Tokenomy Berita

https://linktr.ee/flokieth

​

https://preview.redd.it/vcbslyjn9p1b1.png?width=1024&format=png&auto=webp&v=enabled&s=3771ed359a53f80917e90d1956432b683cceb1e1

Banking crisis fears continued last week despite JPMorgan Chase’s acquisition of First Republic Bank, the fourth regional lender to collapse this year and the second-largest in U.S. history. Shares of PacWest Bancorp (PACW) tumbled more than 75% in the week hitting a low of $2.48 after a report that it was considering selling itself. Elsewhere, Treasury Secretary Janet Yellen warned that the U.S. government may default on its debts as soon as 01 June 2023, calling for urgency in resolving the U.S. debt ceiling debate. Lastly, the U.S. Federal Reserve raised rates to 5-5.25%, its 11th rate-hike since March 2022, and signaled a potential pause.

In Crypto, Coinbase goes international amid continued U.S. regulatory scrutiny and Liquid Staking Derivatives (e.g. Lido, RocketPool) overtakes Decentralized Exchanges (e.g. Uniswap, SushiSwap) as the top category in DeFi by Total Value Locked (TVL).

U.S. equities remained under pressure as recession risks increased from banking related concerns exacerbated by the U.S. Federal Reserve’s continued commitment to its tightening policy amid stickier inflation: SPX-0.80%, DJIA -1.24% and NASDAQ +0.07%. The broad U.S. regional bank ETF (KRE) -10.10% for the week. Crypto continued its rangey-trend with BTC -2.63% and ETH +0.14%, trading between $27K-$30K and $1,800-$2,000 as the markets struggled to find direction.

On-chain, the monthly net position change of young supply reveals a consistent and stable net sell pressure at a rate of +250k BTC per month, resulting in an increase of 366K BTC in total young supply. The proportion of both BTC and USD-denominated wealth held by recent buyers, particularly those in the young supply age bands (<6-months) can shed light on market demand. An increasing share of young supply during a rally indicates a flow of capital into the market. This also suggests that old supply (>6-months) is spending and transferring cheap/old coins to new buyers at higher prices due to increased demand liquidity. This current pattern is similar to the 2019 uptrend and may indicate an impending period of equilibrium before another bullish cycle, similar to what was observed in the 2020-21 market trend (@glassnode) ).

​

https://preview.redd.it/iu2q5f8p9p1b1.png?width=602&format=png&auto=webp&v=enabled&s=702467541666312b37304c8a9c9d1593346c8b8a

https://preview.redd.it/0qjuw50q9p1b1.png?width=768&format=png&auto=webp&v=enabled&s=169f161e5a6b0fd3b6c5cfb6adc650cceb8e7b05

https://preview.redd.it/y8ixf1lq9p1b1.png?width=768&format=png&auto=webp&v=enabled&s=6294ff106855dd3a6026a62cf62e803ca2e59e2b

• White House pushes for a punitive tax on crypto mining. The Biden administration is campaigning for a tax first sought in a recent federal budget proposal, advocating that crypto miners pay an amount equal to 30% of their energy costs.
• Jury convicts former OpenSea manager in NFT-insider trading case. Prosecutors claimed Nathaniel Chastain profited from inside information about which NFTs would be featured on the marketplace. This marks the first time someone has been officially charged with insider trading specifically on NFTs.
  Our View: the outcome of the case could set a precedent for labeling NFTs as a security, allowing the U.S. SEC to claim regulatory oversight on the asset class.
• Poloniex agrees to a $7.59 million fee to settle sanctions violation charges. The U.S. Treasury Department’s Office of Foreign Asset Control (OFAC) said the cryptocurrency exchange had nearly 66,000 violations, allowing customers from Crimea, Cuba, Iran, Sudan and Syria to trade up to a collective $15 million between January 2014 and November 2019.
• Cryptoverse: digital coins lure inflation-weary Argentines and Turks. Ownership of digital currencies in Turkey was the highest in the world at 27.1% followed by Argentina at 23.5% – well above global crypto ownership rate estimated at 11.9% – according to data from research firm GWI. What is common to Turkey and Argentina is high inflation, which has led to crumbling currencies and capital controls to deter local residents from taking money out. Turkey’s annual inflation was 50.51% in March, Argentina’s was even higher at 104%.
  Our View: we have long touted cryptocurrencies’ appeal as a viable alternative to FIAT, especially in countries with unstable banking systems and persistently high inflation, eroding citizens’ long-term wealth.
• Coinbase International Exchange launches amid SEC crypto crackdown in the US. The cryptocurrency exchange launched its global derivatives platform that will be available only to institutional clients in eligible, non-U.S. jurisdictions. It will start by listing BTC and ETH perpetual futures, and all trading will be settled in USDc, requiring no FIAT on-ramps.
• Venmo will enable FIAT-to-crypto payments in May. PayPal, the parent company of Venmo, announced the new feature “which is basically connecting two of the largest networks and wallets in the country.” Users will be able to buy cryptocurrencies and send them to other Venmo users or external wallets.
• Mastercard launches Web3 user-verification solution to curb bad actors. The solution, dubbed “Mastercard Crypto Credential”, was announced at Consensus23. As part of the solution, users will be issued a “Mastercard crypto credential unique identifier,” which, in theory, enables people to instantly verify that an address they want to send funds to has been vetted by Mastercard and has been operating in compliance with the firm’s standards.
  Our View: the global payments company has been continually upping its exposure to the crypto sector over the last couple of years. This announcement comes just a few weeks after it launched a non-fungible token (NFT) gated musician accelerator program in collaboration with Polygon.
• DefiLlama: Liquid Staking solutions now have more Total Value Locked (TVL) than Decentralized Exchanges (DEXs). According to data from the crypto analytics platform, Liquid Staking solutions such as Lido and Rocket Pool now have more TVL than decentralized exchanges, making them the top category of DeFi protocols. TVL is a metric that measures the dollar value of all cryptocurrencies locked within a protocol’s smart contracts.
  Our View: the data point above highlights the growing popularity of liquid staking derivatives and the success of Ethereum’s recent Shapella upgrade, where despite withdrawals being enabled for staked ETH, we are still seeing staking inflows.
• Justin Sun to reverse $56 million Binance transfer after CEO Changpeng Zhao warns against potential SUI token grab. After the substantial transfer made in trueUSD (TUSD) got flagged by Whale Alert, CZ tweeted to warn Sun it will take action if he used any of the funds to buy up large amounts of SUI tokens from Binance’s Launchpool.

Our best strategy for the moment is to take at least 1-3 years in Moderate Portfolio because it has a good defense with 50% Fixed Deposit , 30% In DCD and 20% in Staking. After all, we still have potential returns in DCD and Staking, especially in BTC.

Sign me up for the Crypto Investor Briefing Newsletter

​

Disclaimers
The above information and views provided by Tokenomy are for general informational purposes only and do not constitute an opinion nor offer or recommend, by or on behalf of Tokenomy, that any person enter into or buy or sell any particular security, investment product, or token, or participate in any other transactions. Tokenomy does not make any representation as to the accuracy, reliability, or completeness of the information herein and does not accept liability for any direct, indirect, incidental, specific, or consequential loss or damages arising from the use of, or reliance on, the information contained herein. This information is for general purposes only and is not intended, and should not be construed or relied upon as legal, accounting, tax, or financial advice or opinion provided by Tokenomy and should not be used or relied on by anyone for any other purpose.
This information herein is made available to you as confidential information. It may not be disclosed, reproduced, or redistributed to any other person, in whole or part, except with the prior written consent of Tokenomy.
Copyright © Tokenomy. All rights reserved.

​

https://preview.redd.it/i8u7ady97p1b1.png?width=1024&format=png&auto=webp&v=enabled&s=140acb74dc4f803dfbacb17977d2d24443939d3b

Fears of a banking crisis and credit contraction plagued markets again last week following First Republic Bank’s disappointing earnings and potential $100B asset sales. Technology fared better from better-than-expected earnings by Meta Platforms Inc. and Microsoft. In Crypto, the European Union (EU) became the first major jurisdiction to approve a comprehensive crypto regulatory framework (MiCA), and markets were spooked by a “buggy” alert from Arkham Intelligence that wallets linked to the U.S. government and Mt. Gox had moved large amounts of BTC.

Price action for the week: U.S. equities managed to eke out a gain with SPX+0.87%, DJIA +0.86% and NASDAQ +1.28% as better-than-expected earnings from Big Tech outweighed renewed fears of a banking crisis. BTC +6.02% and ETH +0.50% after a volatile week, trading between $27K-$30K and $1,790-$1,965 as they struggle to regain key psychological price-levels of $30K and $2K respectively.

On-chain, @glassnode suggests that neither the US Government nor Mt. Gox Exchange Reserve is spending any BTC from the addresses it monitors. On 31 March 2023, court documents indicated that the US Government plans to sell over 41,000 BTC, seized in connection to the Silk Road case of James Zhong, in four tranches throughout 2023. This news raised concerns about the potential selling pressure on the Bitcoin market. The first chart above tracks the balance and transfers of Bitcoin seized publicly by the US Government, while the second chart tracks the total number of Bitcoin in the Mt. Gox Exchange Reserve. These charts provide valuable insights into two significant events that have the potential to impact the Bitcoin market.

​

https://preview.redd.it/6g33njnb7p1b1.png?width=602&format=png&auto=webp&v=enabled&s=93f0fe96e24e3cd8818b685c0eade4cd6221f527

​

https://preview.redd.it/qhm99r1c7p1b1.png?width=602&format=png&auto=webp&v=enabled&s=7e7fe996e16709ff2c8ba0c273833e5f67f57aed

​

https://preview.redd.it/iklo3cic7p1b1.png?width=624&format=png&auto=webp&v=enabled&s=95f35ac3195c00baf40ec3059b111574e4de4179

​

https://preview.redd.it/o41npwuc7p1b1.png?width=624&format=png&auto=webp&v=enabled&s=43dcd312b59372a0f4cf16ec5d8a07f069d9396c

• European Union (EU) parliament passes MiCA by 13:1 margin. The new regulation covers the supervision, consumer protection, and environmental safeguards of crypto-assets, and targets crypto-assets not regulated by existing financial services legislation. The law will start applying next year, subject to the final vote in the Council of the EU on 16 May.
  Our View: the EU has become the first major jurisdiction to approve a comprehensive crypto regulatory framework that could provide a boost for EU crypto businesses with greater clarity. See the screenshot below from Circle’s Director of EU Strategy and Policy, Patrick Hansen, for an overview of MiCA.
• South Korea’s sweeping crypto bill passes first regulatory hurdles. Legislators in South Korea passed a first-phase review of proposed cryptocurrency regulations that include relatively harsh sentencing recommendations.
• Coinbase takes legal action against the SEC. The exchange asked a federal court to order the SEC to provide “regulatory clarity” around how existing securities laws might apply to the digital asset sector. The SEC issued Coinbase a Wells Notice last month, and this filing could be viewed as a preemptive move by the company to argue that the SEC’s approach does not provide sufficient regulatory guidance.
• China looks to expand its Central Bank Digital Currency (CBDC) use-case for its Belt-and-Road initiative. A plan promoting the use of the digital yuan in cross-border trade was issued in the city of Xuzhou, a trade hub for rail-exports to Europe. It plans to promote the use of the digital yuan for services and storage fees for goods carried by rail, with future plans for tax and utility payments.
• Franklin Templeton expands its money market fund on Polygon. The company said its OnChain U.S. Government Money Market Fund (FOBXX) is now supported on Ethereum via layer 2 blockchain Polygon. The fund is the first U.S. registered mutual fund to use a public blockchain to process transactions and record share ownership, the investment firm claimed in the press release.
  Our View: once again we’re seeing a TradFi giant embrace the technological benefits that blockchain technology can offer, and could pave the way forward for other firms to follow.
• ‘Winter is over’ and bitcoin may hit $100,000 next year, says Standard Chartered. The recent U.S. banking crisis spurned a price rally in bitcoin and re-established its core use case “as a decentralized, trustless and scarce digital asset,” the bank said. It also pointed to the end of the Fed’s interest rate hikes, the next halving of bitcoin, and regulatory benefits.
  Our View: pretty bullish view from Standard Chartered, but the report does highlight valid price drivers for BTC
• Binance.US backs out of $1B Voyager asset purchase, blames regulatory environment. The parties got the go-ahead on the deal last week after overcoming several objections, but Binance.US changed its mind.
  Our View: not surprising given the recent CFTC enforcement action against Binance and its CEO. As a conservative measure, the company is probably looking to diversify its exposure out of the U.S., like many other crypto firms, given the stricter regulatory environment we have witnessed this year
• Visa is hiring engineers for ‘ambitious’ crypto product roadmap. The company said last month that it was committed to its crypto strategy, despite high-profile failures in the sector over the past year.
• Arkham denies buggy Mt. Gox alerts to blame for 7% Bitcoin price crash. The price of BTC crashed 7% in one hour on 26 Apr after the analytics firm incorrectly sent out an alert that wallets linked to the U.S. government and Mr. Gox had begun shifting large sums of BTC.
• Bybit to introduce mandatory Know-Your-Customer (KYC) requirements starting 08 May. Users who have not completed KYC by then can only “close existing open positions or orders, return loans, or withdraw. Any new trading activities will be restricted”.
• CertiK: Ordinals Finance conducted a $1 million rug-pull. The Ethereum-based DeFi protocol that allows users to lend and borrow inscriptions reportedly pulled 269 million OFI tokens out of its smart contacts and its social media accounts and project website was deleted.

Our best strategy for the moment is to take at least 1-3 years in Moderate Portfolio because it has a good defense with 50% Fixed Deposit , 30% In DCD and 20% in Staking. After all, we still have potential returns in DCD and Staking, especially in BTC.

Sign me up for the Crypto Investor Briefing Newsletter

​

​

Disclaimers
The above information and views provided by Tokenomy are for general informational purposes only and do not constitute an opinion nor offer or recommend, by or on behalf of Tokenomy, that any person enter into or buy or sell any particular security, investment product, or token, or participate in any other transactions. Tokenomy does not make any representation as to the accuracy, reliability, or completeness of the information herein and does not accept liability for any direct, indirect, incidental, specific, or consequential loss or damages arising from the use of, or reliance on, the information contained herein. This information is for general purposes only and is not intended, and should not be construed or relied upon as legal, accounting, tax, or financial advice or opinion provided by Tokenomy and should not be used or relied on by anyone for any other purpose.
This information herein is made available to you as confidential information. It may not be disclosed, reproduced, or redistributed to any other person, in whole or part, except with the prior written consent of Tokenomy.
Copyright © Tokenomy. All rights reserved.

​

May 2023

Ethereum crossed a major milestone in April with its “Shapella” upgrade, completing its multi-year transition to a full Proof-of-Stake (PoS) network. While there were concerns that the ability to withdraw staked ETH could result in a large selling pressure, the bulls won the bears this round with ETH rallying +5% on the day post-upgrade. So far, withdrawals have been largely driven by Kraken after it shut down its staking service in February after a U.S. Securities and Exchange Commission (SEC) investigation, and staked ETH continues to observe net deposits instead of net withdrawals (Nansen dashboard).

With PoS-transition finally completed, what’s next for Ethereum? Bankless highlights “proto-danksharding” in EIP-4844, Distributed Validator Technology and Proposer-Builder Separation as key improvements to watch for in Ethereum’s roadmap. I personally also liked the idea from Amphibian Capital that ETH staking yields could be a crypto-native risk-free rate now that demand/supply mechanics are no longer constrained.

Aside from technological improvements, changing crypto regulations are also laying the foundation for a structural shift in the industry as we observe growing interest from crypto companies (e.g. Coinbase, Gemini) to shift offshore. Interest from traditional industries continues to grow as investment (both human and capital) continues into blockchain/cryptocurrency technologies.

Lastly, the U.S. banking crisis and concerns on the federal debt ceiling continue to highlight issues with the banking system, and calls for an alternative, decentralized store-of-value continue to validate and support cryptocurrencies.

Kenny Chiang
Senior Research Analyst

​

https://preview.redd.it/ats7nmzp6p1b1.png?width=568&format=png&auto=webp&v=enabled&s=1cfad23955f8f90c475cfe9448d0ce155ce19dee

Ethereum’s Shanghai upgrade is complete, starting a new era of staking withdrawals. The price of ETH remained largely flat at the time the Shanghai hard fork was triggered. Roughly half an hour after the Shanghai upgrade was activated, some 285 withdrawals in epoch 194,408 had been processed, for about 5,413 ETH ($10 million worth), according to beaconcha.in.

U.S. Securities and Exchange Commission (SEC) charges Bittrex with operating an unregistered securities exchange. The SEC identified six tokens as securities: OMG, DASH, ALGO, TKN, NGC and IHT. This is the first time the SEC is charging a crypto exchange for allegedly operating an illegal securities exchange. Also, two of the crypto tokens mentioned as securities – DASH and Algorand – are listed on Coinbase. If it is illegal for Bittrex to trade them then presumably it is also illegal for Coinbase to trade them.

U.S. SEC looks to include DeFi in its expanding definition of a securities exchange. The agency voted 3-2 to reopen an existing proposal to widen how it defines operations that need to be regulated as securities exchanges. To comply with this and other SEC initiatives, crypto operations would have to decide whether to make fundamental changes – such as increased centralization.

European Union (EU) parliament passes MiCA by 13:1 margin. The new regulation covers the supervision, consumer protection, and environmental safeguards of crypto-assets, and targets crypto-assets not regulated by existing financial services legislation. The law will start applying next year, subject to the final vote in the Council of the EU on 16 May.

​

https://preview.redd.it/57cli95t6p1b1.png?width=624&format=png&auto=webp&v=enabled&s=d93c41950607f47a327c3476eb5a759443787048

https://preview.redd.it/svvc71tt6p1b1.png?width=568&format=png&auto=webp&v=enabled&s=fee6afbc51a41b4d953373b6bd0cf47615e61137

U.S. Congress to introduce new draft bill for stablecoins. The draft puts the Federal Reserve in charge of non-bank stablecoin issuers, such as crypto firms Tether and Circle, and failure to register could result in up to five years in prison and a fine of $1 million.

Bill protecting Bitcoin mining rights passes in Arkansas Senate and House. According to the bill, the Arkansas Data Centers Act of 2023 intends to regulate the Bitcoin mining industry as data centers, creating guidelines for miners and protecting them from discriminatory regulations and taxes.

South Korea’s sweeping crypto bill passes first regulatory hurdles. Legislators in South Korea passed a first-phase review of proposed cryptocurrency regulations that include relatively harsh sentencing recommendations.

The Financial Services Agency (FSA) of Japan issued a warning to four overseas cryptocurrency exchanges for offering cryptocurrency trading without proper registration. The four exchanges – Bybit, MEXC, Bitget, and Bitforex – were alerted for violating the administrative guidelines set forth by the agency.

Bank of England hiring a team of 30 people for digital pound CBDC. The bank’s website careers page lists positions for a “Digital Pound Security Architect” and “Digital Pound Solutions Architect”. This is another example of how jurisdictions like the UK, the UAE or HK are moving forward strategically on the topic of digital assets.

Hong Kong’s Financial Secretary declares now is the ‘right time’ for Web3 adoption. In a blog post, financial chief Paul Chan said that despite recent volatility, now is the time to push forward Web3 technologies. He also mentioned that Web3 was identified as one of three focus areas to target in planning Hong Kong’s budget.

Coinbase takes legal action against the SEC. The exchange asked a federal court to order the SEC to provide “regulatory clarity” around how existing securities laws might apply to the digital asset sector. The SEC issued Coinbase a Wells Notice in April, and this filing could be viewed as a preemptive move by the company to argue that the SEC’s approach does not provide sufficient regulatory guidance.

Chinese banks are onboarding crypto companies in Hong Kong. The Wall Street Journal reported that the Hong Kong arm of Bank of Communications is collaborating with several cryptocurrency businesses registered in the city. Additionally, ZA Bank – Hong Kong’s largest virtual bank controlled by Chinese internet insurer ZhongAn Online P&C Insurance – will also act as the settlement bank.

Brazil’s Bitcoin Beach says Lightning Network works better than Visa. The two-year-old Praia Bitcoin project, which means Bitcoin Beach in Portuguese, set a world record for peer-to-peer transactions on the Lightning Network, Bitcoin Magazine reported in February. Participants were able to run 71 transactions in just three minutes and 33 seconds, making it the largest number of peer-to-peer Bitcoin transactions via Lightning to occur in the shortest time possible.

Bittrex plans to exit the U.S. market. Cryptocurrency exchange Bittrex has announced it will be winding down its operations in the United States due to a challenging regulatory and economic environment. The announcement was made on the platform’s ninth anniversary, marking a bittersweet moment for the company.

TradFi banks collaborate to create a digital bonds trading platform on blockchain, with a goal of being environmentally friendly. France’s Credit Agricole CIB and Sweden’s SEB are creating a platform to allow companies to raise capital by issuing digital bonds on a blockchain network, and users will be able to manage securities and raise capital through smart contracts.

Major Brazilian investment bank BTG Pactual plans to issue USD-pegged stablecoin. BTG Dol aims to help its customers interact between the traditional financial system and the digital economy. BTG Dol is based on Mynt, BTG Pactual’s proprietary crypto technology platform launched a year ago that allows users to invest in cryptocurrencies like BTC and ETH.

Arbitrum Foundation backtracked on its controversial governance proposal after a community revolt. Under the proposal, a “special grants” program would be funded by 750 million ARB tokens, worth nearly $1 billion, and would be under the Foundation’s control without input from ARB holders. Concerns were raised about the centralized control of the Foundation and the fast-tracked proposal, which bypassed full on-chain governance. The Foundation began selling 50M ARB tokens before the community ratified its budget, causing a massive drop in ARB’s price. Following the backlash, the Foundation split the AIP-1 package into separate votes, the “special grants” program was rebranded as the “Ecosystem Development Fund”, and it pledged more transparency and context on how the funds will be used.

Bitrue, a crypto exchange got hacked. Singapore-based crypto exchange Bitrue has been hit by a security breach, draining a hot wallet of $23 million in various assets. Bitrue reported that the affected hot wallet only held less than 5% of the exchange’s overall funds. In 2019, the exchange suffered an attack where around $5 million worth of Ripple (XRP) and Cardano (ADA) tokens were drained from Bitrue due to a vulnerability in their internal review processes, allowing attackers to gain access to customer accounts.

Sushi DEX approval contract exploited for $3.3 million. A smart contract on Sushi’s exchange services was exploited on 9 Apr, developers said in a tweet. The exploit specifically involves the “RouterProcessor2” contract, which is used to route trades on the SushiSwap exchange.

MetaMask launches new fiat purchase function for cryptocurrency. The new feature will allow users to purchase cryptocurrencies using various payment methods, such as debit or credit cards, PayPal, bank transfers, and instant ACH (Automated Clearing House).

Apple lets Uniswap’s wallet app out of ‘jail.’ Uniswap’s iOS wallet has gone live on Apple’s App Store after a long delay. In October 2022, Apple updated its app rules around digital assets, saying that apps could facilitate exchange transactions “provided they are offered only in countries or regions where the app has appropriate licensing and permissions to provide a cryptocurrency exchange.” Apple’s posture toward crypto has drawn criticism, especially in regards to the adoption of blockchain-centric gaming apps.

Apple has hidden a Bitcoin whitepaper on every Mac since 2018. This was discovered by a tech blogger who found it by accident. To find it, users can open the terminal and type the following command: open /System/Library/Image Capture/Devices/VirtualScanner.app/Contents/Resources/simpledoc.pdf

​

https://preview.redd.it/hyxnl4yv6p1b1.png?width=568&format=png&auto=webp&v=enabled&s=b3a90f23f015721dd20876db53f1029c0b476c55

After the successful launch of the ARB token, the Foundation backtracked on a controversial proposal following an uproar from its community, raising the question of how decentralized are Decentralized Autonomous Organizations (DAOs)? An opinion piece from the Internet Policy Review sheds light on the fallacies of DAOs.

The Fed is rewiring the U.S. payment system via FedNow. Take a look inside FedNow and learn what does it mean for you.

The original King of Crypto is back! Arthur Hayes rubbed success in the Feds’ faces and got busted. Now he’s returning to a shell-shocked industry.

a16z releases new State of Crypto Index tool in 2023 report. The index aims to track the health of the crypto industry from a technological, rather than financial, perspective. It is constructed from the weighted average monthly growth of 14 industry metrics (e.g. number of verified smart contracts, number of transacting wallets, etc.). View their report here.

Earn Yield on Your Crypto Today!

• Fixed Deposit of IDK, BTC, ETH, TEN, and a few others at varying rates of up to 5% p.a.
• Dual Currency Deposit is an excellent tool for short-term speculators when price volatility is high! Earn enhanced returns on BTC, ETH, and USDT deposits.
• Tokenomy Loan is live! Pledge your crypto assets to borrow IDK in just a few clicks!

If you want to continue receiving the Crypto Investor Briefing, please click here to subscribe.

Subscribe

Crypto Investor Briefing is a Tokenomy newsletter—the content is for informational purposes only. You should not construe any such information or material as legal, tax, investment, or financial advice.

​

https://preview.redd.it/ep4500k76p1b1.png?width=768&format=png&auto=webp&v=enabled&s=342bdd705ed7c13b7bfc4264e977b274080c81f3

One of the advantages of blockchain is its transparency. Blockchain uses distributed ledger technology, which functions to broadcast every complete record of transactions to a group of operators or node managers. In this case, to maximize the profits from investing in cryptocurrency assets, you also need to understand on-chain analysis. Keep in mind that on-chain analysis is an important aspect of cryptocurrency investing.

Traders who use analysis correctly can earn significant advantages compared to ordinary traders. So what is on-chain analysis? Check out the explanation in this article.

This analysis aims to examine every blockchain transaction activity. The aim is to understand how investors react to market forces/events as well as determine emerging trends/investor sentiment.

Simply put, on-chain analysis is observing how money moves on the blockchain to help spot potential opportunities. On-chain analysis is very popular among investors because it provides a lot of data.

Crypto traders can learn various things, such as wallet activity. Wallet activity tracking shows how many agents are involved on a given blockchain. It is very helpful to understand layer 1 of the blockchain, which is also known as the implementation layer.

Every transaction on the layer 1 blockchain requires a native token to buy block space. Therefore, the more transactions and addresses that are active daily, the more economic activity there is, due to greater demand for native tokens. This simple metric can help increase the price of those layer 1 tokens.

One common question that often arises in on-chain analysis is about liquidity. By looking at information such as Total Volume Locked (TVL), we can see which decentralized asset pairs and applications have the best liquidity. This enables these decentralized asset pairs and applications to have a more stable or popular value.

Another thing that can be learned from this analysis is smart money tracking. A wallet receives a smart money label after demonstrating intelligence in trading/investing consistently. This label can also be given due to the wallet’s relationship with an institution or having large funds.

Keeping an eye on the movements of this type of wallet can pay dividends for people who understand the crypto market better. Imitation is an important element in the development of skills that allow investors to observe and copy their every move.

Another essential part of this analysis is following the money flow. The key is that where money flows, profits often follow.

To aid analysis, several useful tools are available, including:

1. Block Explorers: These tools allow users to examine transaction and block data on a particular blockchain. Some popular block explorers are Etherscan for Ethereum, Blockchain.info for Bitcoin, and BscScan for Binance Smart Chain.
2. Crypto Analytics Platform: This platform allows users to analyze on-chain data in greater detail and depth, including trading volume, network density, and account activity. Examples of these platforms are Glassnode, CoinMetrics, and CryptoQuant.
3. Blockchain analytics tool: This tool can help users check for suspicious transactions or illegal activity on the blockchain. Some popular blockchain analytics tools are Chainalysis, Elliptic, and CipherTrace.
4. Network monitors: This tool allows users to monitor blockchain networks in real-time, track network performance, and view network statistics. Examples include Bitnodes for Bitcoin, Etherchain for Ethereum, and Binance Smart Chain Explorer for Binance Smart Chain.
5. Data aggregator: This platform collects data from various sources and presents it in an easy-to-understand form. Examples are CoinGecko, CoinMarketCap, and Messari.

Using the above tools, users can perform better and more in-depth on-chain analysis, thereby making better investment decisions and understanding the blockchain ecosystem better.

This analysis serves the same function as other methodological approaches. The more data available, the more substantial the conclusions will be. However, metrics on on-chain analysis that are currently applied may be discarded in the future as new data is added.

Another limitation of core data is related to the time window. This analysis is often not suitable for day traders who prefer trend outlines over scalping techniques.

It is believed that on-chain analysis will become more reliable as the data set grows in the future. Simply put, the more data available, the more accurate the analysis will be. This is because data sets are becoming more accessible as technology develops. Traders will also become more proficient in understanding on-chain analysis.

https://pepe.credit/

https://pepe.credit/

https://twitter.com/pepecoineth/status/1659131848432185344

https://twitter.com/RealFlokiInu/status/1656985144668966912

https://twitter.com/RealFlokiInu/status/1656211937670078467