L1s Take Off, Can ETH Catch Up?
AUG 23, 2021 • 4 Min Read


Disclosure: Delphi Ventures and members of our team have invested in BTC and ETH. This statement is 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.
Key Takeaways
Over the last couple of weeks crypto has enjoyed a relentless uptrend, and layer one protocol tokens performed the best. SOL, LUNA, and AR led the way with stellar performances in early August. AVAX has recently caught up on the back of it’s 9 figure liquidity mining program.
Funding for ETH perpetuals on BitMEX has been out of whack compared to the rest of the market. But in the last 2 days, we’ve seen traders on other exchanges catch up, with funding starting to move into positive territory after chopping around near 0%.
Apart from perpetuals, there’s also sizeable demand for ETH futures. On Aug. 22, ETH had a minor pullback, and futures basis fell almost 6%. But the dip was eaten up near-instantaneously, sending basis back up over 12% in less than a day.
Unrelated to the layer one narrative, we came across an interesting chart that seemed worthy of a highlight. Over the last month, the bid-ask spread on BTC perps, particularly Deribit, has improved dramatically. The spread on Deribit went from 60 basis points to under 30 basis points.
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