Ethereum's Shanghai Upgrade in Early April, Signature Onboards Silvergate's Customers
Market Update
- Digital asset markets have retraced following Silvergate's insolvency concerns detailed below. BTC and ETH have declined 3.7% and 3.2% in the past day, while SPX and QQQ -0.07% are 1.1% and 1.4% higher than yesterday's close. US10Y (-2.0%) yields have dipped back below 4.0%, with the DXY (-0.3%) following suit. Despite retracements across large caps, MKR is trading 26% higher over the past week. The CDP protocol announced more favorable terms for its ETH vaults, reducing stability fees from 1.5% to 0.5% and raising the debt ceiling from 5 million DAI to 10 million DAI, increasing borrowing capacity.
- Ethereum's Shanghai fork is set to go live in the first two weeks of April. The Goerli testnet is confirmed for March 14, serving as the final dress rehearsal for the upgrade before going live on mainnet. The Shanghai 'Capella' upgrade to Goerli will allow the phased withdrawal of Ethereum staked on the Beacon Chain. ETH withdrawals will be dynamic and dependent on how many validators there are exiting at the time to maintain network stability and security. Validators undergo a two-stage process involving an exit queue and a withdrawal period, ranging from 27 hours to 36 days, depending on whether they get slashed. The withdrawal event may temporarily see an influx of ETH into the markets but de-risks securing of the network long term.
- Silvergate's (SI) insolvency concerns grow while Signature Bank (SBNY 7.37% ) takes over clients. The former processed over $3.8 billion in customer deposits in Q4 2022, but its existing clients have all severed ties after failing to file their 10-K. Signature Bank had planned to offload up to $10 billion in deposits in crypto last December and wanted to reduce the share of crypto-related deposits to less than 15% of total deposits from the current 23%. However, due to Silvergate's woes, Signature Bank has now accepted clients such as LedgerX and Coinbase, who are looking for an alternative banking partner. The bank started its crypto business four years ago and is one of the only remaining federally regulated US banks known to have taken large-scale deposits from crypto clients.
Daily Technical Strategy
Mark L. Newton, CMT
Head of Technical Strategy
Gala's break of February lows is a temporary negative, technically, though GALAUSD is growing close to an attractive area of support where this likely stabilizes and turns back sharply higher. Daily GALAUSD charts show the rapid rise during January 2023 which peaked out near end of month before giving back roughly 50% of this former rise. After the first unsuccessful bounce off lows near $0.04, prices stabilized briefly before slicing through this recent area of consolidation as of today, Friday 3/3/23. Wave structure shows this consolidation from highs as likely being an ABC-type Elliott wave corrective pattern and should allow for pullbacks to be buyable. Technical targets lie near $0.03-$0.033 which lines up with a 100% alternative projection from the first decline from late January. Additionally, the area at $0.033 lines up with a perfect 61.8% Fibonacci retracement of the former advance. This looks to be an ideal risk/reward zone of support for GALAUSD. However, movement back up above $0.045 would signal that this decline has run its course, allowing for rallies back up to challenge and exceed former highs at $0.063. Intermediate-term projections target $0.076 and then $0.10 which likely represents meaningful upside resistance to rallies.
Daily Important Metrics
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All metrics as of March 3, 2023 1:40 PM
All Funding rates are on bps
Crypto Prices
| Symbol | Market Cap | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
 BTC | $432B | $22,360 | ↓ -4.32% | ↑ 35% | |
 ETH | $192B | $1,567 | ↓ -3.92% | ↑ 31% | ↓ -4.25% |
 ADA | $12B | $0.3391 | ↓ -2.36% | ↑ 37% | ↑ 2.39% |
 MATIC | $10B | $1.17 | ↓ -3.24% | ↑ 53% | ↑ 18% |
 DOGE | $10B | $0.0764 | ↓ -4.99% | ↑ 8.91% | ↓ -26% |
 SOL | $8.1B | $21.27 | ↓ -2.87% | ↑ 115% | ↑ 80% |
 DOT | $7.0B | $6.05 | ↓ -3.67% | ↑ 39% | ↑ 4.25% |
 LINK | $3.5B | $6.91 | ↓ -4.25% | ↑ 24% | ↓ -10% |
 NEAR | $1.8B | $2.10 | ↓ -5.30% | ↑ 65% | ↑ 30% |
Exchange Traded Products (ETPs)
| Symbol | Premium to Nav | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
| GBTC | ↓ -46% | $11.37 | ↓ -1.22% | ↑ 37% | ↑ 2.18% |
| BITW | ↓ -58% | $8.43 | ↓ -3.63% | ↑ 57% | ↑ 22% |
| ETHE | ↓ -55% | $7.15 | ↓ -2.19% | ↑ 50% | ↑ 15% |
| BTCC | ↑ 0.02% | $4.13 | ↓ -4.73% | ↑ 36% | ↑ 1.16% |
News
QUICK BITS
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MARKET DATA
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DOSE OF DEFI
The Block Aave starts governance discussion to deploy on upcoming Polygon zkEVM mainnet Aave, the decentralized lending (DeFi) lending protocol, is considering deploying a minimum viable version (MVP) of Aave version 3 on Polygon's zkEVM. ... |
PRODUCT UPDATES AND PARTNERSHIPS
CoinDesk Crypto Wallet Giddy Lets Polygon Users Pay Gas Fees in USDC Wallet startup Giddy has a new "autogas" feature for easy onboarding into Polygon. |
Coin Telegraph Ethereum core developers push Shanghai upgrade to early April The final dress rehearsal for Shanghai has been slated for a Mar. 14 launch, while the real thing will happen a few we... |
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