Happy weekend, VCs and crypto enthusiasts! Here’s your weekly market recap, packed with insights relevant for investors and projects:
- ETH Supply Profitability Hits Yearly Low Despite ETH’s year-to-date price increase, supply profitability has dipped to 85.66%. This shift reflects the growing pressure on late 2024 investors as the market becomes more complex, a key signal for VCs monitoring profitability and entry timing.
- Ethereum Transaction Fees Drop Transaction fees on Ethereum reached four-year lows at $1.47. With competition from Layer 1 networks like Solana increasing, this offers new opportunities for cost-effective transactions and scalability improvements—crucial for projects focused on lowering user costs.
- Asset Managers Adjusting Exposure BTC futures saw a significant dip in open interest by asset managers, falling to $4.97B, before a slight rebound to $5.64B. Meanwhile, hedge funds are reducing long positions in ETH futures, an indicator of shifting sentiment in institutional investments.
- zkSync Revenue Plummet After a high-anticipation airdrop, zkSync’s revenue fell sharply to $6,800 from $746,000. This demonstrates the volatility of airdrop-driven growth and emphasizes the importance of sustainable long-term strategies for projects.
- Aptos Blockchain Surges Aptos saw an impressive 69 million daily transactions, largely driven by speculative interest in the UPTOS fork. While high transaction volume highlights blockchain activity, sustainability remains a key concern for projects in this space.
- Donald Trump Endorses DeFi Project In a surprising move, Donald Trump promoted a DeFi-related crypto project through his social media platform, linking to the project’s Telegram channel, “The DeFiant Ones,” now with nearly 26,000 subscribers. This unique endorsement could spark fresh interest in politically linked DeFi ventures.
- Regulatory Scrutiny Continues Former congressional candidate Michelle Bond is facing charges for an alleged illegal campaign finance scheme involving a Bahamas-based crypto exchange. The intersection of crypto and politics continues to be a focus for regulators, signaling potential changes that VCs need to stay aware of.
- Grayscale Expands Portfolio Grayscale Investments added the Avalanche (AVAX) trust to its portfolio, offering accredited investors exposure to this innovative blockchain network. This expands the options for institutional crypto investments, keeping diversification at the forefront.
- Bitcoin Miners Pivot to AI As falling profits bite, Bitcoin miners are pivoting to artificial intelligence, highlighting a broader trend of resource reallocation in the crypto mining industry—a potential area for VCs to explore emerging synergies between crypto and AI.
Market Snapshot:
- Bitcoin (BTC): $61,153.84 (+0.39%)
- Ethereum (ETH): $2,669.24 (+1.41%)
- Tether (USDT): $1.00 (0.00%)
- BNB (BNB): $579.62 (+0.76%)
- Solana (SOL): $145.36 (+1.52%)
Stay informed as the market evolves, and keep these trends in mind when evaluating potential investments.
