Market Recap | 2021 In Review

Dear AbNormals,

This will be the last post of 2021, what a year it has been. We’ve been through a lot together, the ebbs and flows of the market and all the emotions. I hope you are all doing well and let’s make 2022 our best year!

I started creating YouTube video’s (In Dutch) mainly focused on the usage of crypto’s such as BTC, ETH, Stablecoins. To give you a glimpse of what’s possible out there. It’s not much yet, but there’s a lot more to come.

If you have any idea’s or suggestions for me to talk about, send me a DM on twitter @pawiromitchel

Metrics

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

Data Sources

Bullish

ETH Exchange Reserve

There has been a LOT of withdrawals this year, the exchange reserve is drying up. I think it’s because all the farming opportunities, staking, lending and borrowing that are possible on the Ethereum chain. People are also bridging into EVM compatible chains such as BSC, Polygon, xDai, etc.

ETH Staking rate

The Staking rate is not slowing down at all πŸ‘€

Ethereum Layer 2 Deposits

The Layer 2 ecosystem received a lot of attention this year. With Arbitrum, Optimism, ZK Tech launching this year.

DeFi Total locked value

This handy tool is created by the DeFiLlama team to understand how much money is locked in the DeFi ecosystem.

We went from $630m to $249b, that’s a 40000% growth!

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.

BTC Exchange Reserves

BTC didn’t see a withdrawal rate as ETH, but still a downtrend. Thing is, we can’t do much with our BTC. We can bridge our BTC to wBTC on the ETH chain to farm yield with it, but then you’ve lost your native BTC coins. It’s up to you if you want to do it or not πŸ˜‰

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? πŸ‘€

CBBI – Bitcoin Bullrun Index

The CBBI score is at 50πŸ”», lower than the previous recaps that we did. A score of 80 would be a level to start being cautious.

The score never went above 80 this year, so based on this data we could say that this cycle isn’t over yet.

Fear and Green Index

Again, lost of fear and doubt. This gives us the opportunity to buy cheap 😬

Bearish

Nothing to say here❌

Conclusion

2021 has been an amazing year for the crypto ecosystem, we’ve seen

  1. DeFi Flourish
  2. Layer 2 tech gaining traction (ZK, Optimism, Arbitrum, Plasma)
  3. Dapps going MultiChain so they’re not only on 1 single chain. Sushiswap, Paraswap, 1Inch are a couple of examples to check out.
  4. NFT mania with all the celebs, TikTok influencers πŸ™„
  5. DAO (Decentralized Autonomous Organizations) taking shape

What am I doing right now?

Chilling with my fam, watching Horror movies on Netflix (funded by my crypto income btw πŸ˜‚).

My biggest income sources are

  1. RealT making around ~11%
  2. Staking ETH on Lido, Stakewise and Kraken giving me ~5%

Tip Jar β˜•

If you appreciate the work I’m doing, consider supporting the website 😊

ETH or ERC20: mitchel.eth
BTC Segwit: bc1qqfnfkrnhv903v9v38n98vvk35hgrp77ay7kwqr
BTC legacy: 1DhGZ1kvEF1wamq3oRb4f7pPz3cMBaxKz


Reminders

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.

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