Recurring market commentary on what's happening in the crypto markets, summarized by the Crypto Broker team at Crypto Finance AG.

Market commentary

Good morning!

Currently, the overall market is still consolidating and trading in a tight range. It feels to me like the market gets sold off during Asian hours and bought back during American hours. In terms of the bigger picture: bitcoin’s range between 30'000 USD and 40'000 USD is still valid, and is causing implied volatilities to tumble in the front months.

Bitcoin BTC (daily)

The spread between Ethereum (ETH) and Bitcoin (BTC) has not changed a great deal, but ETH definitively seems to be involved in heavy discussions now before the EIP-1559 implementation.

Ethereum / Bitcoin ETHBTC (daily)

Decentralized Finance (DeFi) is another sector that is strongly dependent on the Ethereum chain. At the beginning of the week, the DeFi sector mainly rallied on the back of AAVE Pro and COMP Treasury. Both protocols are launching institutional access to DeFi markets. AAVE Pro will use private pools to provide institutional investors with direct access to the decentralised market. These pools will be separate from existing liquidity pools on AAVE. The protocol is a decentralised lending platform that allows users to borrow, lend, and earn interest on cryptocurrencies without a third party.

DeFi Index DEFIPERP (daily)

Compound Labs, the creator of the Compound money market on Ethereum, launched Compound Treasury with the target of getting big firms to reap DeFi yields. Treasury accounts convert USD to USDC (a stablecoin) and supply them to the Compound protocol to generate secure and high yield interest. This enables institutions to access crypto interest rates while abstracting away operational complexities, including cybersecurity, compliance, private key management, fiat-to-crypto conversion, and interest rate volatility.

Apparently, Bloomberg has also launched a new DeFi index with 20 constituents, incl. AAVE, COMP, and other well-known coins, e.g. UNI and MKR being the heavyweights. Taking a look at the most popular and tradeable DeFi Index on FTX exchange, the following has changed:

The index consisted of 11 index members a year ago and now has 25
Only 7 coins are still left in the index calculation: 18 are completely new
The index level has risen approx. 404.40%
UNI, AAVE, and MKR are top tier; COMP lost in terms of relevance (weight)

All intellectual property, proprietary and other rights and interests in this publication and the subject matter hereof are owned by Crypto Broker AG including, without limitation, all registered design, copyright, trademark and service mark rights.

Disclaimer

This publication provided by Crypto Broker AG, a corporate entity registered under Swiss law, is published for information purposes only. This publication shall not constitute any investment advice respectively does not constitute an offer, solicitation or recommendation to acquire or dispose of any investment or to engage in any other transaction. This publication is not intended for solicitation purposes but only for use as general information. All descriptions, examples and calculations contained in this publication are for illustrative purposes only. While reasonable care has been taken in the preparation of this publication to provide details that are accurate and not misleading at the time of publication, Crypto Broker AG (a) does not make any representations or warranties regarding the information contained herein, whether express or implied, including without limitation any implied warranty of merchantability or fitness for a particular purpose or any warranty with respect to the accuracy, correctness, quality, completeness or timeliness of such information, and (b) shall not be responsible or liable for any third party’s use of any information contained herein under any circumstances, including, without limitation, in connection with actual trading or otherwise or for any errors or omissions contained in this publication.

Risk disclosure

Investments in virtual currencies are high-risk investments with the risk of total loss of the investment and you should not invest in virtual currencies unless you understand and can bear the risks involved with such investments. No information provided in this publication shall constitute investment advice. Crypto Broker AG excludes its liability for any losses arising from the use of, or reliance on, information provided in this publication.