The Market Roundup: Week of July 10
- This week’s market snapshot
- What happens now with Mt. Gox’s 138K BTC?
- Celsius refused to show financials for $6B bailout
- Uniswap users lose $8M in phishing attack
- Shanghai allocates $1.5B to metaverse fund
Over the last few weeks ETH has had a massive rally, up over 43% since July 1 when our ETH fund launched, and up over 50% from the market bottom in mid June. The discount on staked ETH ( stETH ) has closed from 6% down to 2%.
It’s hard to say what the driving force is here. There are likely a combination of factors at play:
- May/June had a series of absolutely catastrophic events in crypto. The collapse of Terra, 3AC and Celsius. Now that these have unwound there is simply less selling pressure.
- The stETH discount was an obvious result of reduced demand for $ETH staking Lido Finance – we described it as free ETH at the time and still feel that way.
- The ethereum merge is essentially locked-in for September/October, which is a strong upside catalyst.
- Broader macro sentiment is that the Fed is going to have to reverse course and start cutting rates in the near term, which is causing all risk assets to re-price and rally.
Crypto is a bifurcated universe. There is a huge chunk of it that is pure gambling (essentially all of 2010-2019) and there is a small sliver of real value creation in the
application layer being built on smart contract platforms. Long term our bet is always
on real value creation…