- Bitcoin declined for the 8th straight week for the first time in history as investors continue to fade risk assets amid monetary tightening. Despite the modest move lower, Bitcoin continues to trade within its $28k-$31K trading channel (see chart below).
- Bitcoin has begun to decouple short-term from traditional equities as the token’s 7-day rolling average correlation to the S&P500 plunged to -0.45 from 0.70. This is the lowest level of correlation for Bitcoin since February 2022, see below for an in-depth analysis.
- The aftermath of the LUNA and UST fiasco has begun to unfold as liquidity and total value locked across staking platforms plunged from $200B to $110B. To learn more about Terra’s $40B collapse, check out this DeFi Decoded episode.
- On-chain activity remains stagnant as mean transaction fees for Bitcoin and Ethereum drift to monthly lows. Similarly, over the last week, active addresses across a majority of DeFi protocols have fallen as investors continue to park their assets on stablecoin-driven staking networks such as Tron. Learn more about stablecoins here.
- According to the Federal Reserve’s “Economic Well-Being of U.S. Households” study, 12% of US adults held crypto in 2021. The data revealed that American consumers had interest in crypto as an investment as only 3% of the respondents transacted with crypto in the previous year. Read the full study here.
- Ethereum’s core team published a paper titled “Decentralized Society: Finding Web3’s Soul” which focused on soulbound tokens (SBTs). SBTs are tokens that cannot be transferred after they are received. SBTs will play a critical role in driving a decentralized society as they will be a source for on-chain credentials. Read the paper here.
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