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
MicroStrategy has purchased an additional 660 bitcoins for ~$25.0 million in cash at an average price of ~$37,865 per #bitcoin
. As of 1/31/22 we #hodl ~125,051 bitcoins acquired for ~$3.78 billion at an average price of ~$30,200 per bitcoin. $MSTR
— Michael Saylor (@saylor) Feburary 1, 2022
LooksRare Game Theory
1/ A
on the game theory of $LOOKS .. I get asked very often in DMs, “ser is such and such a ponzi?” I’ve gone through a ton of projects mechanics, plenty of scammy things out there, but also a lot of creative stuff going on.
— Jordi Alexander (@gametheorizing) January 30, 2022
Phantom Wallet Valued at $1.2B
We are also excited to announce our $109M Series B led by @paradigm! Thanks to the 2M+ MAU in our community, Phantom has an opportunity to become the mainstream, user-friendly gateway to Web3.
— Phantom(@phantom) Feburary 1, 2022
0 Comments