Overview
- Vitalik Buterin shares thoughts on ETHW.
- The golden nuggets of TVL.
- Markets: Quiet week but NOT for Optimism.
- Crypto OG buys Ether Call Options.
- Uniswap’s exciting growth plan.
- Arbitrum Nitro: Imminent!
Good morning Banter Fam,
It’s Monday, the markets have been slow. A little too slow. It almost feels like we may have an interesting week ahead of us. Just a feeling.
For the meantime, let’s revisit TVL metrics as there’s many changes that have occurred since last time.
Let’s dig in!
Total Value Locked Update
All and all, the crypto sector has remained steady the past few weeks as growing confidence in the markets have translated into a steady increase in Total Valued Locked (TVL). TVL has climbed 21% from its lows to $68.3B in the previous month.
Source: Defi Llama
Chains
Looking at the various chains, there’s a continuing shift into Layer-two (L2) blockchains. With all the attention surrounding the merge and the high amount of liquidity available to easily transfer from Ethereum, L2s are reaping the early benefits of steading market prices. There are now three Ethereum L2 blockchains in the top ten of TVL (Optimism, Arbitrum, and Polygon). Notably, Optimism continues to grow aggressively with an increase of +280% in TVL in the previous 30 days. In comparison, Solana and Avalanche have decreased in TVL.
Source: Defi Llama
Digging deeper in Ethereum shows focus has returned to MakerDAO, the over-collateralized, decentralized stablecoin provider of DAI with an increased TVL of +321% last month. Since the loss of faith in algorithmic stablecoins, staking on MakerDAO to receive decentralized DAI, has become popular. Lido (LDO) and Rocket Pool (RPL), staking services for Ethereum, are the beneficiaries of The Merge narrative. Both are up this month +50% and 84% respectively.
Source: Defi Llama
Conclusion
TVL continues to climb steadily because of steady price action. There are some definitive shifts continuing from Non-Ethereum L1s into L2s. Part of the growth comes from The Merge narrative but the emerging L2s also encompass the benefits of easily transferable liquidity from Ethereum. TVL will be closely tied to price action but focusing on the shifting liquidity remains highly informative as it could give clues into the potential frontrunners of upside price action.
Market update 🌍
BTC/USDT 1W
It was a quiet week in the crypto sector with various altcoins taking an opportunity to run while Bitcoin and Ethereum remained relatively flat. BTC price continues to fluctuate near 23k. Meanwhile, the Relative Strength Index (RSI) nears an oversold area on the weekly chart.. The emerging volume in the past month brings some promise towards price sustainability. Once again, the crypto sector will likely be tied to the results of the stock markets this week. BTC completed the week down -0.51% to $23,174.
High-resolution chart
OP/USDT 1W
The Optimism (OP) token continues to rise strongly, only months after its token release. After reaching lows of $0.40 on June 13th, OP has climbed +380% in a span of less than two months to $1.92. Noting the TVL increase in the early section, the Optimism (OP) blockchain is quickly competing with the likes of Avalanche, Solana and Fantom for premiere status. OP completed the week up +20% to $1.92.
High-resolution chart
| US markets close | Gain |
| S&P 500 | *Market Closed Weekend |
| Nasdaq | |
| Dow | |
| VIX |
Notable Gainers (7d):
| Protocol (Coin) | Price ($) | Gain (%) |
| Flow (FLOW) | 2.93 | +52 |
| Decred (DCR) | 37.18 | +36 |
| Celsius Network (CEL) | 1.45 | +32 |
| Chiliz (CHZ) | 0.15 | +24 |
| Theta Network (THETA) | 1.67 | +24 |
| Oasis Network (ROSE) | 0.10 | +24 |
| Quant (QNT) | 125.35 | +22 |
| NEAR Protocol (NEAR) | 5.17 | +22 |
| Avalanche (AVAX) | 27.83 | +17 |
| VeChain (VET) | 0.031 | +16 |
| Pocket Network (POKT) | 0.14 | +106 |
| Rocket Pool (RPL) | 29.13 | +32 |
| JUNO (JUNO) | 5.53 | +29 |
| Metis (METIS) | 43.68 | +27 |
| Trust Wallet (TWT) | 1.17 | +27 |
| Optimism (OP) | 1.92 | +21 |
| Bitcoin Fear and Greed Index | 30 Fear |
| “Crypto” Google Trends 90d | 16 |
| “Bitcoin” Google Trends 90d | 27 |
Newswatch 📰
Justin Sun pushing ETHW. The Poloniex crypto exchange, run by Justin Sun has listed ETHW (Ethereum PoW) and ETHS (Ethereum PoS). Reportedly Vitalik Buterin called out ETHW hard fork proponents as “trying to make a quick buck”, saying that the move is being pushed by “people who own exchanges trying to make a quick buck”. Sun took to Twitter to state his opinion on this:
Arthur Hayes goes long Ethereum. In the latest article “Max Bidding” by Hayes, the former Bitfinex CEO, notes his entry into long calls for March 2023 in ETH options.
News tidbits:
- Execs weigh the significance of the BlackRock-Coinbase deal.
- Nomad recovers $20m of $190m stolen.
- Using Crypto to Build Real-World Infrastructure by Messari.
At the protocol level ⛓
Uniswap growth proposal. Community members of Uniswap have proposed the creation of the Uniswap Foundation. Their mission? “In pursuit of a more open and fair financial system, the Uniswap Foundation supports the decentralized growth and sustainability of the Uniswap Protocol and its supporting ecosystem.” The members are requesting $74m to cover 3 years of operations and a Uniswap Grant Program.
Nitro is imminent. The Arbitrum team has announced an official date of August 31st, on Arbitrum’s one year anniversary, to migrate to Nitro public beta. Arbitrum has previously mentioned that they will restart the Arbitrum Odyssey program once the chain adds Nitro capabilities.
Protocol level tidbits:
- Update on Redacted Cartel.
- Premia is now live on Optimism.
- 6 New services launched on Arweave (AR).
- Beanstalk stablecoin relaunches four months after $182m exploit.
Banter’s take
“There are only two constants in life. Change and change.”
Price action in crypto last week was weak. The stock market has reached a strong resistance point in the S&P 500 and Nasdaq. To maintain the recent climb will take a lot of volume and it seems likely for prices to retrace sometime soon. The potential for a V-shaped recovery is there, but considering the challenging macro backdrop, the peaks and valleys of the ranging market seem more realistic.
But you never know, markets are unpredictable and their outcomes will continue to surprise us all at times.
Gabri
Follow me on Twitter for daily updates!
Disclaimer
Good Morning Crypto (issued by Crypto Banter) is a newsletter for entertainment purposes only.
All opinions expressed by the publisher, writers, and chartists should not be construed as financial advice, and do not necessarily reflect the views of Crypto Banter. The publisher, writers, and chartists may hold positions in the tokens and assets discussed. Readers are encouraged to do their own research.
