Data-Driven Analysis of Cryptocurrency Markets, Kaiko

Kaiko

Data-Driven Analysis of Cryptocurrency Markets

Kaiko is the leading cryptocurrency market data provider for institutional investors and enterprises. We empower market participants with accurate, transparent, and actionable financial data to be leveraged for a range of market activities. Kaiko’s mission is to be the foundation of the new digital finance economy by serving as a single source for market information. Our mission is premised on the idea that high-quality data drives market efficiency and greater transparency throughout the industry. For each of our enterprise clients, we build custom data plans designed for a range of use cases.

Crypto

<ul>
<li>About a year ago, right as crypto trade volumes started to slump in the aftermath of the Celsius and Terra collapses, Binance vastly expanded its zero-fee trading promotions to 13 BTC pairs.</li>
<li>This practice, though not new, had never been implemented on such a large scale.</li>
<li>However, just nine months later the exchange decided to reverse this strategy and adopt a more selective approach.</li>
</ul>


About a year ago, right as crypto trade volumes started to slump in the aftermath of the Celsius and Terra collapses, Binance vastly expanded its zero-fee trading promotions to 13 BTC pairs.
This practice, though not new, had never been implemented on such a large scale.
However, just nine months later the exchange decided to reverse this strategy and adopt a more selective approach.


Analysis: The Impact of Binance's Zero-Fee Markets

<ul><li>The rise in popularity of BRC-20 tokens, essentially memecoins on the Bitcoin blockchain, has pushed Bitcoin fees to 2 year highs.</li><li>BRC-20s have massively increased demand for Bitcoin blockspace for the first time in recent history, with the network suffering from congestion and unconfirmed transactions as a result.</li><li>Over the weekend, Binance had to pause BTC withdrawals twice as they hadn’t accounted for a surge in BTC fees in the amount they pay miners, which had caused many transactions to go unconfirmed.</li></ul>

The rise in popularity of BRC-20 tokens, essentially memecoins on the Bitcoin blockchain, has pushed Bitcoin fees to 2 year highs.BRC-20s have massively increased demand for Bitcoin blockspace for the first time in recent history, with the network suffering from congestion and unconfirmed transactions as a result.Over the weekend, Binance had to pause BTC withdrawals twice as they hadn’t accounted for a surge in BTC fees in the amount they pay miners, which had caused many transactions to go unconfirmed.

Binance Halts Withdrawals as BTC Fees Surge

Research from Ocular, Ocular

Ocular

Research from Ocular

Ocular is a crypto fund based in Singapore managed by Openspace Ventures, one of the top VCs in the region. We invest in crypto VC and HF funds as well as crypto projects globally. The Ocular team comprises crypto enthusiasts with venture capital and data science background.

Crypto Fund

<ul><li>2022 was a challenging year for web3. We witnessed the collapse of TerraLUNA, the fall of FTX, and several notable insolvencies including Three Arrows Capital, Voyager, Celsius and BlockFi.</li><li>These events deeply impacted the sector, with the crypto market losing <a href="https://www.cnbc.com/2022/12/23/bitcoin-lost-over-60-percent-of-its-value-in-2022.html#:~:text=Bitcoin%20lost%20over%2060%%20of%20its%20value%20in%202022" target="_blank" rel="noopener">over $2 trillion</a> in market cap in 2022 and public perception of web3 turning sour.</li><li>Many suspect we have yet to feel the full magnitude of the contagion effect of these events, as they are still ongoing (e.g. the FTX trial), and we could reach new lows.</li></ul>

2022 was a challenging year for web3. We witnessed the collapse of TerraLUNA, the fall of FTX, and several notable insolvencies including Three Arrows Capital, Voyager, Celsius and BlockFi.These events deeply impacted the sector, with the crypto market losing over $2 trillion in market cap in 2022 and public perception of web3 turning sour.Many suspect we have yet to feel the full magnitude of the contagion effect of these events, as they are still ongoing (e.g. the FTX trial), and we could reach new lows.

<ul><li>It’s impossible to paint a full picture of Ethereum DeFi without an understanding of Curve.</li><li>Its unique AMM mechanism enables large stablecoin swaps with extremely low price slippage and its governance and incentives make it a kingmaker for stablecoins; Terra founder Do Kwon touted the infamous 4pool – containing UST – as the thing that would catapult his stablecoin ahead of DAI.</li><li>In the past, we have <a href="https://d2-cwy04.eu1.hubspotlinks.com/Ctc/W+113/d2-CwY04/VVM5M-4MT7sSW8kchtV5kG1dWW3X6sTS4XF--HN5n2LRN3q90_V1-WJV7CgVG_W7hxn1z8wmgYmW3z3-424Nk3PcW27_JZR1kR5zHW8_HKBx3lsDXdW3j7gRm3sCjV6W5rz7y3475_mtW5Zhttx5SYXL5W3ZvcT_7crWjKW7ZhKR_4J5kvcW7PL-9d6f7xhWW7pp0DS3gRcZhW1SDh4f8_lGMRML39MzsCC7WVcybsS2-_Tb9W5GH-bf6l2fVVW762KNb2DDPwbW5Z6GK82qrF01VtqqqB5qV809W3wT4w75QDv0PW39jpQ_2LVwrLN23LdMjX_YhWW7lwQ163QV7bgVqCRVX6wST9XW7j85gK33YzRlW4xJhy22-gjqMW3BsSMq26yWlJN3fgQvnYlRL7N5zq3b5lkl2cW6mjkcl9cB18_W1gh2T-6y80Fb326_1" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://d2-CwY04.eu1.hubspotlinks.com/Ctc/W%2B113/d2-CwY04/VVM5M-4MT7sSW8kchtV5kG1dWW3X6sTS4XF--HN5n2LRN3q90_V1-WJV7CgVG_W7hxn1z8wmgYmW3z3-424Nk3PcW27_JZR1kR5zHW8_HKBx3lsDXdW3j7gRm3sCjV6W5rz7y3475_mtW5Zhttx5SYXL5W3ZvcT_7crWjKW7ZhKR_4J5kvcW7PL-9d6f7xhWW7pp0DS3gRcZhW1SDh4f8_lGMRML39MzsCC7WVcybsS2-_Tb9W5GH-bf6l2fVVW762KNb2DDPwbW5Z6GK82qrF01VtqqqB5qV809W3wT4w75QDv0PW39jpQ_2LVwrLN23LdMjX_YhWW7lwQ163QV7bgVqCRVX6wST9XW7j85gK33YzRlW4xJhy22-gjqMW3BsSMq26yWlJN3fgQvnYlRL7N5zq3b5lkl2cW6mjkcl9cB18_W1gh2T-6y80Fb326_1&amp;source=gmail&amp;ust=1677884357107000&amp;usg=AOvVaw2xrho6lUWQX2iukgSzMdCY" rel="noopener">written</a> on how Curve pools can be a useful barometer for stablecoin demand particularly during volatile market events. </li></ul>

It’s impossible to paint a full picture of Ethereum DeFi without an understanding of Curve.Its unique AMM mechanism enables large stablecoin swaps with extremely low price slippage and its governance and incentives make it a kingmaker for stablecoins; Terra founder Do Kwon touted the infamous 4pool – containing UST – as the thing that would catapult his stablecoin ahead of DAI.In the past, we have written on how Curve pools can be a useful barometer for stablecoin demand particularly during volatile market events. 

<ul>
<li>The crypto industry was again shaken this week when news came out that the NY Department of Financial Services (NYDFS) had ordered Paxos to stop issuing BUSD, with an NYDFS spokesperson saying Paxos “violated its obligation to conduct tailored, periodic risk assessments and due diligence refreshes of Binance and Paxos-issued BUSD customers to prevent bad actors from using the platform.”</li>
<li>Additionally, it was revealed that the Securities and Exchange Commission (SEC) sent a Wells notice to Paxos, informing the company that the SEC is considering legal action against Paxos, alleging that BUSD is a security. (I’ve offered my thoughts on the regulatory aspect of this here.) </li>
<li>We’ve covered BUSD’s growth and market share extensively in previous Data Debriefs, noting that about 35% of Binance volume is denominated in BUSD and it quickly grew to the third largest stablecoin by market cap</li>
</ul>


The crypto industry was again shaken this week when news came out that the NY Department of Financial Services (NYDFS) had ordered Paxos to stop issuing BUSD, with an NYDFS spokesperson saying Paxos “violated its obligation to conduct tailored, periodic risk assessments and due diligence refreshes of Binance and Paxos-issued BUSD customers to prevent bad actors from using the platform.”
Additionally, it was revealed that the Securities and Exchange Commission (SEC) sent a Wells notice to Paxos, informing the company that the SEC is considering legal action against Paxos, alleging that BUSD is a security. (I’ve offered my thoughts on the regulatory aspect of this here.) 
We’ve covered BUSD’s growth and market share extensively in previous Data Debriefs, noting that about 35% of Binance volume is denominated in BUSD and it quickly grew to the third largest stablecoin by market cap


United States

As of 27th May 2022, LUNA has been rebranded to LUNC (Terra Classic). Terra Classic is a decentralized financial payment network that is rebuilding traditional payment technology on the blockchain. It manages a basket of fiat pegged stablecoins that are algorithmically managed by the protocol via its LUNC Token. In addition, LUNC is used to pay for transaction fees, staking collateral and to vote. Terra Classic is the orginal technology behind Terra 2.0 (LUNA) which is a new crypto asset running on a new Blockchain. For more information see https://docs.terra.money/docs/migration/exchange-migration.html

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Terra (XLU CURNCY)

Analysis: The Impact of Binance's Zero-Fee Markets

About a year ago, right as crypto trade volumes started to slump in the aftermath of the Celsius and Terra collapses, Binance vastly expanded its...

Kaiko

Binance Halts Withdrawals as BTC Fees Surge

The rise in popularity of BRC-20 tokens, essentially memecoins on the Bitcoin blockchain, has pushed Bitcoin fees to 2 year highs.

Kaiko

Ocular: 2023 Thematic Outlook

Many suspect we have yet to feel the full magnitude of the contagion effect of these events, as they are still ongoing (e.g. the FTX trial), and we...

Ocular

Whales Vs. Retail: Who's Using Curve?

Its unique AMM mechanism enables large stablecoin swaps with extremely low price slippage and its governance and incentives make it a kingmaker for...

Kaiko

The Unwinding of BUSD

We’ve covered BUSD’s growth and market share extensively in previous Data Debriefs, noting that about 35% of Binance volume is denominated in BUSD

Kaiko

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