OKLink Chain Weekly Report: Dex, Algorithmic Stablecoins and New Year’s Outlook
bitcoin market
Bitcoin extended its Christmas holiday rally as it continued to hit new all-time highs. After consolidating and gaining momentum below $30,000, Bitcoin broke through the integer mark of $30,000 during the New Year's Day holiday, with a peak close to $34,500, but it began to fall back on Sunday night, rising $6,212 in a single week, an increase of 22.71%.
Data on the chain
Data on the chain
The actual trading volume of Bitcoin in a single week was 4.5248 million BTC, an increase of 15.11% from the previous month; while the on-chain transaction volume of Ethereum reached 25.098 million ETH, an increase of 31.67% from the previous month.
This week, the transaction volume of Ethereum has increased sharply over the weekend, with a single-day on-chain transaction volume reaching 5.77 million ETH, and these transaction volumes may not only come from transfers between ordinary wallets and exchanges.
With the development of DeFi protocols on Ethereum, the decentralized exchange Dex led by Uniswap and various lending protocols have become a force to be reckoned with:
The trading volume of Dex has increased significantly in the past seven days, among which the trading volume of Uniswap on January 3 was close to 800 million US dollars. The transaction volume of agreements such as Sushiswap and 1inch has also increased significantly.
On the other hand, the active transactions on the chain and the upward movement of the market have brought more substantial income to the already wealthy miners recently. The income of miners in Bitcoin and Ethereum has reached a new high in nearly 8 weeks.
The seven-day on-chain transfer fee of Ethereum was 59,200 ETH, or about $44,043,400, an increase of 50.92% month-on-month. As the rise of Ethereum caused a chain reaction, the broken line of Ethereum on the chart tended to break through the chart. As of the completion of this article, the transaction fee on Ethereum was once close to 600Gwei, comparable to the level during the DeFi frenzy.
2021 New Year Predictions
According to the usual practice, it seems that we should make some big (god) bold (stick) predictions at the beginning of the new year. The following views come from Twitter’s encryption big V Willy Woo.
Bitcoin crossed new all-time highs and continues to climb. Although my model does not directly predict the market, the model can still be used to determine the highest price of Bitcoin in a certain period of time in the future, and from the historical data, the model is very reliable.
Following up on previous historical data, if Bitcoin hits the high of this bull market in December 2021, then the forecast of $100,000 seems a bit conservative, and the figure of 200,000 to 300,000 may be more "realistic". Of course, this is just Willy Woo's personal opinion.
DeFi & others
The upward movement of the market has also brought about an increase in the amount of locked positions in DeFi. The total lock-up volume of DeFi protocols on Ethereum exceeded US$25 billion this week, Maker’s lock-up volume reached a record high of US$3.5 billion, and agreements such as WBTC and Uniswap also rose to a certain extent.
But what seems to be grabbing more attention this week is the rise of algorithmic stablecoins. Attracted by the strong APY of BasisCash and multiple xx dollars, a lot of funds were attracted to algorithmic stablecoins. Among them, the lock-up volume of MithCash once reached 1.4 billion US dollars, becoming the ninth protocol on Ethereum with a lock-up volume of more than 1 billion US dollars.
In Uniswap, the main battlefield of algorithmic stablecoins, there are 4 algorithmic stablecoins in the top ten trading volume:
