Table of Contents
We’re almost at the end of the year and I hope 2021 has been a good year to you all. It has been a rough year, lots of negatives but a lot of positives too.
Last recap, we incorporated 3 new metrics. Let me hear your feedback 😊
- L2Beat, a metric that tracks the Ethereum Layer 2 solutions
- DeFiLlama, a TVL (total locked value) dashboard for DeFi. We’ll use the data to check which protocol or dapps are being used the most
- CryptoFees, a metric that shows us how much fees is being extracted (aka network usage) from the different blockchains, dapps, protocols
What’s the market saying right now? FUD
There’s a lot of noise right now on Twitter, celebs are joining the hype train, CNN started to write about crypto and NFTs. It’s best to let this cool off and let the noise dim down.
There are so much misconceptions about NFTs and the climate, but it has nothing to do with each other. Yes, blockchains require power but a huge percentage of miners use green energy (hydro, wind, solar and even vulcano).
Guy from the Coin Bureau did a video debunking this very topic.
Let’s take a look at some metrics, I love to take a step back and zoom out to look at the bigger picture. Focusing on the fundamentals and on-chain data has always been my cup of tea, because it filters out a lot of noise
The CBBI is a Bitcoin index that utilizes advanced, real-time analysis of 12 metrics to help us understand what stage of the Bitcoin bull run and bear market cycles we are in. The CBBI is time-independent and price-independent. It simply indicates whether it believes we are approaching the top/bottom of a Bitcoin cycle.https://colintalkscrypto.com/cbbi/
ETH Exchange Reserve
A lot of deposits in the last few days, but still a downtrend
ETH Staking rate
People are staking more and more
Ethereum Layer 2 Deposits
This is the current state of the Layer 2 ecosystem, how much money is flowing into the different Layer 2 solutions.
A pullback, probably due to fear of the market
DeFi Total locked value
This handy tool is created by the DeFiLlama team to understand how much money is locked in the DeFi ecosystem.
Ethereum is still dominating the space, but you can clearly see a downtrend. Money is flowing into different chains, could be people speculating on potential ETH killers.
Tron has been losing some market share due to Justin leaving. Source
BTC Exchange Reserves
The picture speaks for itself, rapid declining of the reserves aka people are withdrawing from exchanges
Bitcoin Miner Position Index
The Bitcoin miners are still hodling since the March crash and has been flat ever since. It’s even negative right now, that means that the miners are a little underwater. Do they know something? 👀
CBBI – Bitcoin Bullrun Index
The CBBI score is at 51 🔻, lower than the previous recaps that we did. A score of 80 would be a level to start being cautious.
Fear and Green Index
Again, lost of fear and doubt. This gives us the opportunity to buy cheap 😬
We’ve seen 2 things play out
- Lots of ETH deposits onto Exchanges
- TVL slowing down
Crypto Twitter is generating a lot of noise. There’s a lot of FUD, fights about which chain is better, but there are interesting projects being built such as CityDAO and ToucanDAO. I’d be a little bit cautious right now, celebs and companies are joining this space for a quick cash grab. They’re doing this via NFTs, Adidas and Nike recently joined as well collaborating with some OG artists.
“Anyone can look smart in a bullmarket”, always keep this in mind 🧠
What am I doing right now?
Buying all the dips with stables generated via my RealT portfolio, but I want more blood tbh 🩸
I pulled out of Celsius. Alex is promising a lot, but under delivering. No swaps yet, no L2 deposits, CC is still in the works too. The CEL token has been slipping too, one of the worst performing assets of 2021.
Tip Jar ☕
If you appreciate the work I’m doing, consider supporting the website 😊
ETH or ERC20: mitchel.eth
BTC Segwit: bc1qqfnfkrnhv903v9v38n98vvk35hgrp77ay7kwqr
BTC legacy: 1DhGZ1kvEF1wamq3oRb4f7pPz3cMBaxKz
I’ll list some reminders for you guys and useful articles to help you understand certain topics better.
- Crypto money flow, always keep in mind that money flows from asset to asset. BTC ~> Mid Caps ~> Low Caps ~> BTC
- Fear is the mind killer, take control of your emotion and remember that you are the one pulling the trigger. It’s a lot harder than it sounds. This is the reason why you can’t rely on demo account or play accounts, because you’re taking away the biggest hurdle of an investor, EMOTIONS.