Chart of the Week

CCData's weekly ‘Chart of the Week’ highlights topical digital asset developments with vital commentary and analysis.

This week

In this week's chart of the week, we highlight the Grayscale Bitcoin Trust’s (GBTC) discount compared to net asset value (NAV), which is now at -43.10%. Despite improving this year, the discount fluctuates based on speculation related to their ongoing legal battle with the SEC.

Grayscale continues to contest the SEC's rejection of its bid to convert GBTC into a spot ETF. If successful, the NAV discount could be eliminated due to ETF's arbitrage mechanisms.

Previous Charts of the Week

In this week’s Chart of the Week, we examine Binance's recent banking issues in Australia, which have led to a sharp drop in the BTC-AUD pair's price and volume on the exchange.

Deposits via bank transfer were halted on May 18th, and withdrawals were allowed only until June 1st. This pushed the discount of the BTC-AUD pair down by 9000 AUD (a 22% discount) on May 28th.

In this week's Chart of the Week, we delve into the notable shift in the digital asset market landscape. Binance saw its market share decrease by 10.8% (as of May 20th) following the removal of zero-fee trading for USDT.

In this reshuffled field, Bullish, OKX, BitMEX, and Bybit have emerged as the biggest beneficiaries. They've gained 1.55%, 1.44%, 1.25%, and 1.04% in market share, respectively.

In this week's Chart of the Week, we take a closer look at the BTC-USD market behaviour from the past week. On BinanceUS, the BTC-USD pair exhibited a premium of $388.17, representing a 1.36% discrepancy when compared with CCData's Aggregate Price (CCAGG).

The marginal rise in premiums is likely driven by declining liquidity tied to the prevailing market sentiment and ongoing banking issues encountered by BinanceUS.

In this week's Chart of the Week, we examine the market depth of various BTC trading pairs on Binance. CCData’s spot Order Book data reveals that since Binance announced zero-fee trading for TUSD pairs on March 22nd, the 1% market depth for BUSD and USDT has decreased by 54.0% and 48.5%, respectively, as of April 30th.

Concurrently, the 1% market depth of the BTC-TUSD pair on Binance has experienced a 285% increase, solidifying its position as the second-largest pair on the exchange in April.

This week's Chart of the Week illustrates the influence large-scale sell-offs have on Bitcoin's price and volatility. Since the final week of April, considerable liquidations have been in motion, pushing Bitcoin downward from the $30,000 zone to ~$27,000.

For instance, on May 1st at 2:38 am, a transaction of 222 BTC was executed on Binance for the BTC-USDT pair.  Following this transaction, the BTC price receded from $29,200 to $29,100.

This week's Chart of the Week delves into the exciting news of Coinbase and Gemini's upcoming launch of their derivatives platform and Deribit's recent addition of spot trading.

With this in mind, we examine the market share of exchanges that provide both spot and derivatives trading.

Despite the competition, Binance has the largest market share 38.7% (spot) and 64.3%(derivatives) respectively.

However, other exchanges have experienced varying levels of success in each category. For example, Bybit, the second-largest derivatives exchange with a 14.5% market share, holds only 0.92% of the spot market share.

In this week's Chart of the Week, we delve into the latest findings from our Exchange Benchmark, the industry standard for assessing the risk associated with digital asset exchanges. The report highlights how an increasing number of exchanges are enhancing their security measures via the implementation of security certificates and custodian services.

According to our research, the percentage of exchanges holding ISO 27001, SOC2 certificates, or similar credentials has risen from 24% in October 2022 to 30% in April 2023. In addition, the adoption of custody providers has increased from 26% in October 2022 to 34% currently.

The Shapella Upgrade, which allows for staked withdrawals, goes live today! The upgrade will allow for the withdrawal of locked staked funds and will complete the network’s transition to a proof-of-stake system.

It is expected to have a positive impact on the underlying asset, represented by lower negative funding rates and increasing open interest. Over the past few months, Ethereum open interest has experienced consistent growth.

This week's Chart of the Week highlights  market cap dominance, which has surged from 38.3% at the start of the year to a new high of 45.2%, surpassing the levels seen in April 2021. Bitcoin has a track record of leading market recoveries during downtrends, a pattern that could potentially repeat itself.

This week's "Chart of the Week" showcases the growth achieved by March. Following a surge in price, the leading surpassed other leading coins, recording a staggering 20.9% return (as of March 26th) and marking its highest market dominance for the year. BTC's market capitalisation also broke the $500bn milestone, reaching a figure not seen since June 2022.

This week’s Chart of the Week highlights May’s correlation of daily returns between BTC, ETH and the SP500, falling to 15.8% and 18.2%, respectively, the lowest level since August 2022. Digital assets have benefitted from a significant price appreciation following signs that tight monetary policy and high interest rates may soon reach their peak. This comes after the recent collapse of Silicon Valley Bank, causing a stir in the banking system, and amplifying the interest in digital assets.

The depegging of USDC and regulatory issues with BUSD has led to Binance converting $1 billion of their Industry Recovery Initiative funds to BTC, ETH, and BNB, triggering further buy pressure for digital assets.

In this week's ChartoftheWeek, we examine the depegging of numerous stablecoins following the collapse of Silicon Valley Bank. The depeg began after concerns surrounding the reserves of USDC were raised following the collapse of SVB. As a result, USDC de-pegged to below $0.90.

However, USDC and other stablecoins regained their parity following FDIC's intervention, which expanded deposit guarantees to all depositors. Other fiat-redeemable stablecoins including USDT, BUSD and TUSD largely remained pegged to their parity during the turmoil.

This week's Chart of the Week highlights how Bitcoin (BTC) has been outperforming both ETH and MVDA 100 (a market cap-weighted index tracking the performance of the 100 largest digital assets) in terms of returns so far in 2023.

As of March 2nd, BTC recorded an impressive 42.0% of returns, compared to 37.9% and 33.5% for ETH and MVDA, respectively. Additionally, Bitcoin's dominance has spiked to 41.7%, indicating that traders and investors may still have concerns about the overall market and the possibility of further declines.

This week's Charts of the Week shows a significant drop in Average Transaction Size (ATS) on Binance for major assets like BTC and ETH, falling from $1,690 and $1,768 in March 2022 to $865 and $1,021 in February 2023. This suggests lower market participant conviction, as they enter with smaller sizes compared to a year ago.

ATS can also reveal increased conviction and interest in other assets benefiting from specific narratives. Lido's LDO and Stack's STX tokens are examples of this. For example, LDO's ATS on Binance has risen from $141 in June 2022 to $385 in February 2023, whereas STX's ATS also increased to $240 in February, up 27.7% from the previous month.

In our Chart of the Week this week, we examine the decline in BUSD Market Share on Binance. After the initial surge in BUSD trading volumes on Binance - following the SEC's regulatory intervention, the market share of BUSD stablecoins has trended downward from 43.3% to 25.7% on February 13th.

This is the lowest daily market share for BUSD since the 25th of August 2022, days before the exchange implemented BUSD auto conversion, which saw customers' USDC, TUSD, AND USDP automatically converted to BUSD.

This week's Chart of the Week showcases the thriving liquid staking derivative (LSD) token market, with four major players making waves - Frax's FXS, Lido's LDO, Rocket Pool's RPL, and Ankr's ANKR.

These tokens have seen impressive growth, soaring by 286%, 239%, 208%, and 103%, respectively. Lido continues to dominate the market with a market share of 64.7% in January and 56.1% in February, while RPL experienced a decline.

This week, we feature two Charts of the Week showcasing BTC, ETH and stablecoins’ aggregate market cap dominance dropping 2.7% to 69.8% of the total crypto market cap. This is the biggest month-on-month fall since August 2021, when the market was recovering between BTC’s $64,000 peak in April and $69,000 peak in November.

The decline relates to a fall in stablecoin market share - down from 16.6% at the start of the year to 12.3% at the end of January. The decline in aggregate dominance in these assets, which are the least volatile assets in the crypto landscape, highlights the increased performance of small, volatile assets and market participants' change in sentiment during the first month of the year.

This week's Chart of the Week showcases the upward trend of Bitcoin, which is currently on track to record its highest monthly return in January since 2013.

As of January 29th, the cryptocurrency has experienced a 43.7% increase from December, marking its highest monthly return since December 2020.

In this week's Chart of the Week, we used our granular derivatives data to examine digital asset open interest and funding rate metrics to track market movements and measure the flow of money into the crypto futures market.

Bitcoin dominated Open Interest, recording an increase of 5.09% from the 1st of January till the 18th, followed by Ethereum, which recorded an increase of 14.29%. Ripple’s XRP and Cardano’s ADA also saw a significant increase in Open Interest — with a 51.6% and 69.4% rise, respectively.

In this week's Chart of the Week, we examine Bitcoin's overall yearly performance. Bitcoin ended 2022 at $16,531, recording the third ever negative yearly performance in its 14-year history.

The 64.2% fall in price, however, is not its largest decline in history. 2018 saw a 73% decline followed by a 92% increase the following year.

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