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DeFi Uncovered: What’s Next for DeFi?



The NFT market has continued to outperform and command the primary attention within the Ethereum ecosystem, despite relatively high network congestion and fees pricing out many retail users.

We can see the magnitude of impact simply by looking at the gas consumption rankings, where NFT projects sit on top of the leaderboard. One-off NFT minting events typically consume relatively large volumes of gas, and secondary trading activity on OpenSea remains the firm leader in gas consumption.

Data Source: Parsec Finance

In this piece, we will study the impacts of this NFT momentum, and assess whether any user activity and attention is starting to leak back into the DeFi ecosystem.

To keep up to date with the latest Glassnode analysis of the DeFi ecosystem, be sure to subscribe to this content series here.

NFT Growth Continues

OpenSea has managed to bring significant attention to the ecosystem, both from a retail and institutional perspective. More than 200k users (unique addresses) are trading monthly on OpenSea secondary markets. This marks an acquisition of 150k+ users for the platform in August alone.

Data Source: Dune Analytics

For comparison, crypto’s most used protocol Uniswap acquired 183,000 users in the month of August. These new Uniswap traders do however demonstrate less daily trading activity when compared to OpenSea active users. In other words, Uniswap traders are performing fewer trades and are less active than the equivalent NFT traders on OpenSea. NFT activity has consistently outpaced Uniswap in daily active users throughout the month.

These OpenSea users have brought monumental trading volume. In our intro piece on NFTs we projected >$1B in volume. Actual realized volume for the month of August has since closed at over $3.3B, an incredible 3.3x from start of month projections.

Data Source: Dune Analytics

Again adding context, through August, Uniswap did $50.6B, still dominating in cumulative volume amongst any types of exchanges across crypto, despite losing the lead in gas consumption to OpenSea. OpenSea ended strong with a daily cross over the $300M volume mark on the 29th. For comparison, Uniswap did $1.3B in volume on the 29th. 7-day mean volume for OpenSea sits at $223M, a truly historic rise for the leading secondary market for NFTs.

Data Source: Dune Analytics

Certainly this volume has come on the back of massive speculation and wild pumps in the prices of many NFT collections. Leading the charge have been Cryptopunks and Bored Apes, as both have seen their floor prices and average sales rise by >400% over the month. Cryptopunks are the highest value collection with total value estimated in the multiple $Billions while Bored Apes hover around the $1B mark. Note that a total collection valuation is not as straightforward as for fungible tokens as not all of the pieces are listed for sale.

Cryptopunks have reached an average sale price exceeding $400k, with the lowest sales coming in at a floor around that same price.

Data Source: Dune Analytics

Meanwhile, amongst increased interest from celebrity figures, and an additional collection drop of Mutant Apes for Bored Ape holders, Bored Apes have watched their floor skyrocket, reaching 48 ETH ($158k).

Data Source: Dune Analytics

Is the Energy of NFTs Trickling Into DeFi?

It stands to reason that as both retail and institutional users move assets from centralized exchanges to their personal wallets on-chain to buy NFTs, these assets become more likely to interact with the DeFi ecosystem. As users may need to trade assets on-chain between ETH and stablecoins in order to transact on their secondary NFT market of choice, some portion of this volume is likely to end up in liquidity pools and money markets.

This story begins with exchange balances, where Ethereum has now flipped Bitcoin for having the lowest percentage of the coin supply held on exchanges for the first time since late 2018. This shouldn’t come as a surprise at a time where the Ethereum ecosystem is creating a plethora of on-chain destinations for ETH outside the confines of centralized exchanges.

Core examples are NFT purchasing power, chasing yield in DeFi protocols, and increasingly gaming projects. Meanwhile, Bitcoin on exchanges remains mostly flat, as few incentives exist for deploying the assets outside centralized exchanges or cold storage.

After months of risk-off activity in stablecoin lending, markets have finally woken up as much of the ecosystem shows early signs of risk-on appetite. Whether to borrow funds, purchase NFTs, or chase yields in DeFi across L1 incentive programs, rates have finally found some upward momentum.

Despite this blip in risk-on attitude, TVL remains firmly led by stablecoins deployed in lending and DEX pools. For a true signal of risk-on appetite, we would see a shift in liquidity to encompass riskier assets like governance tokens, however this has not yet materialized.

Users can currently earn 7%+ by simply holding and supplying stablecoins like DAI, USDC, and USDT to lending protocols. DAI and USDC have seen ~6-10% APY for a few weeks, while USDT has regularly exceeded 10% APY. These volatile rates have been the state of play for a few weeks on Aave while Compound has remained relatively quiet by comparison, remaining a more attractive market for borrowers and less so for lenders.

Data Source: Parsec Finance

As NFT activity commands ecosystem attention, gas prices have risen to daily levels that price out many retail traders. At > 100 Gwei the current daily mean price to perform a swap on Uniswap, Sushiswap, or elsewhere is valued > $50.

Among this massive rise in transaction costs on-chain, Sushiswap has been a benefactor of significant user growth, outpacing its user-base expansion from previous months.

Source: Dune Analytics

Another winner has been 1Inch Exchange, the top DEX aggregator of choice with 366k trades over the course of August. This compares to the second place Matcha’s 54k trades over the same period. 7-day 1Inch volume sits at $1.5B vs $0.3B for Matcha. This means average size/trade is larger for Matcha, with 1/7th the # of trades but 1/5th the volume.

Despite 1Inch’s dominance among aggregators, usage across aggregators remains mostly flat over the past 5 months.

Source: Dune Analytics

Alternative Layer 1 Performance

Across the layer one ecosystem, Avalanche has seen a minor pullback in liquidity, as many of the associated DeFi token assets in Avalanche additionally see downside price action after showing some strength the last two weeks prior.

Source: DeFi Llama

In our piece last week we covered the nature of capital rotating into various Layer One ecosystems among their liquidity incentives. Despite hype and incentives, the three largest Avalanche tokens have all seen 50%+ drawdowns since last week’s peak. This ball of liquidity bouncing from chain to chain has showed its complete disregard for loyal liquidity, quick to bounce from one opportunity to the next.

Meanwhile, Fantom and its ecosystem have been the latest Layer One ecosystem to find renewed attention. This follows the launch of a $370M liquidity mining program for projects bridging assets into the ecosystem. Let’s see how the story unfolds as this hot ball of capital moves from one layer one ecosystem to the next.

Closing Thoughts

As OpenSea continues its relentless run to new heights for NFTs, Cryptopunks and Bored Apes Yacht Club (BAYC) have found wildly high floor prices at $400k+ and $130k+, respectively. Countless other NFT projects continue to launch to varying levels of success. DeFi has simultaneously shown hints of renewed appetite for risk-on, however remains largely driven by stablecoin borrow, rather than token speculation. Accordingly, stablecoin capital has pushed the value locked in DeFi to new heights as higher interest rates create attractive risk-off return profiles.

Simultaneously, a few $Billion in value has been transitioning between Layer one ecosystems to arbitrage newly launched liquidity incentives, first by Avalanche, and now Fantom and Celo. The question is whether these rewards create any measurable sticky liquidity and user retention in the long run.

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What does swapping crypto mean?



Has the number of cryptocurrencies ever piqued your interest? Are we talking about a couple of hundred here? Maybe a zillion people? According to CoinMarketCap, that number is now well over 7,000. With so many options, you may want to test a new cryptocurrency at some time. However, how do you go about doing it?

Good news, then! Making a switch will allow you to test out a different cryptocurrency with ease. Swapping is the process of swapping one coin for another. In other words, how does it all work?

Let’s assume you have some

Ethereum, but you’d like to have Bitcoin. Certain services are available to assist you with this. Swap service providers allow you to trade your Ethereum for Bitcoin, with a value close to the actual exchange rate. To put it simply:

Why would I want to swap?

Now you know what it means to exchange cryptocurrency. On the other hand, why on earth would you want to? Anyone’s motives for wanting to swap their crypto assets for anything else are wide open. So, without further ado, here we go.


Making money, that’s right. It’s a hit with everyone. Trading cryptocurrencies have the potential to bring you a sizable return because of how rapidly their prices can shift. You might make a lot of money by trading your crypto at the appropriate time if you are timing the market perfectly and are a little bit lucky.

Increasing your investment options by utilizing diversification

Those sudden price adjustments, on the other hand, are not to everyone’s taste. In general, diversification is seen as a valuable tool for reducing the impact of risk. Having a diverse portfolio of cryptocurrencies may help mitigate the effects of price fluctuations.

A source of ongoing revenue

Wouldn’t it be great if you could receive money for doing nothing? Staking is a method of earning additional crypto without having to do any work on your part. You might try this out by exchanging some of your bitcoin for fiat currency.

But be on the lookout!

Trading cryptocurrency is inherently hazardous, even if you don’t consider security issues. Remember how we said that by timing the market right, you might make a significant profit? If you’re not careful, you might suffer losses of all sizes. Don’t invest or trade money you can’t afford to lose, and do your homework before you get involved.

Additionally, there is generally a charge associated with trading bitcoins. You should expect a somewhat lesser return on your investment.

What is 123swap?

123swap offers an ecosystem of products and services that enables consumers to swap, keep, send, receive, earn, and invest tokens across various chains in a single place of business. To remove difficulties such as complex interface, hidden fees, and a time-consuming registration procedure, the platform has designed its conversion method to simplify the process for the end-user.

Why 123swap?

Users can pick from among more than 500 cross-chain liquidity pools (Ethereum, Binance, Polkadot, and many more). In addition to supporting the most popular protocols, the platform also offers the lowest costs and the highest annual percentage yield (APY) (Annual Percentage Yield).

123swap will differentiate apart from other DeFi platforms thanks to the following features:

In the Smart Economy, 123swap is a prominent crypto swap protocol that enables users to – Swap favoured assets in several chains; hold them; send them; receive them; earn from them; and invest in them. In this approach, crypto assets may be exchanged between peers without the need to put their faith in a third-party custodian or counterparty. The platform offers non-custodial services and aims to provide optimum safety, ease, and comfort for its users. Customers may browse all of the swaps offers gathered from the most important crypto exchanges in one location.

The platform’s goal is to develop a stronghold community. Members of the community will be able to make essential choices on things like team tokens vs. advisory tokens, lock length, and so on through a fair voting mechanism.

Problems solved by 123swap

Exchanges performed by hand are old-fashioned and time-consuming. By utilizing smart contracts, the platform will streamline and automate the swapping process. Smart and autonomous financial management will be available in one location thanks to the cross-chain smart contracts. The platform would promote decentralized financial management via smart contracts. As a result of its technological innovations, 123swap is poised to surpass the competition, improve speed, and establish itself as the world’s leading exchange.

Final Thoughts

Swapping is the process of swapping one coin for another. Certain services are available to assist you with this. You might make a lot of money by trading your crypto at the appropriate time. If you’re not careful, however, you might suffer losses of all sizes. 123swap is poised to surpass the competition, improve speed, and establish itself as the world’s leading exchange.

The platform would promote decentralized financial management via smart contracts. Users can choose from among more than 500 cross-chain liquidity pools (Ethereum, Binance, Polkadot, and many more).

Source: Plato Data Intelligence

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How to Find Crypto Exchanges for Safe Transactions



As a result of the Covid-19 epidemic, global markets have begun to appreciate the potential of cryptocurrency. Yet, it was previously seen as too volatile and fringe to embrace any sizeable corporate body or company. 

You can buy, sell, and trade cryptocurrencies on top crypto exchanges. You can’t get or sell digital assets unless you have access to a cryptocurrency exchange online. 

Where to find the best crypto exchanges with a fair conversion rate? Look at the list of crypto exchanges at You can see a calculator where you can find out which converter you need to choose depending on how much you need to swap for 1 coin and your location. This way, you can see a chart with many converters that may suit your needs for safe transferring.

Choosing the proper crypto exchange for both novice and experienced advanced crypto traders has been difficult. When you find that one, you can be sure you are safe! 

What to Look for to Find the Best Cryptocurrency Exchanges

Most exchanges primarily allow you to convert Bitcoin, into other digital currencies, such as Ethereum or Litecoin. Your scope may vary when selecting an exchange to convert money for crypto. You may prefer an exchange that supports particular cryptocurrencies, trading pairings, and extra features like margin trading or over-the-counter (OTC) transactions.

How to find an exchange that satisfies your fundamental needs? Consider the following aspects to take into account:

  • Security. By far, one of the essential elements of a transaction is safety. If an exchange is not secure, your cash might be stolen, rendering any other benefits it provides useless. No one likes to lose money; therefore, consider the following factors in this regard;
  • Technology. The web URL of the top crypto exchanges should begin with HTTPS. Two-factor authentication should be used for login security. Customer deposits should be kept offline in what is known as “cold storage.” Auditing tools that monitor exchange activities 24/7 and send SMS with email notifications provide exchange clients additional security guarantees. For optimum protection, allow your IP address or withdrawal wallet addresses;
  • Legal considerations. Choose an exchange from the same nation since this can help you comply with regulatory changes. It should be noted that certain exchanges only support a restricted number of countries;
  • Transparency. The most trusted crypto exchanges reveal addresses, teams, cold storage addresses or assist in the verification of their reserves in other ways, such as audit information;
  • Liquidity. The more liquid a specific exchange is, the larger the trade volume. Liquidity allows transactions to be completed more quickly, simply, and without coping with price fluctuation. Check to determine whether an exchange offers “locked-in” pricing, which assures you the price at the time of your transfer sessions even if it does not settle right away;
  • Costs. Examine all of the fees that an exchange charges. They’re typically less than 1% of each transaction and may drop as your trading volume grows. Examine the withdrawal costs. Some exchanges are known to charge exorbitant withdrawal fees for specific cryptocurrencies. Check the deposit fees as well.

Ultimately, keep in mind that crypto and its infrastructure are still in the early stages of development so that things might change fast. Numerous decentralized exchanges are already in the works, and many experts believe they’ll permanently alter existing exchanges.

Furthermore, laws may be imposed, and new technology or issues may emerge. So keep up with the news and stay informed. The best cryptocurrency exchange is unique to each individual, so conduct your research and be cautious while doing so.

Source: Plato Data Intelligence

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Pound pauses after strong week



The British pound is slightly lower in the Monday session. GBP/USD is currently trading at 1.3724, down 0.15% on the day. The currency rose 0.98% last week, its best weekly performance since late August.

BoE’s Bailey hints at rate hike

The BoE continues to signal that it is preparing to raise interest rates shortly. The Bank has been sending a stream of hawkish messages to the markets, with Governor Bailey and other policymakers hinting that a rate hike is on its way shortly. On Sunday, Bailey said that inflation would rise higher and last longer due to the surge in energy prices, and that the central bank “will have to act” via monetary policy in order to deal with the risk of high inflation. The BoE has projected that inflation will climb over 4%, which is more than twice its target. In order to curb inflation, the BoE may respond with a series of rate hikes, which could kick off as early as November.

This would be a highly significant move, as the BoE would become the first major central bank to raise rates since the start of the Covid pandemic in early 2020. With the Bank holding its next policy meeting on November 4th, any additional hawkish comments from BoE policymakers will raise expectations that the November meeting will be a live one.

Rate fever is also rising across the pond. Last week, the FOMC minutes indicated that the Fed expects to taper its bond purchases in November or December. The minutes noted that the Fed would reduce the USD 120 billion/ month gradually, until the programme was completely terminated by July 2022. The markets have brought forward the pricing of a rate hike from December 2022 to September 2022, projecting a rate hike shortly after the tapering is complete.


GBP/USD Technical Analysis

  • 1.3822 is the next resistance line, followed by the round number of 1.3900
  • There is support at 1.3618. Below, there is support at 1.3492

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.

Kenny Fisher

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Oil rises on coal, gold under pressure



Coal lifts oil in Asia

Hong Kong coal futures have leapt 9.0% higher this morning, meaning that the China energy crunch has made its way back to the front of investors minds. That has lifted oil prices in Asia as well, with Brent crude surging 0.80% higher, and WTI leaping by 1.0%.

On Friday, oil prices continued to grind higher, with no sign of any inclination to open the pumps by OPEC+ or announcements by the US government on SPR releases. Brent crude finished 0.90% higher at USD 84.90, and WTI finished 1.25% higher at USD 82.50 a barrel. In Asia, Brent crude has risen to USD 85.65, and WTI has risen to USD 83.40 a barrel as coal futures rocket into space.

With no signs of the China energy crunch alleviating soon, and with the rest of northern Asia and Europe competing for scarce energy supplies, particularly gas, the price environment for oil remains constructive. Even a US or China SPR release is only likely to provide temporary relief. A rapidly reopening aviation sector, with a slew of reopening announcements from ASEAN last week, will be another price pressure point.

Brent crude should now target the October 2019 high at USD 86.80 and onto USD 90.00 barrel, with support at USD 84.25 and USD 82.00 a barrel. WTI now has meaningful resistance until the USD 89.00 regions although I expect some sellers to appear above USD 86.00 a barrel initially. Only a fall through USD 82.00 a barrel changes the bullish outlook.

If Brent crude moves to USD 90.00 a barrel, I expect the pressure on OPEC+ to step up quite a few notches from the US White House. The huge weight of speculative long positioning in oil futures means a sudden USD 5-8 a barrel drop could still occur on a headline shock. However, with the underlying fundamentals for oil so strong, any large dip will reverse just as quickly.

Nervous specs cut long gold positions

Although the US dollar finished roughly neutral on Friday, higher yields across the US curve were enough to spook speculative longs in gold. That saw the predicted rush for the exit door, and gold fell rapidly by 1.60% to close at USD 1767.50 an ounce.  In early Asia, gold has recouped some losses, rising 0.25% to USD 1771.50 an ounce.

The price action on Friday speaks volumes about the gold market now. US dollar weakness earlier last week soured gold buying and drew in fast-money speculative longs. The equally rapid unwinding of most of those gains on Friday reinforces that much of gold’s rally was built on speculative hot air and that those longs have little to no appetite to wear any pain on those long positions. In the bigger picture, the lack of staying power from gold longs suggests that it will struggle to maintain any upward momentum, even if gold reaches USD 1800.00 an ounce. Up via the stairs, down via the sixth-floor window.

Firmer US yields, should they endure this week, will be a headwind for gold rallies, especially if it leads to US dollar strength. Gold has nearby support at USD 1765.00 followed by USD 1745.00 an ounce with failure reopening a test of USD 1720.00. Gold failed for the third day in a row at the 100 and 200-day moving averages (DMAs), today at USD 1795.40 and USD 1796.60 an ounce, formidable resistance.

In the bigger picture, only a rise through USD 1835.00 an ounce would trigger a multi-month inverse head-and-shoulders technical pattern and swing gold’s outlook back to positive. The risks remain firmly to the downside.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Jeffrey Halley

With more than 30 years of FX experience – from spot/margin trading and NDFs through to currency options and futures – Jeffrey Halley is OANDA’s senior market analyst for Asia Pacific, responsible for providing timely and relevant macro analysis covering a wide range of asset classes. He has previously worked with leading institutions such as Saxo Capital Markets, DynexCorp Currency Portfolio Management, IG, IFX, Fimat Internationale Banque, HSBC and Barclays. A highly sought-after analyst, Jeffrey has appeared on a wide range of global news channels including Bloomberg, BBC, Reuters, CNBC, MSN, Sky TV, Channel News Asia as well as in leading print publications including the New York Times and The Wall Street Journal, among others. He was born in New Zealand and holds an MBA from the Cass Business School.

Jeffrey Halley

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