The first newsletter of every month will be a free version of my swing setup and market analysis for a few assets that I am following. If you find these helpful consider joining the paid version for daily in depth information and analytics for more assets.
Ethereum(ETH)
March was great; It presented multiple drops into the buying zone. If you are making weekly DCA (Dollar Cost Average) purchases over the past month you should already be seeing ample profits.
Ethereum price is currently hovering around 2000 and continually making new ATHs compared to USD. We are in price discovery mode; ETH has never been here before. This makes investors uneasy, but lets look at this a different way.
Trending from September 2019 on the daily chart is a channel denoted in Dashed red lines. This chart shows the ratio of BTC per ETH. We are currently battling the .618 Fibonacci level and it looks like a losing battle as volume has not been strong. While this graph shows progression over multiple years against BTC the next chart shows how much possible potential ETH really has.
That same upwards channel is shown from the previous chart denoted in the dashed red lines. By zooming out to the last peak in 2018, the price ratio is down 74.76% since it’s ATH at .`144, which priced in USD is 8,380 Dollars. The price has been restricted greatly by Ethereum’s own lack of scaling, but there is room for expansion as layer 2 begins rolling out and the PoS chain upgrade allows for reasonable gas fees again.
Uniswap (UNI) 🦄
Uniswap has been really living up to it’s mascot. It’s was started in October 2018 and since June 2020 USD 160.5 billion has been exchanged. This is even with massive transaction fees hindering most small users from transacting.
So why am I interested in Uniswap?
1) They have a projected release of a smoother and more capital efficient experience for both traders and liquidity providers as well as layer-2 integration planned before the end of May. Once these upgrades and manageable transaction fees begin, I believe massive growth will happen.
2) It has half the volume of Coinbase with a market cap of 16 billion USD.
With news of Coinbase wanting to directly list on the NYSE we have seen crazy evaluations of 100 billion USD floating around the financial news outlets. With Q1 earnings released, Coinbase reported 1.8 billion USD in profit. These Profits alone shows a strong outlook on future returns for potential shareholders at time of listing on April 14th, 2021.
I believe Coinbase NYSE listing will further solidify interest in digital assets in the eyes of the mainstream financial world. Investors will continue to explore the sector and will find that many popular assets are not easily available without having accounts with multiple exchanges. Eventually these investors want to explore more than the small list of currencies Coinbase provides compared to 20,000 pairs on Uniswap.
Uniswap is quickly rivaling the volume of top exchanges. Automated market makers like Uniswap are simplifying order book exchanges and providing liquidity pools to further profit off your holdings. Users can now become market makers, cutting out intermediaries and giving centralized exchanges a run for their money.
Q1 2021: Institutional Growth Slows Down, Retail Ramps Up
While the industry growth of Q4 2020 was driven largely by institutional participation in the asset markets and infrastructure, Q1 2021 told a more nuanced story. Activity from institutional investors seems to be slowing down but they are still key, and several of the quarter’s milestones point to that continuing for the next few months at least. However, certain metrics show that interest from retail investors and traders is picking up, bringing in new flows and investment patterns. Read more.
Riding Bitcoin Surge, Coinbase Active Users Grew by 117% in Q1 2021; Revenue Tops $1.8B
Cryptocurrency exchange Coinbase saw a whopping 117% quarter-over-quarter increase in monthly transacting users, the firm revealed Tuesday in its voluntary earnings report.
All those users helped Coinbase rake in $1.8 billion over the quarter, driving a net income of approximately $730 million to $800 million, according to a new filing that comes ahead of the company’s Nasdaq listing next week.
All the numbers point to a business riding high as interest in cryptocurrency tracks upward with the price of bitcoin (BTC, -1.99%), ether (ETH, -3.72%) and other leading assets. Read more.
Money Reimagined
Money is changing…so where do we go from here? Through high-profile interviews and thought-provoking analysis, join CoinDesk’s Michael Casey and Sheila Warren of the World Economic Forum for the Money Reimagined Podcast, as they explore the connections between finance, human culture and our increasingly digital lives.
Tom Brady Launching NFT Platform with Apple, DraftKings, Spotify Exec Advisors
Tampa Bay Buccaneers quarterback and seven-time Super Bowl champion Tom Brady is launching an NFT platform called Autograph, per CNN.
Brady and Richard Rosenblatt, the former CEO of Myspace parent company Intermix Media, will serve as co-chairs of Autograph, while the CEO will be Rosenblatt's 23-year-old son Dillon. Autograph has also loaded up a team of tech and sports heavyweights as board members or advisors, including Apple SVP Eddy Cue, DraftKings CEO Jason Robins, Spotify CCO Dawn Ostroff, Lionsgate CEO Jon Feltheimer, Cameo CEO Steven Galanis, and Golden State Warriors part owner Peter Guber.
"I believe this is a smart and strategic venture in an industry that has seen an explosion of interest in the last year," DraftKings CEO Robins told Decrypt by email. "I'm looking forward to providing support to Tom and Rich as they launch Autograph." Read more.
That’s all for the free weekly Crypto Crier. If you enjoyed this article please like and share. If you have any questions, please leave a comment and I can answer your questions further. As with all of my writing, this is not financial advice and is my opinion. I cannot stress enough how important it is to do your own research on all financial endeavors. I hope that these newsletters can help investors realize the current financial systems’ downfalls and usher in a more equitable system without middlemen.
Let’s build something together.
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