Tether Cornered in NYC Court, Helium Moving to Solana, and More!

Markets performed better than last week, despite the biggest cryptoassets still in capitulation zone. Bitcoin declined by almost 2% over the past week, while Ethereum grew its total value locked (TVL) by 3%. As shown in Figure 1, the three winners of the major categories in the cryptoassets industry were Solana and Metis, jumping by 6%, 5.5%, while Curve grew its TVL by a whopping 13.6%.

Figure 1: TVL and price development of major crypto sectors

Source: 21Shares, Coingecko, DeFi Llama

Key takeaways

• New York judge ordered Tether to provide proof of USDT’s backing
• Cardano’s most recent upgrade is triggered, Polygon streamlining supernet development.
• Stablecoins carry on proliferating across chains.
• Decentraland will introduce mintable NFT “Emotes” at Metaverse Music Festival
Spot and Derivatives Markets

Figure 2:

Source: Glassnode, Swissblock Technologies

The figure above plots this year’s meetings of the Federal Open Market Committee (FOMC) against spot and derivatives 28-day rolling volume. The chart reveals that Bitcoin is under-levered for the first time this year, which in itself is a sign of true capitulation.

On-chain Indicators

Figure 3: Ethereum’s NUPL ratio

Source: Glassnode

Ethereum’s NUPL ratio is currently at -0.09, which means that the second-largest cryptoasset by market capitalization is still at the capitulation zone. The current level is similar to levels seen in December 2016 when ETH was at $8.4, with a market cap of $626M, a few months before it jumped within the belief and euphoria levels for a little over a year.

Next Week’s Calendar

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Research Newsletter

Each week the 21Shares Research team will publish our data-driven insights into the crypto asset world through this newsletter. Please direct any comments, questions, and words of feedback to research@21shares.com

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