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October 7, 2021

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EllioTrades Daily Roundups

October 7, 2021

A Taste of Altcoin Season – and Some Warning Signs

Oliver Grah
Oct 7, 2021
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October 7, 2021

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Introduction

Wow, that was fast: After BTC left the rest of the crypto markets in the dust yesterday, the “king” is taking a well-deserved break today… and what do we see? Some altcoins are popping off, namely DOT, FTM, ANY, and… meme tokens.

Bridge Protocols on the Rise

  • With the rise of different L1 and L2 ecosystems in the last months, we have seen bridge protocols like Anyswap thrive (exaaactly as predicted 😀).

  • This is what fundamentals-based investing should look like: ANY’s price has been rising hand in hand with the protocol’s fast-growing volume and TVL.

Twitter avatar for @AndreCronjeTech
Andre Cronje @AndreCronjeTech
$1bn 24h volume 🎉🥳 anyswap.net
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7:53 AM ∙ Oct 7, 2021
731Likes123Retweets
Source: CoinGecko

Fantom’s Ecosystem Is Exploding

  • A bit in the shadow of Solana and Avalanche, Fantom continues to gain massive traction. Just look at Fantom’s massive TVL growth…

Bild
  • The FTM price is reacting accordingly – another example of fundamentals and price aligning.

Source: CoinGecko
  • Other projects in the Fantom ecosystem are following suit, especially Popsicle Finance (ICE) and SpiritSwap (SPIRIT).

Source: CoinGecko

It’s Meme Token Season Again

  • Yes, it’s that time of the year again, when meme tokens pump like crazy. If you’re a close observer of the crypto markets, your spider senses call for caution right now – since meme token season has more than once preceded a market cooldown.

  • The most outstanding performer has been Shiba Inu which has been on a tear this week.

    Source: U.Today
  • But other meme tokens are also enjoying a lot of green…

Source: CoinGecko

Is a Cooldown Imminent?

  • After the recent run-up, funding rates on futures exchanges have increased quite a bit. Could we be in for a brief but violent liquidation candle? This is certainly a possibility, however, the amount of people anticipating a shakeout now makes me believe that it might not come just yet…

  • One way or another, it’s time to be vigilant if you’re a trader. For investors, these short-term leverage-induced hiccups shouldn’t be more than welcome buy-the-dip opportunities. Taking some profits on positions you accumulated during the last months’ “mini bear market” is of course never wrong.

Twitter avatar for @TXMCtrades
TXMC @TXMCtrades
Futures Perp funding for #Bitcoin has spiked this morning back to early September levels, with Open Interest also remaining elevated. It seems few smoothbrains have taken leveraged long positions, making them vulnerable to disagreements in price. Stay on your toes. 👀
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1:13 PM ∙ Oct 7, 2021
33Likes8Retweets
  • From an on-chain perspective, there is also reason to be vigilant, since we see some profit-taking activity from whales. Nothing to worry about just yet but we have to keep an eye on it.

Twitter avatar for @WClementeIII
Will Clemente @WClementeIII
Seeing whales take some profits. Still in clear uptrend since late July but let's just keep a close eye on this over the next few weeks. Side note: Notice the general inverse correlation whale balances have to exchange balances (blue).
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2:38 PM ∙ Oct 7, 2021
222Likes25Retweets

Putting Things in Perspective

  • If short-term warning signs make you nervous as a crypto investor, it’s helpful to zoom out a bit and look at the bigger picture: When we look at where crypto has come from and where crypto prices were just a year ago, it’s easy to forget how small crypto still is compared to other assets.

  • “Breaking into” the financial world as an emerging asset class has been the biggest achievement of the crypto space in 2021. Solidifying and growing the size of the global crypto market will be a glorious theme in the next decades and lead to a generational wealth transfer.

Twitter avatar for @gaborgurbacs
Gabor Gurbacs @gaborgurbacs
To put things in perspective. It’s so early.
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8:08 PM ∙ Oct 6, 2021
191Likes59Retweets

ZK-Rollups Are Coming Faster than Expected!

  • Ethereum scaling has had a long arduous journey but in 2021 we are finally seeing the fruits of years of labor. With Arbitrum and Optimism, two Optimistic Rollup solutions, we now have two fully functional Layer-2 solutions that help scale the Ethereum ecosystem.

  • However, the holy grail of L2 scaling are ZK-Rollups. They offer enhanced security and scalability and are a technically superior solution to Optimistic Rollups (if you want to know more about the different Rollup-solutions, check this article)

  • While everyone thought ZK-Rollups with full smart contract functionality would take a lot more time to build, StarkWare is now pleasantly surprising us with an earlier launch date – something we are not used from the Ethereum developer community. 😉 This is exciting news for everyone in the Ethereum ecosystem!

Twitter avatar for @StarkWareLtd
StarkWare @StarkWareLtd
We are excited. Very excited. The #StarkNet journey started in January with an idea of a decentralized ZK-Rollup that can provide massive scaling and Ethereum-like security. 6 months later we launched StarkNet Alpha on testnet. Next month this Alpha will be deployed on Mainnet >>
Twitter avatar for @StarkWareLtd
StarkWare @StarkWareLtd
#StarkNet Alpha Mainnet November Get ready https://t.co/nKi46GuyPV https://t.co/coSLPSJs8J
5:26 PM ∙ Oct 5, 2021
152Likes28Retweets
  • While ZK-Rollups being just around the corner is exciting, what if I told you that ETH2 is also only months away? 🤯

Twitter avatar for @sajidazouarhi
SajZ 🦇🔊 @sajidazouarhi
#Ethereum #Merge #eth2 #interop How it started: How it's going:
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3:29 PM ∙ Oct 6, 2021
439Likes100Retweets

Get Ready for the First Polkadot Crowdloans

  • While we don’t know an exact start date yet, signs are mounting that after a successful series of Kusama parachains auctions, Polkadot will be next soon.

  • Sub0, the biggest conference for Substrate developers, is happening next week, October 13 to 14. Maybe we get some news there…

  • Crypto analytics firm Messari has estimated how much DOT could be locked up during the first series of Polkadot parachain auctions. And what can you say… it's a lot! $7.9 billion in locked DOT would mean that almost a quarter of the DOT supply would be illiquid for up to 2 years. With progressing parachain auctions this could lead to a severe supply shock!

    Twitter avatar for @danreecer_
    Dan Reecer 🅰️🕊⚪️ @danreecer_
    Model from @MessariCrypto estimates $7.9 billion USD to be locked in the first 10 parachain slot auctions on @Polkadot in support of layer-1 parachains like @AcalaNetwork 🤭 https://t.co/FwjGhAkFZI
    Twitter avatar for @NDGcrypto
    Nick Garcia⏳ @NDGcrypto
    A model for forecasting the scope of @Polkadot parachains is KSM MC : DOT MC. $3.03B : $32.9B = 10.86 So, we can expect roughly $731M X 10.86 = $7.9B raised in the first DOT 10 auctions. https://t.co/55QFgYwNXy
    5:25 PM ∙ Oct 6, 2021
    242Likes64Retweets
  • One of the eagerly projects to win an early Polkadot parachain slot is Acala. Check the article below to find out how to get ready for the Acala crowdloan. Securing an early spot could pay off very well with all the anticipation for the project.

Twitter avatar for @AcalaNetwork
Acala - DeFi Hub of Polkadot @AcalaNetwork
We're gearing up for the Acala Crowdloan, an exclusive event to contribute DOT and earn ACA. Learn more about how you can get ready with our Crowdloan Checklist.
medium.comPreparing for the Acala Crowdloan on PolkadotA comprehensive checklist to help you prepare for the Acala Crowdloan and get your share of the network before launch Polkadot’s Parachain Slot Auctions are fast approaching, which means the…
8:44 AM ∙ Oct 7, 2021
358Likes89Retweets

Rising ETH Price and Gas Fees Holding NFTs Back

  • While we have seen times where NFTs rose hand in hand with an appreciating ETH price, more often than not, strong ETH-pumps (coinciding with a rising ETH price) take the wind out of the sails of the NFT space in the short term. This type of “cycle” and interaction between the fungible and non-fungible world has become the new normal.

  • However, just as during previous “mini NFT bear markets”, low- and mid-tier NFT projects got hit the worst, while blue-chips remain largely unfazed.

Twitter avatar for @Zeneca_33
Zeneca_33 🍌 @Zeneca_33
Daily Floor Stats Update. Woah, talk about a red day all across the board. A trend we have seen time and time again is that when ETH goes up AND gas remains consistently high, we see a lot of projects suffer in floor price. This is particularly evident in projects that have a
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12:24 AM ∙ Oct 7, 2021
461Likes126Retweets
Twitter avatar for @Zeneca_33
Zeneca_33 🍌 @Zeneca_33
relatively low floor, since gas makes up a higher % of the transaction fee if someone wants to buy one. If we look at the projects that dropped 20-40% today, the vast majority of them have a floor of under 0.5. That's not to say that higher floor projects were/are immune to gas
12:24 AM ∙ Oct 7, 2021
41Likes2Retweets

… Thread continues

  • Especially for lower- and mid-tier NFT projects, moving to L2 should be a top priority. On the one hand, this takes some pressure off the congested Ethereum main chain, on the other hand, it would allow for more people to engage in the NFT space.

Twitter avatar for @safetyth1rd
𝕯𝖆𝖓𝖌𝖊𝖗 @safetyth1rd
nfts moving to l2 cannot come fast enough.
5:32 AM ∙ Oct 7, 2021
40Likes3Retweets

Avoiding Regulatory Crackdowns with NFTs?

  • While we haven’t seen any clear regulatory actions in the US yet, in other parts of the world, namely in South Korea, our theory of NFTs evading some of the regulatory crossfire is holding up.

Source: Crypto Briefing
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