Liquidity

June 27, 2022


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Recessionary Endgame

June 13, 2022


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QT <Insert Yawn Here>

June 06, 2022


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digital
daily

digital daily: Bitcoin Dominance

Bitcoin Dominance: “Bitcoin dominance” measures Bitcoin’s share of total cryptocurrency market capitalization. The metric has served as a useful gauge of investor sentiment. Up until the launch of Ethereum in 2015, Bitcoin represented 86% of total cryptocurrency capitalization. But as the digital ecosystem evolved, so did Bitcoin’s dominance. In bull markets, Bitcoin dominance declined alongside a surge in alternative assets. In bear markets, dominance rose as investors shifted to safer assets. This year is different. While Bitcoin’s dominance in the 2018-2019 bear market peaked at 70%, it has remained uncharacteristically low at 39% this year. Uncharacteristic is interesting. It signals that investors are valuing a more diverse set of assets, despite the carnage in this bear market. Polygon is one of the standouts, with its integration with Starbucks being just one of its many mainstream enterprise solutions. Over the last six months, Polygon has advanced 102% compared to a 9.9% decline for the One River Core Index and a 23% drop in Bitcoin. USD stablecoin has been the big winner, also new to this cycle. Stablecoin market share has jumped to 16% from 6% this year. It didn’t have to be the case – investors could have rushed back to the traditional financial system, after all. Stablecoins held on exchanges alone have grown nearly ten times in the past two years. That’s dry powder ready to be deployed into other assets. And how USD capital is redeployed will dictate the direction of the next wave. Surviving is alpha. 

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