LayerZero and Starknet Confirm Airdrops, El Salvador Announces "Freedom Visa"

Dec 8, 2023

Market Update

  • The combination of consumer sentiment and unemployment data has provided fuel to support the soft-landing scenario. UMich consumer sentiment came in higher-than-expected (69.4 vs. 62.0), 1-year inflation expectations dropped significantly from 4.5% to 3.1%, and the unemployment rate came in at 3.7% vs. 3.9% expected. Anchored inflation expectations and lower unemployment are giving investors optimism that inflation can retreat while the U.S. avoids a recession, driving the SPX (+0.30%) and NDQ (+0.31%) above $4,600 and $16,000 respectively. Crypto markets are rising with equities, as BTC 0.48%  (+1.44%) is pushing back towards $44k, and ETH 3.82%  (+0.10%) is steadying around $2,360. Cardano is a notable top performer today, rising 25.06% to approximately $0.57, its highest level since August 2022. BONK is continuing its meteoric rise, gaining 25% today and 137% on the week, propelling it into the top three meme coins with a $778 million market cap.

  • Airdrop season is gearing up as LayerZero Labs and Starknet Foundation have confirmed respective airdrops for some time in the first half of 2024. Both were widely expected, but users are excited to hear explicit confirmations. LayerZero tweeted, “We’ll state now in no uncertain terms that there will be a LayerZero token. We’re committed to getting its distribution right and expect it to happen within the first half of 2024.” The confirmation didn’t come with any allocation details but could spark an activity boost in LayerZero projects as investors try to meet airdrop qualifications. On the other hand, Starknet Foundation provided more granularity regarding its airdrop. Starknet will distribute 18% of its 10 billion STRK tokens as user rewards and rebates. 900 million tokens are allocated towards rewarding network users and community members. Another 900 million are earmarked for refunding users’ transaction costs, and lastly, an additional 50 million tokens are designated for DeFi incentives to help subsidize network activity and liquidity. Starknet clarified that further details will be coming soon and teased the release of a new network incentive mechanism.
  • El Salvador has launched a $1 million “Freedom Visa” program, granting individuals residency and citizenship within El Salvador in return for a $1 million investment in Bitcoin or USDT. The program is limited to 1,000 individuals per year and is similar in nature to other countries’ Golden Visa programs. The main differences are obviously the investment vehicle, as well as the Freedom Visa’s cost, which is ten times more expensive than its neighboring countries’ policies in Antigua, Barbuda, St Lucia, and Dominica. Assuming El Salvador can fill all the spots, the program could generate $1 billion in revenue annually. El Salvador is partnering with Tether to support the initiative. Tether CEO Paolo Ardoino said, “This partnership reinforces our dedication to advancing technology, empowering nations, and enabling individuals to invest in a future where innovation and progress go hand in hand.” El Salvador continues embracing digital assets as it announced Monday that its Bitcoin portfolio has moved into the black by over $3 million.

Daily Technical Strategy

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Mark L. Newton, CMT

Head of Technical Strategy

The consolidation in recent days likely spells opportunity for Stacks which has begun to stabilize following a 38.2% Fibonacci retracement of its former run-up from late November. Daily charts show the reversal which happened on 12/5 at marginally lower levels than March 2023 peaks. However, price gave an ample warning of potential consolidation to come following its "Doji" pattern following the steep run-up from late November. Technically, price lies at an attractive risk/reward at $1.01-$1.02, and gains are likely in the weeks to come to test and break out above former December highs to reach new highs for 2023. The area at $1.3193 could represent temporary resistance, but it's expected that the recent gains in momentum might allow for a breakout above this level given the prior peak at $1.257 this past week. Consolidation has helped to alleviate some of the overbought levels in momentum, and the degree of the runup in the last month is quite similar to the rally earlier this year. The larger pattern from 2023 represents a large bullish rounding bottom pattern, which will have very bullish intermediate-term path projections for STX 2.25%  once $1.257 can be exceeded on a weekly close. Longer-term targets lie near $1.78 followed by $2.33 which should both have importance as resistance in 2024. Bottom line, the rapid rise over the past few weeks makes this attractive for 2024, and it looks right to own at current levels, seeking to add on any potential further consolidation at $0.92 prior to a larger runup.

Daily Important Metrics

Crypto Size

Bullish signal is tied to the crypto market growing

Market cap $1.62T +$40B (+2.53%)
BTC Dominance
52.69% (-1.56%)
Stablecoins

Increase in circulating stablecoins is a Bullish signal

In Circulation $90B(+0.21%)
In Exchanges $14B(+0.65%)
BTC Metrics

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

# BTC in Exchanges 2.3M(0.79%)
Funding Rates

Positive funding rates indicate traders are Bullish

Aggregate1.80 (0.84)
Binance1.02 (1.03)
Bitfinex1.63 (0.58)
Bitmex1.00 (0.00)
ByBit2.11 (1.11)
Deribit0.91 (0.90)
Huobi1.00 (0.00)
Kraken2.32 (0.17)
Mean1.80 (0.84)
OKex3.87 (2.39)
Sentiment
LayerZero and Starknet Confirm Airdrops, El Salvador Announces Freedom Visa

BMI : 74 (147%)

Futures

A positive spread between Futures Prices and Spot Prices is Bullish

CME BTC Price$44,195 (1.06%)
Spot Basis
$422 (0.96%)
Volume802,429 (-7.29%)
Open Interest
280,840 (0.38%)
Options all exchanges

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

Volume37,063 (-13%)
Open Interest397,315 (2.75%)
Volume Put/Call Ratio1.01 (94%)
Open Interest Put/Call Ratio0.5128 (2.65%)

All metrics as of December 8, 2023 10:42 AM

All Funding rates are in bps

Crypto Prices

Symbol Market Cap Last Price Daily Change Year to Date Relative to BTC YTD
btc imageBTC
$858B $43,870 0.48% 165%
btc imageETH
$283B $2,356 0.42% 97% -68%
btc imageSOL
$31B $72.96 11% 637% 472%
btc imageADA
$20B $0.5580 24% 126% -39%
btc imageDOGE
$14B $0.0985 2.08% 40% -124%
btc imageLINK
$9.4B $16.83 9.04% 203% 38%
btc imageDOT
$8.6B $6.80 11% 56% -109%
btc imageMATIC
$8.2B $0.8877 4.99% 16% -148%
btc imageNEAR
$2.3B $2.31 1.15% 82% -83%

Exchange Traded Products (ETPs)

Symbol Premium to Nav Last Price Daily Change Year to Date Relative to BTC YTD
GBTC -9.94% $34.82 2.68% 320% 155%
BITW -30% $24.62 0.92% 359% 194%
ETHE -20% $19.20 1.32% 303% 139%
BTCC 0.33% $8.02 1.39% 165% -0.13%

News

QUICK BITS

The Block

LayerZero says it’s targeting token launch for first half of 2024

Cross-chain protocol LayerZero has confirmed that it will launch a token and is targeting the first half of 2024.

The Block

Starknet Foundation plans to distribute 1.8 billion tokens as rewards, transaction rebates

The Starknet Foundation plans to distribute 1.8 billion tokens as user rewards and network rebates, with precise details still to come.

MARKET DATA

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NFT trading volume nears $1B as markets turn bullish: Report

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CryptoPotato

This Bitcoin Ordinals Inscription Was Sold for the Highest Price Ever

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INVESTMENT PRODUCTS

BTC Manager

Fidelity spot Bitcoin ETF listed on DTCC

Fidelity’s Wise Origin spot Bitcoin ETF is listed on the Depository Trust & Clearing Corporation (DTCC) under the ticker symbol FBTC. The spot Bitcoin ETF w...

The Block

El Salvador offers ‘Freedom Visa’ for $1 million crypto investment

El Salvador has launched a “Freedom Visa” for investors, offering citizenship in the country for a $1 million investment in Bitcoin or USDT.

Reports you haven't read

Equities are relatively flat in Friday’s trading after yesterday’s sharp surge. The SPY has gained 0.16%, while the QQQ is down 0.09%. Crypto assets are underperforming compared to equities with BTC 0.48%  (-0.47%) briefly dropping below $50.7k and ETH 3.82%  (-1.20%) retreating to the low $2,900’s. Reddit filed for its S-1 yesterday, indicating that it had invested some of its excess treasury funds into Bitcoin, Ether, and Polygon. Following the disclosure, MATIC -1.35% ...

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