EllioTrades

Share this post

October 13, 2021

www.elliotrades.xyz
EllioTrades Daily Roundups

October 13, 2021

Polkadot Parachain Auctions Confirmed

Oliver Grah
Oct 13, 2021
2
Share this post

October 13, 2021

www.elliotrades.xyz

Introduction

What a choppy day it has been: Down, sideways, up – both the crypto and stock markets are clearly looking for direction. What can we do? Zoom out and chill, while we wait to see fundamentally strong projects have their time in the light...

And of course, keep an eye on important stories, of which there have been plenty today!

It’s Official: Polkadot Season Is Inbound!

  • We finally got clarification on when parachains on Polkadot will go live: in December! As we anticipated last week, Polkadot founder Gavin Wood made the highly awaited announcement at the Polkadot Developer Conference today.

  • This important announcement could mark the start to Polkadot season, with DOT already mildly up on the day (6%) and the week (12%). Expect Polkadot ecosystem projects to run next…

Twitter avatar for @danreecer_
Dan Reecer 🅰️🕊⚪️ @danreecer_
#DOTDevCon @gavofyork confirms the first slot on @Polkadot should be occupied by mid-December, meaning parachain slot auctions should start around late November / first week of December. @AcalaNetwork’s goal and intent is to launch in the 1st parachain slot on Polkadot.
2:34 PM ∙ Oct 13, 2021
104Likes34Retweets

“Transitionary” Inflation Is Stickier than Central Banks Would Like

  • Today’s highly anticipated CPI data release has shown what everyone (except some central bankers) was expecting: Inflation remains high despite declining base effects.

Twitter avatar for @APompliano
Pomp 🌪 @APompliano
BREAKING: Inflation was just reported at 5.4%, which is a 13 year high. Someone stop the madness.
1:49 PM ∙ Oct 13, 2021
291Likes59Retweets
Twitter avatar for @LynAldenContact
Lyn Alden @LynAldenContact
If you don't need to eat, use energy, or need some sort of home, then inflation is declining. So there's that.
Twitter avatar for @SteveMatthews12
Steve Matthews @SteveMatthews12
Core inflation (defined to exclude food, energy & shelter) is declining already. https://t.co/i7OT50tmfN
1:48 PM ∙ Oct 13, 2021
796Likes132Retweets
  • While we don’t know how long this current global supply chain crisis will last, for the time being, it will keep putting central banks in a very uncomfortable spot: Should they start fighting inflation (and crash the global economy) or keep playing down inflation (with all the negative effects for the real economy and middle-class we are seeing right now)? It seems like a situation with no good outcomes…

  • Jumping head-first into hard assets such as Bitcoin was the BEST decision anyone could have made in March 2020 (or anytime in the 10 years prior for that matter), when central banks globally started with unprecedented money printing.

  • Now, however, things get trickier for investors, since 1: inflation is to a big part already priced in (e.g., we see higher prices everywhere) and 2: at some point, high inflation inevitably leads to a reaction by central banks. This is is why at the current moment, we find ourselves in a very paradoxical situation, where the dollar is showing strength while risk assets such as stocks, gold, or crypto are facing uncertainty.

  • We’ll have to keep an eye on inflation, economic growth, and central bank actions to gauge when favorable investing environments or buy-the-dip opportunities could arise.

  • There is no easy way forward since crypto is deeply interconnected with traditional markets. Let’s hope that crypto can keep its relative strength over other asset classes as it has proven in recent weeks!

Proving Bitcoin’s Resiliency: The Effects of the Chinese Mining Ban

  • China’s rigorous crackdown on Bitcoin mining this summer led to a lot of FUD in the crypto community. To a certain extent, this is understandable, since China’s dominance both in mining and crypto investing was significant and a complete eradication of mining in China was undoubtedly going to send shockwaves through the crypto space – which it did for several weeks.

  • While the ripple effects took some time to digest (with a lot of Chinese selling pressure to be absorbed), Bitcoin mining bounced back quickly and a new “equilibrium” of global Bitcoin hash rate distribution has been reached.

Twitter avatar for @sygnumofficial
Sygnum Bank @sygnumofficial
Bitcoin’s hash rate is going through a “renaissance.” Bitcoin’s hash rate is becoming more #decentralized while almost reaching all-time high values after China’s ban on #crypto mining and trading. Learn more about this new phase of #Bitcoin mining⬇️
ow.lyThe Bitcoin Mining Hash Rate Is Seeing An Unprecedented RestructuringBitcoin mining data from this latest quarter demonstrate that the industry is undergoing a Renaissance spurred by China’s ban.
4:00 PM ∙ Oct 12, 2021
6Likes4Retweets
Bild
Source: Blockchain.com

China has dropped from nearly 75% of global Bitcoin hash rate in September 2019, to virtually zero.

Twitter avatar for @BitcoinMagazine
Bitcoin Magazine @BitcoinMagazine
BREAKING - U.S. now has 35.4% of global #Bitcoin mining power.
Image
11:00 AM ∙ Oct 13, 2021
1,438Likes277Retweets
  • All in all, the Chinese mining crackdown has proven how resilient Bitcoin is in the face of an attack by one of the largest and most powerful powers in the world.

DeFi 2.0 – Or Why Crypto Investors Have to Constantly Adapt

  • In the last few days, we have seen a new buzzword emerge: “DeFi 2.0”. Is it just a fad or is there more behind this trend?

Twitter avatar for @sassal0x
sassal.eth 🦇🔊🐼 @sassal0x
Apparently all we had to do to pump DeFi tokens was meme DeFi 2.0 into reality
Image
4:29 AM ∙ Oct 13, 2021
80Likes6Retweets
Twitter avatar for @DegenSpartan
찌 G 跻 じ ( 𝙃𝙚𝙣𝙩𝙖𝙞, 𝙎𝙚𝙣𝙥𝙖𝙞 ) @DegenSpartan
currently researching L4 scaling solutions and defi 3.0 coins cya later losers
Image
2:03 PM ∙ Oct 13, 2021
166Likes14Retweets
  • But what actually is DeFi 2.0? It’s not so much about DeFi protocols being new but more about their way of operating:

Twitter avatar for @tbr90
Tyler Reynolds @tbr90
@The3D_ @dannycharts How are you defining DeFi 2.0? IMO DeFi 1.0 — protocols provide a capital services w 3rd party capital DeFi 2.0 — protocols provide capital services w protocol controlled value
8:07 PM ∙ Oct 12, 2021
  • Of course, this current definition is not easy for everyone to wrap their heads around. Hence, the buzzword DeFi 2.0 is likely going to be “abused” by all DeFi projects, since “DeFi 2.0 = next-gen DeFi” could be applied to basically all, even existing DeFi protocols that keep innovating.

Twitter avatar for @DecentralStn
Decentral Station @DecentralStn
DeFi 2.0 Predictions. 1/ Since no baseline, all existing projects will try to call themselves as DeFi 2.0 2/ olDeFi ppl will be salty just like Web2 ones 3/ All new pitch decks will have DeFi 2.0 4/ Coingecko will have 2.0 category 5/ Link marines will force CG to include link
6:51 AM ∙ Oct 13, 2021
135Likes11Retweets
Twitter avatar for @DecentralStn
Decentral Station @DecentralStn
6/ Since 2.0 is here, 3.0/4.0 will all come soon. 7/ Most of the Projects starting this narrative will get cocky, rich and stop innovating 8/ Index projects will create tons of 2.0 index 9/ FTX will list DeFi2-perp which might include FTT 10/ I’ll write DeFi 3.0 predictions soon
6:56 AM ∙ Oct 13, 2021
46Likes2Retweets
  • In case you wonder which projects get currently thrown into the bucket of DeFi 2.0, here is a non-exhaustive list (as you can quickly tell, the definition of DeFi 2.0 is somewhat vague):

Twitter avatar for @DeFi_Brian
DeFi_Brian @DeFi_Brian
Know it’s been said before but these are the Defi 2.0 coins: - $syn - $time / $ohm / $aklima - $spell - $alcx - $rgt - $mpl - $cream - $cvx and $crv - $dpx Low caps: - $id - $inv - $88mph - $pendle
5:03 AM ∙ Oct 13, 2021
956Likes170Retweets
Twitter avatar for @DeFi_Brian
DeFi_Brian @DeFi_Brian
Continued: - $gmx - $perp - $mcb - $dydx - $gro Trying to focus more on eth stuff as this.
5:07 AM ∙ Oct 13, 2021
75Likes4Retweets
  • While there is a lot of excitement around the new shiny DeFi 2.0 trend, there are also cautionary voices. It’s not without reason that “DeFi 1.0” blue chips like Compound, Aave, and co. have pursued a methodical building and growth process. With several DeFi 2.0 projects now shooting up like mushrooms, entirely new risks for the entire ecosystem emerge.

    Twitter avatar for @ashwathbk
    Ashwath Balakrishnan @ashwathbk
    So DeFi 2.0 is just the same primitives with a more lax approach to risk, eh?
    Image
    6:49 AM ∙ Oct 12, 2021
    Twitter avatar for @The3D_
    Ξmilio Frangella @The3D_
    @dannycharts @tbr90 defi 2.0 is essentially new ways of compounding smart contract risk while doing absolutely nothing to push defi forward
    7:41 PM ∙ Oct 12, 2021
    Twitter avatar for @The3D_
    Ξmilio Frangella @The3D_
    @DecentralStn jokes aside, these new "defi 2.0" are taking a dangerous slippery slope with risk management and this is bad for the whole space. There is already one very high risk project out there that if (when) collapses, will drag at least another two with it
    7:43 AM ∙ Oct 13, 2021
    6Likes1Retweet
  • Are you still confused about DeFi 2.0 or want to dive deeper? Here is a good article by Cointelegraph that summarizes many important points.

  • But back to the main theme of this section: The fast emergence of DeFi 2.0 projects has proven again (just like the NFT trend did this summer), that picking up narratives early and adapting one’s investing behavior fast is critical for success in the crypto space.

  • With so much innovation happening in the fast-evolving L1, L2, and NFT ecosystems, being ahead of the herd can make the difference between astronomical rewards and high-risk FOMOing into already hot trends.

Twitter avatar for @DegenSpartan
찌 G 跻 じ ( 𝙃𝙚𝙣𝙩𝙖𝙞, 𝙎𝙚𝙣𝙥𝙖𝙞 ) @DegenSpartan
imo, we are still in the exploration phase if you wanted to build a permanent portfolio today with no further changes ever, i think that you would be dead wrong the meta is constantly changing because the ecosystem and its participants are not static, but are changing as well
Twitter avatar for @DegenSpartan
찌 G 跻 じ ( 𝙃𝙚𝙣𝙩𝙖𝙞, 𝙎𝙚𝙣𝙥𝙖𝙞 ) @DegenSpartan
fluidity and adaptability is how you survive during the exploration phase imagine speccing for a certain build optimized for your initial drop zone, only later to realize when its far too late that its the worst build ever for the rest of the game
3:24 AM ∙ Oct 13, 2021
194Likes25Retweets
  • At the same time, not every crypto investor has the same time horizon and risk appetite. For some, a more long-term HODL-strategy can be more suitable despite lower returns and a less favorable risk to reward ratio in the short term.

Twitter avatar for @iamDCinvestor
DCinvΞstor @iamDCinvestor
i think people underestimate potential future returns of some lower risk assets which have already proven themselves vs others thinking of ETH & "blue chip" NFTs with a low time preference (5-10 years), winners may keep winning more than you think as collateral use is realized
12:18 AM ∙ Oct 13, 2021
258Likes29Retweets

The “Dog Flippening”

  • Is it the most important flippening in crypto land? 🤭 Not that we report very often on meme coins, but seeing Doge, the seemingly undisputed king in meme coin land, being challenged by “DOGE killer” Shiba Inu, is somewhat fascinating to witness.

  • SHIB is currently sitting in the 12th position on CoinGecko, only two spots (but a 2x in market cap) behind DOGE.

Source: ZyCrypto

SHIB, which was created last year as a joke based just like Dogecoin, has seen its value rise meteorically this year. Last week, it gained over 350% in value.

Share this post

October 13, 2021

www.elliotrades.xyz
Comments
TopNewCommunity

No posts

Ready for more?

© 2023 EllioTrades
Privacy ∙ Terms ∙ Collection notice
Start WritingGet the app
Substack is the home for great writing