ETH/BTC Shrugs Off Correction, The Fight For Curve Dominance

Market Update

The crypto market had yet another quiet weekend with very little volume across the top 100 coins (likely a result of most of the industry gathering in Miami). Despite BTC falling less than ETH from current ATHs, ETH looks like the stronger asset for now.

Formidable Strength on ETH/BTC

• If you look at the YTD ETH/BTC chart in isolation, you probably wouldn’t guess fear in the crypto market is the highest it’s been in a year.
• It’s worth noting that in 2017, ETH/BTC topped out mid cycle and proceeded to trend down as BTC ripped to $20,000. Further, at the early 2018 top, ETH/BTC took a massive beating and didn’t recover even close to as quickly as it has this time.

The Battle for Curve

• With a unique incentive scheme for CRV lock ups, Convex has surpassed Yearn’s veCRV locked in less than a month since launching.
• It’s important to note that Yearn’s strategies also include depositing and farming CVX, so Yearn isn’t quite in the backseat yet. Further, Yearn operates without any governance token incentives to attract capital, while Convex is currently boosting yields (temporarily) with it’s native token.
• You can read more about this here.

DEX Spot Volume Hits YTD Low

• DEX volumes have receded hard over the past few weeks. Even Uniswap — which has grown through previous pullbacks in 2020 — has seen it’s volume shrink.
• However, this isn’t exactly a DEX-specific phenomenon, as volume on centralized spot exchanges fell in tandem with DEXes. Less volume could indicate less interest from market participants, but it could also be a sign that sellers are done offloading and the market just needs to find some footing.

Notable Tweets

Andre Cronje, inventor of Yearn Finance, teases a new DeFi product he’s finishing up.

pic.twitter.com/6npH6okx2L

— Andre Cronje (@AndreCronjeTech) June 7, 2021

In a landmark move, El Salvador became the first country to adopt Bitcoin as a legal tender.

Some powerful interests will try to make this historical #Bitcoin move fail.

They know what it means if it succeeds.

It will.

— Nayib Bukele ?? (@nayibbukele) June 6, 2021

MicroStrategy announces another $400 million round of financing to buy more BTC.

MicroStrategy Announces Proposed Private Offering of $400 Million of Senior Secured Notes to acquire additional #bitcoin. $MSTRhttps://t.co/ilhUt1M73j

— Michael Saylor (@michael_saylor) June 7, 2021