The year 2022 was disastrous for crypto users due to the ongoing Russo-Ukrainian conflict and quantitative tightening by the US Federal Reserve. The loan crisis caused by Terra/Luna, 3AC, and FTX-Alameda blowouts will also have significant impacts across companies in the space. Additionally, we can expect to see increasing financial oversight from both the US and EU, including the Digital Commodities Consumer Protection Act (DCCPA) and the Markets in Crypto-Assets (MiCA) regulatory framework.
The Bitcoin market has been relatively quiet in December following a tumultuous year. Short-term realized volatility for BTC is currently at its lowest since October 2020, with 1-week volatility at 22% and 2-week volatility at 28%.
Futures volumes have plummeted to multi-year lows, with Bitcoin (BTC) and Ethereum (ETH) markets trading between $9.5B and $10.5B per day. This is indicative of the tightening liquidity, widespread deleveraging, and the impairment of many lending and trading desks in the cryptocurrency space.
Open Interest in futures markets has seen a sharp decline following the FTX implosion. The Leverage Ratio, calculated as the ratio between Futures Open Interest and the corresponding asset market cap, has been notably more severe for ETH. This is likely due to residual ‘Merge trades’ being closed out, with ETH Open Interest falling from 4.75% to 3.10% of the Market cap. BTC leverage ratio peaked a week before ETH markets, and has since declined from 3.46% to 2.50% of the market cap over the last month.
Long-Term Holders (LTHs) experienced two of the most significant relative loss spikes in history during this cycle, according to on-chain data. In November, LTH losses reached a peak of -0.10% of the Market Cap per day, a figure only matched by the lows of the 2015 and 2018 cycles. June’s sell-off was similarly remarkable, with LTHs registering losses of -0.09% of the Market Cap per day, with the majority of losses ranging from -50% to -80%.
Despite the large losses incurred, the age of the coin supply and the tendency of those who remain to HODL has increased. Long-Term Holder Supply has reversed the panic spending that followed the FTX fiasco, reaching a new all-time high of 13.908M BTC (72.3% of circulating supply).
With such an extreme drawdown in token prices, and a severe contraction of liquidity, the total value locked in DeFi has fallen dramatically. After hitting a peak of $160B at the market ATH in Nov 2021, DeFi TVL has dropped by over $120.3B (-75%). This brings DeFi collateral values down to $39.7B, returning to Feb 2021 levels.
The year 2022 was a tumultuous year, driving volatility and volumes to multi-year lows as liquidity and speculation dried up. With speculators absent, Bitcoin Long-term Holder supply surged to a new all-time high, and investors appeared to be taking advantage of each price dip with increasing coin volume. TitanSwap needs to adapt to the market volatility conditions and continuously improve the system to gain bigger market share.
Technology Updates
1. The implementation of a robust analytics engine is set to revolutionize the way data analysis and reporting is conducted. This engine will enable users to monitor and track user behavior more effectively, rather than simply trading. This will provide a more comprehensive understanding of user behavior, allowing for more accurate analysis and reporting. This will ultimately lead to more informed decisions and better outcomes for all involved.
2. We are designing an advanced visualization tool that can be used to give users a more comprehensive understanding of their data. This tool can help them to make more informed decisions and gain a better insight into the information they are dealing with. By utilizing this tool, users can gain a better understanding of the data they are working with, allowing them to make more informed decisions. Furthermore, this tool can provide users with a more comprehensive understanding of their data, allowing them to gain a better appreciation of the information they are dealing with. Ultimately, this advanced visualization tool can help users to make more informed decisions and gain a better understanding of the data they are working with.
3. In order to reduce manual labor, we are automating the data extraction and enrichment process. Automation of this process can help to streamline the data extraction process, making it more efficient and accurate. Automation can also help to reduce the amount of time spent on manual data entry, allowing us to focus on more important tasks. Additionally, automation can help to ensure that data is accurately extracted and enriched, reducing the risk of errors and improving the quality of the data.
Community Updates
1. Shared information about Titan through infographic tweets.
2. Released the November 2022 Monthly Report of Titan.
3. Shared Christmas tweets with Telegram and Twitter communities.
🌐Website: http://titanswap.org/
💬Telegram: https://t.me/TitanSwap
📌Twitter: https://twitter.com/TitanSwapOrg
