Price Retracements, AVAX Momentum, MetaMask Usage Climbs

NOV 16, 2021 • 3 Min Read

Joo Kian

DISCLOSURE: DELPHI VENTURES AND MEMBERS OF OUR TEAM OWNS BTC, ETH, AVAX. 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.

Metus vulputate eu scelerisque felis. Nulla facilisi cras fermentum odio eu. Scelerisque fermentum dui

faucibus in ornare quam viverra orci sagittis. A iaculis at erat pellentesque adipiscing commodo elit. In

fermentum et sollicitudin ac orci. Ultrices sagittis orci a scelerisque purus. Faucibus ornare

suspendisse sed nisi lacus sed viverra tellus in. Mauris cursus mattis molestie a iaculis at erat

pellentesque adipiscing. Volutpat diam ut venenatis tellus in metus vulputate. Eu consequat ac felis

donec et odio pellentesque. Eu mi bibendum neque egestas congue quisque egestas diam. Quam

lacus suspendisse faucibus interdum posuere lorem. Quam id leo in vitae. Ut faucibus pulvinar

elementum integer enim neque. Id ornare arcu odio ut sem nulla pharetra diam sit. Molestie ac feugiat

sed lectus vestibulum mattis. Ipsum nunc aliquet bibendum enim facilisis. Euismod nisi porta lorem

mollis aliquam ut porttitor.

Iaculis nunc sed augue lacus viverra vitae congue eu consequat. Gravida neque convallis a cras.

Nunc scelerisque viverra mauris in aliquam sem. Non odio euismod lacinia at quis risus sed vulputate

odio. Purus faucibus ornare suspendisse sed. Turpis egestas maecenas pharetra convallis posuere

morbi. Nec feugiat nisl pretium fusce id velit ut. Nunc congue nisi vitae suscipit tellus mauris a diam.

Posuere sollicitudin aliquam ultrices sagittis orci. Urna nec tincidunt praesent semper. Turpis nunc

eget lorem dolor sed viverra.

suspendisse sed nisi lacus sed viverra tellus in. Mauris cursus mattis molestie a iaculis at erat

pellentesque adipiscing. Volutpat diam ut venenatis tellus in metus vulputate. Eu consequat ac felis

donec et odio pellentesque. Eu mi bibendum neque egestas congue quisque egestas diam. Quam

lacus suspendisse faucibus interdum posuere lorem. Quam id leo in vitae. Ut faucibus pulvinar

elementum integer enim neque. Id ornare arcu odio ut sem nulla pharetra diam sit. Molestie ac feugiat

sed lectus vestibulum mattis. Ipsum nunc aliquet bibendum enim facilisis. Euismod nisi porta lorem

mollis aliquam ut porttitor.

Iaculis nunc sed augue lacus viverra vitae congue eu consequat. Gravida neque convallis a cras.

Nunc scelerisque viverra mauris in aliquam sem. Non odio euismod lacinia at quis risus sed vulputate

odio. Purus faucibus ornare suspendisse sed. Turpis egestas maecenas pharetra convallis posuere

morbi. Nec feugiat nisl pretium fusce id velit ut. Nunc congue nisi vitae suscipit tellus mauris a diam.

Posuere sollicitudin aliquam ultrices sagittis orci. Urna nec tincidunt praesent semper. Turpis nunc

eget lorem dolor sed viverra.

lacus suspendisse faucibus interdum posuere lorem. Quam id leo in vitae. Ut faucibus pulvinar

elementum integer enim neque. Id ornare arcu odio ut sem nulla pharetra diam sit. Molestie ac feugiat

sed lectus vestibulum mattis. Ipsum nunc aliquet bibendum enim facilisis. Euismod nisi porta lorem

mollis aliquam ut porttitor.

Help, I’m Getting Liquidated

  • BTC had a great run up through the first half of November, setting a new high near $69,000, but two major retracements of ~10% in the past week alone (one from ~$69,000 to ~$63,000 on Nov. 10 and another today from ~$66,000 to ~$60,000) has investors and traders alike back on edge.
  • Leveraged traders were victims of liquidations as prices dropped and markets deleveraged. Prior to this, open interest was at peak levels for most trading pairs; typically, flushing out excessive leverage is healthy for markets over the longer term. However, market structure may need some time before order book depth and trader activity recovers.
  • Note: as a reminder, Binance’s API only reports 1 liquidation per second, so this number is likely materially higher.
Funding Resets, Where to Next?

  • As euphoria hit amid new ATHs for BTC and ETH, funding rates ranged upward as traders’ appetite for leverage soared. However, as markets retraced, funding rates reset back near neutral levels.
  • Note that the funding rate shown here is up till 15 Nov, before the most recent big retrace. While Bybit funding continues to be high, funding rates went negative on BTC and ETH on FTX today. This could suggest short-term bearishness among the  “smart money” crowd.
AVAX Price Run Up Follows TVL

  • Multiple incentive programs on different L1s came to attract capital and usage on their chain. However, Avalanche stands out as they seem to be one of the few that’s managed to maintain and continue attracting capital onto its chain.
  • Aside from its incentive program, Avalanche’s unique consensus mechanism and active support from some of the biggest names in the industry has led Avalanche’s DeFi TVL to cross $10B as its native token (AVAX) hit fresh all-time highs (~$101) just this week (AVAX is currently trading ~$96 at the time of writing).
MetaMask Swap Trending

  • Metamask’s Swap feature has seen a huge usage increase in recent days, with an obvious spike in DAUs on Polygon in the last week. This is likely attributable to the MetaMask’s token rumor that has been going around on Crypto Twitter. The increase in Polygon’s MetaMask Swap usage can be just users attempting to Sybil to game MetaMask’s airdrop.
  • However, since the $RBN Sybil farming saga, many projects are rethinking token airdrops to make sure tokens are fairly distributed. For example, ParaSwap was the first to present its methodology by using a unique filtering process to prevent airdrop farming by users.
Notable Tweets

A Comprehensive Thread on How Crypto Will Eat Fiat

Polygon Miden Enters The ZK-Rollup Arena

StarkWare Valued at $2B

Create a free account to continue reading

Go Pro at 40% off

Immediately access the entire catalog of research for Delphi, Office Hours & private Discord