JustStable
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JustStable

For those who love Crypto & graphs that tell a compelling story

As we approach the end of the 2019, the crypto world reminds me of the opening line of a Tale of Two Cities, “It was the best of times, it was the worst of times.” While the price of Bitcoin is up more than 90% in 2019, it’s down more than 60% from it’s peak reached two years ago (on December 17, 2017), and down 43% from it’s 2019 high reached in July.

While it still feels very much like crypto winter, we’re seeing significant progress being made across the ecosystem. This weeks graphs reflect this best of times, worst of times dichotomy. The last three graphs were part of a twitter storm by Larry Cermak, Director of Research at The Block.

#1 Crypto Is Scaling In Line With The Internet

Deutsche Bank, Imagine 2030

The trend looks very promising for crypto. In fact, the report predicts that “…As we look to the decade ahead, …. the line between cryptocurrencies, financial institutions, and public & private sectors may become blurred.” That future seems inexorable to anyone who’s seen the crypto light.

#2 DeFi Continues To Rapidly Scale

Graychain, The Crypto Credit Report Q3 ‘19

I believe DeFi is poised to be the second killer app in crypto (after speculation in Asia).

#3 Crypto Trading Volume Continues To Decline

The Block Genesis

Volume Continues To Decline

While it felt like crypto spring when Bitcoin breached $10,000 in June, the volume decline of 60% in the second half of the year, reflected the lower demand that saw Bitcoin price decline by 43% over the last five months.

The lower volumes can also be seen in the trading of GBTC, arguably, the easiest way for investors to get in and out of Bitcoin, which is down 75% since trading volume peaked in July.

#4 GBTC Premium Is In Line With 2019 Average

The Block Genesis

GBTC holds nothing but Bitcoin. Currently, it holds a little over 260,000 Bitcoin, for a total net asset value of almost $1.9 billion. But it trades at a total market cap of almost $2.4 billion, Today’s premium of around 27% is right in line where it’s averaged this year. The bull run in the first half of 2019 started when the premium was just 6%. The bearish pullback started in July, when the premium was at its 2019 peak of 40%. Based on where it is today, it seems to be neither bullish or bearish.

#5 Open Interest On Bakkt Hit’s All Time Highs, Although Still Just A Drop In The Bucket

The Block Genesis

It’s interesting to see the crypto native Bitcoin futures exchange started by Wall Street darling, and NYSE acquirer, ICE gaining share on the CME’s Bitcoin Futures exchange. Bakkt volume and open interest still de minimis in comparison to the CME, but ICE has proven time and again that their slow and steady approach is a winning strategy as it woks to “…. build confidence in the asset class on a global scale, consistent with our track record of bringing transparency and trust to previously unregulated markets,”

 by the author.

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Lou Kerner

Lou Kerner

Believe Crypto is the biggest thing to happen in the history of mankind. Focused on stablecoins (founded JustStable.com) & communities (founded. CryptoMondays)