State of the Market, Apecoin, Protocol Bitcoin Reserves, DeFi Coins & Elrond NFTs
What’s On My Mind by Lark<h3 id="the-state-of-the-market“>The State of the Market
Things can move very fast once we break over resistance for Bitcoin. We can very quickly see meme coins, defi, gaming, metaverse, layer ones, all pumping in cycles. But most of these coins are still down 90%. There is no rush in my opinion to jump into positions until we confirm a reversal. While I continue adding to my Bitcoin position, and even a bit of ETH this week, I am holding off on adding to most altcoins right now, with a few exceptions like JOE. Bitcoin has at this time failed to give us a strong direction for the market while it continues to basically move sideways. A break over $45,500 or under $34,000 will give us a good indication for the trend. Until then, chilling.<h3 id="apecoin “>Apecoin
At long last Bored Ape holders have got Apecoin, an airdrop which was worth $170,000 at the recent price high. That figure is for EACH Bored Ape held. Holders of Mutant Apes and Kennel Club also got paid. WTF is this insanity? Airdrops continue to make wild sums of money!!! My guess is that APE will be a very popular and volatile coin, that will “likely” trend higher when NFTs are trending. Which gives a highly liquid way to get NFT price exposure. That being said, I am not currently interested in buying it.
As well as all of the excitement around the highly lucrative airdrop for Bored Ape holders Yuga Labs has also teased a game called Otherside that shows top NFT collections being used such as Bored Apes, Mutant Apes, Crypto Punks, Meebits, World of Women, and Cool Cats. Seems that these top collections will be getting some love from Yuga as well.<h3 id="protocol-bitcoin-reserves“>Protocol Bitcoin Reserves
The Terra protocol has announced that they will acquire up to 10 billion dollars worth of Bitcoin. This has led me to wonder if this could be the start of a new bullish impulse for Bitcoin, and therefore the entire crypto space much like when we saw Microstrategy buy Bitcoin in 2020. While Terra is the only one to announce such a move so far, it is incredibly significant that they are leading the way. If you combine the Tesla (1.5 billion) purchases and all of the Microstrategy (3.5 billion) buys then what Terra is proposing is about double the value. This could be one of the most impactful events to hit the market in 2022, especially if it inspires other protocols to get on board.<h3 id="defi-coins“>Defi Coins
The defi sector has been smashed pretty damn hard in the last two years, but while the prices of these coins continue to fall the fundamentals of these protocols continue to be very strong. The total values locked in these protocols remains high and often at or near highs. So today I wanted to take a look at some of the big boys of defi and where they are now.
Aave is a borrowing and lending protocol with nearly 13 billion total value locked. They have just released their V3 on Avalanche and Fantom. V3 will bring in faster load times, lower gas fees, and new risk management features.
Yearn Finance is THE yield aggregator, being both the first, and the biggest by miles with 3 billion total value locked. What makes YFI interesting now is that the protocol has started to do regular buybacks of the YFI token using revenue generated by the protocol. Which could make for good long term price appreciation of the token.
Uniswap is the biggest decentralized crypto exchange by miles. It does over a billion in volume daily, and has had many days of trading over 10 billion a day. Why does this matter when it comes to the token? Well, at some point in the future, Uniswap may introduce fee sharing for token holders which was initially discussed when the token was launched. If this still happens one day, then it will be a major incentive to hold UNI, until then it remains a rather useless token.
Maker Dao is the OG lender in crypto. It allows you to use your Ethereum, Wrapped Bitcoin, or other assets to take a case loan paid out in the DAI stablecoin. This is a very useful protocol which I have used many times. Maker is also a trusted name in the crypto space, while newcomers like Abracadabra have lower fees, they also have a HUGE trust gap. Maker is the 2nd biggest protocol by total value locked with 16 billion in the protocol. Fees generated by the protocol are used to buy back MKR tokens.
Curve Finance is a stable swapping protocol with over 18 billion locked on the protocol making it the biggest defi protocol by total value locked. The token itself has been used to pay out farmers providing liquidity into their pools and is primarily just used as a governance token. That being said, protocols like Convex Finance have added layers on top of Curve Finance that make it very lucrative to hold and use CRV for farming. Current rates are around 38% on Convex for staking cvxCRV tokens. Ideally though this is one to farm, not buy.
NON Ethereum Defi is also worth taking a look at, in fact it will be a major area of gains IMO. Protocols like Serum on Solana have seen massive price reductions, and recent tweets by FTX founder have led some to speculate that SRM could be ready to run. We also have great protocols like JOE on Avalanche which has introduced juicy new tokenomics, as you know I have been buying a lot of this recently.
While the future price of these tokens is uncertain, one thing seems highly likely to me that these protocols will still be here in 2030. That makes at least keeping an eye on them worthwhile.
Elrond NFTs by Sam
You could think of the Elrond blockchain as competing with Ethereum. It uses smart contracts, is highly scalable with low transaction fees, and has an expanding NFT ecosystem that’s worth looking around.
It’s a smaller NFT space so it’s easy to navigate and get familiar with, and there seem to be fewer scams (although you should still be careful).
Compared to trading NFTs on Ethereum, marketplaces are still developing, and you won’t yet find an extensive range of analytics tools. Overall, it feels like it’s at an early stage.<h3 id="wallets“>Wallets
The currency of the Elrond network is EGLD, and you can get hold of it on exchanges including Binance, KuCoin and Bitfinex.
You’ll then need to transfer your EGLD across to a wallet that connects up with Elrond’s NFT marketplaces, and for that, either Web Wallet or Maiar are the standards. One marketplace, Trust Market, will also connect to a Ledger hardware wallet.<h3 id="marketplaces“>Marketplaces
The two biggest marketplaces are Trust Market and DeadRare. The site designs are a little sparse, but you can easily buy, sell and make offers.
Just connect up your wallet and you’re good to go. On Trust Market, you need to click on Login at the top right, and then you’ll be directed to log in through your wallet. On DeadRare, just click on Connect at the top right, and then select your wallet.
With DeadRare, there’s a Staking tab up at the top. Currently it only links up with one collection, Krypto Koalas. Buy a Krypto Koalas NFT, and you can then stake it to earn $LEAF tokens.<h3 id="tools“>Tools
What to Mint tracks upcoming drops and has a rarity checker. Elrond Index is similar, letting you check drops and rarity rankings.
If you want a blockchain scanner like Etherscan, then there’s Elrond Scan.
Lots of conversation about new projects and getting on to whiltelists happens on Discord. For general Elrond NFT chat and lots of information about new projects, Elrond World is useful and will lead you to other servers.<h3 id="notable-collections“>Notable Collections
Gnogen is a sprawling, versatile brand, taking in comic books, NFT collections, an NFT launchpad, a DAO, and multiple collaborations. It’s very influential in the Elrond NFT space, and its Discord is a great starting point from which to begin exploring the whole Elrond ecosystem.
On any chain that has NFTs, you’ll find a CryptoPunks homage (or more likely several), and Elrond is no exception, although to be fair, these punks are also wizards. By the way, Maiar Punks was the first project to collaborate with Gnogen, becoming a part of the Gnogen DAO.
There are plans for 3D avatars, a Maiar Punks Capital City, and a native token you’ll be able to farm, called $TOLKEN.
And yes, where there’s a punk, there must also be an ape. Some people will complain about the lack of originality, but I think it’s kind of fun to compare the ape projects on different chains. These ones actually look different, and anyway, original or not, any blockchain’s primary ape collection tends to do well.
This project incorporates staking, has a strong community, and is working on a DAO and an NFT launchpad.
A cheerful PFP collection that does a lot of trade on secondary, Stramosi is inspired by Romanian folklore, and each NFT acts as a membership pass to the @Romania DAO, which aims to boost Romanian tourism.
This project has created an active community organization, partnered with What to Mint, aims to generate revenue for holders, and has plans this year for a gaming project.
Overall, prices for Elrond NFTs, even the top projects, are not as high as you find with Ethereum. When you’re first exploring, start with the top projects, and keep an eye on new and upcoming drops that are generating hype within the growing Elrond NFT community.<h3 id="flipping-and-real-estate“>Flipping and Real Estate
This set of tools gives you a quick-moving, real-time view of listings and sales on OpenSea, that you can click straight through on to buy.
It’s great if you want to flip and trade quickly, shows rarity rankings and floor walls (so you can see if listings are piling up at a certain price), and makes NFT flipping feel more like regular crypto trading.
There’s a free version you can dive straight in with, or for premium access it’s 0.15 ETH a month, or 0.5 ETH for six months.
NFTs are going to be about a lot more than just animal PFPs, and GoKey, operating on Cardano, is a good example of that, as it’s working on peer-to-peer, decentralized real estate finance.
According to the litepaper, property ownership rights can be packed up into NFT format, unlocking liquidity and creating new financial options and ways of trading. The $GOKEY token is available on several Cardano exchanges.
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Lark and the Wealth Mastery Team
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