The biggest stablecoin battle test

May ended with the entire crypto-asset market cap resisting at $1.38 trillion, down from $1.82 trillion since April.  Between panic sellers and "scammers," Going back to basics has been our main thesis that resonates especially in tough times.  In this monthly review, we'll delve into the macroeconomic factors driving these declines and showcase some valuable onchain metrics that point to healthy fundamentals.  We will also shed light on the collapse of Tira, what led to it, and its aftermath.  Furthermore, this report will cover the month's most significant developments on the regulatory landscape, DeFi, and the broader metaverse.

May ended with the entire crypto-asset market cap resisting at $1.38 trillion, down from $1.82 trillion since April. Between panic sellers and “scammers,” Going back to basics has been our main thesis that resonates especially in tough times. In this monthly review, we’ll delve into the macroeconomic factors driving these declines and showcase some valuable onchain metrics that point to healthy fundamentals. We will also shed light on the collapse of Tira, what led to it, and its aftermath. Furthermore, this report will cover the month’s most significant developments on the regulatory landscape, DeFi, and the broader metaverse.

Our research team has been exploring onchain indicators like Unrealized Net Profit/Loss (NUPL), revealing that investors who bought Bitcoin 1-2 years ago account for more than 30% of selling pressure. In the last bear market, they accounted for more than 40%. In this section, we’ll walk you through some pointers that our team found useful this month.

correlation matrix

In Figure 1, we can see that the correlation coefficient between BTC, ETH and stocks, i.e. Standard & Poor’s 500 (spy) And the Nasdaq (QQQ), is constantly increasing over the years. together, Gold (GLD) Correlation with these assets decreased from very low to negative.

Figure 1 – Asset Correlation Matrix (Multiple Time Horizons)

Red means higher correlation between assets, and blue color means lower or negative correlation between assets. Assets that are low or negatively correlated have diversification benefits that can improve portfolio risk-adjusted returns.

weekly returns

The returns of the five largest cryptocurrency groups over the past week were as follows – BTC (7%), ETH (0.82%), BNB (-1.86%), ADA (9.44%), XRP (2.32%)

Net Flows Per 21 Shares of ETP

Our net outflows from our ETPs were $6.75 million last week. Find below the details of the inflows and outflows for each ETP.

Encoder status is off!

We are happy to share that our sixth edition of the State of Crypto has finally seen the light of day; This time we discuss crypto asset portfolio allocation. The report provides an overview of industry events over the past few months and provides data on optimizing wallet allocation for various risk profiles and wallet strategies based on native crypto indicators, sourced from the blockchain.

Get your ex lover

Research Bulletin

Each week, the 21Shares Research team will publish our data-driven insight into the world of crypto assets through this newsletter. Please direct any comments, questions and words of feedback to [email protected]

disclaimer

The information provided does not constitute a prospectus or other offering material and does not contain or constitute an offer to sell or the solicitation of any offer to purchase securities in any jurisdiction. Certain information published here may contain forward-looking statements. Readers are cautioned that any forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those expressed in the forward-looking statements due to various factors. The information contained herein may not be construed as economic, legal, tax or other advice, and users are cautioned to base investment or other decisions solely on the content contained herein.

Post The Biggest Battle-Test for Stablecoins debuted on the ETF market.

Leave a Reply

Your email address will not be published. Required fields are marked *