1. Market trend: high profit margins, major changes
On April 5 and April 6, the trading volume on the BTC chain rebounded to 7.67 million and 6.3 million BTCs. The decline of BTC price expanded to near the 120 day moving average, and the adjustment intensity increased. The recent price pullback suggests that the main force is involved, and the data on the chain has rebounded significantly, indicating that the main force has a high degree of participation.
In terms of morphology, the BTC in the daily K-line is still above the bottom reversal pattern, the short-term oversold and the reversal expectation remains unchanged.
In terms of selling pressure, BTC's utxo yield can reach 84.8%, which is still far more than 80%. At present, BTC is still in the stage of relatively high yield after BTC enters the adjustment state in 2021. The relatively low return of 80% in the year means that investors have bought BTC at a low level in recent three months, which is very key to price support. Once these investors lose money, it will push BTC's utxo yield to fall below 80% again.
In terms of main currency holding, on April 6, the address number of giant whales with more than 1000 BTCs was 2243, which was withdrawn in the short term, but it was still at a high level in the year, which means that the main force may have more trading actions next.
2. Message side interpretation:
According to the minutes of the March monetary policy meeting released by the Federal Reserve on the 6th, in the face of the situation of continued high inflation, Fed officials believe that there may be several 50 basis point interest rate increases in the next regular meeting, and may start to reduce the balance sheet by up to $95 billion a month as early as may.
The interest rate hike and table contraction continued to affect the trend of the financial market, with the correction of the three major indexes of US stocks and the retreat of commodity prices such as crude oil. The dollar index rebounded to 99.72, the first time since 2020. Tightening expectations increased, BTC followed the withdrawal of US stocks in the short term, and there was great pressure on capital outflow.
3. Dragon and tiger list:
Due to the short-term adjustment of most mainstream currencies, the adjustment expectation of concept currencies has increased significantly. In terms of growth ranking, there are 9 currencies rising in 24 hours, and usdt, Dai, tusd and MIM are listed, indicating that the current market trend is weak. Short term money making opportunities are mainly buying at a low price, focusing on the rebound opportunities of oversold currencies.
Among the currencies with the highest growth, the public chain Mina of POS concept increased significantly, while the NFT concept enj and poca experimental network KSM tokens led the increase.
MINA
On March 18, Mina completed US $92 million financing, led by FTX ventures and Sanjian capital. Subsequently, on March 24, Mina announced the launch of coinbase. The price of Mina has also risen due to the heavy benefits. It has increased by more than 26.9% in the last seven days and 106% in a month.
In terms of technology, Mina protocol is a lightweight public chain using ZK snark technology.
At present, the main network has been launched, and its main highlight is that its block size can be controlled at 22 KB, which can ensure good accessibility, so as to allow more users to participate in the verification of data on the chain.
In the public chain with the same architecture, Mina, whose block size is only 22KB, stands out. The meta innovation brought by Mina can not only perfectly solve the problem of "Impossible Triangle of blockchain", but also bring more use cases to defi and even fields outside defi.
In terms of data, from 2021 to April 2022, the Mina classified account increased to more than 100000, showing a relatively strong growth trend.
In terms of weekly growth, FXS, Mina and CVX ranked first.
FXS
The risk profile and usage of each stable currency vary greatly. But even so, we are optimistic that FraX will still be a benchmark for the future defi protocol, because it has three killer applications - curve like property, hook mechanism and amo.
In March 2021, FraX V2 announced its best innovation to date, algorithm market operation (AMO). At the same time, the FraX linkage mechanism makes its price very stable, making FXS a better algorithm stable currency.
FraX protocol implements a dual token system: stability token FraX and protocol governance token FXS.
In the fourth quarter of 2021, with the release of FraX V2, FraX was adopted on a large scale and linked with the whole defi system. As of January 25, the FraX project fund pool earned an average of $500000 per day (annualized about $180 million) through the amo (algorithmic market making program) launched by the team in the early fourth quarter of 2021. During the same period, the supply of FraX climbed from less than $500 million to a staggering $2.6 billion.
In terms of price, FXS followed the platform token Luna of Terra algorithm to stabilize the currency, rebounded and rose, rising by 30.2% in 24 hours, and the volume of the band nearly doubled. In terms of lock-in, FXS lock-in is US $2.3 billion, including US $2.2 billion on Ethereum chain.
Decline list
Gamefi concept currency heart, Ethereum layer 2 network CELO and move to earn concept stepn led the decline. Due to the increase in the overall market adjustment space, most hot currencies retreated, focusing on the short-term currency holding risk.
