🧘‍♂️ALERT: Crypto Strategies, Explained

Market Meditations | October 27, 2021

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Dear Meditators

Understanding trends in DeFi can be hugely profitable – from finding new yield farms to understanding hot narratives before they happen. 

However, these are not easy to find. Using Nansen’s on chain data we are able to consistently uncover these opportunities.

Today’s Meditations:

  • All About CoinList 

  • Nansen DeFi Tutorial 

  • Harmony ($ONE) Deep Dive

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? On the List

If you’ve ever tried to take part in a token launch, you may have come across CoinList, which regularly lists new projects to help them raise funds. 

Well something seems to be working for them, as yesterday they announced the raise of $100 million in new funding with a new valuation of $1.5 billion

Let’s dig in:

  • CoinList was founded in San Francisco in 2017 in the crypto ICO-era (Initial Coin Offering).

  • By April 2018 the company had managed to raise $20 million in order to develop its core platform and grow its user base, which currently sits at over 5 million.

  • CoinList aims for fair launches of reputable projects and requires KYC verification in order for users to participate. CoinList CEO Graham Jenkin claims that an increase in quality projects has really driven the company’s growth over the last year.

  • In addition, 2020 also saw the launch of its own crypto exchange, CoinList Pro, with monthly trading volumes of $1 billion and $2.6 billion of total assets staked.

  • The funds raised will be put towards doubling the team size to help scale operations over the next twelve months.

Let us know in the comments below if you’d like to know more about launchpads. To start with you could read this blog article on six other launchpads currently in operation.


Our Market Meditations are longer format educational segments. Each letter features a Market Meditation which will deep dive and analyse a relevant crypto event, theme or tool. 

? Nansen DeFi Tutorial: Identifying Hot Narratives

Step 1️⃣: Assess the Macro Picture

Tracking Flows of Largest Assets

Huge amounts of crypto flows through DeFi every day. Breaking this down for key assets such as USDC, wBTC and wETH can show exactly where these flows are occurring.

Nansen.ai: USDC flows on Ethereum Blockchain 27/10/2021

  • Over $111m has been deposited into dYdX’s USDC staking pool over the last 7 days. This could be a sign of a trending narrative: decentralized derivative platforms.

  • Over $100m has been bridged over to the Fantom chain showcasing increased adoption.

Considering Off-Chain Bridges

Activity on the Ethereum blockchain can also highlight opportunities on other ecosystems. By considering flows of a specific asset into these bridges, we are able to spot which ecosystems are trending.

Nansen.ai: USDC flows into Fantom Bridge (Using Wallet Profiler Feature)

  • Flows of stablecoins have started to return to Fantom after large withdrawals

  • Interestingly wBTC and wETH have not seen the same magnitude of recovery and are flowing more heavily into Avalanche. One explanation is that stablecoins are making their way to Fantom in order to purchase ecosystem altcoins

Understanding such macro trends allows us to identify narratives, such as decentralized derivative platforms and capital inflows to alternate layer 1s such as Fantom and Avalanche. 

Step 2️⃣: Assess the Micro Picture

Now that we understand these macro narratives, we can use Nansen to dive even deeper.

Hot Contracts

Nansen allows us to track smart contracts in specific sectors so that we are able to see not just which ecosystems are receiving inflows, but exactly which smart contracts and which protocols.

Nansen.ai: Hot Contracts for Fantom sorted by largest daily inflow

  • Geist: This has seen a return of USDC following the introduction of a rewards program on Curve.Finance

  • Tomb finance: New incentive program has lead to large capital inflow

Step 3️⃣: Confluence

As ever in crypto, one indicator is never enough and must be built as part of a wider system. Using DeFi resources such as DeFi Llama (on chain metrics) and Zapper (to track your DeFi activity) we are able to find data to achieve confluence and aid our decision making

Additionally we must not forget technical analysis (whilst trading), keeping up to date with the news (using platforms like Market Meditations), risk management and psychology.

Conclusion

As crypto develops, we are seeing that the market no longer moves as one sector. We have DeFi, NFTs, DAOs and others, and each of these can have their own sector market cycle. To remain profitable, we must be able to break down individual sectors and understand if they are trending alongside their key narratives. Using Nansen to consider money flows across DeFi, we can do exactly this.


With Nansen’s On-Chain data, you can secure an edge in the crypto and NFT markets:

  • ? Exciting New Opportunities. See where funds are moving their money.

  • ? Perform Due Diligence. Get more information on projects or tokens.

  • ? Defend Your Positions. Create smart alerts to track over 100 million ETH wallets.

  • ? Track The Biggest NFT Traders. See what the most profitable NFT wallets are investing in

To grow your crypto portfolio today check out the Nansen website. Currently, they are running a 7 day trial for just $9. Link here ?


?Perfect Harmony?

Harmony (ONE) has received a lot of attention over the last few days. Concluding the most recent leg of its uptrend yesterday with an all-time high, ONE has drawn speculative curiosity in a big way. 

But what IS Harmony and what’s behind ONE’s recent rally? 

  • Harmony is a blockchain protocol focused on optimizing interoperable scaling by using sharded contracts in an infrastructure spanning numerous blockchains like Bitcoin, Ethereum and Polkadot. 

  • On Sept. 9, Harmony announced a $300 million ecosystem development fund aimed at attracting crypto founders, builders and creatives to expand its growing ecosystem.

  • As part of Harmony’s recent “ONEquest” aimed at onboarding one million users, 1000 tokens have been offered as a daily prize for those willing to participate. 

  • A series of partnerships resulting in developments like integrating with DeFi platforms like Aave and Curve also contributed to Harmony’s recent momentum. 

As a project with an established ecosystem, positive growth and encouraging funding, it’s hard to write this interoperable layer 2 solution off without at least some consideration. 


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??‍♂️✍️ Stories in this newsletter were written by Kyle F., Isambard FA, Nick T., Max P., Kimia K., Ellen B. and Koroush AK. Graphics were produced by Gerasimos P.


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