This is Cheatsheet, an introduction to what's happening in the crypto space today.
If dog coins barked before, now they really bite.
Six of the eight top-performing cryptocurrencies at the top end of the market are memecoins and four of them are dogcoins.
Pepe (PEPE) leads with a gain of 38% as of 5 a.m. ET, followed by Bonk (BONK), Shiba Inu (SHIB), Dogecoin (DOGE), Floki (FLOKI) and SATS, which are up 24 on the year each hour increased by 34% to 13%.
Fantom (FTM) and BitTorrent (BTT) are somewhere in between. Bitcoin (BTC) is now up 5.7% after bouncing back above $65,100 – less than 6% below its all-time high of $69,044.
Ether (ETH) is up 3% and remains unchanged at $3,500. ETH/BTC, which measures the price of Ether relative to Bitcoin, has given back most of its gains over the last month and could soon slip into negative territory for the year to date.
What happens in the chain?
Bitcoin’s fledgling DeFi ecosystem is attracting big capital – and degenerating.
- Turned around: When it comes to Total Value Locked (TVL), Bitcoin DeFi now ranks ahead of Solana, Polygon and Avalanche.
- Flooded: Bitcoin's TVL, now $2.65 billion, has exploded by nearly 800% in the last month while the cryptocurrency has risen by half.
- Fantangled: Almost all of it is tied to “staking events” for two unreleased Layer 2 projects, Merlin's Seal and B2 Buzz.
Interest in Bitcoin as a base layer for things other than BTC has surged since the NFT-like Ordinals launched last January. Merlin's Seal and B2 Buzz are part of a number of projects looking to capitalize on this hype.
Unlike cryptocurrencies anchored in liquidity pools and debt protocols like Orca and Maker, Bitcoin's current Big Two are popular among those seeking allocations of a token sale. Payouts are generally intended to scale based on stake size, which is in line with the recently launched Ethereum Layer-2 Blast.
Bitcoin already has a number of adjacent protocols active, including the payments layer Lightning, Rootstock, Liquid, Stacks and DeFiChain. Major differences in tokenomics, technology and terminology have led Bitcoin Magazine to define what it considers to be an actual “Bitcoin protocol” in the future, including using Bitcoin as a native asset.
Ether has still outperformed Nvidia stock over the past five years
Read more: Ordinal numbers are driving up Bitcoin fees – but that could be good for the network
- DEX volume has cooled somewhat since last week: $6.5 billion in the past day, down 30% from last Wednesday's near annual high of $9.45 billion.
- Solana DEX Raydium flipped BSC's PancakeSwap for daily volume after posting $799 million, second overall to Uniswap.
- Tether is just $300 million away from becoming the fifth cryptocurrency to ever reach a $100 billion market cap.
Crypto business
Virtually every crypto stock is expected to open higher this week – with the exception of China-based BIT Mining, which was down 3% premarket as of 5 a.m. ET.
- Bhutan: Bitdeer (BTDR), the Bitmain spinoff that operates Bitcoin mining operations in Bhutan and the US, is on track to open 11% above Friday's closing price.
- Electrical: CleanSpark (CLSK) continues to perform better, climbing 9.1% premarket. Rival Riot is up less than 5%.
- More like macro: MicroStrategy (MSTR) has eclipsed CLSK in year-to-date returns and is the number one cryptocurrency stock this year at 85.5%.
MicroStrategy's market value is no longer primarily comprised of Bitcoin. The stock is currently worth $18.32 billion, with $12.54 billion BTC on the balance sheet and $2.53 billion worth of liabilities – meaning markets are either buying the software business at 9, Value at $4 billion or add a premium to the Bitcoin stacking strategy.
And while Bitcoin may be closer than ever to a retest of the 2021 high, January's “Sell the News” event surrounding the launch of Bitcoin ETFs took a toll on most mining stocks.
Only four Bitcoin miners have surpassed the S&P 500's return of 7.9% so far this year: CLSK, Marathon (MARA), Core Scientific (CORZ), and Bitfarms (BITF).
Read more: EIA drops emergency survey of Bitcoin miners after court battle
- In the past day, $262.3 million worth of crypto derivatives traders were liquidated, 60% of which hit short sellers.
- On average, that's $110,000 lost per minute on short bets, with BitMEX's Dogecoin market seeing the largest liquidation recently ($2.45 million).
- Total open interest on the CEX is once again at an all-time high and is now at $28.92 billion.
On the floor
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