As crypto markets experience downside volatility, the demand for stablecoins increases.

A key feature of the burgeoning #DeFi ecosystem is the opportunity to deploy stablecoins into yield producing protocols.

Read our analysis on opportunities to generate yield on stablecoin collateral here

This #Bitcoin sell-off is historic in the magnitude of losses realised by short term holders.

STH-SOPR has only dipped this low on three occasions since 2015:
- Feb 2018 start of bear market
- Nov 2018 bear capitulation
- Mar 2020 COVID sell-off

Live Chart

#Bitcoin on-chain transaction fee dominance for deposits to exchanges reached a new ATH during yesterdays sell-off.

Over 18% of all on-chain transaction fees were associated with deposits, eclipsing the top of 14% set in 2017.

This highlights the urgency felt by coin holders as they reacted to market volatility.

Live Chart | @glassnode

Stablecoin Supply Ratio hits an All-Time-Low of 8.54.

This means the #Bitcoin Market Cap is 8.54x larger than the global supply of stablecoins.

ATL SSR values indicates that the purchasing power of crypto-native dollars is at a relative ATH.

Live Chart | @glassnode

Demand for the top stablecoins $USDT, $USDC and $DAI pushed prices noticeably above the $1 peg in the month before the Coinbase listing.

This may suggest there was distribution and a strong demand for exit liquidity to 'sell the news'.

Live Chart | @glassnode

This weeks correction has resulted in a substantial deleveraging of futures markets.

Over $7.5B in #Bitcoin open interest was cleared within a few hours, bringing total open interest back to levels last seen in early February.

Live chart | @glassnode

#Bitcoin has experienced a tremendous deleveraging, with prices falling over 50%, and on-chain entities taking historically large losses.

We analyse:
- Magnitude of Losses
- Cross Section of Sellers
- Market Deleveraging

Read more in The Week On-chain

The Grayscale $GBTC Discount has risen from a peak low of -21.23% to a smaller discount of -3.8%.

$GBTC has sustained a discount to spot #Bitcoin prices for 3 months. Positive price momentum started on May 12, early in the current correction.

Live Chart | @glassnode

#Bitcoin Net Unrealized Profit and Loss is a macro cycle oscillator which tracks the magnitude of profit held in $BTC.

The market is currently testing a NUPL value of 0.5 which is typical for deep bull cycle corrections.

Read More in The Week On-chain

The #DeFi ecosystem was put to the test last week, as collateral value fell, gas prices spiked, and demand for stablecoins increased.

In this piece we analyse the resilience of #DeFi protocols, and the response of the market to a rapid 50% price mark-down.

Read our Analysis here and Sign-up here for more DeFi related insights.

As #Bitcoin price falls, the supply of the big three stablecoins $USDT, $USDC and $DAI have continued up and to the right.

During this sell-off, stablecoins have grown by:
$USDT up $14.2B
$USDC up $9.72B
$DAI up $1.22B

Flight to safety? or dry powder?
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After one of the most dramatic sell-offs in #Bitcoin history, the conviction of investors has been put to the test.

In this piece we assess:
- Market structure leading into the crash
- Bull and Bear cases of various metrics
- BTC holder sentiment on-chain

Read our analysis here.

The #Bitcoin market currently has three supply trends in play:

- Short Term Holders are distributing.
- Long Term Holders are HODLing/Accumulating.
- Miners are Accumulating.

The $BTC market is a battleground between the bulls and the bears.

Live Chart

The #Bitcoin market consolidates after selling-off last week, as investors demonstrate unique spending behaviours on-chain.

We Assess
- Market pain points
- Spending patterns on-chain
- Analysis of sellers and hodlers

Read more in The Week On-chain

Our threshold for #Bitcoin Long-Term Holders are coins dormant for > 5-months.

At current prices, LTHs who accumulated in late-Dec to early-Jan are approaching their cost basis.

This will test the conviction of the market.

Read more in The Week On-chain

The DeFi ecosystem is constantly expanding with new ideas, innovations and protocol designs.

This week we explore and assess a suite of experimental lending platforms, with a focus on protocol design, risks and opportunities

Read our analysis and subscribe for more DeFi insights

The average transaction fees for both #Bitcoin and #Ethereum have returned to levels not seen since Jan 2021 and Aug-Sept 2020 during 'DeFi Summer'.

The average transaction fee paid on each network is currently:
$7.38 for $BTC
$6.08 for $ETH

Live Chart

From March 2020 to the start of May, a total of 744k $BTC moved from Liquid to Illiquid state.

During the recent sell-off, 160k $BTC have been spent back into liquid circulation providing an indication of the supply that has changed hands.

Live Chart

The demand for both #Bitcoin and #Ethereum blockspace has fallen dramatically this week, with many usage metrics breaking down.

We analyse:
- Active on-chain usage
- Falling blockspace demand
- Long-Term Holder supply

Read more in The Week On-chain

On-chain activity on the #Bitcoin network has dropped off, as investors become uneasy around market direction.

Meanwhile, coins accumulated in the early bull are maturing to Long-Term Holder status at an accelerating pace.

Read more in The Week On-chain

#Bitcoin Binary CDD (7DMA) shows when old $BTC are on the move greater than average.

After a period of sustained distribution spending by old hands, Binary CDD has fallen back to pre-bull accumulation levels.

Old coins are simply not moving.

Live Chart