December 2, 2021

Cutting Through the Noise

Introduction

Do you like rollercoaster rides? If yes, you are probably enjoying the current market environment... In the last two weeks, a day of euphoria has usually been followed by a day of fear – and it’s likely going to continue like this for the time being with macro consolidation being the likeliest scenario.

With lingering uncertainty in stock markets and US indices likely testing critical support levels soon, it’s no wonder that crypto isn’t able to fly currently. On the bright side, the crypto markets have shown more relative strength compared to the stock markets.

However, there is no way around the fact that crypto – with the number of institutional investors in the space now – has become increasingly correlated with other risk assets. Thus, understanding the moves of the stock markets is key to predicting where crypto could be headed next.

Ninja @Ninjascalp

Still waiting for a better dip NPOC at some key levels crab bias until then $BTC

Market Outlook

• With Bitcoin still in a mid-term downtrend, the burden of proof currently lies on BTC bulls. Until BTC is able to breach the critical resistance levels at approximately $61k, we have to remain cautious for the time being.

Pentoshi @Pentosh1

$BTC rejected again. Still in a downtrend until 60.7k reclaimed (as mentioned 100x) Not able to reclaim anything on any important time frame yet.

Pentoshi @Pentosh1

$ETH got the break now only needs the close. $BTC can follow suit and be dragged back to 60.7k next off the back of Vitalik coin. Reclaiming that w/ close is now the focus and key https://t.co/lE5bialWUW https://t.co/PxuS0KKN6T

Santiment @santimentfeed

📊 #Bitcoin's exchange inflows have outpaced outflows significantly, as #FUD combined with a jump in #COVID19 concerns is causing traders to consider selling funds. On Wednesday, there were 10,242 more $BTC moving on to exchanges vs. moving off exchanges. app.santiment.net/s/eXrOUFPk?utm…

• One thing is clear: There is a lot at stake in the crypto markets right now and the price moves in the weeks to come could be rather dramatic – especially with the historically high levels of leverage across the board.

Will Clemente @WClementeIII

At some point, this open interest is going to get flushed out one direction or the other

• A notable exception in today’s mostly red crypto market has been LUNA which, after a period of consolidation, is catching up to its continuously improving fundamentals (aka, LUNA burns due to increased UST demand).

The Long-Term Prospects for Crypto Look Bright

• Despite the short- to mid-term macro uncertainty and headwinds for the crypto markets, the long-term outlook couldn’t be brighter (for the space overall, not necessarily each and every altcoin, of course…) The amount of capital – both intellectual and monetary – that has been pouring into the crypto industry is simply stunning.

Vance Spencer @pythianism

back of envelope ~$6-$10bn has been raised for crypto VC this year alone, seems likely a similar slug raised for liquid strategies pace increasing too I remember when a16/paradigm ~$350M funds in 2018 were the biggest in town probably something

• With tech giants such as Facebook (or Meta…) increasingly opening up to the crypto industry, the path to mainstream adoption is paved.

*Walter Bloomberg @DeItaone

FACEBOOK INC - EXPANDING ELIGIBILITY TO RUN ADS ABOUT CRYPTOCURRENCY $FB

Blockworks @Blockworks_

Crypto has continued to mature and stabilize in recent years and has seen more government regulations that are setting clearer rules for their industry. - Facebook

• When it comes to timeframes, however, we have to be realistic: Despite the massive improvements and innovations we have seen in the crypto space this year alone (just think DeFi and NFTs), we are far from reaching a state where crypto as a technology is suitable for the average joe. It will take years and the rollout of new killer applications (will it be blockchain gaming?) in order to reach a tipping point.

Alex Svanevik @ASvanevik

It's 2021 and it's STILL a terrible experience for newcomers to make their first crypto transaction.

The Next Airdrop for Early DeFi Adopters

• If you have been reading this newsletter for a while and followed our call to try out the Lyra protocol on Optimism, then you’re lucky: As predicted, Lyra is rewarding early users and protocol testers with a retrospective airdrop!

Lyra @lyrafinance

We’re pleased to announce a retroactive community reward program to give back to everyone who has played a part in our journey so far: - The Lyra discord community⭐ - Early traders📈 - Pre-ignition LPs 🔥 Read more: blog.lyra.finance/lyra-community…

blog.lyra.financeLyra Community RewardsLyra is committed to becoming a fully decentralized protocol, using token-voting to delegate council representatives that will shape the direction of the DAO and protocol. As such, we are distributing 13.25m LYRA tokens (1.325% of the total supply) to 1,711 valuable community members and 4,434 early…

Fresh Yield Farming Pastures

• In times of market uncertainty – and in general, for more risk-averse crypto investors – stablecoin yield-farming is an attractive endeavor. While there are barely any triple-digit yield opportunities anymore like we saw in the early DeFi days, double-digit yields are not to be despised…

• Today, we have gotten two new yield farming opportunities, one on Avalanche and one on Polygon – so, no expensive gas fees for both of them... The yields on stablecoins are currently around 30 - 40 % but will likely come down a bit in the days to come.

Alpha Finance Lab @AlphaFinanceLab

#AvalancheRush 🔺 has also just begun. Start earning $ALPHA and $AVAX by becoming a lender on Alpha Homora V2 today! More details: bit.ly/3lrM8PA

bit.lyALPHA & AVAX Rewards Allocation Starts NowAlpha has joined hands with Avalanche to allocate $6 million ALPHA and AVAX rewards for lenders on Alpha Homora V2 on Avalanche [https://bit.ly/3lusd2G] ($3M in AVAX and $3M in ALPHA). > The time has come for the first incentive rewards for Alpha Homora V2 on Avalanche. The rewards will begin allo…

IDEX @idexio

IDEX v3, the world's first Hybrid Liquidity DEX is now LIVE! 👾 ✅ Combined AMM + Order Book Liquidity ✅ Trading Rewards + Liquidity Mining ✅ No failed transactions ✅ Real limit & stop-loss orders ✅ Cheap transaction fees Launch IDEX v3: exchange.idex.io

A Reminder of the Risks in DeFi

• With DeFi protocols having become the go-to financial applications for many crypto users, it is easy to forget that the risks in this nascent ecosystem are still fairly high. Even reputable and time-tested protocols can fall victim to hacks and sophisticated exploits. So, be careful when playing around, especially with new DeF protocols, and spread your bets to not risk all your money in one place.

eric.eth @econoar

One person lost $50mn in the Badger front end attack.

Spreek @spreekaway

seems $10m was unfortunately too low an estimate, closer to $100m. one person alone lost 896 BTC...

state @statelayer

This @BadgerDAO frontend hijack so brutal. The painful part with approvals hack is that losses can continue for a long time when people move funds back to one of their wallets that has the malicious contract approved. :/

Spreek @spreekaway

seems $10m was unfortunately too low an estimate, closer to $100m. one person alone lost 896 BTC...

Max Block (🏰,🏰) @fewture

Go to zapper.fi/revoke or your favorite approvals site and see if you gave approval to 0x1fcdb04d0c5364fbd92c73ca8af9baa72c269107 If so, revoke immediately. It exploit $BADGER

zapper.fiZapper - Dashboard for DeFiA simple dashboard for DeFi. Easily track and visualize all your DeFi assets and liabilities in one simple interface.

Omicron? More like $Ohm N Chronic season (🍄, 🍄) @unsound_advice

@spreekaway @safetyth1rd Me, avoiding the latest defi hack