Over the past week, some assets and protocols in major crypto categories have experienced an uptick in their returns and TVL compared to those of the prior two weeks. As of writing, Bitcoin has declined in price by 2% over the past week, whereas Ethereum increased by 6.4%. As shown in the figure below, from left to right, the top 3 cryptoassets within these categories are Cardano, Polygon, and Lido, whose prices have gone up by 10.8%, 8.6%, and 13.8%, respectively, at the time of writing. Moreover, Cardano was the only asset to have its TVL surpass its returns regarding percentage change, where it recorded an almost 13% increase over the past week.

Figure 1: 7-Day Price and TVL Developments of Cryptoassets in Major Sectors

Source: 21Shares, Coingecko, DeFi Llama

Key takeaways

• Bitcoin is in accumulation phase, shows the Puell Multiple indicator.
• Indonesia to launch crypto exchange, Brazil pushes for a DeFi liquidity pool.
• Firm behind the biggest ETH mining pool pivots to the staking business.
• FIFA is set to launch World Cup NFT collection

Spot and Derivatives Markets

Figure 2: Comparison between futures annualized rolling basis of BTC and ETH

Source: Glassnode

The futures annualized rolling basis indicator measures the annualized yield accrued by buying a spot asset and simultaneously selling a futures contract on that asset that expires in three months. In other words, the indicator calculates the difference between the futures and spot positions and therefore examines the behavior of yields of holding periods. The futures annualized rolling basis for both asset classes has been in the backwardation phase, where Bitcoin futures recorded 0.46% and Ethereum futures recorded -7.68%. It is expected that the returns on Ethereum would fluctuate until the Merge is settled, nevertheless, the rates are up from the end of August, as shown in the figure, when the rolling bases of both cryptoassets were in the negative.

On-chain Indicators

Figure 3: Bitcoin Puell Multiple (365 SMA)

Source: Coinglass

The Puell Multiple is basically the ratio of daily coin issuance and the 365-moving average of daily coin issuance, ultimately showing the profitability of Bitcoin mining. The indicator recorded 0.44 on September 2, which means that miners’ profitability is below its yearly average by 44%. As the figure shows, the indicator is currently at the “green zone” which is a kinder alternative label to “minimum miner profitability,” signalling for accumulation.

Next Week’s Calendar

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Research Newsletter

Each week the 21Shares Research team will publish our data-driven insights into the crypto asset world through this newsletter. Please direct any comments, questions, and words of feedback to research@21shares.com

Disclaimer

The information provided does not constitute a prospectus or other offering material and does not contain or constitute an offer to sell or a solicitation of any offer to buy securities in any jurisdiction. Some of the information published herein may contain forward-looking statements. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those in the forward-looking statements as a result of various factors. The information contained herein may not be considered as economic, legal, tax or other advice and users are cautioned to base investment decisions or other decisions solely on the content hereof.