December 7, 2021

Dead-Cat Bounce or V-Shaped Recovery?

Introduction

With both the stock and crypto markets massively oversold after last week’s liquidation event, the strong bounce we’re seeing now is the unsurprising consequence – the question is, what’s next. Follow-through on this bounce in the days and weeks to come will determine if we are only experiencing a “dead-cat bounce” or the return to full-on bull mode.

Blockworks @Blockworks_

Last 24h: Bitcoin +5.08% Ethereum +7.41% Binance Coin +4.06% Solana +9.20% Cardano +9.69% XRP +5.79% Polkadot +9.84% Luna +11.09%

While it’s likely smart to take some profits on positions you bought during the flash-crash (if you managed to), the last days’ price action is a good reminder that buying at maximum fear levels gets rewarded more often than not. While easier said than done, “buying low and selling high” and staying true to your investment strategy and risk management will guide you through even the wildest storms.

Pentoshi @Pentosh1

The last few weeks I’ve seen how little discipline and patience *many* people have in executing ideas. Knowing when to put the foot on the pedal and when to let off. It also doesn’t matter if the market has topped. If it’s bull or bear bc the opportunities are there.

Whales Bought the Dip

• We already pointed out yesterday but have gotten more data today that while leverage traders and “weak-hands” were shaken out during last Saturday’s massive dump…

Ansem🃏💎 @blknoiz06

we really nuked so deep lol, ppl thought their liqs were safe sub 42k and got taken out thats so brutal

• … long-term holders and whales slurped up the dip. Despite technical structures and the macro picture still looking somewhat shaky, this exchange and on-chain data instill confidence in the intactness of this crypto bull market from an intrinsic perspective.

IntoTheBlock @intotheblock

$ETH has quickly recovered from the December 4 lows. Looks like the recent local bottom was bought by institutional investors Our large transactions indicator spotted a 2-months high in txs >$100k yesterday, with over $18.1b This accounts for 89.7% of the total on-chain volume

Will the Cardano Ecosystem Rise From the Ashes?

• We haven’t talked about Cardano for quite a while – and for a good reason. After the massively anticipated “smart contract launch” this summer, it quickly became clear that the Cardano ecosystem was not ready for prime time…

• Apart from the hot NFT activity on Cardano supported by one of the most faithful communities in the crypto space, there has just not been much to write home about. Hence, we have seen ADA underperform massively in the last six months, especially when compared to hot L1s like Solana and Avalanche, which gained significant traction.

• Is there still hope for Cardano to turn around? The answer is yes. While the ADA chart certainly looks rather unpleasant and suggests that with broader market weakness, ADA could easily slump down to $1 and below, there is hope for Cardano believers.

• FINALLY, the first DApps on Cardano are rolling out – at least on testnet. SundaeSwap, one of the most anticipated Cardano DEXes (aka, the “Uniswap on Cardano”), had its initial launch yesterday. While there are still bugs to be ironed out, it looks like in the comings months, we could, at last, get to see and experience working smart contracts and DApps on Cardano.

  SundaeSwap Labs 🍨 @SundaeSwap

  And we're live! 🎉 Thank you everyone for staying patient with us :) Visit testnet.sundaeswap.finance and play around with #SundaeSwap on the #Cardano testnet!🍨 If you encounter bugs, issues, or just have recommendations, please fill out this form: forms.gle/h8HjkCmVnhc6dQ…! Enjoy!

  

• In addition, we see progress being made with the “ERC-20 Converter”, a tool that will enable seamless bridging of ERC-20 tokens from Ethereum to Cardano.

SingularityNET @singularity_net

UPDATE: The $AGIX ERC-20 Testnet Converter is available now! This marks the beginning of a rapidly expanding multi-chain decentralized AI ecosystem. Low fees, higher transaction capacity, and enhanced security - yes please! Help beta test ➡️

ow.lyTestnet release of the AGIX Converter bridge between Ethereum and CardanoToday we are excited to announce the launch of the public testnet AGIX ERC20 Converter Bridge. This testnet will allow users to explore the cross-chain capabilities using test-tokens from the…

• As with every hot trend, it’s always better to position BEFORE it starts heating up and everyone becomes aware of it. Thus, now might be the right time to pay attention to the Cardano ecosystem: Check out which projects might have potential (e.g., have strong backers, team, community, and narrative) and might be close to launching a product soon.

• Hint: Most of the hotly anticipated DEXes on Cardano (e.g., SundaeSwap and OccamX) don’t have their native token out yet. However, there are ways to earn these through staking, liquidity providing, or a process called ISO (Initial Stake Pool Offering). You can find out more here for SundaeSwap and here OccamX.

• To round it off, here is a little strategy tip: Instead of taking on additional risk and jumping into ADA on today’s strong market bounce, try to make a watchlist of coins you want to pick up on another potential discount day. Because chart-wise, we’re not in rocket mode yet, and you don’t want to be the one to panic-sell on the next possible dip…

The Current Web 2 Landscape Is Broken

• As a crypto enthusiast, you probably don’t need many arguments to be convinced that many legacy systems and corporations will be disrupted by the “Web 3 wave”. In case you do, here are a few illustrations:

  jdl.eth @AlwaysBCoding

  YC's original rejection email for Metamask. nice piece of crypto archeology from: readthegeneralist.com/briefing/metam… crazy how YC whiffed on Ethereum so hard. tactical miscalculation of how passionate and widespread dissatisfaction with the direction of web2 was at the time.

  

Gaby Goldberg @gaby_goldberg

Watching Wikipedia, one of the most visited websites on the Internet, literally *beg* for donations each year really hits home why we need tokenized, community-owned networks. It should not have to be this way.

Nizzy🍌 @NizzyNFT

Corporate America cannot handle our NFTs. Linkedin is ngmi 🚫

• In case you need a reminder of what the vision of the Web 3 movement is:

Dylan Hattem 💸 @dylan_hattem

“Web3 is about the creator economy, where users own the data and the economic rewards associated with the online value they create,” says @matthewegould founder and CEO of @unstoppableweb. 7/12