Crypto Market Weekly Recap - March Week3
Here we go again with the Weekly Recap. Sorry, last week I wrote Week1 instead of Week2, so this time it's Week3 directly. Every Friday, I feel like I forget what happened before Thursday. Too much sh*t you need to follow in crypto.
The start of this week's market is dead silent but headed to the high end. I also heard a lot of very pessimistic views. There are so many voices in the market said that crypto is headed in a very bearish direction. Many reasons are mixed to cause such a result. Such as Fed's monetary policy tightening, U.S. stocks are not performing well, Chinese internet companies listed overseas, the conflict between the U.S. and China is getting bigger, the financial war has started, etc. All in all, last week and the few days of this week were the most bearish news I've heard in a long time. And a typical feature of the crypto market is that it is particularly short-sighted, speculative, and over-reactive, with prices always digesting market news in advance.
But for a lot of major events, it's strange that they are often underacted. Like Bitcoin mining halving, EIP-1559, The Merge upcoming.
After the midweek, the market suddenly went up. The specific reason I can't catch it. A rebound is not strange. But there are also rumors said that the U.S. and China negotiations made positive progress, and the market has a positive response.
I have always been not good at making judgments and analyses of the market, but always bullish.
There are more microscopic shit happening, the following content will mention a few:
- ApeCoin ($APE), a token related to the BAYC ecosystem, released a total of 1 billion tokens
- EU Parliament votes against PoW, 32 votes against, 24 votes agree
- Aptos Completes $200 Million Strategic Financing led by a16z
- Terra founder Do Kwon bets with crypto KOL Sensei Algod on whether $LUNA will be $88 in a year (Do Kwon bets $LUNA will exceed current price)
- Coinbase NFT is coming soon
How will $APE shAPE the NFT industry?
First of all, it must be that a lot of people are getting rich (again).
The second thing is, how much should this project be worth? According to the news/rumors I heard in the market, BAYC's parent company Yuga Labs, and the market equity valuation last time was $4 billion. Yuga Labs Owning BAYC, CryptoPunks and Meebits acquired a few days ago. Total three big NFT IPs.
BAYC's floor price is around 100 ETH, a total of 10,000 exist, worth 2.7 billion USD. At the time of writing, APE Token's price is 15.7 USD and the market cap is 15.7 billion USD. Not counting the other two IPs. So is APE overvalued or the company undervalued? Does it make no sense to focus on the market cap in the short term?
As mentioned in last week's review, users are still expecting a upupup market. The total perps position has not fallen. Instead, it is sneaking up. As long as it falls a little, some people open more positions and keep going round again. Now the market has finally come to a serious hot event/project, that is certainly to be "investors" to pursue. After all, it has been so boring for half a year.
Back to $APE. First, BAYC set a sample, many similar NFT projects will certainly copy it, and some have already started to do so. Who wouldn't be excited to see APE reach such a high price? This is the same as Binance started its first IEO ever a few years ago (btw, the first project that year was the BitTorrent bought by Justin Sun). What happened later was that a lot of imitation exchanges stunk up the place, because there weren't many quality IEO projects.
According to this market volume and the current state of the market, the first three or five projects that started copying in the short term are still able to do well. Stick around for a few more days, and then more projects will certainly not work. So the idea of this, if your projects want to do it, asap.
Secondly, if we compare the NFT wave with the ICO a few years ago, after the pure trick of selling small pictures to cheat people was broken and not many people believe in it anymore, is the claim that NFT can bring great power of change true or false? In other words, the ICO finally precipitated the ETH, which brought about the subsequent DeFi.
What exactly is the use of NFT and what is the use of the coins issued by NFT projects?
To summarize the above, first of all, there must be other projects that copy BAYC's work and issue their tokens. BAYC is the KING of NFTs, and if its token $APE ends up becoming a MEME, then the other NFTs will be finished. The market has limited demand for the same type of MEME in a period. If it is not a MEME, then Yuga Labs' so-called empowerment of APE's future will not only be APE's future but also give a direction to other NFT projects of the same type. This direction is very significant for the whole JPEGs + Real Estate (like sandbox) + Metaverse (all in the narrow crypto context).
Also on $APE, you can see our analysis article posted yesterday.
About Music NFT
A friend from the traditional fund asked me to help him look at a music NFT MarketPlace + copyright project in the past two days. To be honest, I usually listen to music, but I can say that I have very limited knowledge of music NFT. Based on my previous understanding of NFT, I was quite confused. The main reason for the confusion is that a big music market does not indicate a big market for the music NFT market.
NFT in the form of images on the user side is very well understood and spread, and any software supports the sharing of images. In addition, there are big companies like Twitter that support NFT as avatars and authenticate them.
But when it comes to music, it's certainly not as easy to spread as images in the first place. It's easy to show a picture to someone, but to share a song, first of all, many apps don't support it, and there's not enough support for different music platforms in different regions. It only takes a few seconds to look at a picture, but enjoying a piece of music generally requires a longer time and some other requirements, like being quiet.
So from the previous NFT craze, there are some things I can't understand about music NFT in terms of distribution. In addition, the support of third-party companies is not easy, do you have to click on the avatar and then play the music?
- Musk tweeted that he still holds and will not sell BTC, ETH, or Dogecoin.
- Ethereum has support for CCIP reads and ENS wildcard solutions.
- Gauntlet closes the $23.8 million Series B round at a $1 billion valuation Paradigm and others participate.
- MakerDAO proposes to launch new governance token $stkMKR to replace $MKR.
- LFG votes to destroy another 4 million $LUNA to mint about 372 million $UST.
- Curve's new proposal proposes to allow funding-seekers to raise funds via $CRV releases.
- Meta CEO Mark Zuckerberg says NFTs are coming soon to Instagram.
- The Sandbox announces a partnership with HSBC.
- MetaMask passes 30 million users, plans DAO and token launch.
This week's daily news roundup is here, in English and Chinese.
- DailyFi - 3.14 | Will $LUNA Exceed $88 After One Year？
- DailyFi - 3.15 | Layer1 Blockchain Aptos Closed $200 Million in Strategic Funding Led by a16z
- DailyFi - 3.16 | DeFi Lending Platform Aave Lauches Version 3
- DailyFi - 3.17 | One day for BAYC and $APE
Lastly, we will share our projects
- Tatsumeeko (GameFi)
- Astar Network
These are not projects I'm looking at this week, it's a campaign that our team is running, And every week we give a few choices about projects. You can join our Discord to vote, and the project with the most votes will be the one we start doing research on immediately, which can be understood as Community-driven research.
Join now: https://discord.gg/9jSEDaBWSC
Thanks for the help from Ryan.
Hape a great weekend.