After cryptocurrencies reached the market highs of May, we are looking at a period of consolidation. Compared to 2013 and 2017 bull run trends, expect ranging consolidation for 1 to 2 months depending on supply pressures.
Exploring liquidity providing and farming on Polygon can allow your assets to earn passive yield while looking for potential setups. If you are interested in exploring Polygon, check out the how-to here.
Most large-cap ALTs have ETH ratio prices near all-time lows.
Potential midterm setups are in order of greatest R/R(risk/reward): LINK, REN, UNI, and MATIC.
Link: 1D
While most projects integrate and use Chainlink oracles, The LINK/ETH ratio has not been this low since October 7th, 2019. Many upcoming benefits, including the Arbitrum Layer 2 solution that uses Chainlink oracle nodes to perform optimistic rollups of contract data to save on gas fees, will put pressure on the supply of LINK in the medium term.
REN: 1D
I always go on and on about REN. It has great potential to link non-smart-contract-based assets to DeFi yield and will play a prominent role in bringing BTC to lending platforms on EVM (Ethereum virtual machine). Again these eth ratios are similar to late 2019/early 2020, and the potential to expand from here is probable.
UNI: 1D
Uniswap lives up to its mascot. The charts look great against ETH and have maintained their value well since its inception in October 2020. The potential here is that with the creation of V3 this month and pre-expansion to Ethereum layer 2 platforms, the price is lackluster. The vote to go live on Chainlink’s Arbitrum optimism rollup was unanimous, and once the platform is live, massive growth will happen. Uniswap V3 is also a proprietary contract for 2 years under a business source license. The hopes of this are to stave off would-be copycats from draining liquidity. The only thing holding UNI back is no layer 2 platform.
MATIC: 1D
MATIC is one of the highest yielding assets of the year. It is also at peak eth ratios and, while the chart looks exponential, I think this one continues to break ATHs. It has onboarded thousands of users in the past 2 months, and the product is working flawlessly. It also had the fastest recovery of any asset after this month’s crash, a V-shaped recovery to ATHs within days. We are currently 13% under highs, and a further downtrend doesn’t seem likely to continue since the continued onboarding of new platforms. I believe MATIC will lead the trend of retail ETH exposure since gas fees become a non-issue.
Nothing spectacular to report this week in crypto news. Cryptocurrency has been knocked out of the hot seat; demand for block space is low so take this time to execute lending, liquidity providing, or midterm setups.
Today’s special edition of “The Breakdown” is a replay of NLW’s fireside chat with ARK’s Cathie `Wood that premiered yesterday as a closing keynote at Consensus 2021. In this conversation, they discuss:
How macro going risk-off has impacted bitcoin
What was driving Elon’s about-face
China and “green” mining
Investing in technology innovation
Why ARK is investing in Ethereum
What role bitcoin plays in a world characterized by deflation rather than inflation
After $440 million fundraise, Circle is said to be considering a SPAC deal
Circle, the company behind the fast-growing dollar-pegged coin USDC, has raised $440 million in fresh capital.
The sizeable funding deal comes ahead of a potential special purpose acquisition vehicle (SPAC) deal, according to two sources familiar with the matter. Among those taking part in the $440 million round were Fidelity, FTX, Digital Currency Group, Marshall Wace, Valor Capital Group, Pillar VC, Intersection Fintech Ventures, Atlas Merchant Capital and Willett Advisors, among others.
The firm's target valuation for the SPAC is said to be $4 billion. Companies have raised tens of billions of dollars via SPACs this year, but the market has come under recent pressure. As reported by The Wall Street Journal, the Defiance Next Gen SPAC Derived Exchange-Traded Fund, which tracks the performance of companies that have tapped the public markets via a SPAC, hit a six-month low earlier this month.
Circle's business has grown alongside the supply of USDC, having built out API services to help businesses engage with the stablecoin business. The total supply of USDC recently surpassed $20 billion. Circle makes money from the dollar reserves that underpin the stablecoin.
Coinbase announced on Tuesday that users of its debit card offering—known as Coinbase Card—can now pay with their mobile phones using Apple Pay. The news marks a new level of integration between two major U.S. brands, and reflects crypto's ongoing push into the mainstream of retail commerce.
Coinbase Card lets users draw on their balances of Bitcoin and other cryptocurrencies to make purchases in stores or to draw cash from ATM machines. While the product has been available in the U.K. and Europe since last year, U.S. customers remain on a waitlist—though the company said in a blog post it will invite "select customers off the waitlist" starting this week.
Coinbase adds that those approved for the debit card can begin using it immediately via Apple Pay even if they are waiting for the physical card to arrive. The company also announced U.S. customers can also use Google Pay, which has been available to debit card users in the U.K and Europe since last year.
Coinbase Card is intriguing in that, in some cases, it is among the first to offer an economic benefit that can outweigh the fees that go with using a crypto debit card. 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.
Tell your friends and family. This newsletter is targeting entry-level education for possible crypto investors. With more people understanding digital assets, we can finally progress to better. 🗣️
If you enjoyed this article, please consider subscribing to my paid newsletter, which includes daily analysis of my top picks and setups for entry/exit positions—all of these extras for the price of taking me to lunch.
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June Outlook
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After cryptocurrencies reached the market highs of May, we are looking at a period of consolidation. Compared to 2013 and 2017 bull run trends, expect ranging consolidation for 1 to 2 months depending on supply pressures.
Exploring liquidity providing and farming on Polygon can allow your assets to earn passive yield while looking for potential setups. If you are interested in exploring Polygon, check out the how-to here.
Most large-cap ALTs have ETH ratio prices near all-time lows.
Potential midterm setups are in order of greatest R/R(risk/reward): LINK, REN, UNI, and MATIC.
Link: 1D
While most projects integrate and use Chainlink oracles, The LINK/ETH ratio has not been this low since October 7th, 2019. Many upcoming benefits, including the Arbitrum Layer 2 solution that uses Chainlink oracle nodes to perform optimistic rollups of contract data to save on gas fees, will put pressure on the supply of LINK in the medium term.
REN: 1D
I always go on and on about REN. It has great potential to link non-smart-contract-based assets to DeFi yield and will play a prominent role in bringing BTC to lending platforms on EVM (Ethereum virtual machine). Again these eth ratios are similar to late 2019/early 2020, and the potential to expand from here is probable.
UNI: 1D
Uniswap lives up to its mascot. The charts look great against ETH and have maintained their value well since its inception in October 2020. The potential here is that with the creation of V3 this month and pre-expansion to Ethereum layer 2 platforms, the price is lackluster. The vote to go live on Chainlink’s Arbitrum optimism rollup was unanimous, and once the platform is live, massive growth will happen. Uniswap V3 is also a proprietary contract for 2 years under a business source license. The hopes of this are to stave off would-be copycats from draining liquidity. The only thing holding UNI back is no layer 2 platform.
MATIC: 1D
MATIC is one of the highest yielding assets of the year. It is also at peak eth ratios and, while the chart looks exponential, I think this one continues to break ATHs. It has onboarded thousands of users in the past 2 months, and the product is working flawlessly. It also had the fastest recovery of any asset after this month’s crash, a V-shaped recovery to ATHs within days. We are currently 13% under highs, and a further downtrend doesn’t seem likely to continue since the continued onboarding of new platforms. I believe MATIC will lead the trend of retail ETH exposure since gas fees become a non-issue.
Nothing spectacular to report this week in crypto news. Cryptocurrency has been knocked out of the hot seat; demand for block space is low so take this time to execute lending, liquidity providing, or midterm setups.
Today’s special edition of “The Breakdown” is a replay of NLW’s fireside chat with ARK’s Cathie `Wood that premiered yesterday as a closing keynote at Consensus 2021. In this conversation, they discuss:
How macro going risk-off has impacted bitcoin
What was driving Elon’s about-face
China and “green” mining
Investing in technology innovation
Why ARK is investing in Ethereum
What role bitcoin plays in a world characterized by deflation rather than inflation
After $440 million fundraise, Circle is said to be considering a SPAC deal
Circle, the company behind the fast-growing dollar-pegged coin USDC, has raised $440 million in fresh capital.
The sizeable funding deal comes ahead of a potential special purpose acquisition vehicle (SPAC) deal, according to two sources familiar with the matter. Among those taking part in the $440 million round were Fidelity, FTX, Digital Currency Group, Marshall Wace, Valor Capital Group, Pillar VC, Intersection Fintech Ventures, Atlas Merchant Capital and Willett Advisors, among others.
The firm's target valuation for the SPAC is said to be $4 billion. Companies have raised tens of billions of dollars via SPACs this year, but the market has come under recent pressure. As reported by The Wall Street Journal, the Defiance Next Gen SPAC Derived Exchange-Traded Fund, which tracks the performance of companies that have tapped the public markets via a SPAC, hit a six-month low earlier this month.
Circle's business has grown alongside the supply of USDC, having built out API services to help businesses engage with the stablecoin business. The total supply of USDC recently surpassed $20 billion. Circle makes money from the dollar reserves that underpin the stablecoin.
Read more.
Coinbase Adds Apple Pay to Crypto Debit Card
Coinbase announced on Tuesday that users of its debit card offering—known as Coinbase Card—can now pay with their mobile phones using Apple Pay. The news marks a new level of integration between two major U.S. brands, and reflects crypto's ongoing push into the mainstream of retail commerce.
Coinbase Card lets users draw on their balances of Bitcoin and other cryptocurrencies to make purchases in stores or to draw cash from ATM machines. While the product has been available in the U.K. and Europe since last year, U.S. customers remain on a waitlist—though the company said in a blog post it will invite "select customers off the waitlist" starting this week.
Coinbase adds that those approved for the debit card can begin using it immediately via Apple Pay even if they are waiting for the physical card to arrive. The company also announced U.S. customers can also use Google Pay, which has been available to debit card users in the U.K and Europe since last year.
Coinbase Card is intriguing in that, in some cases, it is among the first to offer an economic benefit that can outweigh the fees that go with using a crypto debit card. 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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Tell your friends and family. This newsletter is targeting entry-level education for possible crypto investors. With more people understanding digital assets, we can finally progress to better. 🗣️
Share Crypto Crier
If you enjoyed this article, please consider subscribing to my paid newsletter, which includes daily analysis of my top picks and setups for entry/exit positions—all of these extras for the price of taking me to lunch.