM-1024x285.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-4.33.33-PM-1024x285.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-4.33.33-PM-1024x285.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-4.33.33-PM-1024x285.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-4.33.33-PM-1024x285.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-4.33.33-PM-1024x285.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-4.33.33-PM-1024x285.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-22-at-4.33.33-PM-1024x285.png?w=1209 1209w" 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 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>



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BAYC Flips CryptoPunks as OpenSea Volume Recovers: Markets Wrap

Yearn Finance Launches YFI Buyback Program: Markets Wrap

Fed Speeds Tapering, Borrowing Activity on Aave, Compound, Maker, Anchor Slides: Markets Wrap

<div id="highlights-block_617725d07bf3f" class="highlights">
        <ul>
                <li>ETH looks primed for a strong rally if BTC can hold.</li>
                <li>NFT trading volume on Opensea has begun to taper off. </li>
            </ul>
    
</div>



<p>BTC has struggled despite the strong macro narrative. ETH/BTC looks ready to breakout of a multi-month consolidation.</p>



<p>Various Ethereum scaling solutions are coming along strong and should lower fees for users over the medium-to-long term. </p>



<p>Developer data from Santiment leads to misleading conclusions. </p>



<p>Opensea trading volume appears to be tapering off while the number of NFTs sold is lagging even further. </p>



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



<ul class="wp-block-list"><li>S&amp;P 500: 4,690, +0.17%</li><li>NASDAQ: 15,775, -.50%</li><li>Gold: $1,790, -.84%</li><li>WTI Crude Oil: $78.50, +2.28%</li><li>10-Year Treasury: 1.676%, +0.051%</li></ul>



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



<ul class="wp-block-list"><li>BTC: $57,494, +1.49%</li><li>ETH: $4,328, +5.54%</li><li>ETH/BTC: 0.0752, +4.01%</li><li>BTC.D: 42.48%, -0.62%</li></ul>



<h3 class="wp-block-heading">Can BTC hold the line?</h3>



<p>The macro narrative behind BTC has never been stronger, so investors are likely puzzled by the recent price action. Some headwinds for BTC include <a href="https://cms.blockworks.co/sec-rejects-vanecks-proposed-spot-bitcoin-etf/" target="_blank" rel="noreferrer noopener">spot ETF rejections</a>, <a href="https://www.bloomberg.com/news/articles/2021-10-20/mt-gox-trustee-says-creditor-reimbursement-plan-is-approved" target="_blank" rel="noreferrer noopener">Mt.Gox claims</a>, the <a href="https://www.bloomberg.com/news/articles/2021-11-09/self-described-bitcoin-creator-denies-friend-helped-mine-fortune" target="_blank" rel="noreferrer noopener">Craig Wright case</a>, a <a href="https://www.tradingview.com/chart/5GPs0hRQ/" target="_blank" rel="noreferrer noopener">strengthening USD</a>, <a href="https://www.cnbc.com/quotes/US10Y" target="_blank" rel="noreferrer noopener">rising treasury yields</a>, and <a href="https://finance.yahoo.com/news/us-agencies-unveil-crypto-sprint-for-2022-as-regulatory-debate-heats-up-191210719.html" target="_blank" rel="noreferrer noopener">potentially unfavorable legislation</a>. </p>



<p>&#8220;We also have the macro situation, with further evidence that BTC behaves more like a risk asset than an inflation hedge coming in the form of a sharp spike when the news broke that Biden had decided to renominate Jerome Powell — gold, in contrast, dropped.&#8221; Noelle Acheson, head of market insights at Genesis, commented to Blockworks. </p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="880" height="679" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/BTCUSD_2021-11-23_16-13-13.png" alt="" class="wp-image-11742" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/BTCUSD_2021-11-23_16-13-13.png?w=880 880w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/BTCUSD_2021-11-23_16-13-13.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/BTCUSD_2021-11-23_16-13-13.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/BTCUSD_2021-11-23_16-13-13.png?w=333 333w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/BTCUSD_2021-11-23_16-13-13.png?w=338 338w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/BTCUSD_2021-11-23_16-13-13.png?w=284 284w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/BTCUSD_2021-11-23_16-13-13.png?w=80 80w" sizes="auto, (max-width: 880px) 100vw, 880px" /><figcaption>Source: Trading View</figcaption></figure></div>



<p>She continued by adding &#8220;This links BTC to the outlook for real interest rates which, should they remain low or even negative for the short-term, would support further growth in risk assets. The risk is that real interest rates could rise to a level that starts to choke off growth and liquidity while hitting asset valuations in the broader market while providing a more attractive alternative.&#8221;</p>



<p>The overall backdrop sees BTC supply continue to leave exchanges as long-term holders accumulate and send their holdings to cold storage, inflation running hotter than it has in <a href="https://www.forbes.com/sites/greatspeculations/2021/11/16/exxon-us-bank-stocks-to-watch-as-inflation-surges-to-30-year-highs/?sh=24f243be70e0" target="_blank" rel="noreferrer noopener">over 30 years</a> while real yields on the world’s reserve asset are negative. Despite all that, digital assets are risky and volatile, a basic fact unlikely to change in the near-to-medium term.</p>



<h3 class="wp-block-heading">ETH/BTC</h3>



<p>ETH has outperformed BTC significantly over the past 24 hours, as it looks set to breakout if BTC can hold the line. ETH/BTC was last trading up over 4% on the day, according to data from <a href="https://www.tradingview.com/chart/5GPs0hRQ/?symbol=BINANCE%3AETHBTC" target="_blank" rel="noreferrer noopener">Trading View.</a> It appears to be attempting to breakout from a multi-month consolidation. If successful, it wouldn&#8217;t be surprising to see ETH take a run at all-time highs relative to BTC, last seen in the previous bull market cycle of 2017–2018.</p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="551" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/ethbtc-long-time-frame-1024x551.png" alt="" class="wp-image-11745" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/ethbtc-long-time-frame-1024x551.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/ethbtc-long-time-frame-1024x551.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/ethbtc-long-time-frame-1024x551.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/ethbtc-long-time-frame-1024x551.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/ethbtc-long-time-frame-1024x551.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/ethbtc-long-time-frame-1024x551.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/ethbtc-long-time-frame-1024x551.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/ethbtc-long-time-frame-1024x551.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/ethbtc-long-time-frame-1024x551.png?w=1710 1710w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Trading View</figcaption></figure>



<p>Ethereum has seen the <a href="https://etherscan.io/chart/active-address" target="_blank" rel="noreferrer noopener">number of active addresses</a> on the network continue to climb. The <a href="https://watchtheburn.com" target="_blank" rel="noreferrer noopener">net issuance</a> of ETH continues to fall towards zero, <a href="https://etherscan.io/chart/address" target="_blank" rel="noreferrer noopener">unique addresses</a> are increasing, <a href="https://dune.xyz/datanut/Polygon-MATIC" target="_blank" rel="noreferrer noopener">scaling solutions</a> are increasing and mainstream use cases continue to unfold, such as <a href="https://www.sothebys.com/en/press/sothebys-to-announce-live-bidding-increments-in-ether-eth-cryptocurrency-for-banksys-trolley-hunters-and-love-is-in-the-air" target="_blank" rel="noreferrer noopener">Sotheby’s denominating prices in ETH</a>.</p>



<p>Ethereum critics point to the high transaction fees as the Achilles&#8217; heel of the leading smart contract enabled platform. However, scaling solutions are <a href="https://ethereum.org/en/developers/docs/scaling/" target="_blank" rel="noreferrer noopener">progressing rapidly</a> and are expected to gain adoption over the coming year. </p>



<p>&#8220;ETH won&#8217;t ossify, it will reach homeostasis where more usage kickstarts feedback loops that flow value back into Ether *and* auto-scale to accommodate increased demand.&#8221; <a href="https://twitter.com/domothy/status/1462988092848156677?s=20" target="_blank" rel="noreferrer noopener">wrote</a> one Ethereum enthusiast on Twitter.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="680" height="661" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/scaling.jpg" alt="" class="wp-image-11746" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/scaling.jpg?w=680 680w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/scaling.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/scaling.jpg?w=264 264w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/scaling.jpg?w=269 269w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/scaling.jpg?w=225 225w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/scaling.jpg?w=80 80w" sizes="auto, (max-width: 680px) 100vw, 680px" /><figcaption>Source: @Domothy</figcaption></figure></div>



<h3 class="wp-block-heading">Developer activity</h3>



<p>Independent analyst Tascha of TaschaLabs.com recently took to <a href="https://twitter.com/RealNatashaChe/status/1462464440738091012?s=20" target="_blank" rel="noreferrer noopener">Twitter</a> to criticize the developer count on Ethereum based on data from <a href="https://santiment.net" target="_blank" rel="noreferrer noopener">Santiment</a>. She wrote &#8220;Solana contributors more than double Ethereum, while the market cap is 13% of Ethereum&#8217;s. I was going to say &#8220;probably nothing&#8221; but to be honest if you think it is nothing you&#8217;re sleepwalking.&#8221; </p>



<p>According to data from <a href="https://defillama.com/chains" target="_blank" rel="noreferrer noopener">Defi Llama</a>, Ethereum still boasts a 65.83% marketshare of TVL among layer-1 chains and is where the vast majority of innovation takes place. The criticism from Tascha came without acknowledging the projects missing from the Santiment data set, according to Afri Schoedon.</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">Ethereum projects in the chart:<br>* Go-Ethereum<br><br>Ethereum projects not in the data:<br>* Solidity<br>* Erigon<br>* Besu<br>* OpenEthereum<br>* Silkworm<br>* Prysm<br>* Lighthouse<br>* Teku<br>* Nimbus<br>* Lodestar<br>* Arbitrum<br>* Optimism<br>* Hermez<br>* zkSync<br>* Aztec<br>* Loopring<br>* Starkware<br>* Celer<br>* Boba<br>* Cartesi <a href="https://t.co/dLryhn3UzC">https://t.co/dLryhn3UzC</a></p>&mdash; Afri Schoedon (@q9fmz) <a href="https://twitter.com/q9fmz/status/1462686692134068228?ref_src=twsrc%5Etfw">November 22, 2021</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



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



<p>Trading volume on OpenSea looks to be on track for its lowest monthly total since July. Even more alarming for NFT investors is the number of NFTs sold on OpenSea. It appears to be lagging even more than trading volume, indicating market saturation. It is worth noting that OpenSea is just one marketplace and could just be losing market share.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="636" height="591" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-23-at-5.28.14-PM.png" alt="" class="wp-image-11749" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-23-at-5.28.14-PM.png?w=636 636w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-23-at-5.28.14-PM.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-23-at-5.28.14-PM.png?w=277 277w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-23-at-5.28.14-PM.png?w=281 281w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-23-at-5.28.14-PM.png?w=236 236w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-23-at-5.28.14-PM.png?w=80 80w" sizes="auto, (max-width: 636px) 100vw, 636px" /><figcaption>Source: <a href="https://dune.xyz/rchen8/opensea" target="_blank" rel="noreferrer noopener">Dune Analytics</a></figcaption></figure></div>



<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="332" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-23-at-5.21.52-PM-1024x332.png" alt="" class="wp-image-11747" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-23-at-5.21.52-PM-1024x332.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-23-at-5.21.52-PM-1024x332.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-23-at-5.21.52-PM-1024x332.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-23-at-5.21.52-PM-1024x332.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-23-at-5.21.52-PM-1024x332.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-23-at-5.21.52-PM-1024x332.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-23-at-5.21.52-PM-1024x332.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-23-at-5.21.52-PM-1024x332.png?w=1227 1227w" 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="282" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-23-at-5.22.08-PM-1024x282.png" alt="" class="wp-image-11748" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-23-at-5.22.08-PM-1024x282.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-23-at-5.22.08-PM-1024x282.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-23-at-5.22.08-PM-1024x282.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-23-at-5.22.08-PM-1024x282.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-23-at-5.22.08-PM-1024x282.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-23-at-5.22.08-PM-1024x282.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-23-at-5.22.08-PM-1024x282.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-23-at-5.22.08-PM-1024x282.png?w=1198 1198w" 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 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"/>


ETH/BTC on the Verge of Breaking Out; NFT Market May be Stagnating: Markets Wrap

MANA, SAND, AXS Explode on Facebook’s Meta News; ETH Beats ATH: Markets Wrap

<div id="highlights-block_617725d07bf3f" class="highlights">
        <ul>
                <li>Bitcoin experienced intense volatility that coincided with the closing of CME futures markets</li>
                <li>AAVE, MKR and COMP battle it out for DeFi marketshare</li>
            </ul>
    
</div>



<p>Bitcoin (BTC) experienced a mini flash crash around 2:15 PM ET today but quickly recovered.</p>



<p>Perpetual funding rates remain an important metric to keep an eye on. </p>



<p>Some industry experts believe that the volatility can be attributed to the recently approved BTC ETF.</p>



<p>The borrowing and lending space in DeFi may be large enough for AAVE, COMP and MKR to all thrive. </p>



<p>Despite recent turbulence in the NFT space, there remains a lot of catalysts for price appreciation. </p>



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



<ul class="wp-block-list"><li>S&amp;P 500: 4,596, +.98%</li><li>NASDAQ: 15,448, +1.39%</li><li>Gold: $1,799, +.03%</li><li>WTI Crude Oil: $83.06, +.48%</li><li>10-Year Treasury: 1.578%, +.049%</li></ul>



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



<ul class="wp-block-list"><li>BTC: $60,972, +3.40%</li><li>ETH: $4,264, +6.38%</li><li>ETH/BTC: .0700, +4.31%</li><li>BTC.D: 44.65%, -.84%</li></ul>



<h3 class="wp-block-heading">BTC liquidation cascade</h3>



<p>Bitcoin experienced an intense period of volatility today around 2:15 PM ET, with the BTC price falling as low as $57,653 before quickly recovering. There was a strong rally in the middle of last night from $58,000 up to nearly $62,000 right before the sell-off.</p>



<p>It appears speculators got too excited too quickly, as perpetual funding rates were racing higher as the price action traded in a range right before the sell-off. </p>



<p>&#8220;The funding rate is derived from the difference between the market price of perpetuals and the spot index it’s anchored to. Excessive buying of perps increases the spread between perp price and the spot index, causing funding to go up. Conversely, negative funding is incited by an influx of perp shorting, forcing the contract’s price to fall lower than spot prices,&#8221; <a href="https://members.delphidigital.io/reports/leverage-wipes-out-but-is-the-worst-behind-us/" target="_blank" rel="noreferrer noopener">wrote</a> Ashwath Balakrishnan of Delphi Digital.</p>



<p>He continued, &#8220;For funding to fall lower, one of two things needs to happen: either existing longs get shaken out and are forced to cover, or there’s an increase in bearish sentiment prompting traders to go net short. Either way, it’s unclear whether we’ve found a local bottom yet.&#8221;</p>



<p>As seen in the following chart, open interest weighted funding rates raced higher prior to the dip in price. Unfortunately, traders began getting aggressive quickly after the correction which signals additional caution may be appropriate. </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/2021/10/oi-weighted-funding-rate-2-1024x683.jpeg" alt="" class="wp-image-10064" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/oi-weighted-funding-rate-2-1024x683.jpeg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/oi-weighted-funding-rate-2-1024x683.jpeg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/oi-weighted-funding-rate-2-1024x683.jpeg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/oi-weighted-funding-rate-2-1024x683.jpeg?w=386 386w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/oi-weighted-funding-rate-2-1024x683.jpeg?w=392 392w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/oi-weighted-funding-rate-2-1024x683.jpeg?w=329 329w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/oi-weighted-funding-rate-2-1024x683.jpeg?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/oi-weighted-funding-rate-2-1024x683.jpeg?w=1200 1200w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Laevitas.ch</figcaption></figure>



<p>According to Skew, roughly $32 million worth of futures positions were liquidated in just a 10-minute window. </p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="869" height="333" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-4.00.35-PM.png" alt="" class="wp-image-10060" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-4.00.35-PM.png?w=869 869w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-4.00.35-PM.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-4.00.35-PM.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-4.00.35-PM.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-4.00.35-PM.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-4.00.35-PM.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-4.00.35-PM.png?w=80 80w" sizes="auto, (max-width: 869px) 100vw, 869px" /><figcaption>Source: Skew.com</figcaption></figure>



<h3 class="wp-block-heading">Are BTC ETFs to blame?</h3>



<p>Some industry experts believe that the volatility can be attributed to the recently <a href="https://cms.blockworks.co/first-bitcoin-futures-etf-nears-1b-on-first-day-of-trading/" target="_blank" rel="noreferrer noopener">approved</a> BTC ETF, which is backed by leveraged positions in the form of cash-settled futures contracts. </p>



<p>Caitlin Long, 22-year Wall Street Veteran and founder of Avanti, took to Twitter to share her thoughts:</p>



<figure class="wp-block-embed aligncenter is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">ANOTHER LEVERAGED SLAMDOWN in <a href="https://twitter.com/hashtag/bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#bitcoin</a> trading mkts today. Again, this is the type of foreseeable event that happens with the bad kind of financialization (the leveraged kind). It increases the cost of capital for the whole sector. smh <a href="https://t.co/hC1sbEtiXx">https://t.co/hC1sbEtiXx</a></p>&mdash; Caitlin Long 🔑⚡️🟠 (@CaitlinLong_) <a href="https://twitter.com/CaitlinLong_/status/1453807532443455488?ref_src=twsrc%5Etfw">October 28, 2021</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<p>It is unclear if the added leverage via ETF approvals to the BTC ecosystem is to blame for the volatility in price.</p>



<p>It is worth noting, however, that the CME only accounts for roughly 20% of aggregated futures open interest albeit a growing portion. This is significant to add because the CME is where all of the futures are being traded that back the aforementioned ETFs. </p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="572" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/skew_btc_futures__aggregated_open_interest-1024x572.png" alt="" class="wp-image-10067" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/skew_btc_futures__aggregated_open_interest-1024x572.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/skew_btc_futures__aggregated_open_interest-1024x572.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/skew_btc_futures__aggregated_open_interest-1024x572.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/skew_btc_futures__aggregated_open_interest-1024x572.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/skew_btc_futures__aggregated_open_interest-1024x572.png?w=467 467w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/skew_btc_futures__aggregated_open_interest-1024x572.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/skew_btc_futures__aggregated_open_interest-1024x572.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/skew_btc_futures__aggregated_open_interest-1024x572.png?w=1200 1200w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Skew.com</figcaption></figure>



<h3 class="wp-block-heading">Aave, Compound and MakerDAO battle it out for marketshare</h3>



<p>Aave (AAVE) and Compound (COMP) facilitate peer-to-peer borrowing and lending. Liquidity providers (LPs/lenders) earn interest for their services, while borrowers pay interest on top of their loans to pay the LPs. </p>



<p>MakerDAO (MKR) allows users to take out loans by locking up digital assets as collateral in return for a decentralized stablecoin, DAI. However, borrowers need to be attentive to their loan-to-collateral ratio as asset prices fluctuate in order to avoid having their collateral liquidated. </p>



<p>AAVE, COMP and MKR all compete for users&#8217; appetites to take on leverage via borrowing. However, when it comes to lending it is really just AAVE and COMP battling for market share because they have peer-to-peer ecosystems versus MKR&#8217;s collateralized debt position (CDP) model. </p>



<p>AAVE currently leads based on total valued locked (TVL) in its platform, followed by MKR at third and COMP at seventh: </p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1001" height="379" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.14.40-PM.png" alt="" class="wp-image-10074" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.14.40-PM.png?w=1001 1001w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.14.40-PM.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.14.40-PM.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.14.40-PM.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.14.40-PM.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.14.40-PM.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.14.40-PM.png?w=80 80w" sizes="auto, (max-width: 1001px) 100vw, 1001px" /><figcaption>Source: DefiLlama</figcaption></figure>



<p>According to the following Dune Analytics dashboard, the percentage of market participants interacting with COMP has remained consistent since mid-2020, whereas AAVE has stolen a lot of marketshare away from MKR. </p>



<p>COMP and MKR each hold a 25% market share of active addresses versus AAVE with 50%. </p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="625" height="281" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.21.24-PM.png" alt="" class="wp-image-10076" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.21.24-PM.png?w=625 625w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.21.24-PM.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.21.24-PM.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.21.24-PM.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.21.24-PM.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.21.24-PM.png?w=80 80w" sizes="auto, (max-width: 625px) 100vw, 625px" /></figure></div>



<p>However, the picture looks a lot different when looking at the market share of loans outstanding per project. AAVE leads with a 35.7% market share, with MKR in 2nd with 34.5%, and COMP in last with 29.9%. </p>



<p>This implies that while there are fewer active addresses on MKR taking out loans, they are players with very big pockets and trust the stablecoin, Dai, is a pristine asset.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="410" height="318" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.27.46-PM.png" alt="" class="wp-image-10077" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.27.46-PM.png?w=410 410w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.27.46-PM.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.27.46-PM.png?w=331 331w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.27.46-PM.png?w=337 337w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.27.46-PM.png?w=282 282w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.27.46-PM.png?w=80 80w" sizes="auto, (max-width: 410px) 100vw, 410px" /></figure></div>



<p>With roughly $80 billion of loans outstanding between the three protocols and only 3.5 million DeFi users, the total addressable market and growth run way is extremely large. Only time will tell if all three protocols can thrive side by side.</p>



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



<figure class="wp-block-embed aligncenter is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">&#8211; Twitter is implementing NFTs<br>&#8211; Coinbase is building an NFT marketplace<br>&#8211; Facebook is all in on Metaverse<br>&#8211; GameStop is building an NFT marketplace<br>&#8211; Nike working on NFT verification of shoes<br>&#8211; Warner Bros looking to release music NFTs<br><br>Heck yeah I&#39;m bullish</p>&mdash; Cobble ᵍᵐ (@cobble) <a href="https://twitter.com/cobble/status/1453692007046647810?ref_src=twsrc%5Etfw">October 28, 2021</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<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>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="331" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.44.13-PM-1024x331.png" alt="" class="wp-image-10078" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.44.13-PM-1024x331.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.44.13-PM-1024x331.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.44.13-PM-1024x331.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.44.13-PM-1024x331.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.44.13-PM-1024x331.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.44.13-PM-1024x331.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.44.13-PM-1024x331.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.44.13-PM-1024x331.png?w=1234 1234w" 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="282" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.43.56-PM-1024x282.png" alt="" class="wp-image-10079" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.43.56-PM-1024x282.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.43.56-PM-1024x282.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.43.56-PM-1024x282.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.43.56-PM-1024x282.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.43.56-PM-1024x282.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.43.56-PM-1024x282.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.43.56-PM-1024x282.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.43.56-PM-1024x282.png?w=1208 1208w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Top Solana Projects </figcaption></figure></div>



<p>If you made it this far, thanks for reading! Looking forward to catching up 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"/>


AAVE, COMP MKR Battle for Market Share; BTC ETFs Fuel Leverage: 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 class="wp-block-heading">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 class="wp-block-list"><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 class="wp-block-list"><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 class="wp-block-heading">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 loading="lazy" decoding="async" 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="auto, (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 class="wp-block-heading">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 loading="lazy" decoding="async" 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="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Skew.com</figcaption></figure>



<h3 class="wp-block-heading">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 loading="lazy" decoding="async" 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="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Top Ethereum Projects</figcaption></figure>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" 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="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Top Solana Projects </figcaption></figure>



<h3 class="wp-block-heading">Ethereum Decentralized Exchange (DEX) Volume </h3>



<ul class="wp-block-list"><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 loading="lazy" decoding="async" 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="auto, (max-width: 621px) 100vw, 621px" /><figcaption>Source: Dune.xyz</figcaption></figure>



<h3 class="wp-block-heading">Other Notable News</h3>



<ul class="wp-block-list"><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 class="wp-block-heading">Markets Wrap Highlights</h3>



<ul class="wp-block-list"><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 class="wp-block-list"><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 class="wp-block-list"><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 class="wp-block-heading">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 loading="lazy" decoding="async" 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="auto, (max-width: 942px) 100vw, 942px" /><figcaption>Source: https://app.laevitas.ch/dashboard/btc/derivs</figcaption></figure>



<h4 class="wp-block-heading">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 loading="lazy" decoding="async" 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="auto, (max-width: 454px) 100vw, 454px" /><figcaption>Source: @EricBalchunas</figcaption></figure></div>



<h3 class="wp-block-heading">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 loading="lazy" decoding="async" 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="auto, (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 loading="lazy" decoding="async" 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="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Top Ethereum Projects</figcaption></figure>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" 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="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Top Solana Projects </figcaption></figure>



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



<ul class="wp-block-list"><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 loading="lazy" decoding="async" 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="auto, (max-width: 942px) 100vw, 942px" /><figcaption>Source: Dune.xyz</figcaption></figure>



<h3 class="wp-block-heading">Other Notable News</h3>



<ul class="wp-block-list"><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>



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