Bitcoin Trade Volume on Coinbase Hit a 14-Month High in May

Crescent Crypto
Jun 18 · 6 min read

Weekly Investor Letter

June 13 — Crypto assets rose 6.5% this week ($16 billion), bringing the total market cap back above $260 billion. The Crescent Crypto Market Index (CCMIX) gained 5.9% while BTC rose 5.7% over the same period.

The crypto market has been grinding higher over the last seven days following last week’s sizable pullback. Small-caps and higher beta names were some of the big winners, though most of the market ended the week in positive territory. The total value of the crypto market has more than doubled year-to-date, led by larger valued names. This past week, bitcoin underperformed many of its large peers, but still saw gained more than 5%. It is currently trading around $8,170.

Bitcoin vs. CCMIX

June 6th — June 13th, 2019

Crescent Crypto Market Index (CCMIX)

Constituent Performance

June 6th — June 13th, 2019

Summary

  • Intra-week volatility fell a bit this week relative to last, but still remains drastically higher than most other conventional asset classes.
  • Contrary to last week, every constituent outside of XRP ended the week in positive territory. LTC was by far the biggest winner this week, but NEO and ADA both saw very strong rebounds, rising at least 15% week-over-week.
  • LTC is one of the best performing large crypto assets year-to-date. This week’s +30% gain widened its outperformance, putting its YTD return over 320%. Bitcoin has gained roughly 110% over the same period.
  • XRP was the only constituent to lose value this week. Unsurprisingly, XRP is one of the index’s biggest laggards this year, failing to break out like most other crypto assets since the beginning of Q2.
  • BTC underperformed its peers, on average, but still gained more than 5% compared to this time last week.
  • BTC dominance fell slightly from 55.7% of the total crypto market cap this time last week to 55.1% today.

Notable News

Bitcoin Trade Volume on Coinbase Hit a 14-Month High in May

What Happened?

Coinbase, the largest US-based cryptocurrency exchange, recorded its highest Bitcoin trading volume in the past 14 months this May. According to Bitcoinity, a total of 738,959.42 BTC, the notional value of around $5.9 billion, was traded on Coinbase the largest amount since March of 2018. This May ranked as the 6th highest month in terms of Bitcoin volume in Coinbase history, while coinciding with a 60 percent price rally for the asset. In December 2017, Coinbase’s Bitcoin price reached its peak at $19,891 and Coinbase traded1,275,295.522 Bitcoins over this span. The price of Bitcoin currently trades at around 60 percent lower than this all-time high, and interestingly, the amount of Bitcoin traded in May makes up roughly 60 percent of the amount in the same time period.

Why Does This Matter?

Over the past few weeks, the articles highlighted in this newsletter have shown a clear growth in institutional Bitcoin interest. This article, on the other hand, signals the return of retail demand, which stands only less to that of the levels seen in late 2017 and early 2018. Coinbase’s Bitcoin trading volume in May is more than double that of Bitcoin trading volume in March, and around 30 percent greater than that of April. November 2017, December 2017, January 2018, February 2018, and March 2018 hold as the only months clocking in greater Bitcoin trading volume. While Coinbase Bitcoin volume signals retail interest is on the rise, it seems to have done so with less media attention than that seen in 2017.

Messaging Giant Telegram’s ICO Token Is at Last Going on Public Sale

What Happened?

Telegram, the global messaging app giant, is finally offering its long-awaited Telegram Open Network (TON) Token to the public. Telegram has previously sold TON to accredited investors in a two-phase ICO in February and March of 2018, which totaled to $1.7 billion raised. On July 10th, Telegram plans to finally open its doors to the retail investor. The public sale will be limited and will take place on the Liquid exchange. A full public sale is set for October 2019. The July 10th sale is being made via Gram Asia, a Korean company that claims to control the majority share of TON tokens bought in the private sale. The Liquid exchange website describes how “TON brings speed and scalability to a multi-blockchain architecture that addresses the need for minimal transaction times and airtight security.” This public sale will exclude some nations, including the US and Japan.

Why Does This Matter?

Telegram offering TON to the public is significant, as it conducted the second largest ICO in history at $1.7 billion only second to EOS at $4.1 billion. With the recent Kik vs the SEC news, it remains to be seen how TON’s public sale will play out in the current regulatory climate. Retail investors should consider the risks involved in participating in this sale. After months of uncertainty, interested public investors have the opportunity to buy TON and private investors have the opportunity to offload some of their investment. Whether this is a bearish or bullish sign for TON, this announcement at least gives people clarity on Telegram’s arduous development process. It should also be noted that the TON bought via the public sale on Liquid exchange will not be tradeable.

Facebook Plans June 18th Cryptocurrency Debut

What Happened?

Facebook announced its cryptocurrency called Libra, which is currently scheduled for a June 18th white-paper release. Facebook’s Head of Financial Services & Payment Partnerships for Northern Europe Laura McCracken revealed that the cryptocurrency would be pegged to a basket of currencies. As a stable coin, Facebook aims to facilitate merchant and P2P payments rather than replace Bitcoin as a store-of-value. Facebook’s cryptocurrency plans to be easily transferable with no fees via Facebook Messenger and WhatsApp. Facebook looks to use incentives to draw in merchants and roll out physical devices for ATMs. Facebook’s blockchain team is headed by former PayPal President and VP of Facebook David Marcus. The company also plans to create an independent foundation to govern its cryptocurrency and has put a $10 million price tag to operate a node.

Why Does This Matter?

Facebook entering the cryptocurrency scene has an immense potential impact on all facets of the ecosystem. First, Facebook’s user reach immediately brings the average person closer to cryptocurrency, and more likely to take the time to fully understand its value propositions. Second, as a stable coin, Libra on its release could possibly immediate permeate throughout the crypto exchange and payments infrastructure. As tech Crunch put it, Libra “could unlock a new era of commerce and payments for the social network. It could be used to offer low or no-fee payments between friends or remittance of earnings to familys from migrant workers abroad who are often gauged by money transfer services.” Lastly, Facebook’s involvement in crypto is a clear signal to other massive tech companies that cryptocurrency is a viable growth strategy.

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Crescent Crypto is a leading pass cryptocurrency index fund provider