Stably Weekly Newsletter – 02/20/2024
Announcements & Product Updates
- Stably x Frax partnership: We are now working together with Frax to bring seamless fiat onramp infrastructure to Fraxtal, an Ethereum L2 network with the world’s first block space incentive mechanism for on-chain activities. By Q2, Stably Ramp users will be able to buy, sell, or swap Fraxtal-native assets using traditional payments and assets from other chains.
- More bank transfer methods coming soon: By Q2, our users globally will be able to utilize Instant ACH (US), Instant SEPA (EU), and SWIFT bank transfers (global) for both buy and sell transactions on Stably Ramp.
- Venmo & PayPal coming soon: By Q2, our US users will be able to utiilize Venmo and PayPal for both buy and sell transactions on Stably Ramp (through PYUSD).
- Stably Points coming soon: We are working on a point-based incentive system to reward Stably Ramp users for trading activities, with a Q2-Q3 launch ETA. Stay tuned for more details in the near future!
- List your asset for free on Stably Ramp: We now offer a zero-fee listing program to any third-party project interested in listing its assets on Stably Ramp. In exchange, the project can integrate the Stably Ramp iFrame widget, enabling its users to onboard from 170+ countries/regions and buy, sell, or swap these assets with stablecoins and traditional payment methods. Interested projects only need to apply. We will list the requested asset within 30 days if (1) we can source on-chain liquidity for it, (2) the project completes integrating Stably Ramp, and (3) the project passes our internal compliance review process.
Market & Industry Highlights
- 02/15 (Coinpaprika) – BlackRock’s Bitcoin ETF hits new high with $720M daily volume
- 02/15 (Coinpaprika) – Japan steps up fight against crypto fraud with new FSA regulations
- 02/17 (Coinpaprika) – Revolut gears up to launch cutting-edge crypto exchange
- 02/17 (Coinpaprika) – SBF may get lighter sentence as crypto recovery helps FTX creditors
- 02/18 (CoinDesk) – Sui overtakes Aptos & Cardano in TVL; sees $310M inflow in 30 days
- 02/19 (Cryptonews) – Ethereum likely the only spot crypto ETF to be approved after Bitcoin
- 02/19 (CoinJournal) – Bitcoin ETF inflows surge, threatening gold’s reign as store-of-value
- 02/20 (CoinDesk) – Starknet token STRK begins trading at $5 after mammoth airdrop
- Market Commentary from QCP Capital: The Lunar New Year has ushered in the bulls. BTC broke the key 48k resistance and is currently trading above 52k. ETH broke the local highs of 2700 and is trading above 2800.Two key reasons for this leg higher are:
- Strong BTC spot ETF inflows
We flipped into firm net inflow territory towards the end of Jan and saw massive sizes in the last week up to $632M in a day! The sheer size of spot demand inevitably drove prices higher.
Net inflows to Bitcoin spot ETFs. - CME margin requirement increase
This has recently become an important trigger for volatility. In this case, leveraged players were positioned short and the new requirement resulted in widespread short covering over a relatively illiquid Lunar New Year weekend. This drove both spot price and forwards higher. The forward spread trade in BTC is now back to around 11-12% annualized.An important macro data point to note last week is CPI coming out higher than expected. Headline CPI was 3.1% actual vs. 2.9% expected, and Core CPI was 3.9% actual vs. 3.7% expected. Consequently, risk assets sold off across the board. However, this was very short-lived with the market buying the dip with a vengeance the very next day, particularly for crypto which has since seen new highs. While we remain bullish with liquidity rushing back into risk assets, inflation being sticky over 3% remains a downside risk, and would also mean increased volatility across markets.
- Strong BTC spot ETF inflows
7-day crypto price performance heatmap.
- Junk Bonds Commentary from Stably: In times of market stress, bond ETFs have consistently provided price discovery and the ability for investors to express their differing investment views in real-time. Historically, when junk bond ETFs were above their 200-day moving average, it indicated a risk-on investor sentiment typically bullish for risk assets. Conversely, being below this average may suggest bearishness. For more information, please refer to this hypothetical backtest for trading Bitcoin based on 200-day moving average signals from the JNK ETF.
As of today, JNK is 4.74 points above its 200-day moving average (vs. an all-time average of 1.20 points). This could be interpreted as a very bullish signal for both equities and crypto in the short term.
Top pane: JNK with a 200-day simple moving average. Center pane: S&P 500. Bottom pane: BTC.
- Alt Season Commentary from Stably: The 12-Month Alt Season Index is an indicator that measures the relative price performance of altcoins vs. Bitcoin in the previous 12 months. When the Index rises above 50, it signifies altcoins outperforming Bitcoin which is typically associated with major crypto market rallies (for example, during the 2021 bull market and DeFi Summer 2020).
As of today, the Index’s value is 24. This could be interpreted as Bitcoin outperforming altcoins for the time being, which means that a major crypto market rally is still not in play, yet.
12-Month Alt Season Index.
- DeFi & Stablecoin Commentary from Stably: DeFi total value locked (TVL) and total stablecoin market capitalization are two reliable on-chain metrics to assess the crypto market’s current health. Rising TVL and stablecoin market capitalization indicate an increasing level of investor trust and engagement within the DeFi ecosystem, suggesting a robust and growing market. On the other hand, declining TVL and stablecoin supplies can signal a decrease in market liquidity and investor confidence, often reflecting bearish market sentiments.
As of today, the total TVL in DeFi and the total stablecoin market capitalization stood at $138.24 billion (+12.70% WoW) and $138.24 (+1.10% WoW), respectively. This could be interpreted as a very bullish signal for the crypto market as well as DeFi in the short term.
Other Updates
- Trustpilot Review: As a valued user of Stably Ramp, your experience with our platform is highly valuable to us. We would greatly appreciate it if you could share your thoughts on TrustPilot, helping others to understand the benefits of our service. Your feedback is not only appreciated but also instrumental in shaping our community and services.
Stably is a venture-backed FinTech from Seattle, Washington. We provide regulatory-compliant stablecoin and onramp infrastructure for emerging blockchains, Web3 applications, and financial institutions, enabling their users in 170+ countries/regions to easily buy, sell, or swap digital assets at competitive rates across multiple blockchain networks with stablecoins and fiat payments. Our mission is to power the next billion Web3 users with a superior fiat & stablecoin onramp.
For all inquiries, feel free to contact us.
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