Market Status
Bitcoin
November has seen another solid month of growth for Bitcoin as it continues to entrench itself as a serious store of value. Respected industry veterans Stan Druckenmiller and Bill Miller both come out in support of Bitcoin, legitimising it further with industry investors. Grayscale itself bought over 55,000 Bitcoin in November, twice the amount that was mined in the month.Grayscale now holds over 534k Bitcoin and appears to have no intention of slowing in its acquisition strategy. The price of Bitcoin reflected this with the monthly close price holding higher this month and the last than at the peak of the 2017 Bull run, briefly reaching an all time high of £19,850.
As Bitcoin has gone mainstream it’s outperformed most other assets, including the S&P and the Nasdaq. Bitcoin is currently up 160% since the beginning of the year compared to 32% for the Nasdaq and 10% for the S&P500. Even gold which has a similar narrative is only up 23.8%.
Although the main cause of the price increase is acceptance from the investment world, DeFi is also eating into the liquid Bitcoin supply. The number of wrapped bitcoin on Ethereum reached 126k during November. With other blockchains such as Tron also beginning to use wrapped Bitcoin, the amount locked into DeFi contracts will only continue to increase.
MV & RV
Both Market Value (the price multiplied by coin supply) and realized value (the value of all coins in circulation at the price they last moved) hit all time highs in November. The ratio of these two values has proved an important indicator to spot when Bitcoin is over or under priced in the market. According to glassnode, Short-term holder MRVR has held a positive ratio for the last 6 months which in the past has been characteristic of an extended Bull Market.
Investor vs Trader
According to a recent article by Chainalysis the 2020 bull market is structurally different. The 2017 Bull Market was led by East Asian Exchanges but this time around we’re seeing North America take the lead. Most institutional investors are based in North America so it’s natural that they would use local exchanges due to regulatory compliance. Exchange transfers from North America also support this. Transfers of over $1Million Dollars are up by over 19% this year. The article also highlighted that the amount of Bitcoin held by investors (Wallets that have sent less than 25% of the Bitcoin they’d received) was at record highs.
ETH 2.0
While there’s been a lot of excitement around the imminent launch of ETH 2.0, it’s unlikely that much will change for Ethereum in the short term at least. The Beacon Chain is really the first iteration of many on the way to Ethereum becoming a proof of stake blockchain. The chain doesn’t have accounts and won’t have smart contracts but is an important stepping stone.
As it stands the existing proof of work chain will remain live and full functionality on Ethereum 2.0 is not expected until at least 2022. The launch of the beacon chain has nonetheless excited Ethereum holders. As the ETH staking contract approached the level needed to launch, the price of ETH was pushed to over $600 dollars as stakers committed to long term staking.
2020 has seen staking grow in popularity with most new chains opting for either proof of stake or delegated proof of stake to reach consensus. Many exchanges now offer the ability to stake on their platforms and holders have become used to earning interest on their assets.
Until staking came along holders could only really benefit from price increases and had to sell to realize gains.. Staking incentivizes holders to keep their assets frozen. In turn this goes some way to reducing the assets liquidity which should have a positive effect on price.
It’s not without its trade offs. With assets frozen it makes it difficult to respond to events such as market crashes. For most investors, the appeal of daily or weekly staking rewards is enough to mitigate this.
Uniswap
On November 17th Uniswap stopped its mining rewards and unlocked $1.1Billion of ETH. Initially the main beneficiary was Sushiswap, although this was short lived with liquidity dropping rapidly on the platform on the 22nd. In spite of the drop in liquidity, Uniswap’s market share remained stable at around 60%.
Overall Liquidity on Uniswap started to rebound from the 18th to the 23rd but quickly fell off again. Four liquidity pools have yet to recover; WBTC-ETH, ETH-USDC, ETH-USDT and ETH-DAI Other pools, like, UNI-ETH, LINK-ETH, YFI-ETH, DPI-ETH liquidity have grown visibly.
Liquidity Incentive Plan
To counter the drop in Liquidity, Uniswap announced a Liquidity Incentive Plan to encourage liquidity providers for the four main pools for a further 2 months with a reduced reward of 5 million uni per month. The proposal passed the temperature check and seems to have been largely welcomed by the community. If approved the proposal will go live on the 9th December.
The drop in liquidity demonstrates that liquidity providers will happily leave a platform if they believe they can earn a higher return elsewhere. This is only one part of the picture however and Total Value Locked can be a misleading stat to judge a platform. Traders are fairly loyal and much more likely to stay with a platform. What makes traders more likely to move are features that make trading easier or more efficient. Our priority at TitanSwap is to build this platform and offer an unrivalled user experience for traders.
TitanSwap Delivery
This month we released Titanswap V3.1. Lets run through some of the features we’ve added.
1.Added “Pair Address” in “Pair Information” to help check trading pair contract information.
2.Added “24H Transactions” to check the number of transactions in the last 24 hours.
3.Add transaction hash in “Order History” for each completed transaction to view the transaction details in etherscan.
4.“Open Orders” and “Order History” now show all of your limit orders, not restricted to the current trading pair. You can jump to the corresponding trading pair page by simply clicking on the trading pair field.
5.Added a summary for overview of all trading pairs.
6.app.titanswap.org is used as the sub-domain name of TitanSwap, and the top menu has been added to facilitate the jump within the site.
7.TitanSwap now supports Chinese in Language Settings, accessible via the settings cog.
One of TitanSwap’s goal is to become a place for traders to share their wisdom on tokens among their followers. We want Titanswap to become a place to find up to date information on the status of a token and help reduce the difficulty of decision making in trading by providing the best in class data. This will be a major driver of our growth going forward.
News & Events
Annual Thanksgiving Event
On the 26th November we launched our Thanksgiving Event in conjunction with Bounty.Money. We are proud to be Bounty.Money’s first partner.
Users can add liquidity to ETH-USDT, ETH-USDC, ETH-DAI and WBTC-ETH pools and earn triple rewards:
0.4 % trading fees for each pool
345600 BM Tokens for liquidity providers.
BM Holders can earn an additional 10,000 USDT.
Visit https://bounty.money/home/ for up to date information about the event including, total staked, rewards issued.
