10 CRYPTO Charts You HAVE TO SEE!! This Is What's Going On!!

Summary

This video script delves into the complexities of the cryptocurrency market, analyzing trends and data through 10 insightful charts sourced from a Coinbase Institutional report. It discusses protocol TVL, active addresses, transaction fees, and the correlation between Bitcoin, Ethereum, and other asset classes. The presenter also explores Bitcoin on-chain analysis, ETF impacts, and the behavior of futures markets, offering a comprehensive view for investors while cautioning them to seek professional advice.

Takeaways

• 📈 The crypto market's current state can be understood through 10 different charts, which are part of a Coinbase institutional report.
• 📊 TVL (Total Value Locked) in protocols can be misleading due to token price fluctuations, and Aptos has shown more growth when normalized for price compared to Sui.
• 🌱 There's significant growth in TVL for protocols like Ton, indicating potential undervalued opportunities in the crypto space.
• 📉 Optimism has seen the largest fall in price-adjusted TVL, while Arbitrum and Polygon have performed better.
• 🔄 Active addresses and transaction fees show mixed results, with Solana and Tron seeing positive growth in May, possibly due to the roll-out of Ethereum's Deno upgrade.
• 💸 Protocols like Bots and Telegram have seen the most growth in fees paid, with the latter being beneficial to the ecosystem.
• 📉 Bitcoin's active supply has decreased since April, aligning with historical trends that suggest a slowdown in transfers and activity during local price tops.
• 🔗 Bitcoin and Ethereum show a high correlation at 80%, indicating they often move together in the market.
• 📊 Bitcoin and Ethereum spot and futures market volumes have dropped significantly from their March peaks but remain higher than most months since September 2022.
• 🚀 The growth in open interest on CME Futures for Bitcoin has been substantial, potentially impacting price action due to arbitrage trades.
• 📊 Bitcoin ETF holdings have been relatively flat, suggesting that recent growth can be attributed to basis trades rather than pure directional investment.

Q & A

What is the main focus of the video script discussing the crypto market?

The video script focuses on analyzing the current state of the crypto market using 10 different charts from a Coinbase institutional report, discussing topics such as protocol TVL, transaction fees, active addresses, and market recovery.

Why might the total value locked (TVL) in a protocol be skewed?

The TVL in a protocol can be skewed because it is influenced by the performance of the native token. If the token's value increases, the TVL can also increase, even without new funds flowing into the protocol.

What does the script suggest about the growth of TVL in protocols compared to the total crypto market cap?

The script suggests that TVL has grown faster than the total crypto market cap, indicating that more capital is being deployed into these protocols, which is a positive sign for the market.

How does the script describe the active addresses versus total transaction fees in May for different layer 1 and layer 2 protocols?

The script mentions that only two protocols, Solana and Tron, saw positive growth in fees and active addresses in May, while others like Optimism experienced a significant fall in price-adjusted TVL.

What is the significance of the EIP 4844 upgrade mentioned in the script?

The EIP 4844 upgrade, also known as the Denon upgrade, is significant because it has led to a decrease in net fees due to blob transaction fees, which is a positive development for Ethereum and its layer 2 solutions.

Which smart contract use cases have seen the most growth in fees paid according to the script?

The script indicates that the smart contract use cases that have seen the most growth in fees paid are Bots and Telegram-related ones, with the former being potentially extractive and the latter contributing positively to the ecosystem.

What does the script say about the correlation between Bitcoin and Ethereum over the past 90 days?

The script states that Bitcoin and Ethereum have a high correlation of 80% over the past 90 days, indicating that they tend to move together in the market.

How have Bitcoin ETF holdings changed since April according to the script?

The script suggests that the growth in Bitcoin ETF holdings since April can be attributed to basis trades, rather than pure directional flows, as the ETF AUM appears to be relatively flat when normalized by the CME open interest.

What is the impact of the spot ETFs on spot volume mentioned in the script?

The script mentions that the spot volumes in May were 50% higher than in December, indicating that the introduction of spot ETFs has significantly increased trading volumes in the market.

What does the script suggest about the demand for fixed term Futures on centralized exchanges?

The script suggests that there is a surprising demand for fixed term Futures on centralized exchanges, which might be driven by smaller scale Cash and Carry Traders.

What is the script's conclusion about the current state of the crypto market?

The script concludes that while there are various insights from the charts, the market's recovery and future performance will depend on factors such as liquidity coming into the system and market volatility.