Crypto Research

DATA DUMP Last week, we discussed the market’s positive reaction to the deluge of negative economic data. Despite a continued murky economic outlook, risk assets performed well. This was an encouraging sign that gave us confidence that we have seen the market put in this year’s lows. We also mentioned that this past week would be another crucial week of data, with an expected negative real GDP report, a consequential...

Funding has remained relatively stable all month at around ~$450M per week. While funding is up from last week, the total deal count dropped from 36 to 32. Infrastructure deals have led for the second week in a row. There were four infrastructure deals, the largest of which was a $150M in Series A funding for Aptos, an Alternative Layer 1 blockchain that we discuss in more detail later in...

Walter Teng, CFA outlines the difference between CeFi and DeFi, along with the contributions to the recent unwind of 3AC and the subsequent domino effect. CRYPTO DEFI DIGEST: CEFI, DEFI, AND EVERYTHING IN BETWEEN

CORRECTION: IN THE FIRST DISTRIBUTION OF ‘DEFI DIGEST 14: A REFLECTION ON LIQUIDITY DYNAMICS THROUGH THE CONTAGION & GHO STABLECOIN’, WE INCORRECTLY REFERENCED VOYAGER INSTEAD OF CELSIUS AS HAVING A 1.2B HOLE IN ITS BALANCE SHEET. THE AMOUNT LENT TO 3AC BY VOYAGER WAS $350M IN USDC AND 15,250 IN BTC, WITH THEIR CURRENT ASSET-LIABILITY MISMATCH UNKNOWN. In last week’s DeFi Digest, the team discussed liquidity dynamics that were prevalent...

Funding fell this week, making it the lowest funded week of the month. Total deals dropped from 43 to 26, and the amount of funding decreased from $466M to $386M. Despite the decrease in funding, infrastructure had its highest deal flow all month at $131M, up from $30M last week. There were four infrastructure deals, the largest of which being Halborn, a blockchain security platform. Other infrastructure deals included Metabit, Zebedee, and Fedi. Defi...