Crypto Research

Cryptocurrency rally looks to have temporarily stalled out after a sharp three-week rally.  Ethereum has stalled out in its relative performance vs Bitcoin, and for now, Bitcoin is an outperformer over Ethereum and should be favored. Weekly momentum remains negative and Cycle composites start to turn lower in early March into April/May, so given low retail interest and not many inflows, this could limit the larger rally continuing to all-time highs...

Venture capital went all-in on infrastructure projects this week, more than tripling investments into the crypto vertical at $942 million. The runner-up was NFT/metaverse projects, which raised $134.5 million over 7 projects that were mostly very early-stage funding rounds. CeFi and DeFi were relatively inactive, raising $40 million and $11 million, respectively. A mining infrastructure project raised $385 million in a mix of equity and debt, and three venture capital...

Markets rebound sharply, with impressive price action across all major crypto sectors.On-chain and derivatives data point toward a combination of low liquidity, seller exhaustion, and short liquidations as the major catalysts for this price run.A disproportionate increase in price compared to realized cap suggests that low liquidity levels are exacerbating price movements.We review several events of the past week and discuss the major implications.BOTTOM LINE: We remain bullish on the...

Walter Teng, Digital Asset Strategy Associate, provides a brief overview of DeFi and why we’ve created a new FSInsight publication devoted to it. DIGITAL ASSETS IN A POST-CYCLE WORLD

The trend of massive investment into centralized finance ( CeFi ) and infrastructure projects continued over the past week. CeFi projects raised $430 million, and infrastructure raised $312 million, together making up 80% of this week’s $930 million of investments from venture capital. $167.5 million went into NFTs, and DeFi and gaming brought up the rear with $11.25 million and $7 million, respectively. Two new venture capital funds raised a...