L1 Recovery, AVAX Activity, & Intro to Crypto Raiders

MAR 28, 2022 • 5 Min Read

Joo Kian + 5 others

DISCLOSURE: DELPHI VENTURES HAS INVESTED IN BTC, ETH, SOL, LUNA, AVAX, RAIDER, RUNE, AND SUPERFLUID. MEMBERS OF OUR TEAM ALSO OWN DOT, NEAR AND ATOM. THESE STATEMENTS ARE INTENDED TO DISCLOSE ANY CONFLICT OF INTEREST AND SHOULD NOT BE MISCONSTRUED AS A RECOMMENDATION TO PURCHASE ANY TOKEN. THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND YOU SHOULD NOT MAKE DECISIONS BASED SOLELY ON IT. THIS IS NOT INVESTMENT ADVICE.

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Chart of The Day: Near Leads L1 Recovery
  • NEAR led the L1 recovery by growing by ~50% over the past month, a significant lead against the rest. The outperformance over the past week was catalyzed by the Bastion Lockdrop, which attracted $293M in capital. NEAR, WBTC, ETH, USDT, USDC were available to be locked for 1-12 months.
  • DOT showed a steadied recovery and continues hosting parachain slot auctions. Equilibrium, a cross-chain money market, won the 12th parachain slot auction. And Phala Network, a privacy-preserving cloud computing service, is leading the current auction.
  • LUNA had an overall great month as it hit a new ATH of $103.88 on March 9th. In addition, the Luna Foundation Guard (LFG) has been acquiring BTC as a reserve for UST, allowing it to be partially collateralized. LFG currently has 27,784.97 BTC (~$1.3B) in its wallet. With LFG putting buy pressure on BTC, it has outperformed multiple other L1s like CRO, AVAX, BNB, and ATOM.
  • ATOM has stagnated after EVMOS failed its launch. Keep an eye out for updates on their launch and read their latest community call thread here.

Started From the Bottom, Now We’re Here
[Excerpt from our Mar. 24 Market Insights]
  • In a few of our previous Market Insights reports, we hit on several potential catalysts for Avalanche heading into Q2, including the $290M Avalanche Multiverse Incentive Program, the Terra <> AVAX announcement from Do Kwon, the 2022 Avalanche Summit & Hackathon in Barcelona this week (March 22-27th), and the general uptrend in network growth.
  • The Avalanche Summit this week welcomed some of the brightest, most influential names in crypto. Like many protocol-focused events, key topic areas included DeFi, web3, gaming, and the future of the “metaverse.” There were also talks on institutional capital and where digital assets sit on the risk curve. Headliners at the event included Emin Gun Sirer (the founder of Ava Labs), Harold Bosse (VP of Innovation at MasterCard), Sergey Nazarov (Chainlink), and many more.
  • Avalanche has seen remarkable growth in daily active addresses over the last 6 months. Even more impressive is the sticky nature of these users over the last 3 months. 2022 has not been kind to many networks, but this hasn’t taken the wind out of Avalanche’s sails. Transaction activity and unique address growth have stagnated, but the stickiness of new users is notable.
  • We also see a high degree of correlation between the growth rate in AVAX price versus daily active addresses. The chart below highlights this by comparing the 30-day percentage changes in AVAX price and daily active addresses.

  • When looking at the delta in this data, the strong relationship immediately becomes recognizable. It is not often that price increases sustainably without metrics such as TVL and daily active addresses also increasing. As the market wades through uncertain waters and looks for more clarity, keep an eye on these types of metrics as they can often be leading indicators of price recovery.
  • One of the key drivers of AVAX’s recent strength has been the anticipation for the ecosystem’s upcoming subnet functionality. On March 8, Avalanche Foundation announced a new $290M Multiverse incentive program to promote the adoption of subnets. $15M of the program is already allocated to the popular game DeFi Kingdoms. As a refresher, subnets are independent networks that can run one or many app-specific chains. Avalanche ecosystem will have many tailor-made interoperable subnets catered for different specific use cases such as identity, DeFi primitives, gaming, oracles, institutional use cases, etc. The proven market fit of the Cosmos’ independent app-chain thesis only strengthens Avalanche’s multiverse vision.
  • Important to keep in mind is that each subnet validator must also be a validator in Avalanche’s primary network. This means each subnet validator generates additional demand for staking AVAX, which should improve value accrual for AVAX as subnet adoption grows.
  • For more, Delphi members can see our latest Market Insights here.

Crypto Raiders: Creating an Anti-Fragile Game Economy With Skill-Based Gameplay
[Excerpt from a Delphi Podcast]

 

 

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Joo Kian + 5 others