Back

 Weekly trends(September 13 – September 20)

  • 21/09/2021

Macro-environment of the crypto market

MicroStrategy

MicroStrategy has purchased an additional 5,050 bitcoins for approximately $242.9 million in cash at an average price of $48,099 per Bitcoin. As of 9/12/2021, it holds 114,042 bitcoins acquired for about $3.16 billion at an average price of $27,713 per bitcoin.

Walmart was not partnered with Litecoin

Early this week, a press release, published and reported by multiple news organizations, stated that Walmart will partner with Litecoin for cryptocurrency payment. Both Walmart and Litecoin denied the news and said that the press release was faked. The press release was distributed via a third-party channel and not shared via Walmart’s official press site. Further, it did not contain the financial safe harbor information often included in statements from public companies like Walmart. Still, the news of the alleged partnership spread quickly, first by headline aggregation accounts on Twitter and later mainstream news organizations like Reuters and CNBC. Right after the fake press release was released, Litecoin prices jumped from $175 to as high as $231 then fell again. Currently, Litecoin is traded at $186.28.

Segment review

Smart Contract Platform

Cardano now supports Smart contract

With the Alonzo update, smart contracts can now begin to be created and deployed on the Cardano mainnet. Cardano has introduced Plutus scripts, which is “a purpose-built smart contract development language and execution platform using the functional programming language Haskell”. Cardano’s Plutus scripts will also enable decentralized applications (dapps) to be built in the ecosystem. However, it may still take some time before the Cardano ecosystem is entirely ready for dapps to fully materialize on the mainnet, as the protocol continues to be developed and to mature.

Solana

September 15, Solana reported that “Solana Mainnet Beta encountered a large increase in transaction load which peaked at 400,000 TPS. These transactions flooded the transaction processing queue, and lack of prioritization of network-critical messaging caused the network to start forking. This forking led to excessive memory consumption, causing some nodes to go offline. Engineers across the ecosystem attempted to stabilize the network, but were unsuccessful.” Solana Price prices falling by 15% in 12 hours

After nearly 20 hours in the dark, Solana is back online. “The Solana validator community successfully completed a restart of Mainnet Beta after an upgrade to 1.6.25. Dapps, block explorers, and supporting systems will recover over the next several hours, at which point full functionality should be restored.” Currently Solana is traded at about $146.

Avalanche

On Sept.19 Avalanche (AVAX) price hit a new all-time high at $76.26. Three reasons for the surging price of AVAX include the recent completion of a $230 investment round by large capital funds, the continued migration of liquidity to the Avalanche network and new integrations and protocol upgrades that help improve the user experience.

  • Avalanche has raised  $230 million in the latest funding round from larger investment funds including Polychain Capital, Three Arrows Capital and Dragonfly Capital. Avalanche is expected to challenge Ethereum because any tokens or projects that operate on Ethereum can fully migrate to the Avalanche ecosystem and take advantage of its higher throughput capabilities and lower transaction costs.
  • A second reason for the rise of AVAX has been the continual migration of assets from networks like Ethereum to Avalanche to participate in its growing decentralized finance ecosystem. As of September 17, the total value locked on Avalanche is $2.7 billion, three big DeFi protocols, Benqi (QI), Trader Joe (JOE) and Pangolin (PNG) account for about 85% of the total value locked.
  • A third factor that has helped boost the value of AVAX has been a series of partnership and integration announcements that have excited investors and put the spotlight on the project.  Avalanche NFT ecosystem partnered with Topps, a sports card and memorabilia company, to launch “Inception” NFT digital collectibles series.
  • In addition, the Avalanche community is voting to have AAVE launch on the Avalanche network. If approved, the proposal could lead to a further increase in TVL on Avalanche as assets held in AAVE on Ethereum have the potential to be migrated to AAVE on Avalanche.

Arbitrum One

Beginning at 10:14 AM Eastern today (September 14, 2021) and continuing for approximately 45 minutes, the Arbitrum Sequencer was offline. Funds were never at risk, but the submission of new transactions stopped during the downtime.

The root cause of the downtime was a bug causing the Sequencer to get stuck when it received a very large burst of transactions in a short period of time. The issue has been identified and a fix has been deployed.

Arbitrum is developing fast with a growing number of Dapp. Several bridges allow users to move their funds from Ethereum to Arbitrum and from Arbitrum to other blockchains (BSC, MATIC, AVAX, etc), for example, bridge.arbitrum.io, Celernetwork, and HopProtocol. New NFT and gaming projects are introduced to Arbitrum, such as ArbiPunk, DeevyProject, and Smol Puddle. In addition, DeFi protocols on Arbitrum include Curve, SushiSwap, UniSwap, Balancer, Dodo, and Swapr. Within just two weeks since Arbitrum One went live, it is one of the most fast-growing platforms.

Terra – Luna and UST

Luna and UST future growth is a huge topic for this week with the Columbus-5 upgrade being deployed on September 30 and UST being exported to other blockchain via Wormhole V2 and IBC protocol (Inter-Blockchain Communication Protocol).

Columbus-5 will change the seigniorage distribution logic by burning seigniorage token (LUNA) instead of routing the token back to the community reward pool. Therefore, to mint 1 UST, $1 worth of LUNA will be burned, and the transaction fee will go to the community pool.

More importantly, Columbus-5 enables IBC which will allow UST to circulate and become the dominant stablecoin of the Cosmos ecosystem. This could mean UST potentially becoming the dominant stablecoin pair on Cosmos DEX. Via IBC protocol, users can import assets from other blockchains to be used as collateral on Terra. Wormhole V2 will allow UST to enter leading chains like Ethereum and Solana.

Terra’s Project Dawn is a new funding initiative to develop and improve critical infrastructure and core technologies for the growth of the Terra ecosystem. Project Dawn has commenced as of today with a 5 million LUNA unlocked and distributed by the TFL Genesis wallet (market value $150M). Learn more about Project Drawn.

The decentralized stablecoin supply just reached $10 billion and continues to eat shares from centralized stablecoins. DAI and UST are two dominant decentralized stablecoins but while DAI focuses on Ethereum DeFi, UST is expanding to other ecosystems. 

DeFi

Top DeFi tokens post double-digit gains: Curve, Aave, and SushiSwap. The reasons behind these gains are varied.

Curve has launched on Arbitrum. To boost usage of Curve’s initiative, the developer team has rolled out two liquidity pools, doling out high yields. The first, called “TriCrypto,” offers a whopping 272% yield for users who add one of three assets: Tether (USDT), Wrapped Bitcoin (WBTC), or Wrapped Ethereum (WETH). The second pool is called “2pool” and offers a 6.5% yield for users that deposit either USD Coin or USDT. There is also a vote today within the Curve decentralized autonomous organization (DAO) to determine whether additional bonus tokens will be given to users who join either pool. If passed, additional CRV tokens, Curve’s native governance token, would be given on top of the base yield on Curve. (Currently, TriCrypto’s yield is 19.36%, and 2pool’s yield is 13.86%)

SushiSwap also joined Arbitrum, but 15% spike in SushiSwap’s native token, however, is likely attributed to a recent non-fungible token (NFT) sale on its token-launching platform, Miso. NFT speculators can purchase a DONA reservation token on Miso. These tokens can then be used to redeem “a 2007 Kia Sedona NFT” on September 21, 2021. The sale for the DONA token has already raised 427.14 Ethereum or $1,451,276.49 at today’s prices. However, there is some bad news about SushiSwap. First of all, on September 17, The Miso front end became the victim of a supply chain attack. The attacker inserted their own wallet address to replace the auction wallets at the auction creation, the attacker acquired 865 ETH, valued at $3 million. In addition, SushiSwap Co-founder 0xMaki stepped down from leadership position. 0xMaki took over as unofficial project lead last year, shortly after the project’s pseudonymous founder, Chef Nomi, ran away with $14 million in treasury funds. Although he will no longer lead the project, 0xMaki will continue to advise Sushiswap.

AAVE has been buzzing with news of a soon-to-be-launched project. It is currently being referred to as “[REDACTED] protocol” by the Aave team. Aave’s co-founders and team members have hinted that the project will relate to monetizing users’ social media activity. Aside from the mounting hype around this project, FRAX, an algorithmic stablecoin, has also been added to Aave, letting holders borrow and lend the asset. 

NFT

OpenSea insider trading incident

September 15, OpenSea admitted on its website that “one of our employees purchased items that they knew were set to display on our front page before they appeared there publicly.”

The incident came to light after a Twitter user – ZuwuTV – found out that Nate Chastain, OpenSea’s head of product, used insider information to make profit for himself. It appears that Nate Chastain “has a few secret wallets that appears to buy your front page drops before they are listed, then sells them shortly after the front-page-hype spike for profits”.

Related Articles