Wire 9/14 - September is Becoming Unlock Month
In This Edition:
Noteworthy Upcoming Unlocks
The Bridge is a first-of-its-kind crypto corporate access event, presented by The Tie and hosted by NYSE. Through keynote presentations, expert panels, and private 1:1 meetings, executives from top institutions and leading token projects will address the most pressing topics and narratives to drive increased institutional participation in digital assets.
Learn more about The Bridge's agenda and speakers, and request an invitation to attend at our site: bridge.thetie.io
Data Points
Five Charts of the Week
Following Binance's revelation that Binance.US CEO Brian Schroeder has departed, along with the layoff of 100 employees—equating to one third of its U.S. workforce—below are five charts to provide context and nuance to the unfolding situation.
The U.S. has never played a major role in Binance's overall business. Comparing trading volumes over the past year between Binance and its U.S. counterpart, Binance.US, one can see a stark contrast. On the chart above, Binance.US is represented in a darker brown hue. Yet, when juxtaposed against its parent company, Binance.US's presence is nearly indiscernible.
Binance continues to hold its position as the leading crypto exchange. Just in the last 24 hours, its spot bitcoin volume accounted for 20% of the combined volume from the top 25 exchanges. This volume is over four times greater than that of its closest competitor.
Binance holds a commanding lead in the crypto futures markets, with its open interest dwarfing that of its closest competitor by a factor of two. However, the recent decline over the past month has impacted the entire market, not just Binance.
However, over the past 30 days, Binance's main site has seen a decrease of $1 billion in open interest.
As the weeks and months unfold, it might become evident that the substantial selloff on August 17, 2023, stemmed from factors more profound than mere worries about inflation and interest rates.
The Story
September is Becoming Unlock Month
Crypto media sources have highlighted three notable unlocks slated for this month: ApeCoin is set to unlock $39 million on Sept. 17, Aptos $24 million on Sept. 18, and Optimism $39.8 million between Sept. 29 and 30.
Although these figures might not make up a large portion of their respective market caps, these scheduled unlocks play a significant role when compared to the average 30-day volume for each coin. Specifically, the upcoming unlocks represent 69% for ApeCoin, 25% for Aptos, and 39% for Optimism.
The Tie has the industry's most comprehensive token unlock dataset, vetted through a thorough four-step process, for risk mitigation and opportunity identification. Meticulously curated by a team of experts, it allows us to delve deeper into the intricacies of unlock dynamics.
ApeCoin, the well-publicized ERC-20 token linked to Yuga Labs' Bored Ape Yacht Club, is introducing this new amount into circulation while its trading value stands at $1.14.?
Even with a fully diluted value reaching $1 billion, ApeCoin has experienced fluctuations this year. Its current value is just slightly above its record low of $1 and is a stark contrast to its $39.40 price on St. Patrick's Day in 2022.
On the other hand, Aptos, a Layer 1 protocol founded by ex-Facebook employees Avery Ching and Mo Shaik, continues where the discontinued Diem left off. After securing $200 million in investments last year, Aptos is now poised to offer returns to some of its investors and creators. Notably, the significant token unlocks for investors and main contributors are scheduled for Nov. 11. The collective 20 million APT (equivalent to $106 million) to be unlocked then equates to 112% of the average daily trading volume over the prior 30 days.
These unlocks will take place on a monthly basis and will coincide with monthly staking reward unlocks (5.83 million APT or 32% of the daily average volume, set to increase to 6.15 million APT in December). Additionally, since last year, 4.62 million APT have been unlocked monthly for community and foundation purposes.
Aptos is currently trading at roughly 25% of its all-time high of $19.92 from Jan. 26, 2023. Despite minor upticks, the decline has persisted, even in the face of announcements like last month's reveal of an Aptos partnership with Microsoft. However, it's worth noting this "partnership" leans more towards a vendor-client relationship, with Microsoft as the vendor.
The importance of Optimism's unlock this month lies in its scale.?
It represents the most significant release since May of the current year, when over $460 million of the Layer 2 token were distributed to both investors and key contributors, referenced as "U" on the chart.
While these unlocks might not singularly influence coin prices, they undeniably introduce more supply to the market, potentially at inopportune moments for some.
Headlines of the Week
Follow us on Social!
This newsletter is for informational purposes only and is not investment or trading advice. You are fully responsible for any decisions you make; the TIE Inc. is not liable for any loss or damage caused by reliance on information provided. For investment advice, please consult a registered investment advisor.