Macro-environment of the crypto market

  • The U.S macro-environment seems to be bright for cryptocurrencies. 

U.S. Federal Reserve Chairman Jerome Powell said he does not intend to ban cryptocurrencies, but said stablecoins need greater regulatory oversight. Before that, Mr.Powell called for consultation and legislative support from Congress to develop the digital dollar.

  • China and South Korea

Institutional investors bought BTC and other cryptocurrencies after China’s latest crackdown. According to CoinShares’ latest report, digital asset investment products saw inflows rounding up to $95 Million as of September 24, bringing the total weekly capital influx over the last six weeks to a whopping $320 Million. Bitcoin led the inflows with $50 million; and other top coins included ETH, SOL, ADA, and DOT.

South Korea: Largest Crypto Exchange to start KYC verification amid crackdown

Upbit, South Korean largest crypto exchange, announced that starting from October users who trade over 1 million won on its platform must pass KYC verification. The latest change in regulation is in lieu of the updated anti-money laundering regulations from South Korea

The situation in China and South Korea led users to move to DeFi and DEX. According to data from Cryptoquant, “It seems Huobi users moved ETH, stablecoins, and DEX tokens to decentralized exchanges like Uniswap. Outflow transactions spiked after Huobi announced the suspension of existing accounts in mainland China.”

Segment review

2.1. DeFi

Some notes on the DeFi development from Ryan Watkins - Messari

Three DeFi protocols that generate over $100 million in annualized revenue are dYdX, PancakeSwap, and In the past month dYdX revenue has rocketed to just under $500 million annualized. DEXs continue to be the most profitable protocols in DeFi by a margin. DEXs will likely continue their growth as centralized venues clampdown on users from certain jurisdictions. Yearn is the only protocol earning $100M+ a year without paying out token incentives. Despite BSC activity having fallen off a cliff since Q1 PancakeSwap remains a cash machine.

dYdX now accounts for more than all other DEX trading volume combined

Trading volume of dYdX on the last 24h of September 28 was more than $9 billion, according to data provider CoinMarketCap. Uniswap’s V3 lands in second at $1.2 billion, the only other DEX to trade above one billion in the past day, and lags dYdX even when adding the almost $280,000 that was traded on Uniswap V2. All other 104 DEXs listed on CoinMarketCap have traded a total of $5.4B in the past day, or about half of dYdX’s volume. 

A major factor that drives the growth is the distribution of dYdX tokens as rewards for both trading and providing liquidity on its platform. Earlier this month, it airdropped more than $1B to over 64,000 users. As a macro trend, trading on derivative exchanges starts to gain popularity over spot exchanges.

2.2. NFT

Ripple launches a $250 million Creator Fund to support NFT developments on XRPL blockchain. The fund aims to provide financial, creative and technical support needed for creators to engage and eventually deliver new NFT use cases. Ripple highlighted the growing popularity of the NFT market and mentioned that the newly introduced creator fund will accelerate the global adoption of NFTs. Monica Long, GM of RippleX at Ripple, said “By starting with marketplaces and creators, our fund seeks to take the guesswork out of NFT projects to unlock unexplored tokenization use cases on the XRP Ledger.”

Facebook announced a $50 million “XR Programs and Research Fund” for the development of  metaverse-related initiatives and partnerships over the next two years. It’s a “starting point” for Facebook as it attempts to co-create the future online metaverse. Facebook has already signaled that it doesn’t intend to single-handedly create or oversee the eventual metaverse. And this will probably only be the beginning of a long-term process.

TikTok launches its first creator-led NFT collection. The collection, called TikTok Top Moments, will be made available on Ethereum and will be powered by Immutable X, a Layer-2 scaling solution for Ethereum focusing on NFT


Sneak peek on Twitter’s NFT profile verification


Axie Infinity

AXS has risen 25% in the last 24h making its 7D returns to be +115.68%. Reasons for the recent surge in AXS price include the introduction of staking features for the AXS token, the release of a community airdrop early adopters and the increasing popularity of play-to-earn gaming protocols.

  • The AXS staking function was announced on September 30. To date, the total staked amount is ​​12,520,685 AXS (~$1.73 billion).
  • AXS airdrops tokens to early adopters. 10,000 wallets were selected based on a snapshot that was taken on Oct. 26 to receive a share of the 800,000 AXS airdrop, depending on the wallet’s level of activity.
  • The rising popularity of play-to-earn gaming, which starts with Axie Infinity. The P2E sector has gained momentum in recent months with three-month returns of ​​+707.28%, according to data from Messari.


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