Crypto Market

BTC and ETH Market Insight

The Fed held rates steady as expected and It described Q3 economic activity as “strong”. BTC’s correlation with equities has recently fallen below 0 for the first time since July, indicating a significant divergence from the behavior of traditional financial markets. The 90-day percentage change stablecoin supplies was about to turn positive, suggesting that there could be a resurgence in on-chain liquidity. The NFT market has shown signs of potentially hitting its bottom as we witness a bounce-back in trading volumes from their two-year low points.

Options Market

The market started consolidating in the range of 34k-35k. Front-end (<2 month) RV saw exhaustion with IV being trading at a small premium to it. On the other hand, there is still strong demand for IV from 2 months and onward where the potential spot ETF approval could happen at earliest. 2-month IV traded at 61 handle vs RV at 38 points. ETH/BTC conversion ratio stabilised after months of slumping while volatility spread narrowed down a bit. Skew-wise, it was firming up with both BTC and ETH across the curve.

Altcoins and Blockchain News

• LSD stablecoin protocol Prisma Finance announced the launch of the Prisma retrospective airdrop, where locked PRISMA tokens will be airdropped to Prisma point holders and addresses that voted in support of Prisma being listed on the Curve whitelist.
  
• According to official sources, FLOKI staking has reached a total value locked (TVL) of $54.4 million within just one week of its launch, accounting for 17% of the total FLOKI supply. Furthermore, most of these tokens have a staking period of up to 4 years.
  
• According to Arktracel data, ARK Invest, the fund company owned by Cathie Wood, has accumulated a total of 149,547 shares of Coinbase stock since November 1st. 
  
• The Arbitrum community has initiated a proposal called "Activate ARB Staking." The proposal suggests creating a staking contract and allocating 1.75%, 1.5%, 1.25%, or 1% of the total ARB supply from the DAO treasury to the staking contract. The proposed locking mechanism will distribute the allocation over a 12-month experimental period.
  
• Jupiter Exchange, an alternative asset trading platform in the Solana ecosystem, has announced the upcoming launch of its native token JUP. They have committed to allocating 40% for community growth and airdrops, 20% for public token sales, and 40% for team and strategic reserves.
  
• Nym Technologies, a privacy infrastructure project supported by Binance Labs and a16z, has announced the launch of their decentralized VPN called NymVPN in the first quarter of 2024.
  
• According to DefiLlama data, Spark Protocol, a lending protocol under MakerDAO, has nearly $780 million in total value locked (TVL), surpassing Venus Protocol on the Binance Smart Chain to become the fourth-largest lending protocol.
  
• Lending protocol Radiant Capital has integrated with LayerZero, expanding its services to the Ethereum network. Radiant supports cross-chain deposits and lending, integrating liquidity from multiple networks.
  
  

Macro

The major benchmarks recorded strongest weekly gains since November 2022:  the DJIA added +5.1%, the S&P 500 added +5.9%, and the NASDAQ +6.6%. The dovish message from the Federal Reserve led to a sharp decrease in bond yields, especially boosting the growth stocks.