Gm degens, this Debrief brings to you a weekly curation of key updates & alpha from the cryptoverse.
It's time to dive into another wild week in the world of crypto! So, grab your coffee, strap in, and let's go! ☕
Estimated reading time: 5.5 minutes.
Here’s what’s inside…
1️⃣ Highlights from the Market 📈
2️⃣ Big Story of the Week ✨
3️⃣ Crypto Expert Takeaways 🎧
4️⃣ Crypto Twitter Roundup: Top 3 Threads 🔥
5️⃣ Trending NFTs: This Week's Standouts 🃏
1️⃣ Highlights from the Market 📈
State of the Market - Essential Updates You Need to Know
1. How the Top 10 Coins are Faring:
Has been pretty much a flat week overall
BTC is down ~2% on the week
Among top10 alts, XRP has been the clear outperformer, up 6.5%
Source : Coingecko
2. The Crypto Fear/Greed Index:
The index currently sits at 50 (neutral sentiment)
The index has remained near the neutral (50) level for the last several days
This is a good reset of sentiment for the bull trend
Source: Crypto Fear & Greed Index
3. Top Trending Category - Layer 2’s:
Layer2’s did really well last week, with most major L2’s well in the green
Arbitrum is leading the pack, up ~7%
As per Lookonchain, a whale seems to be accumulating ARB
4. Funds Flow Summary- A Look into the Big Boys’ Activity:
TLDR; Bitcoin outflows, altcoin inflows = rotation?
For the fourth week in a row, digital asset investment products have experienced a net outflow.
This past week, there was a total outflow of $54 million, which makes the total for the past four weeks $200 million. This amount is equal to 0.6% of all the assets being managed.
Bitcoin, in particular, saw a large decrease, with $38 million leaving. This is 80% of all the funds that left during this period. When you also consider outflows from short-bitcoin, it's clear that the majority of investor activity has been focused on Bitcoin.
On the other hand, there's been an increase in funds across eight different altcoins. This suggests that investors are starting to take more risks and explore other options.
2️⃣ Cover Story: BRC20 Mania - How Sustainable Is It?
Bitcoin ordinals have kickstarted a mania around Bitcoin with a ton of innovation happening including NFTs and memecoins. However - these developments have attracted a lot of controversy.
Bitcoin educator Dan Held and Bitcoin Frontier Fund Managing Partner Trevor Owens discuss the rapid rise of BRC-20s and why they’re both bullish on BTC memecoins on a recent Unchained podcast episode.
Here are the key takeaways 👇️
🤔 Bitcoin Ordinal Theory Explained
Simply put, Bitcoin ordinal theory is all about the order of satoshis, the smallest unit of Bitcoin, and attaching data to them. This process is often used in creating Bitcoin Non-Fungible Tokens (NFTs) and BRC20 tokens, which include popular meme coins. This way, each satoshi gets its unique story, like a colored coin, tracing its movement through the blockchain.
🌊 BRC20 Tokens: The New Wave
BRC20 tokens are making big waves in the web3 space. They're a fresh spin on the Bitcoin ordinal theory, inscribing data onto Bitcoin in new ways. Projects like dot SATs namespace and get Book Project are fueling this new wave.
The innovation doesn't stop there; these tokens are even bringing smart contracts to Bitcoin. This breakthrough allows for off-chain consensus, a different approach from Ethereum's on-chain logic. And guess what? BRC20 tokens have already hit the billion-dollar market cap, a testament to the industry's enthusiasm for this innovation.
🐸 Meme Coins: Don't Underestimate Their Potential
Meme coins, a type of BRC20 token, have captured the crypto world's imagination, despite their lighthearted origins. Just like Ethereum and Solana, these tokens could bring unexpected innovation to the table.
The market's valuation of these coins suggests that people are ready to invest in and value them. Who knows? The next big thing in crypto could emerge from these playful beginnings.
💵 Bitcoin Transaction Fees: A Healthy Sign
Bitcoin transaction fees are on the rise, but that's not a bad thing. It's a sign of a functioning fee market. As more transactions occur on Bitcoin's first layer (L1), the second layer (L2) solutions like the Lightning Network help settle them.
While the higher fees may replace miners' block rewards over time, they are an anticipated development. For those looking for cheaper options, L2 solutions are the way to go. It's a positive sign for Bitcoin's long-term sustainability.
🔃 Are Some Bitcoin Transactions “Spam”?
There's an ongoing debate about what kinds of transactions are valid on Bitcoin. Some people label certain types as spam, but this view is subjective. Bitcoin, like any disruptive technology, evolves over time. It's crucial to remember that Bitcoin is more than just a payment system; it's also a store of value. A balanced, objective evaluation of Bitcoin's potential is necessary for its growth and innovation.
📈 Speculation and the Future of Bitcoin
The volatile nature of Bitcoin adoption, with periods of rapid growth followed by lulls, is a part of the journey. Speculative activities have always been a part of Bitcoin transactions, and they contribute to the ecosystem's overall growth. It's all about increasing user engagement and driving network fees to enhance security and foster innovation. The recent influx of developers and investments in the Bitcoin space shows the potential for future growth.
3️⃣ Crypto Expert Takeaways 🎧
Bite-sized alpha from an Illuminati Round Table chat
🤹 Balancing Act: Mastering DeFi & NFTs with Darren
This Twitter Spaces highlights Darren's (@bigdsenpai) transition from the advertising industry to the crypto space. Co-founder of anataNFT and CMO of Illuminate Finance, Darren shares insights on his crypto journey, the differences between the NFTs and DeFi worlds and treasury management tips with Kadeem.
Here’s a snippet from this discussion 👇️
What is the divergence between your work in NFTs vs DeFi?
Darren explains how his crypto media company and working on Illuminate Finance took a lot of work to balance out.
He explains how the NFT space differs significantly from DeFi and that he has to switch modes.
He explains how the audience’s demographic in either sector is hugely different.
Darren explains that marketing in the NFT space is more outlandish than DeFi.
He talks about how having a solid team around him aids him in balancing and keeping a consistent schedule.
📑 Check out the full round table recap here
🎧️ Listen to a clip from this Twitter Space 👇️
4️⃣ Crypto Twitter Roundup: Top 3 Threads
Essential CT News & Alpha to Catch Up On
🐸 After the Meme Mania, What Next?
Tindorr prefers not jumping on the memecoin “tsunami” this late and is busy preparing himself for the next big narrative.
Concentrated liquidity models and advanced technology alone are not enough for success in the token's projects. Attention and traction are crucial factors.
Keep an eye on projects like $CHR and $JOE for potential growth, but monitor their traction and protocols listing tokens for sustained success.
Pay attention to emerging projects like $CRV and $GRAIL, as they show potential to beat competitors and offer relative value on platforms like Arbitrum.
Real-world asset projects bridge Web3 to real-world use cases, and their progress should be monitored for potential opportunities.
Decentralized stablecoins, particularly $crvUSD and $FRAX, are considered clear winners, while projects like $PENDLE, $IPOR, and $FLASH offer potential growth in the yield and interest rate space.
Everyone knows this memecoin run is short-lived and far from fundamental.
When others are riding a tsunami, I prefer preparing myself for the next wave.
Here are my 6 areas and 16 projects I've put on my watchlist.
— Tindorr 🚢 (@0xTindorr)
May 10, 2023
🏁 Bitcoin Milestone: 1 Million Addresses Holding 1 BTC or More!
Keyur Rohit talks about this momentous milestone 👇️
The number of Bitcoin wallet addresses holding 1 BTC or more has surpassed 1 million.
This milestone was achieved on May 13, attributed to a surge during last year's market crash.
Despite a 65% price drop, smart buyers took advantage of the opportunity and added 190,000 "wholecoiners" to the mix.
The crash in June and FTX's bankruptcy played a crucial role in boosting the number of Bitcoin holders.
Major bank collapses and the Fed's consideration of halting interest rate hikes have investors turning to Bitcoin as a safe haven.
🚨 #Bitcoin Addresses Holding 1 $BTC or More Cross the 1 Million Mark! 😱
A thread 🧵 https://t.co/4S92VSJjre
— Keyur Rohit (@CryptoKingKeyur)
May 16, 2023
🏦 What’s The Latest in DeFi?
TheDefiInvestor summarizes all key recent developments in the DeFi world 👇️
Chiliz Chain launches as the first blockchain for sports & entertainment.
Arbitrum Foundation shares transaction fee revenue with the DAO.
AAVE V3 goes live on Metis platform.
Solana Saga Mobile now accessible to the public.
MakerDAO introduces Spark Protocol, focusing on lending with DAI.
The latest developments in DeFi👇
• Chiliz Chain mainnet, the first blockchain infrastructure for sports & entertainment has launched
• Arbitrum Foundation announced the distribution of its revenue generated by transaction fees to the DAO
• AAVE V3 went live on Metis
— The DeFi Investor 🔎 (@TheDeFinvestor)
May 11, 2023
5️⃣ Trending NFTs: This Week's Standouts
NFTs that are hotter than your altcoins
The following collections have been creating waves this week (Stats Source: https://www.nft-stats.com/)
1) YOU THE REAL MVP NFT
7-Day Volume: $549k | NFTs Sold over 7 days: 6
“420 TROPHIES OF MYTHICAL POWER, FORGED IN MEMELAND.”
2) Milady Colombia Maker NFTs
7-Day Volume: $272k | NFTs Sold over 7 days: 450
Milady Colombia Maker is a collection of 1000 generative pfpNFT's in a neocolombian aesthetic inspired by barrio style tribes.
Do you think BRC20 tokens will become as prominent as ERC20 ones?