CRYPTO MARKET OVERVIEW — W08/2024

Ether (ETH) traded at around 3,091 USDT on Monday, higher by (ETH??7.3%) compared to a week ago, while Bitcoin traded at 51,386 USDT, lower by (BTC??1.4%) compared to a week ago. In comparison, US Technology Equity Index, NASDAQ, closed on Friday at $15,997, higher by (NASDAQ??1.4%) compared to a week ago. Since the beginning of 2024, BTC is up by ??21.6%, ETH up by ??35.5% versus NASDAQ up by ??6.7%, YTD.

MARKET PERFORMANCE

The Digital Asset market sentiment slipped little to 72.00, indicating Greed. The Total Cryptocurrency Market Cap increased by 0.5% in a week and ended around $1.98 trillion at week’s close. Ethereum (ETH)’s Dominance floats at around 18% while Bitcoin (BTC)’s Dominance hovers above 50%.

CMC CRYPTO FEAR & GREED INDEX

WEEKLY PRICE PERFORMANCE OF TOP COINS

altFINS ON-CHAIN DATA: TOP WEEKLY PERFORMERS

BY TOTAL REVENUE

The top three coins by total revenue were Ethereum (ETH), TRON (TRX) and Lido Finance (LDO). This metric indicates total fees paid by end users. It shows if users are willing to pay to use a protocol and if the project makes sense at all.

BY PROTOCOL REVENUE

The top three coins by protocol revenue were Ethereum (ETH), Tron (TRX) and MAKER (MKR). This shows a share of total revenue kept by the protocol and its token holders if the project shares revenues with token holders based on its tokenomics.

BY TOTAL VALUE LOCKED (TVL)

The top three coins by TVL were Lido (LDO), Maker (MKR) and Aave (AAVE). This metric shows how much users deposit to the protocol’s smart contract (these assets are not owned by the protocol). It indicates trust in the protocol’s contract security-wise and popularity of the project.

CRYPTO WEEKLY HIGHLIGHTS

• MicroStrategy’s X account was hacked, posting a series of malicious links to a fake airdrop.
• Bitcoin’s mining difficulty surpassed 80 trillion ahead of halving. Mining difficulty measures how difficult and time-consuming is to solve the complex cryptographic puzzles used in mining process. The high measure indicates that it will take more computing power to mine the same number of blocks, making the network more secure against attacks.
• Bitcoin prices were little changed over the last week, while Ethereum passed through the $3,000 mark.
• Carlson Group, a $30B advisory firm picked 4 Bitcoin spot ETFs for listing to its offerings for registered investment advisers (RIAs). This is expected to bring more inflows to the Bitcoin spot ETFs in near future. Financial Adviser platforms are critical to introducing crypto products to new audiences.
• Friday was another strong day of inflows, with around $230M of net inflows.

BITCOIN ON-CHAIN ANALYTICS

• Based on information from Dune Analytics, daily ordinals inscription on Bitcoin decreased, and the average monthly stood at around 136k and decreasing.
• Based on information from Mempool.space, around 117k transactions are still waiting to be confirmed, which is 46% lower than 250k reported in December 2023.
• Cumulative inscriptions stood at more than 61M.

CUMULATIVE INSCRIPTIONS ON BITCOIN

• Total revenue generated by Bitcoin dropped and Ethereum continues to outperform Bitcoin since the upcoming Dencun upgrade and possible spot Ethereum ETFs coming in May 2024 were announced.

• In Q4 2023, Bitcoin miners began making revenue from transactions coming from ordinal inscriptions, too. So, as it can be seen on the chart above, Bitcoin’s total revenue overshot Ethereum’s for the first time in November 2023 because of an increased demand for transacting on Bitcoin chain.
• Ordinals inscription transaction fees will provide a robust alternative to block rewards for miners after the Bitcoin halving event in April 2024 — Based on data from The Block, more than $200 million in transaction fees related to Ordinals has been paid out to miners so far, and miner made about 20% of their revenue from transactions related to ordinals.

BITCOIN HALVING EVENT

• The next catalyst for Bitcoin is the upcoming halving event schedule for April 18th, 2024.
• This is the network’s fourth halving, which means it will take place at block height 840,000. As soon as that block hits, miners will suddenly go from earning 6.25 BTC ($259,000) to 3.125 BTC ($129,500).
• The halving is a pre-programmed adjustment to the blockchain cuts in half the reward miners receive for processing transactions and creating new blocks from the current 6.25 to 3.125 Bitcoin per block. It always occurs every after 210k blocks are mined or approximately after every 4 years until the maximum of 21M of blocks is reached.
• Also, we know that once the price of Bitcoin climbs, the overall altcoin market capitalization increases and, in fact, altcoin prices tend to increase much more than Bitcoin’s price. We saw this in the 2nd wave, when Bitcoin went from $30k to $50k, the altcoin market cap went up from around $250B to over $1.5T. At the time of writing, we stood at almost $2T.

About altFINS:

altFINS is a leading crypto analytics platform used by tens of thousands of traders and investors to find profitable trading ideas.

Project altFINS began out of frustration with a lack of high-quality tools to find trading ideas, create alerts, execute trading strategies, and monitor portfolio performance across exchanges. Our team decided to fill that void.

We are building a comprehensive and yet intuitive platform that enables coin screening and analysis using traditional technical analysis as well as alternative on-chain data, and trade execution across exchanges. The combination of trade idea discovery and trade execution is truly unique in the crypto trading space.