CCData's weekly ‘Chart of the Week’ highlights topical digital asset developments with vital commentary and analysis.
This week's COTW examines the relationship between centralised (CEX) and decentralised exchange (DEX) volumes since 2021.
So far in November, CEX market share stands at 90.3%, slightly above the yearly average of 89.6%.
Interestingly, DEX volumes have soared to a record $292.54bn, reflecting a surge in on-chain activity.
Yet, despite this growth, CEXs remain firmly dominant as speculative activity picks up, driven by BTC’s approach to the $100k milestone.
While CEX market share has declined from 97.7% in January 2021 to its current level, the shift has been gradual, with dominance fluctuating between 88–91% in recent years.
This highlights the enduring strength of centralised platforms, even as decentralised alternatives gain traction.
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.
This week’s "Chart of the Week" analyzes the first-ever three-way token merger involving FET, AGIX, and OCEAN tokens, which are consolidating into ASI tokens. The merger commenced on July 1, starting with the suspension of withdrawals for AGIX and OCEAN, while FET continued to trade.
The conversion involved AGIX and OCEAN tokens automatically converting to FET (currently trading at $1.34) on Binance, where customer balances were proportionally exchanged. This set the stage for the final step of the process, scheduled for mid-July, during which all FET held on centralized exchanges (CEXs) will convert to ASI tokens. Uses holding their tokens in self-custody will receive a step-by-step guide on how to make the conversion. Since the merger announcement by Coindesk on March 27, 2024, the price of FET tokens has fallen by 49%.
This week's Chart of the Week looks into Bitcoin daily returns, which produced the second largest daily drawdown of the year yesterday. During the -17.6% drawdown, taking the price from an opening price around $63195, to a close price of $60273, BTC wicked as far down as $58444, a significant drop which caused liquidations in excess of $100mn by the end of the day. The drop itself has been part of a consistent downtrend, driven by macroeconomic factors, but was catalysed by the recent news of Mt Gox creditors finally being paid out after 10 years of waiting. These repayments will begin in July 2024, but will likely persist throughout the year.
Although around $9bn in BTC would potentially be owed, Galaxy Digital estimate roughly only 65,000 BTC out of the 141,000 BTC total will hit the market. The news has caused speculation regarding the overall impact this selling pressure may have on the Bitcoin price. The backdrop of this news has been consistent ETF outflows, with only 1 of the last 10 days seeing a net inflow across the US Spot Bitcoin ETFs, totalling a cumulative net outflow of roughly $1.3bn; suggesting that the short-term sentiment had already been negative prior to the Mt Gox announcement.
In this week's Chart of the Week, we analyse the month-to-date performance of altcoins against #Bitcoin. With Bitcoin struggling to break its range highs of $72,000, major altcoins have entered a downtrend that has seen them fare poorly against the largest digital asset.
Ethereum, Solana, and Dogecoin have seen their price decline 5.23%, 12.2% and 17.8% against Bitcoin as market sentiments continue to wobble despite several positive developments for the sector. Among the top 20 non-stablecoin assets by market cap, only Kaspa, Uniswap, Tron, and Binance Coin were able to record positive returns of 13.4%, 8.02%, 6.01%, and 3.39% respectively against Bitcoin since the start of the month.
This week's Chart of the Week analyses the performance of assets labelled as securities in the SEC lawsuit against Binance and Coinbase from June last year.
Notably, twelve of these assets have posted positive gains since the lawsuit, with SOL surging by 668% and NEAR by 311%. Meanwhile, six assets have seen negative returns, with DASH and VGX declining the most at -35% and -32%, respectively.
In this week’s Chart of the Week, we analyse the number of assets listed on centralised exchange so far this year. Year-to-date, memecoins account for the majority of listed assets, with 32 tokens, including WIF, added to exchanges following the heightened interest and volume in memecoins.
DeFi projects, with tokens such as AEVO and JUP, are the next highest category on the list, with 24 tokens. GameFi and RWA tokens follow, with high-profile listings including MAVIA and ONDO.
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