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Uniswap Ignores Price Crash; Stablecoin and Derivatives Data Offer Glimpse of Hope

May 24, 2021 · 2 min read

By Ashwath Balakrishnan, and Jeremy Ong

Data Digest

  • Uniswap v3 performs through crash
  • BTC options OI and volume fall in tandem
  • Sharp increase in stablecoin issuance
  • Leaders of the market’s relief rally

Key Takeaways

  • Uniswap v3 is unfazed by the recent crypto drawdown, and it’s TVL hit an all time high despite prices dropping across the board.
  • v3’s unique price curve has the ability to minimize IL (if executed right) and allows LPs to earn more fees per dollar deposited.

Key Takeaways

  • Bitcoin options volume and open interest are declining in tandem. Liquidations wiped off nearly 50% of OI in May.
  • Generally, a simultaneous decrease in price, OI, and volume is considered bullish. If OI and volume aren’t moving, it means traders aren’t trading the markets moves and their sentiment continues to be bullish.

 

Key Takeaways

  • Circulating supply for fiat-backed stablecoins has sharply risen despite the market environment. USDC experienced the highest growth, with circulating supply growing from 15 billion to nearly 21 billion in the last 5 days.
  • While these inflows might be dip buyers loading up ammo, it could also just be stablecoin arbitrageurs. It’s important to ensure circulating supply doesn’t drop sharply to confirm these inflows will be deployed.

Key Takeaways

  • Following a weekend of distressing price action, DeFi coins have rebounded hard from Sunday’s lows.
  • It’s important to note this isn’t particularly bullish yet. Given the sharp decrease in prices over the last week, a relief rally was inevitable.

Notable Tweets

The CEO of a large Chinese mining pool talks about China’s latest crypto ban.

Charm Finance launches its second passive Uniswap v3 LP strategy.

Ray Dalio is opening up to Bitcoin.

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