The latest moves in crypto markets, in context By Lyllah Ledesma, CoinDesk reporter Was this newsletter forwarded to you? Sign up here. |
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Happy Friday! Here's what you need to know today in crypto: |
- An onchain metric suggests litecoin could be trading at a discount.
- Market recovery is unlikely until the stablecoin universe stops shrinking, JPMorgan said.
- Hashkey Group plans to raise funds at a $1 billion valuation.
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CoinDesk Market Index (CMI): 1,188 −1.6%
Bitcoin (BTC): $26,850 −1.9%
Ether (ETC): $1,808 −0.8%
S&P 500 futures: 4,222.00 +0.2%
FTSE 100: 7,776.91 +0.4%
Treasury Yield 10 Years: 3.65% +0.1 |
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An onchain metric suggests that litecoin (LTC), the 12th largest cryptocurrency by market value, is trading at discounted prices. Litecoin's market value to realized value (MVRV) Z-score was negative at press time. A sub-zero score indicates the cryptocurrency is undervalued relative to its fair value, according to analytics firm Glassnode. The market capitalization is calculated by multiplying the total number of coins in circulation by the crypto's price. The realized value is a variation of the market cap that adds the market value of coins when they last moved on the blockchain. It excludes all coins lost from circulation (more than 15%) and is said to reflect the real or fair value of the network. |
The stablecoin universe continues to shrink and a sustained recovery in crypto prices is unlikely until this stops, JPMorgan said in a research report Thursday. A stablecoin is a type of cryptocurrency that is pegged to another asset, such as the U.S. dollar. "Headwinds from the U.S. regulatory crackdown on crypto, the unsettling of banking networks for the crypto ecosystem and the reverberations from last year's FTX collapse are weighing on the stablecoin universe which continues to shrink," analysts led by Nikolaos Panigirtzoglou wrote. Digital asset financial services firm HashKey Group is planning to raise funds at a $1 billion valuation, according to a Bloomberg report on Friday. The Asia-based HashKey is in preliminary talks to raise between $100 million to $200 million, according to the report, which cited people familiar with the matter. The firm is looking to capitalize on Hong Kong's re-emergence in recent months as a potential crypto hub as the city has looked to formulate a clear regulatory structure for digital assets. Hong Kong is looking to attract crypto firms to its shores as a means of generating greater investment and capital, following a few years of restrictions related to COVID taking their toll on the economy. |
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Market Insight: Galaxy Executed its First OTC Options Trade
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Galaxy Digital's first over-the-counter (OTC) option trade, executed earlier this week, marks a tangible step toward bringing the conventional financial system onto decentralized finance (DeFi) infrastructure. FTX's blowup and the collapse of several crypto lenders brought attention to the risks of centralized crypto finance (CeFi) – i.e., trusting one's money with a company, rather than a protocol – providing a tailwind for DeFi. Galaxy said in a statement that recent market events have highlighted the vulnerabilities of traditional bilateral options trading. "One thing that 2022 has told us is that DeFi performed exceedingly well while CeFi and some traditional methodologies for transacting had some challenges," Jason Urban, Galaxy's global head of trading, said in an interview this week with CoinDesk TV. |
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- The chart by pseudonymous DeFi analyst Ignas shows that there currently are eight decentralized autonomous organizations (DAOs) with Treasury holdings less than the market capitalization of their respective tokens. (Treasury balances do include holdings of their own coins).
- Per Ignas, these DAOs can be targeted by the so-called RFV raiders or supposed activist investors looking to take over the DAO to manipulate the price of tokens for financial gains.
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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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