USDC Grows, DAI's Collateral Woes, & BAYC Pushes Higher

FEB 02, 2022 • 3 Min Read

Joo Kian

DISCLOSURE: DELPHI VENTURES HAS INVESTED IN BTC. MEMBERS OF OUR TEAM ALSO OWN CRYPTOPUNKS, BAYC, AND MAYC. 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.

USDC Grows as USDT Lags

  • USDC has grown massively over the past year, recently crossing $50B in supply. USDT is still the market cap leader, although its growth has slowed down compared to USDC since May 2021. The USDC/USDT supply ratio has grown from 0.2 to 0.64 over the past year.
  • Preference for USDC over USDT grew stronger in May 2021 and has continued to outpace USDT in growth. In September, the risks associated with stablecoin reserves became top of mind with the collapse of Evergrande. Both USDT and USDC’s reserves were revealed to have exposure to commercial paper (a form of unsecured debt), although not to Evergrande specifically. Since then, Circle announced their desire to reallocate the assets backing USDC into cash and short-term U.S. Treasuries, which likely bolstered confidence. (For more detail, see our previous stablecoin coverage here.)
DAI is Collateralized by Mostly Stablecoins Again

  • DAI, a crypto-collateralized stablecoin by MakerDAO, has seen its asset weightage shift towards stablecoins. Many criticized DAI for being backed by 60% stablecoins, as it means that DAI is also exposed to the same centralization and regulatory risks of the stablecoins (mainly USDC).
  • With the markets moving downwards, the crypto collateral fell in value, and some even liquidated as covered in our past daily. Further worsening the asset makeup of DAI, more stablecoins have been deposited into MakerDAO since the January 21st liquidation event, likely to serve as a temporary buffer to prevent liquidation.
Traders Turn to Puts in Bearish Markets

  • BTC traders have become increasingly bearish on the markets as the Put/Call ratio has hit 0.58, the highest in nearly 6 months. The bearish markets and macro sentiments have led to more buyers of puts than calls.
BAYC Breaks 100 ETH, Near 120 ETH

  • BAYC has been on a consistent uptrend, with the price floor breaking the 100 ETH mark and already gunning for 120 ETH. With famous figures and accounts like Justin Beiber and 9GAG joining the club, the attention that BAYC gets is currently unparalleled. While far from the leaders, MAYC and CloneX have also steadily climbed.
  • Azuki has gained success for its anime-esque NFTs that have caught on among anime and manga fans. Over the past 2 weeks, it grew from just under 2 ETH to over 16 ETH. (Delphi members can read more about Azuki in the latest NFT Insights coverage.)
Notable Tweets

MicroStrategy Purchases 660 BTC

LooksRare Game Theory

Phantom Wallet Valued at $1.2B

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