Sam Martin

<div id="highlights-block_60c9fc7f1690b" class="highlights">
        <ul>
                <li>Macro backdrop, on-chain fundamentals and regulatory outlook are making bitcoin an easy buy and hold</li>
                <li>It&#8217;s important to remember the environment we are in and not forget about the digital pet rock: bitcoin </li>
            </ul>
    
</div>



<h3 class="wp-block-heading">Markets Wrap Highlights</h3>



<ul class="wp-block-list"><li>The macro backdrop is very favorable for bitcoin. </li><li>On-chain fundamentals look great for Bitcoin. </li><li>Regulators seem less concerned with bitcoin and more worried about stablecoins and other tokens that are function in similar ways to securities. </li></ul>



<p><strong>Latest in Macro:</strong></p>



<ul class="wp-block-list"><li>S&amp;P 500: 4,391, -.19%</li><li>NASDAQ: 14,579, -.51%</li><li>Gold: $1,757, +.05%</li><li>WTI Crude Oil: $79.52, +1.56%</li><li>10-Year Treasury: 1.61%, +.041%</li></ul>



<p><strong>Latest in Crypto:</strong></p>



<ul class="wp-block-list"><li>BTC: $54,378, +0.27%</li><li>ETH: $3,599, -.73%</li><li>ETH/BTC: .0662, -.69%</li><li>BTC.D: 43.88%, +.18%</li><li>DPI (DeFi Pulse Index): $341.62, +.66%</li></ul>



<h3 class="wp-block-heading">Macro Backdrop </h3>



<p>While other protocols such as Ethereum offer incredible innovation and interesting applications, it is important to remember the environment we are in and not forget about the digital pet rock: bitcoin. </p>



<p> &#8220;There is no ability for the Fed to tighten. They can&#8217;t. And the reason they can&#8217;t is because if you look at US treasury spending plus US entitlement payments, it&#8217;s over 100% of tax receipts. So the US&#8217; real interest expense is still more than 100% of tax receipts with tax receipts at all time highs and with bubbles in every freaking market. So if they tighten, they&#8217;re going to drive tax receipts lower, and then unless the Fed prints the difference the US will default on entitlements or treasuries.&#8221; &#8211; Luke Gromen, founder and president of <a href="https://fftt-llc.com" target="_blank" rel="noreferrer noopener">FFTT</a></p>



<p>The following chart shows real central bank rates, or the difference between nominal rates and the prevailing inflation rate:</p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="728" height="1024" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/real-rates-728x1024.jpg" alt="" class="wp-image-9142" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/real-rates-728x1024.jpg?w=728 728w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/real-rates-728x1024.jpg?w=213 213w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/real-rates-728x1024.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/real-rates-728x1024.jpg?w=1091 1091w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/real-rates-728x1024.jpg?w=183 183w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/real-rates-728x1024.jpg?w=185 185w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/real-rates-728x1024.jpg?w=156 156w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/real-rates-728x1024.jpg?w=57 57w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/real-rates-728x1024.jpg?w=1284 1284w" sizes="auto, (max-width: 728px) 100vw, 728px" /></figure>



<p>&#8220;The United States, with the global reserve currency, hollowed out its industrial base at a far faster pace than our peers, as we shut down domestic factories and opened them up abroad (to take advantage of cheaper labor).&#8221; &#8211; Lyn Alden, macroeconomist and <a href="https://www.lynalden.com/august-2021-newsletter/" target="_blank" rel="noreferrer noopener">equities strategist.</a> </p>



<p>One can easily spot the decoupling between productivity and wage growth in the 1970s when President Nixon announced the greenback would no longer be exchangeable for gold, thus giving birth to the petrodollar system. </p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="803" height="471" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-08-at-3.26.46-PM.png" alt="" class="wp-image-9143" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-08-at-3.26.46-PM.png?w=803 803w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-08-at-3.26.46-PM.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-08-at-3.26.46-PM.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-08-at-3.26.46-PM.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-08-at-3.26.46-PM.png?w=445 445w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-08-at-3.26.46-PM.png?w=373 373w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-08-at-3.26.46-PM.png?w=80 80w" sizes="auto, (max-width: 803px) 100vw, 803px" /><figcaption>Source: <a href="https://www.epi.org/productivity-pay-gap/" target="_blank" rel="noreferrer noopener">EPI</a></figcaption></figure>



<p>To summarize, we have increasing inequality within the US due to the lack of wage growth and increasing asset prices, combined with negative yielding debt instruments on a real basis and a whole lot of capital in the system with no where to hide. </p>



<p>Historically speaking, gold was the place to park your money in these environments. But in a digital era, Bitcoin has become a viable alternative. It&#8217;s worth noting that gold&#8217;s established history and the fact that it sits on central bankers balance sheets are two important factors worth considering. </p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="448" height="550" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/btc-v-gold.jpg" alt="" class="wp-image-9146" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/btc-v-gold.jpg?w=448 448w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/btc-v-gold.jpg?w=244 244w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/btc-v-gold.jpg?w=209 209w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/btc-v-gold.jpg?w=213 213w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/btc-v-gold.jpg?w=178 178w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/btc-v-gold.jpg?w=65 65w" sizes="auto, (max-width: 448px) 100vw, 448px" /><figcaption>Source: <a href="https://medium.com/@samikkurty/fiat-gold-and-bitcoin-comparison-e878fa2292bc" target="_blank" rel="noreferrer noopener">Medium</a></figcaption></figure></div>



<h3 class="wp-block-heading">Bitcoin Fundamentals</h3>



<p>Per JPMorgan, there are tentative signs that the previous shift away from gold into bitcoin seen during most of Q4 2020 and the beginning of 2021 has begun to re-emerge in recent weeks.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="500" height="398" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/cumulative-flows.jpg" alt="" class="wp-image-9147" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/cumulative-flows.jpg?w=500 500w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/cumulative-flows.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/cumulative-flows.jpg?w=323 323w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/cumulative-flows.jpg?w=328 328w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/cumulative-flows.jpg?w=275 275w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/cumulative-flows.jpg?w=80 80w" sizes="auto, (max-width: 500px) 100vw, 500px" /></figure></div>



<p>Long term holders (LTHs), or entities who have held onto their coins without moving them for 155 days or more, continue to accumulate. Over two million coins have aged into LTHs since the May correction.</p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="576" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/LTH-supply-1024x576.jpg" alt="" class="wp-image-9148" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/LTH-supply-1024x576.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/LTH-supply-1024x576.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/LTH-supply-1024x576.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/LTH-supply-1024x576.jpg?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/LTH-supply-1024x576.jpg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/LTH-supply-1024x576.jpg?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/LTH-supply-1024x576.jpg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/LTH-supply-1024x576.jpg?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/LTH-supply-1024x576.jpg?w=1800 1800w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /></figure>



<p>With every cycle, there are momentum traders/speculators who hop on board, but there are also a number of people who dive deep into bitcoin and decide they agree with the philosophical ideas behind its existence, thus creating more lifetime holders who do not plan to sell. This point is best illustrated by the chart below. Bitcoin UTXO (unspent transaction output) age distribution is a fancy way of saying &#8216;the last time bitcoins were moved&#8217;. </p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1010" height="672" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/BTC-UTXO-Age-Distribution-Unchained-Capital.png" alt="" class="wp-image-9149" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/BTC-UTXO-Age-Distribution-Unchained-Capital.png?w=1010 1010w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/BTC-UTXO-Age-Distribution-Unchained-Capital.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/BTC-UTXO-Age-Distribution-Unchained-Capital.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/BTC-UTXO-Age-Distribution-Unchained-Capital.png?w=386 386w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/BTC-UTXO-Age-Distribution-Unchained-Capital.png?w=392 392w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/BTC-UTXO-Age-Distribution-Unchained-Capital.png?w=329 329w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/BTC-UTXO-Age-Distribution-Unchained-Capital.png?w=80 80w" sizes="auto, (max-width: 1010px) 100vw, 1010px" /></figure>



<p>We also see the number of bitcoin on exchanges such as Coinbase, Binance, etc., decreasing in a dramatic way since the crash in March of 2020. This indicates that retail investors are buying cold storage wallets and taking custody of their bitcoin. Often times, people who take the time to <a href="https://www.lopp.net/bitcoin-information/security.html" target="_blank" rel="noreferrer noopener">learn about self-custody</a> have no intentions of selling their bitcoin. </p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="700" height="393" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/premium-2021-10-3-btc-exchange-balance.png" alt="" class="wp-image-9150" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/premium-2021-10-3-btc-exchange-balance.png?w=700 700w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/premium-2021-10-3-btc-exchange-balance.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/premium-2021-10-3-btc-exchange-balance.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/premium-2021-10-3-btc-exchange-balance.png?w=465 465w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/premium-2021-10-3-btc-exchange-balance.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/premium-2021-10-3-btc-exchange-balance.png?w=80 80w" sizes="auto, (max-width: 700px) 100vw, 700px" /><figcaption>Source: Lyn Alden / Glassnode</figcaption></figure></div>



<p>Perpetual funding rates have eased on the highest volume exchanges over the last few days. This indicates that traders aren&#8217;t frantically attempting to take a long position. Emotions do not represent healthy moves, regardless of their direction. </p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="105" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-08-at-4.39.13-PM-1024x105.png" alt="" class="wp-image-9153" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-08-at-4.39.13-PM-1024x105.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-08-at-4.39.13-PM-1024x105.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-08-at-4.39.13-PM-1024x105.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-08-at-4.39.13-PM-1024x105.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-08-at-4.39.13-PM-1024x105.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-08-at-4.39.13-PM-1024x105.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-08-at-4.39.13-PM-1024x105.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-08-at-4.39.13-PM-1024x105.png?w=1437 1437w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Source: https://app.laevitas.ch/dashboard/btc/derivs</figcaption></figure>



<p>Lastly, bitcoin is the only cryptocurrency that has been repeatedly stated as the least of regulators&#8217; concerns. In the past week, we saw Fed chairman Jerome Powell <a href="https://www.bloomberg.com/news/videos/2021-09-30/powell-says-fed-has-no-intention-to-ban-cryptocurrencies-video" target="_blank" rel="noreferrer noopener">clarify</a> that he does not want to ban the use of digital assets but that regulation on stablecoins is necessary. We have also seen Gary Gensler <a href="https://www.businessinsider.com/gary-gensler-sec-chair-crypto-cop-blockchain-regulation-2021-8" target="_blank" rel="noreferrer noopener">classify</a> bitcoin as a commodity. When compared to other digital assets, bitcoin undoubtedly carries the least amount of regulatory risk. </p>



<p>That&#8217;s all for this week, my friends. Have a great weekend!  </p>



<hr class="wp-block-separator"/>



<p><strong>Are you a UK or EU reader that can&#8217;t get enough investor-focused content on digital assets?<a target="_blank" href="https://cms.blockworks.co/events/das-london/" rel="noreferrer noopener">Join us</a>&nbsp;in London on November 15th and 16th for the Digital Asset Summit (DAS) London. Use code ARTICLE for £75 off your ticket.&nbsp;<a target="_blank" href="https://cms.blockworks.co/events/das-london/" rel="noreferrer noopener">Buy it now</a>.</strong></p>



<hr class="wp-block-separator"/>


Bitcoin

Macro Backdrop Favors Bitcoin: Markets Wrap

<div id="highlights-block_60c9fc7f1690b" class="highlights">
        <ul>
                <li>Fantom ($FTM) climbs 35% in one day as its total value locked explodes higher</li>
                <li>Bitcoin retreats to $54,000 after a strong run</li>
            </ul>
    
</div>



<h3 class="wp-block-heading">Markets Wrap Highlights</h3>



<ul class="wp-block-list"><li>Bitcoin is consolidating near $54,000 after a strong rally. On-chain fundamentals indicate further upside remains over the coming months.</li><li>Dog coins back in the spotlight</li><li>EIP-1559 adoption stalls</li><li>Stablecoins remain a hot topic </li><li>Voting for proposal 128 to enable inter-blockchain communication between Cosmos and Terra is live. </li><li>Fantom takes off in a huge way</li></ul>



<p><strong>Latest in Macro:</strong></p>



<ul class="wp-block-list"><li>S&amp;P 500: 4,399, +.83%</li><li>NASDAQ: 14,654, +1.05%</li><li>Gold: $1,755, -.49%</li><li>WTI Crude Oil: $78.87, +1.85%</li><li>10-Year Treasury: 1.58%, +.056%</li></ul>



<p><strong>Latest in Crypto:</strong></p>



<ul class="wp-block-list"><li>BTC: $54,168, -1.84%</li><li>ETH: $3,617, +.78%</li><li>ETH/BTC: .0667, +3.29%</li><li>BTC.D: 43.78%, -2.85%</li></ul>



<h3 class="wp-block-heading">Bitcoin</h3>



<p>Bitcoin is consolidating, hovering around $54,000 after the impressive run-up the past week. The long-term narrative remains intact, with long-term holders (LTHs) holding strong. As seen in the graph below, when the LTH supply shock ratio touches the upper end of the range, the price goes up over the coming months. History does not always repeat, but it often rhymes. All there is to do is wait for the price to catch up to the fundamental on-chain data. LTHs set the price.</p>



<p>&#8220;As far as the markets in general go, we&#8217;re getting close to all-time highs in both bitcoin and ether. There&#8217;s energy in the air from VCs, Institutions, and the ETF-watching crowd,&#8221; Hans Hauge, Head of Quant Strategy at Ikigai told Blockworks. &#8220;At the same time, the S&amp;P 500 seems to have stabilized and is recovering quickly. Notably, retail interest in crypto is quite low right now, with the exception of NFTs. What we&#8217;ve seen in the past is that once the ball gets really rolling it doesn&#8217;t top out until retail has FOMOd in. I think the next 3-6 months could be very exciting.&#8221; </p>



<p>Andrew Yang, former presidential candidate and founder of the Forward Party, <a href="https://twitter.com/AndrewYang/status/1445977888331870208?s=20" target="_blank" rel="noreferrer noopener">took to twitter</a> to express his views on cryptocurrencies. &#8220;Rule of thumb &#8211; when faced with a trillion-dollar industry that could define the future try not to screw it up&#8221;. </p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="576" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/LTH-supply-shock-1-1024x576.jpg" alt="" class="wp-image-9104" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/LTH-supply-shock-1-1024x576.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/LTH-supply-shock-1-1024x576.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/LTH-supply-shock-1-1024x576.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/LTH-supply-shock-1-1024x576.jpg?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/LTH-supply-shock-1-1024x576.jpg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/LTH-supply-shock-1-1024x576.jpg?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/LTH-supply-shock-1-1024x576.jpg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/LTH-supply-shock-1-1024x576.jpg?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/LTH-supply-shock-1-1024x576.jpg?w=1920 1920w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Glassnode / @WClementelll</figcaption></figure>



<p>The entire crypto market looks ready to take another leg higher. There is a massive cup and handle pattern playing out as we try and break the neckline resistance, as seen on the chart below of the total crypto market capitalization. </p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="496" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Cup-Handle-1-1024x496.jpg" alt="" class="wp-image-9100" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Cup-Handle-1-1024x496.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Cup-Handle-1-1024x496.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Cup-Handle-1-1024x496.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Cup-Handle-1-1024x496.jpg?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Cup-Handle-1-1024x496.jpg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Cup-Handle-1-1024x496.jpg?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Cup-Handle-1-1024x496.jpg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Cup-Handle-1-1024x496.jpg?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Cup-Handle-1-1024x496.jpg?w=1776 1776w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Source: @galaxyBTC</figcaption></figure>



<h3 class="wp-block-heading">Ethereum</h3>



<p>The price of ether is unchanged, hovering near $3,600. While there isn&#8217;t much action in ether price, perpetual funding rates are positive across the board. This indicates that many traders are anxious to take a long position. Another metric that says traders are bullish is the put:call ratio, which currently sits at .443. </p>



<p>Shiba Inu, an ERC-20 token equivalent of Dogecoin, is up a whopping 300% over the last 7-days, <a href="https://www.bloomberg.com/news/articles/2021-10-07/shiba-inu-now-12th-biggest-crypto-after-367-rise-in-just-a-week" target="_blank" rel="noreferrer noopener">according to Bloomberg</a>. Despite being a meme coin and having no utility, it has climbed to the 20th largest cryptocurrency by market capitalization with a value of $9.1 billion. </p>



<p>Type 2, or EIP-1559 enabled transactions, have stabilized at roughly 50% of total volume settled on the Ethereum protocol. Since the tail end of August, there has not been much increase in EIP-1559 adoption.</p>



<p><a href="https://finbold.com/german-auto-company-becomes-the-first-in-eu-to-finance-cars-on-ethereum-blockchain/" target="_blank" rel="noreferrer noopener">A German auto dealership aims</a> to use Ethereum based smart contracts to reimagine the way people purchase or lease cars. The idea is to reduce the amount of documentation for themselves and their clients. </p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="715" height="437" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/EIP1559-type-TX.png" alt="" class="wp-image-9111" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/EIP1559-type-TX.png?w=715 715w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/EIP1559-type-TX.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/EIP1559-type-TX.png?w=420 420w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/EIP1559-type-TX.png?w=427 427w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/EIP1559-type-TX.png?w=358 358w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/EIP1559-type-TX.png?w=80 80w" sizes="auto, (max-width: 715px) 100vw, 715px" /><figcaption>Source: Blocknative.com</figcaption></figure>



<h3 class="wp-block-heading">Non-Fungible Tokens (NFTs)</h3>



<p>Gaming guilds Yield Guild Games and Merit Circle (no token available for trade) <a href="https://medium.com/yield-guild-games/yield-guild-games-partners-with-gaming-guild-merit-circle-to-expand-the-play-to-earn-movement-b2792dacfbba" target="_blank" rel="noreferrer noopener">announced a partnership</a> earlier today.</p>



<p> &#8220;YGG has made an investment of $175,000 in the guild and will be working together to help shape the play-to-earn ecosystem. Through this collaborative guild partnership, Merit Circle and YGG can host events, lend assets to each other, make investments, and pursue various projects to benefit both communities,&#8221; the article stated.  &#8220;As of date, Merit Circle has impacted various communities through its scholarship program in the Philippines, Venezuela, Africa, and Nigeria.&#8221;<br><br>Trading data from <a href="https://opensea.io/rankings" target="_blank" rel="noreferrer noopener">OpenSea</a> and <a href="https://solanalysis.com" target="_blank" rel="noreferrer noopener">Solanalysis</a> of some of the top Solana and Ethereum projects can be found in the chart below:</p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="336" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-07-at-3.32.35-PM-1024x336.png" alt="" class="wp-image-9113" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-07-at-3.32.35-PM-1024x336.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-07-at-3.32.35-PM-1024x336.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-07-at-3.32.35-PM-1024x336.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-07-at-3.32.35-PM-1024x336.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-07-at-3.32.35-PM-1024x336.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-07-at-3.32.35-PM-1024x336.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-07-at-3.32.35-PM-1024x336.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-07-at-3.32.35-PM-1024x336.png?w=1246 1246w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Top Ethereum Projects</figcaption></figure>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="288" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-07-at-3.32.05-PM-1024x288.png" alt="" class="wp-image-9114" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-07-at-3.32.05-PM-1024x288.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-07-at-3.32.05-PM-1024x288.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-07-at-3.32.05-PM-1024x288.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-07-at-3.32.05-PM-1024x288.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-07-at-3.32.05-PM-1024x288.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-07-at-3.32.05-PM-1024x288.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-07-at-3.32.05-PM-1024x288.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-07-at-3.32.05-PM-1024x288.png?w=1233 1233w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Top Solana Projects </figcaption></figure>



<h3 class="wp-block-heading">DeFi and Stablecoins</h3>



<ul class="wp-block-list"><li>&#8220;If the value of Tether comes in essence from people’s confidence in the value of Bitcoin — could a strong wind blow the whole thing over?&#8221; Bloomberg opinion columnist <a href="https://www.bloomberg.com/opinion/articles/2021-10-07/matt-levine-s-money-stuff-looking-for-tether-s-money" target="_blank" rel="noreferrer noopener">Matt Levine said in an article about Tether.</a></li><li>MoneyGram customers can soon convert cash to USDC, <a href="https://cms.blockworks.co/moneygram-customers-can-now-convert-cash-to-usdc/" target="_blank" rel="noreferrer noopener">Blockworks reported.</a></li><li>An anonymous wallet holder locked $54 million of $WBTC in a Maker vault in order to mint $20 million of dai. To see more details of the transaction, check out <a href="https://oasis.app/25977" target="_blank" rel="noreferrer noopener">Oasis</a>.  </li><li>Proposal 128 to enable cosmos inter-blockchain communication transfers on Terra is <a href="https://station.terra.money/proposal/128" target="_blank" rel="noreferrer noopener">live for voting.</a></li></ul>



<h3 class="wp-block-heading">Fantom</h3>



<p>Total value locked (TVL) on Fantom surged over the last 24 hours to $6.67 billion, an increase of 183%. This put Fantom in the top-5 for TVL amongst Layer-1 chains. When looking at the Market Cap/TVL metric, Fantom has the lowest multiple of the top 5: sitting at just .71. This could mean that Fantom has some more room to run. </p>



<p><a href="https://geist.finance/markets" target="_blank" rel="noreferrer noopener">Geist Finance</a>, a peer-to-peer borrowing and lending platform akin to compound or Aave, launched yesterday. 40% of its eponymous Geist token supply is allocated to lenders and borrowers through its liquidity mining program, hence the rapid growth in TVL. Michael Chen, the former CMO of the Fantom Foundation, committed Fantom incentives to Geist, allowing borrowers and lenders to earn Fantom in return for staking their Geist.</p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="286" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/L1-TVL-1024x286.png" alt="" class="wp-image-9117" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/L1-TVL-1024x286.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/L1-TVL-1024x286.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/L1-TVL-1024x286.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/L1-TVL-1024x286.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/L1-TVL-1024x286.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/L1-TVL-1024x286.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/L1-TVL-1024x286.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/L1-TVL-1024x286.png?w=1032 1032w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Defi Llama</figcaption></figure>



<p>Billions of dollars have been bridged in the past 24 hours alone, according to <a href="https://app.uniwhales.io/fantom/bridge-tracker" target="_blank" rel="noreferrer noopener">Uniwhales</a>. <a href="https://coinmarketcap.com/currencies/fantom/" target="_blank" rel="noreferrer noopener">Fantom</a> was most recently trading at $1.89. </p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="422" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-07-at-4.17.21-PM-1024x422.png" alt="" class="wp-image-9118" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-07-at-4.17.21-PM-1024x422.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-07-at-4.17.21-PM-1024x422.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-07-at-4.17.21-PM-1024x422.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-07-at-4.17.21-PM-1024x422.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-07-at-4.17.21-PM-1024x422.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-07-at-4.17.21-PM-1024x422.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-07-at-4.17.21-PM-1024x422.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-07-at-4.17.21-PM-1024x422.png?w=1077 1077w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Source: app.uniwhales.io</figcaption></figure>



<p>That is all for today, folks. Let&#8217;s do this again at the same time tomorrow. </p>



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