$SUI Token Launches and $BUSD hits Record Low in Activity
Market Update
- Prices slid lower this morning ahead of the Fed's FOMC meeting at 2 pm ET before bouncing back after the Fed's interest rate decision of 25bps was released. Bitcoin and Ethereum are up 0.23% and 0.82%, respectively, while most altcoins are down. $ARB is down 1.69%, $SOL is down 2.13%, and $LDO is down 3.72%. An exception to this is Bitcoin layer 2 blockchain, $STX, which is up 5.28% as transactions on Bitcoin hit all-time highs due to Ordinal and BRC-20 activity picking up, which we discuss in more detail below. Traditional markets are up slightly - SPX is up 0.30%, and NDQ is up 0.30%. The dollar (DXY) is continuing its move lower, down 0.58%.
- Binance USD (BUSD), Binance's stablecoin that is pegged to the US dollar, has hit a record low in activity among regulatory scrutiny. Data Analytics firm, Glassnode, reported that the number of addresses sending and receiving Binance USD hit a new two-year low based on a seven-day moving address. Data also indicates that the stablecoin supply of BUSD has fallen from over $23 billion to just over $6 billion. BUSD resulted from a partnership between Binance and financial services provider Paxos. The recent drop in BUSD activity coincides with Paxos' Well Notice from the SEC in February. In the notice, the SEC classified BUSD as an unregistered security.
- Layer 1 blockchain Sui launched their token today ($SUI), which is now listed on exchanges such as OKX, Bybit, Binance, and Kucoin. The token can be used for staking, paying gas fees on the Sui network, and participating in protocol governance. Sui is a high-throughput proof of stake chain that Mysten Labs created. Similar to other alt layer 1's such as Aptos and Solana, Sui aims to provide lower fees and faster transactions than Ethereum. Mysten Labs raised $300 million in a September 2022 funding round, bringing the project to a $2 billion valuation. Sui's token opened today at a $282.8M market cap and a $12.7B fully diluted market cap. There is a maximum supply of 10 billion tokens, and Binance estimated that the initial circulating supply would be 528.3M tokens, meaning just 5.28% is circulating. $SUI has performed well since its launch this morning - up 6.50%.
Daily Technical Strategy
Mark L. Newton, CMT
Head of Technical Strategy
Polygon remains one of the better technical risk/rewards given its recent stabilization near an important intermediate-term uptrend from last Summer's lows. This area at $0.94-$1.05 lines up with the uptrend line along with prior lows from March, and the 50% retracement area of its entire rally from last June lows, adding to the significance of the significance of this area. Despite the ongoing downtrend from this past February, daily momentum indicators like RSI have nearly reached oversold levels, and it wouldn't take much before $MATIC starts to turn back higher in another rally to test and exceed this year's highs. The ability to surpass $1.10 would be quite important, leading to $1.20, followed by an eventual retest of $1.55. Conversely, any violation of $.90 would be technically negative, postponing the rally and allowing for a decline down to $0.79, which would be the first meaningful area to consider important under $0.90. Bottom line, given that $0.90 does not lie too far away, MATIC is thought to represent an attractive risk/reward which should be favored for gains in the weeks ahead.
Daily Important Metrics
|
All metrics as of May 3, 2023 2:31 PM
All Funding rates are in bps
Crypto Prices
| Symbol | Market Cap | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
 BTC | $553B | $28,538 | ↓ -0.27% | ↑ 72% | |
 ETH | $227B | $1,883 | ↑ 1.02% | ↑ 57% | ↓ -15% |
 ADA | $13B | $0.3854 | ↓ -1.15% | ↑ 56% | ↓ -16% |
 DOGE | $11B | $0.0784 | ↓ -0.40% | ↑ 12% | ↓ -61% |
 MATIC | $9.2B | $0.9976 | ↑ 3.28% | ↑ 31% | ↓ -41% |
 SOL | $8.5B | $21.65 | ↓ -2.47% | ↑ 119% | ↑ 46% |
 DOT | $6.7B | $5.68 | ↓ -0.69% | ↑ 31% | ↓ -42% |
 LINK | $3.6B | $6.99 | ↑ 1.21% | ↑ 26% | ↓ -46% |
 NEAR | $1.6B | $1.82 | ↓ -1.17% | ↑ 43% | ↓ -29% |
Exchange Traded Products (ETPs)
| Symbol | Premium to Nav | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
| GBTC | ↓ -38% | $16.18 | ↓ -0.19% | ↑ 95% | ↑ 23% |
| BITW | ↓ -57% | $10.66 | ↑ 0.19% | ↑ 99% | ↑ 26% |
| ETHE | ↓ -50% | $8.99 | ↓ -0.32% | ↑ 89% | ↑ 17% |
| BTCC | ↓ -0.26% | $5.25 | ↓ -0.38% | ↑ 73% | ↑ 1.00% |
News
QUICK BITS
Decrypt.co Bitcoin Transaction Volume Hits All-Time High With 3 Million Ordinals Inscriptions Despite a dip in price, Bitcoin transaction fees continue to skyrocket—due in no small part to Bitcoin Ordinals. |
The Block Multiple exchanges to support trading of sui as blockchain goes live today The native token of the Layer 1 blockchain Sui is scheduled to launch today and will be available for trading on centralized exchanges. ... |
MARKET DATA
The Block Binance USD stablecoin activity slides to two-year low Binance USD activity has dropped massively since regulators spotlighted the leading crypto exchange's dollar-pegged stablecoin. The ... |
REGULATION
Fundstrat AI Robot Biden administration pushes for 30% electricity tax in swipe at crypto miners - Forkast News The administration of U.S. President Joe Biden is campaigning for a tax on cryptocurrency miners equal to 30% of the cost of the power they use, ... |
FUNDRAISING AND M&A
Decrypt.co Bitdeer to Raise $500M for Bitcoin Mining Operation in Bhutan Bitcoin mining firm Bitdeer confirmed it has expanded its presence in the Asia Pacific, setting up operations in the Kingdom of Bhutan. |
CoinDesk New Crypto VC Firm Credibly Neutral Raises $5.5M The developer-led firm received funds from the founders of the Polygon and Solana blockchains, among others. |
PRODUCT UPDATES AND PARTNERSHIPS
The Block MoonPay pushes into retail space with new crypto app MoonPay, the Miami-based crypto payments firm, continues to expand its services with the launch of a retail-facing app. The post Moo... |
Reports you may have missed
Major equity indices are rallying on the back of solid earnings, with both the $SPX and $QQQ up over 1%. Meanwhile, crypto markets are churning lower, which is understandable as we should not expect crypto to rally alongside equities during an earnings-driven market. Crypto remains an apparently undecided market ahead of next week's FOMC meeting and the Quarterly Refunding Announcement (QRA), evidenced by another day of ETF outflows and a...
It has been a challenging day for crypto prices, with $BTC giving back yesterday's gains to fall to $68.5k, $ETH declining to $3,500, and $SOL currently trading around $176. Most altcoins are also experiencing downturns. The lone standout among large cap crypto assets today is $TON, which is rallying on rumors of USDT launching on the TON Network. Equity indices also faced a drawdown earlier in the day, sliding after...
Flows Turn Positive and Coinbase Premium Returns, PayPal Enables Free International Transfers with PYUSD
The trading day began on a positive note, with rates decreasing and risk assets rallying following disinflationary pricing data from the latest ISM services PMI report. However, equity indices relinquished their gains and dipped into the red late in the trading session, influenced by comments from Fed President Neel Kashkari, which implied the Fed was concerned over persistently high inflation. Crypto rallied along with equities in the morning, and has...
Risk markets are experiencing a broad decline today, largely attributable to the surge in rates following the impressive PMI figures released yesterday. The US 10-year yield briefly reached 4.4%, marking its highest level since November. The crypto market was particularly affected in the early US hours today, with over $400 million in futures liquidations and $BTC moving from nearly $70k to just below $65k. Following suit, the wider crypto market...
