October 2021 In numbers: record debut Bitcoin-ETF, rally meme tokens and $ 2.9 billion for Ethereum miners

In October, Bitcoin and Ethereum updated historical maximums at marks above $ 67,000 and $ 4400, respectively.

• At the end of the month, bitcoin grew by 39.9%, and Ethereum – by 42.9%.
• Ahead of the historically favorable (within the framework of the bull market) the end of the year.

• The best dynamics in October demonstrated meme tokens, as well as coins of NFT projects and meta-combat.
• Shiba Inu (Shib), which was in the moment ahead of the capitalization of the closest competitor Dogecoin, and the SaFemoon Defi Protocol Token was among the record holders of October.
• Positive dynamics were also shown by native coins of meta-combined, NFT- and GameFi projects, for example, DecentRaland (Mana) and Sandbox (Sand), amid Facebook rebranding in Meta.
• Separately, it is worth highlighting the trend on the meme-tokens. In addition to Shiba Inu, last month, other “dog” coins – Dogecoin (Doge), Floki Inu (Floki), Dogelon Mars, Yooshi (Yooshi) and Baby Doge Coin (Babydoge) were rapidly growing.
• Negative dynamics among projects with moderate capitalization was shown by the Native Token Defi Protocol Cream Finance. He collapsed as a result of another hacking, during which the attacker abducted $ 130 million.

Shares of companies associated with cryptocurrencies

Microstrategy (Mstr):
+16.15%

Coinbase (Coin):
+37.15%

Bakkt (bkkt):
+351%

Galaxy Digital (GLXY):
+64.44%

Dynamics of securities of mining companies

Canaan (Can):
+33.91%

Ebang International (EBON):
+7.43%

Riot Blockchain (Riot):
+0.07%

Hut 8 (HUT):
+48.72%

Marathon Digital (Mara):
+53.51%

Promotions associated with cryptocurrencies and mining companies in October demonstrated impressive results against the background of positive dynamics of bitcoin. Bakkt platforms were especially distinguished – despite the unremarkable start of trading on October 18, in two weeks, quotes increased by 351% amid cooperation with Mastercard.

Macroeconomic background

• November 3 will be a meeting of the Fed . According to its results, the American regulator can report the beginning of a folding of the assets program for a pace of $ 15 billion monthly, starting from mid -November.
• To the normalization of the FRS monetary policy is pushing concern about increased inflation expectations. Preservation of problems with supplies and high energy prices can lead to holding the growth rate of consumer prices at an increased level.
• The futures market lays 62.5% probability of the first increase in the federal rate in June 2022. By this moment, the Fed will completely turn the asset redemption program. A month ago, these chances were only one to four.

• The increased inflation expectations are reflected in an increase in the likelihood of three raises in the key rate in 2022 – from 7.3% a month ago to 46.4%. Following the results of the meeting on September 22, half of the Fed’s members predicted one increase next year, the other – focused on 2023. The United States has become a signal of the loss of the Fed’s control over inflation. Investors began to allow the script that in order to return it, the monetary authorities will forcefully tighten politics in 2022, which will lead to a slowdown in the economy.
• The start of the Fed’s return to normal monetary conditions is able to cause stress in financial markets. In anticipation of the launch of a fusee bitcoin -etf, the first cryptocurrency began to be more perceived as an active shelter from inflation. This relationship was paid attention to Goldman Sachs.

Market moods, correlations and volatility

In October, bull sentiments prevailed on the market. The fear and greed index, which has grown significantly from the beginning of the month, indicates strengthening the optimism of players.

• The movement of the prices of bitcoin and gold is stably multidirectional, but we are talking about a fairly weak (-0.03) negative statistical interconnection. Correlation of the first cryptocurrency with indexes S&P 500 and Dow Jones remains positive. Compared to September in October, this trend was strengthened (0.27 versus 0.17).
• Strengthening the correlation of bitcoin with the stock market may be associated with the launch of crypto -etf in the United States. As the class of digital assets adoption by institutional investors, this relationship may intensify.

• In October, the coefficient of historical volatility of Bitcoin kept in the range from 3.21% to 4.46% – at the end of the month the indicator began to fall. The amplitude of fluctuations in the price of the first cryptocurrency during the October rally is much lower than during the spring “Bullran”.
• Sharpe coefficient dynamics indicates the investment attractiveness of bitcoin. Despite the volatility inherent in the market, the profitability of investments in the digital asset compensates for the risk accepted by investors.

Onchain-data

• The number of addresses with a balance of 0.01 BTC or more in October approached the historical maximum reached in April at the mark of 9 161 934.
• Category indicator ≥ 0.1 BTC In early October, I updated the record at the mark 3 258 532. The previous maximum was recorded on April 22 (3 258 100).

• All October, the ASOPR indicator was above the mark 1. This indicates an improvement in market moods and that most investors fixes profit, and not sells at a loss.
• Stock-to-Flow Deflection indicator is significantly lower than 1 mark. This means that Bitcoin is underestimated in accordance with the well-known Stock-to-Flow model from Planb. However, since mid -July, the indicator values ​​are growing, pointing to the approaching change of the market cycle.

The MVRV Z-Score metric values ​​are far from the overwhelming area (highlighted in red). Therefore, the bull market is not yet running out.

Ethereum

• Since the activation of the EIP-1559 in August, the Ethereum network has burned more than 712 000 ETH (~ $ 3 billion)-of which over 297,000 ETH in October (~ $ 1.28 billion).
• The daily number of burned coins still correlates with the price: October 29, Ethereum updated the maximum at the mark above $ 4400-the day earlier the network burned a record number of coins (16,852,13 ETH).
• The trend to reduce Ethereum balance on centralized exchanges (CEX) intensified. Since the beginning of October, the proposal of ETH on these platforms has decreased by 5.52%, and since the beginning of the year – by 11.57%.

• In October, the number of validators on the Beacon Chain network for the first time exceeded 250,000. During the month, the indicator grew by 3.3%.
• The number of coins at the deposit contract Ethereum 2.0 is growing steadily – as a result of October, the value exceeded 8 million. Capitalization is already estimated at ~ $ 35 billion.
• The number of addresses with a balance of ≥ 32 ETH has been increasing for the third month in a row. October 31, the value exceeded the mark 108 804.

Lightning Network

• Against the background of the appearance of simpler and more powerful devices for launching nodes in the Lightning Network (LN) bitcoin network, as well as an increase in the popularity of the solution in Salvador, the number of NODs and the number of channels over October increased by 10.5% and 7%, respectively, respectively. Indicators have reached record values.
• Within a month, the LN capacity increased by 6.9%, from 2959 BTC to 3162 BTC. In September, the value increased by 25%.

Mining, hashrate, commissions

• In October, the restoration of the Bitcoin hashReit continued, correlating with the growth of its price. During the month, the total computing capacity of the network of the first cryptocurrency increased by 2.42%. The smoothed seven -moving sliding average indicator on October 29 reached the record at the mark of 163.61 EH/S.
• The alignment of forces in the segment has changed – the United States has entered the leader in the Heshrete Bitcoin (35.4%). The share of Russia reached 11.2%, Kazakhstan – 18.1%.

• Heshreite Ethereum also reached new heights. Over the past month, the ETH correlating with the price has increased by 6%, and its historical maximum was recorded on October 25 at 746.12 Th/S.
• Against the background of hype around the NFT and the growth of the Defi segment, the average commission for Ethereum transaction again exceeded $ 50. The last time the indicator was at these marks in early September, and before that in May.
• The average Bitcoin transaction commission was mainly in the range of $ 3-4 4. It will be interesting to observe the dynamics of the indicator after the TAPROOT software, waited in mid -November. The update will not only increase the privacy of transactions, but also the scale of the network.

• Bitcoin major obtained $ 1.72 billion digital gold, which is comparable to the record indicator of March ($ 1.74 billion).
• The October volume of the Ethereum Mainers amounted to the maximum $ 2.9 billion in the history, including $ 1.34 billion of transaction commissions (46.2% of the total income).
• One of the obvious reasons for increasing miners’ receipts is the rapid growth of quotations.

The volume of trading

• In October, the volume of bidding on leading spot platforms reached $ 1.497 trillion – the third largest indicator in 2021.
• Leaders are invariably shared by three exchanges – Binance ($ 856 billion), OKEX ($ 173 billion) and Huobi ($ 149.6 billion).

Futures and options

• Open interest (OI) on bitcoin textures in October approached the historical maximum-the total indicator at the peak on October 21 reached $ 26.4 billion. Then the Bitcoin exchange rate updated the price maximum above $ 67,000. The volume of trading for a month amounted to $ 1.9 trillion.
• The total volume of open positions increased on the Chicago Machine Exchange (CME) – from $ 1.72 billion to $ 5.45 billion. Bitcoin’s growth was largely facilitated by demand from large investors, including institutional. OI on FTX and BINANCE also updated a maximum of $ 4.5 billion and $ 6.1 billion, respectively.

• The total bitcoin departments trading in October reached $ 30 billion-it was more only in April 2021 ($ 34 billion).
• In the most saturated trading session on October 15, the volume of bidding on the basis of the first cryptocurrency exceeded $ 3.3 billion.

Defi

• In October, the volume of blocked funds (TVL) in the Defi sector updated the historical maximum above $ 246 billion. Over the past 30 days, the indicator has grown by 36% and at the end of the month amounted to $ 242.71 billion.
• Curve Finance holds a leading position on TVL – the indicator amounted to $ 19.41 billion (+$ 5.27 billion per month). AAVE landing protocol sank to the fourth line of the rating. The possible reason is Justin San’s actions, which led a billions of dollars from the liquidity of a project liquidity of a project.

• According to the results of the month, the prices of most tokens from the TOP-20 were in the green zone. Against the background of restarting the Defi project of Thorchain on October 21, his Native Token Rune has risen by almost 95%.
• The price of a guide token Curve Finance (CRV) increased by 72%. The joint initiative of Terra and Abracadabra projects – Stablecoin of the latter, Magic Internet Money (MIM) could indirectly affect this, uses Curve liquidity bullets.
• Native Token Dex Loopring has risen in price by 79%. The interest of investors is related to a leak, which indicates a potential partnership of the project with Gamestop. 1inch liquidity aggregate token also increased significantly (+45.5%) against the background of sheeting on the Upbit Korean Exchange.

• Against the background of the growth in the price of the first cryptocurrency, the total capitalization of Bitcoins on the air increased by 40%during October, to $ 18.36 billion.
• The leader of the segment remains WBTC with an indicator of $ 14.16 billion (more than 77% of the total).

• Ethereum ecosystem continues to dominate the Defi segment. In a month, EE has increased by more than $ 34 billion. More than $ 130 billion was blocked in applications and wrapped assets on the basis of this blockchain.
• Young ecosystems also record a large influx of funds. For a month, TVL Avalanche and Fantom grew by 107% and 235%, respectively. The integration of the first project with the AAVE platform and the active development of the second could affect this result.
• In the segment of solutions of the second -level scaling (L2), Arbitrum leads. The project of the project amounted to $ 2.8 billion (+$ 1.38 billion during October), which is much more than Dydx ($ 0.58 billion), Optimism ($ 0.45 million) and other competitors. The protocol takes 60% of the market.

Dex

• The volume of trading on decentralized exchanges based on Ethereum in October reached $ 92.8 billion – this is the second largest indicator in the entire history of DEX.
• Uniswap is invariably leading in the segment, in a month the total indicator amounted to $ 61 billion. In the top three – Sushiswap ($ 16.3 billion) and Curve ($ 5.2 billion).
• Second -level solutions for the scaling of Ethereum are gaining popularity. As of November 1, 2021, the total amount of funds blocked in the protocols (TVL) reached $ 4.6 billion or record 1.09 million ETH.
• The leader of the Arbitrum segment has increased a share of up to 60% ($ 2.8 billion). TVL Dydx first stepped over $ 1 billion, Optimism and Loopring protocols are rapidly growing.

Stebblecoins

• In October, the total capitalization of stablecoins reached $ 125 billion.
• Tether USDT capitalization exceeded $ 70 billion, Circle USDC – $ 33 billion.

NFT

• In October, the volumes of popular NFT tokens of projects Cryptopunks and Bored Yacht Club decreased by 40% and 23%, respectively. Users preferred less well -known projects.
• At the same time, the trade turnover of the host of the NFT market for Opensea exceeded $ 2.6 billion-this is the third largest indicator from the start of the work of the platform.

• In the context of individual blockchains for operations with NFT, Wax and Flow were popular in October. Ethereum, Solana, Polygon and BSC were less in demand.
• The volume of blocked tools in the Axie Infinity GameFi project has reached $ 5.46 billion. At the beginning of the month, the developers launched the possibility of steaking AXS tokens and announced their own DEX.

The activity of large players

• Open interest in bitcoin stores on CME for a month increased by more than 130%-the number of contracts, 5 BTC each, reached a record mark of 16,671. In dollar terms it is more than $ 5 billion.
• The rapid growth is due to the launch of the first Bitcoin-ETF from Proshares, which is based on the futures traded on CME, and the subsequent appearance of a similar fund from Valkyrie Investments.
• The ETF turnover from Proshares on the first trading day amounted to 24.42 million shares, almost reaching $ 1 billion. According to this indicator, the tool took second place among all exchange funds in history.
• Proshares has applied for the removal of restrictions on the most allowed amount of contracts for purchase. In the case of its approval, further growth of open interest is very likely if market moods do not worsen significantly due to market correction. It is possible that CME will ahead of the Binance Exchange leading along the OI.

• For large players https://gagarin.news/ of the Non-Commercial category, short positions began to prevail even more. In contrast, they significantly increased Longs small market participants (nonreportable).

• The predominance of bull moods has become even more pronounced among institutional players of the Commercial category. The total number of traders of bitcoin textures on CME has also grown.

• The situation is indicative of microfites for bitcoin. OI in this category over October grew by almost 150%, reaching 65,656 marks. Each contract is a tenth of bitcoin.
• The situation is similar to “full -fledged” futures for a relatively new product of the CME exchange. The difference is that short positions prevail among the institutions.
• According to the Ethereum, the OI is also confidently growing, Non-Commercial is dominated by short positions. Nonreportable and especially Commercial increase Longs.

• The cryptocurrency reserves of most public companies remained unchanged, increasing only in dollar terms due to the growth of bitcoin. Exception – Riot Blockchain, the digital reserves of which for a month have grown from 2687 BTC to 3534 BTC.
• A weekly influx of funds in cryptocurrency funds in October reached a record $ 1.47 billion, which is directly related to the successful start of the Bitcoin-ETF from Proshares and Valkyrie Investments. Investments in these products in total amounted to $ 1.24 billion.

Large venture rounds

$ 700 million

Digital Currency Group, Maternal company Grayscale, following the results of the private sale of securities to existing shareholders. The organization was estimated at $ 10 billion.

$ 420 million

FTX Bitcoin-Birzha as part of the round of financing of the B-1 series. 69 investors took part in it, and the company’s assessment reached $ 25 billion.

$ 400 million

The MoonPay crypto payment startup in the framework of the sowing round of financing, which was led by Tiger Global Management and Coatue Management. According to the media, the project was estimated at $ 3.4 billion.

$ 400 million

Centralized cryptocurrency lending platform Celsius Network in the funding round, led by WestCAP and CDPQ. The market rating exceeded $ 3 billion.

$ 298 million

financial analytical portal TradingView. According to the results of the investment round, the platform was estimated at $ 3 billion.

$ 250 million

Alchemy’s infrastructure blockchain Platform in the round of financing series C. A16Z, Pantera Capital and other investors estimated the company at $ 3.5 billion.

$ 152 million

Sky Mavis, NFT game studio Axie Infinity, in the round of financing series B. According to media reports, the company was estimated at $ 3 billion.

$ 100 million

Coinlist tokens platform based on the results of the investment round of series A. The company’s rating reached $ 1.5 billion.

$ 65 million

Blockchain-game provider Animoca Brands. The company was estimated at $ 2.2 billion.

Key events in the field of regulation

• The State Duma will consider the restriction of the investments of unskilled investors in cryptocurrencies.
• The deputy head of the Ministry of Finance denied plans for the ban on buying bitcoin on foreign exchanges.
• Aksakov proposed legislatively prescribe miner taxation.

• Zelensky returned the law “On virtual assets” for re -consideration.
• The head of the National Bank of Ukraine spoke about the fears of the regulator in relation to digital assets.

• SEC will regulate stablecoins in the United States.
• US Treasury issued instructions for compliance with sanctions by crypto industry participants.
• The head of FDIC said that the regulators are focused on creating a leadership regulating the interaction of banks with a crypto industry.

IMF He called for strengthening the regulation of cryptocurrencies and warned of the “risks of infection” of world finances due to stablecoins.

Chapter Estonian The money laundering bureau proposed to cancel previously issued cryptocurrency licenses.

Significant events of October

On October 19, on the New York Stock Exchange (NYSE), ETF began to bargain under the Bitcoin Futures from Proshares under the BITO Tiker. The Fund showed the second best debut in terms of trading volume.

Banks and merchants will have the opportunity to integrate cryptocurrencies into their products. We are talking about bitcoin-wallets, credit and debit cards for charges in cryptocurrencies, as well as loyalty programs, points in which can be converted into digital assets. Bakkt will be a payment system partner.

The United States of America shifted China from the position of leader in terms of computing power on the Bitcoin network. Since May 2021, the share of the United States in the total hash has increased from 17.8% to 35.4%. Russia took third place in the ranking with an indicator of 11.2%, yielding to Kazakhstan (18.1%).

On October 28, Facebook Corporation conducted large -scale rebranding – now the company is called Meta. Thus, it demonstrates commitment to the creation of a meta-combat combat combat combat, working on VR and AR harp, mobile devices and gaming consoles. From December 1, the company’s shares will begin to bargain under the new ticer – MVRS.

Quotes

“Bitcoin at $ 43,000 is less risky than when I traded at $ 300. Now he has formed, huge venture investments are invested in the industry, large banks are also in the game. “.Bill MillerInvestor

“In the near future, people will not even guess that they use bitcoin and Lightning Network, akin to how Internet users do not know the principles of the TCP/IP data transfer protocol. They will be able to pay on the network as easily as sending a photo “.Elizabeth StarkCEO Lightning Labs

“Cryptocurrency, of course, can be a calculated unit, but it is very unstable. In order to transfer funds from one place to another – yes, but to trade, all the more, trade in energy resources, in my opinion, is still premature. “.Vladimir PutinPresident of the Russian Federation