Lido Inflows Top 150k ETH, Technicals Suggest ETH/BTC Strength

Feb 27, 2023

Market Update

  • Equities are rising this Monday afternoon following their worst week of the year. The SPX and NDQ are trading 0.4% and 0.7% higher, respectively. Interestingly, the US 2Y yield pushed higher in the early morning hours to reach its highest level in over 15 years but has since retreated to below 4.8%. The crypto market rallied following the local peak in rates this morning but has since retraced some of those gains. The majors remain higher compared to 24 hours prior, with ETH (+2.0%) showing relative strength compared to BTC (+0.7%) for the first time in a while. Among the top large-cap performers are LDO (+5.5%), which appears to be benefitting from a significant increase in TVL over the weekend (more on that below), and STX (+20.8%), the native token for Stacks. Stacks is the bitcoin sidechain has garnered considerable attention lately due to an impending upgrade that should lower its current glacial block time and perhaps attract developers/users to bitcoin-native DeFi.

Source: Fundstrat. Glassnode

  • In addition to the Shanghai-related tailwinds that have persisted from the start of the year, Lido may be outperforming due in large part to a massive inflow over the weekend into the Lido staking protocol from none other than Tron founder Justin Sun. Over 150k ETH was staked to Lido on Saturday, bringing Lido's total TVL to nearly $9.5 billion and forcing Lido to activate the Staking Rate Limit, which essentially throttles the speed at which a user can mint stETH in order to mitigate any potential negative consequences of rapid minting such as rewards dilution. In total, the day saw over 200k ETH staked to the beacon chain, bringing the total percentage of circulating ETH supply staked to just over 14%. Currently, the Shanghai upgrade, which will allow for the unstaking of ETH, is scheduled to occur towards the end of Q1 or the beginning of Q2.
  • After nearly four months without incident, Solana experienced a major outage on Friday night into Saturday morning, lasting over 18 hours. Node operators and developers are still investigating the root cause of the performance degradation, but it did occur around the same time that an update to the Solana code was pushed to validators. A bug in the update likely caused the network to cease processing transactions. The network attempted to restart the first time, but that effort was paused when validators realized they had chosen the wrong point to resume. Had they continued, valid transactions would likely have reverted, a problem much more severe than the downtime experienced. As we have repeatedly discussed, Solana is a network that will likely continue to carry the risk of downtime due to its relative lack of ossification and anticipated upgrades. This dynamic implies an added risk for those storing sizeable funds on the network. That said, we maintain a bullish outlook on its native asset, hence its incorporation into our Core Strategy. At the time of the writing, the network is fully operational and processing transactions normally.

Daily Technical Strategy

profile image

Mark L. Newton, CMT

Head of Technical Strategy

Ethereum has started to show some recent evidence of outperformance vs Bitcoin after breaking out of the minor downtrend from mid-January. This ETHBTC chart shows the choppiness in recent months, but generally Ethereum has underperformed over the last six weeks. This looks to be changing, and this early week strength is positive towards expecting better relative strength in the weeks ahead along with anticipating an ETHBTC rally back to challenge the upper trendline marking this entire consolidation from last year. The ability to exceed 0.076 argues for a much larger rally out of ETHBTC which should challenge and exceed last September's highs. Overall, the rebound in recent days looks appealing technically towards expecting better strength in the weeks to come.

Daily Important Metrics

Crypto Size

Bullish signal is tied to the crypo market growing

Market cap $1.08T +$25B (+2.31%)
BTC Dominance
42.27% (+0.23%)
Stablecoins

Increase in crculating stablecoins is a Bullish signal

In Circulation $71B(+0.05%)
In Exchanges $17B(+0.37%)
BTC Metrics

A decrease in Bitcoin on exchanges is bullish, indicates investors are moving coins to cold storage

# BTC in Exchanges 2.3M(0.04%)
Funding Rates

Positive funding rates indicate traders are Bullish

Aggregate0.55 (-0.05)
Binance0.99 (0.01)
Bitfinex0.00 (0.00)
Bitmex0.80 (0.08)
ByBit1.00 (0.00)
Deribit0.03 (-0.00)
Huobi1.00 (0.00)
Kraken-0.08 (-0.63)
Mean0.55 (-0.05)
OKex-0.25 (-0.35)
Sentiment
Lido Inflows Top 150k ETH, Technicals Suggest ETH/BTC Strength

BMI : 74 (147%)

Futures

A positive spread between Futures Prices and Spot Prices is Bullish

CME BTC Price$23,425 (100%)
Spot Basis
$27.34 (0.12%)
Volume741,610 (19%)
Open Interest
347,094 (-1.89%)
Options all exchanges

Higher open interest change in a bull market is bullish for the sector

Volume11,095 (77%)
Open Interest262,590 (0.34%)
Volume Put/Call Ratio0.7130 (-30%)
Open Interest Put/Call Ratio0.4164 (-0.15%)

All metrics as of February 27, 2023 11:47 AM

All Funding rates are on bps

Crypto Prices

Symbol Market Cap Last Price Daily Change Year to Date Relative to BTC YTD
btc imageBTC
$452B $23,398 0.84% 41%
btc imageETH
$200B $1,638 2.15% 37% -4.58%
btc imageADA
$13B $0.3634 0.29% 47% 6.00%
btc imageMATIC
$11B $1.25 -1.51% 64% 23%
btc imageDOGE
$11B $0.0812 -0.24% 16% -26%
btc imageSOL
$8.6B $22.82 -0.17% 131% 89%
btc imageDOT
$7.7B $6.64 0.71% 53% 12%
btc imageLINK
$3.7B $7.30 -0.82% 31% -9.82%
btc imageNEAR
$2.0B $2.36 1.43% 86% 44%

Exchange Traded Products (ETPs)

Symbol Premium to Nav Last Price Daily Change Year to Date Relative to BTC YTD
GBTC -46% $11.59 1.13% 40% -1.43%
BITW -59% $8.85 0.80% 65% 24%
ETHE -54% $7.31 1.35% 54% 12%
BTCC -0.13% $4.32 1.05% 43% 1.34%

News

QUICK BITS

CoinDesk

Allure of Bitcoin Ordinals, DeFi Drives Crypto Funds to Bitcoin Layer 2-Token Stacks

The price of Stacks’ native STX token has doubled in two weeks on the back of strong growth for Bitcoin-based non-fungible tokens.

The Block

Coinbase to halt trading of Binance USD for not meeting listing standards

The crypto exchange said the decision was based on its most recent review of the stablecoin. The post Coinbase to halt trading of Bi...

The Block

Solana network back online following second restart

The Solana blockchain is back online after two attempts to restart the network, according to network monitoring site Solana Status. ...

The Block

Mining difficulty up 9.95% with more machines coming online amid recent rally

Mining difficulty jumped 9.95% on Friday, as the network hashrate rose over 300 EH/s. The post Mining difficulty up 9.95% with more ...

MARKET DATA

CoinDesk

STX Perpetual Futures Open Interest Doubles to $80M as Traders Take Shorts

I suspect traders are betting that there isn't a follow-up to Bitcoin NFTs and this is more of a flash in the pan, one analyst said.

CoinDesk

Short-Bitcoin Funds Record $10M in Weekly Inflows: CoinShares

A "short" position in financial markets is a bet on a price decline.

DOSE OF DEFI

CoinDesk

DeFi Giant MakerDAO Rejects $100M Loan to Cogent Bank

The rejection follows less than a year after Maker approved a similarly structured loan to Huntingdon Valley Bank.

Coin Telegraph

Jump Crypto & Oasis.app counter exploits Wormhole hacker for $225M

The counter exploit came after the High Court of England and Wales ordered Oasis.app to work with Jump Crypto to retri...

Coin Telegraph

Lido Finance activates staking rate limit after more than 150,000 ETH staked

Lido Finance had to activate its safety feature — staking rate limit — after over 150,000 ETH was staked in a single d...

CRYPTO INFRASTRUCTURE

Bitcoin.com

Citizens Trust Bank to Hold $65 Million in USDC Reserves as Circle Expands Bank Partnerships

On Friday, the cryptocurrency firm and stablecoin issuer Circle announced that the financial institution Citizens Trust Bank will hold $65 million in usd coin c...

REGULATION

CoinDesk

SEC’s Coinbase Insider Trading Case Is ‘Backdoor Rulemaking,’ Trade Association’s CEO Says

The government agency not only “piggybacked” off of the DOJ’s case, but is using it as a way to define some tokens as securities, Perianne Boring, the Chamber o...

NFTS

Decrypt.co

NFT Royalties Are 'Not Going Away on SuperRare': Co-Founder Jon Perkins

The NFT space is a much bigger picture than just the recent Blur versus OpenSea controversy, according to SuperRare founder Jonathan Perkins.

HACKS, EXPLOITS, AND SCAMS

CoinDesk

Binance Moved $1.8B in Stablecoin Collateral to Hedge Funds Last Year: Forbes

This meant that over $1 billion worth of tokens called B-peg USDC – digital replicas of dollar-pegged stablecoin USDC – were uncollateralized despite Binance's ...

Reports you may have missed

Crypto markets are declining following news that most of the SEC’s lawsuit against Coinbase will proceed (more below). BTC (-1.27%) reached intraday highs of $71.8k before declining to $69k after the news. Rumors have circulated that Morgan Stanley and PNC will soon approve access to Bitcoin ETFs on their wealth management platforms. Together, Morgan Stanley and PNC hold over $1.5 trillion in client assets and likely will provide a tailwind...

Following the worst week of ETF flows since inception, BTC (+3.89%) is rebounding, rising to $69.6k, and ETH (+4.09%) has reclaimed the $3,500 mark. Last week’s outflows totaled $888 million, representing about a fifth of the inflows seen in the previous two weeks. ONDO, an institutional RWA protocol, is one of the top performers today, rising 7.61% as investors remain optimistic about the future of tokenized assets and their ability...

Get invaluable analysis of the market and stocks. Cancel at any time. Start Free Trial

Articles Read 1/1

🎁 Unlock 1 extra article by joining our Community!

You are reading the last free article for this month.

Already have an account? Sign In