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4/08/2022 - 4/15/2022

Weekly Crypto Market Overview

4/08/2022 - 4/15/2022

This Week in Focus

Notable News

4/10/2022: ERC721R release 1

  • ERC721R is a new token standard 2, an upgrade on the ERC721 contract that allows NFT buyers to return and get a refund of their mints
  • Issuers can determine the amount and period of the refund. If buyers decide to return, they simply send the NFT to the original minting contract
  • ERC721R works by locking funds in a smart contract. They cannot be withdrawn within the refund period
  • This could potentially help reduce rugpulls by increasing accountability of NFT issuers

4/12/2022: Ethereum tested proof-of-stake on shadow fork; reported delay in Ethereum 2.0 merge 3

  • It was the first major test of proof-of-stake (PoS) transition on a subset of nodes on the Ethereum mainnet, called the shadow fork
  • The purpose of the test was reported to examine if nodes running proof-of-work (PoW) can be integrated smoothly with PoS nodes
  • The test was deemed largely successful, despite some minor bugs
  • However, on 4/13/2022, Ethereum core developer Tim Beiko anticipated a delay in the full transition from PoW to PoS, now expected in Q3/4 2022 4

4/14/2022: Ava Lab is seeking to raise $350 million, which will put its valuation at $5.25 billion

  • Ava Labs is one of the leading developers for the Avalanche blockchain, founded in 2018 5
  • This valuation will make Ava Labs one of the highest valued crypto startups 6
  • The total value locked in Avalanche is at $10.53 billion 7

Market Movement Summary

  • During the past week, as inflation number hit 8.5%, cryptocurrencies encountered a selloff, broad equity market was down, commodities performed well. 8
  • Crypto market capitalization dropped below $2 trillion threshold, standing at $1.89 trillion. 9
  • Top 100 coins dominate 97.15% of the crypto market. 10
  • BTC’s market dominance stands at 41.13% while ETH’s stands at 19.76%. 11
  • Sector dominance remained within 2% change from last week. 12
  • AUDIO, the native cryptocurrency of Audius, is the best performer over the past week with an 8.8% return while BTC was down 5.13%. AUDIO also generated 79.4% return over the past month. It is a decentralized music streaming protocol similar to Spotify that focuses on content generators. There is no major news contributing to the price movement.

This Week’s Interesting Questions

General Market Movement

I. Crypto vs. Traditional Markets

Crypto vs Traditional Markets_CrossRiverCryptoWeeklyMarketingReport_002

Source: Bloomberg, CoinGecko, Messari, from 4/15/2021 to 4/15/2022. Cross River Bank and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

II. Correlation of Asset Classes

CorrelationOfAssetClasses_CrossRiverCryptoWeeklyMarketingReport_002

Source: Bloomberg, CoinGecko, Amberdata, from 4/15/2021 to 4/15/2022. Cross River Bank and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

III. Correlation of Top 10 Cryptocurrencies (Ex-Stablecoins)

CorrelationofTop10Cryptocurrencies_CrossRiverCryptoWeeklyMarketingReport_002

Source: Amberdata, from 4/15/2021 to 4/15/2022. Cross River Bank and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

Sector and Token Movement

I. Sector Performance of Top 100 Cryptocurrencies by Market Cap

SectorPerformanceofTop100CryptocurrenciesbyMarketCap_CrossRiverCryptoWeeklyMarketingReport_002

Source: Messari, as of 4/15/2022. Cross River Bank and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

II. Sector Analysis of Top 100 Cryptocurrencies by Market Cap

SectorAnalysisofTop100CryptocurrenciesbyMarketCap_CrossRiverCryptoWeeklyMarketingReport_002

Source: Messari, as of 4/15/2022. Cross River Bank and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

III. Top & Bottom Performers of Top 1000 Cryptocurrencies by Market Cap

TopAndBottomPerformersofTop1000CryptocurrenciesbyMarketCap_CrossRiverCryptoWeeklyMarketingReport_002

Source: Messari, as of 4/15/2022. Cross River Bank and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

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1https://github.com/exo-digital-labs/ERC721R
2 A token standard is a template or format that developers generally follow.
3https://www.theblockcrypto.com/post/141609/ethereum-largely-passes-first-major-test-for-proof-of-stake
4https://www.coindesk.com/business/2022/04/13/ethereum-merge-no-longer-expected-in-june/
5https://www.bloomberg.com/news/articles/2022-04-14/crypto-startup-ava-labs-is-said-to-raise-at-5-billion-valuation
6https://www.theblockcrypto.com/linked/141911/ava-labs-avalanche-raising-350-million-5-25-billion-valuation-report
7 As of 4/16/2022, https://defillama.com/chain/Avalanche?currency=USD
8 Inflation number as of 3/31/2021, Bloomberg. See Crypto vs. Traditional Markets table.
9https://coinmarketcap.com/charts/
10 See Sector Performance of Top 100 Cryptocurrencies by Market Cap table.
11 Source: Messari, as of 3/31/2022.
12 See Sector Performance of Top 100 Cryptocurrencies by Market Cap.