I recently saw a chart that really struck home. We will get to this, but it’s worth looking at an interesting trend that has emerged in the world post-Covid.
It seems that now, it's all about the supply of money rather than the cost. This shift has significant implications for both opportunities and risks in the market.
The first half of 2024 witnessed a surge in enthusiasm for crypto assets, leading to an all-time high for Bitcoin. However, due to price headwinds and the policy environment, volatility has decreased, impacting Bitcoin's performance
We now direct our focus towards exploring the capabilities and benefits of MultiSig technology. By transitioning your attention to MultiSig, the aim is to further enhance your security. MultiSig minimises potential vulnerabilities and we are excited to delve deeper into the features and advantages that MultiSig has to offer, and we are confident that this strategic shift will contribute positively to your bitcoin security operations.
We love ingenuity, and this is a fantastic example of people thinking outside of the box to create something that will forever be etched into history. On first glance Bitcoin (BTC) block 836361 isn’t any different from other blocks
Custodial services involve a third party holding onto your bitcoin on your behalf, which can be convenient but comes with added risk. Self-custody, on the other hand, means you are responsible for keeping your own bitcoin secure, which may require more effort but gives you full control.
If you haven’t read Part 1, you can read it https://www.momentum-analytics.io/news/self-custody-part-1
“There are no shortcuts to any place worth going.” - Beverly Sills
I recently saw a chart that really struck home. We will get to this, but it’s worth looking at an interesting trend that has emerged in the world post-Covid.
It seems that now, it's all about the supply of money rather than the cost. This shift has significant implications for both opportunities and risks in the market.
image by Zoltan Tasi
Our 16 selected DeFi projects “Mcap/TVL ratio” average is down at 0.15 from last month 0.28 (i.e. $0.15 market cap for every $1 (TVL) value locked. The Mcap/TVL ratio (using fully diluted Mcap) is also down from 0.65 in Nov to 0.37 as at 17th Dec 2021. I have included a new diagram to reflect this data over time below.
Currently, at these Mcap/TVL ratios (Mcap & fully diluted Mcap), there has never been a better time to accumulate defi projects since this data set started in Feb 2021 - remember to DYOR!
The following 3 projects have below average ratios (ie the best three projects) at 17th Dec and we’ve included the data from Nov as reference: $LDO, $BAL and $CRV.
$CVX, $MAKER, $AAVE and $COMP are all worthy mentions, with historically low MCap/TVL ratios.
Projects less than the average have usually performed better than their peers - DYOR
Data as at 17th Dec 2021
From a market cap. perspective, $UNI is still out ahead, with $CRV making a challenge in difficult market conditions. Of interest here is the only project with an increase in Mcap was $CVX - 14.43% increase from November 2021.
Market Cap - observations (UNI & CRV)
The TVL chart (as at 17th Dec) shows the continued strength of $CRV, $MKR $CVX and $AAVE, however it is definitely worth pointing out the growth in TVL of following 3 projects $MKR (+95.6%), $UNI (+56.3%) and $CVX (14.8%) since early November 2021.
TVL Chart - observations (MKR & UNI)
This publication is general in nature and is not intended to constitute any professional advice or an offer or solicitation to buy or sell any financial or investment products. You should seek separate professional advice before taking any action in relation to the matters dealt with in this publication. Please also note our disclosure here
image by Zoltan Tasi
Our 16 selected DeFi projects “Mcap/TVL ratio” average is down at 0.28 from last month 0.34 (i.e. $0.28 market cap for every $1 (TVL) value locked. The Mcap/TVL ratio (using fully diluted Mcap) was also down from 0.65 in Oct to 0.60 as at 1st Nov.
The following 3 projects have below average ratios at 1st Nov and we’ve included the data from Oct as reference: $CRV, $BAL and $CVX (New addition). $COMP is a worthy mention, staying flat with a MCap/TVL ratio of 0.2 (projects less than the average have usually performed better than their peers - DYOR!).
Data as at 1 Nov 2021
From a market cap. perspective, $UNI is still way out ahead (however levelling off) , with $CRV again showing upward strength and momentum.
Market Cap observation (UNI & CRV)
The TVL chart (as at 1st November) shows the continued strength of $AAVE, $COMP and $MKR, however it is definitely worth pointing out the month on month growth of following 3 projects $CRV (+35.4%), $CVX (66.62%) and $SUSHI (37.68%).
TVL - Total value Locked
This publication is general in nature and is not intended to constitute any professional advice or an offer or solicitation to buy or sell any financial or investment products. You should seek separate professional advice before taking any action in relation to the matters dealt with in this publication. Please also note our disclosure here
As requested, we are doing a followup on the article we published on dollar cost averaging. If you haven’t read the original article, here is a link: DCA strategies (includes enhanced RSI version).
We have had many requests from visitors to our site to provide a service to notify them when the daily “RSI 90” DCA strategy triggers a buy signal for gold, bitcoin and our RAAINDEX strategy.
If you would like to be added to the mailing list (small monthly cost) to receive a weekly email with this information (format below), use the contact page to let us know and we will arrange to sign you up.
Gold - 7/7 buys signals (month to date incl. 26th Sep - 19 buys signals)
BTC - 1/7 buys signals (month to date incl. 26th Sep - 1 buys signals)
RAAINDEX - tbc (*)
This publication is general in nature and is not intended to constitute any professional advice or an offer or solicitation to buy or sell any financial or investment products. You should seek separate professional advice before taking any action in relation to the matters dealt with in this publication. Please also note our disclosure here
