Health, Wealth, and Happiness |
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| "It is the long history of humankind (and animal kind, too) that those who learned to collaborate and improvise most effectively have prevailed." - Charles Darwin |
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| Howdy, investors!
- Crypto is emerging as a key issue this election cycle, but we have a different take: it can't be a Republican issue or a Democratic issue, it's got to be both. Read our latest political manifesto to find out why.
- We talk a lot about investing in crypto projects with a large number of Daily Active Users, but today we look at a companion metric: Active Developers, or how many regular programmers are working on a crypto project.
- The story of Avalanche (AVAX) is just like an avalanche: from its initial rapid and unstoppable momentum to its recent slowdown. It's a top token by market cap, but is it a top crypto investment?
Read on! |
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| This Week in Bitcoin Market Journal Our latest crypto investing insights and ideas. |
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| Top Blockchains With the Most Active Developers
At Bitcoin Market Journal, we talk a lot about Daily Active Users (DAUs), but this guide looks at a different type of active user: the developer.
These are the people actively creating the crypto projects we use. And they are also important to growth: developer contributions directly impact the valuation, stability, and future of a crypto project.
In this guide, we cover why Active Developers (ADs) are so important, how to measure them, and the top blockchains by ADs.
Click to learn which blockchains have the best developer ecosystems >> |
| Should You Invest in Avalanche (AVAX)? Charts, Stats, Analysis for 2024
In May 2018, a mysterious research paper emerged from the internet, authored by a group known only as “Team Rocket.” This paper suggested solutions for some of the key problems with blockchains, explaining how to make them faster, cheaper, and more energy-efficient.
One of the core ideas was called “Avalanche,” named after the rapid and unstoppable force of nature. By building a new blockchain from the ground up with these ideas, Team Rocket argued, it could gain that same kind of speed and momentum.
The crypto world took notice, but it would take a visionary to bring these ideas to life. Enter Emin Gün Sirer, a renowned computer scientist at Cornell University. Alongside his colleagues Kevin Sekniqi and Maofan "Ted" Yin, Sirer saw the potential in the Avalanche protocol. Together, they founded Ava Labs in 2018, setting out on a mission to transform the blockchain landscape. Little did they know what the future would hold...
Read the story behind AVAX, and get our complete analysis >> |
| Crypto Must Remain Bipartisan
In the mid-1990s, it became clear that the Internet was going to be a very big deal. There was only one problem: the law.
At the time, the telecommunications industry was regulated under the Communications Act of 1934.
(If this sounds familiar, remember that crypto is currently regulated under the Securities Act of 1933!)
The problem with this ancient legislation is that it gave local telephone services a monopoly: you had only one choice for a phone company, usually terrible.
As the Web began to grow, lawmakers from both the left and the right realized the telco industry needed a reboot. That’s how we eventually got the Telecommunications Act of 1996, with overwhelming bipartisan support.
Today, we need similar a bipartisan push to overhaul the laws around crypto. Put another way, crypto is too big to belong to any one party.
Read our latest political manifesto >> |
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| Premium Power-Ups Level up your crypto investing game. |
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New Investor Scorecard: Maker (MKR) |
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| The Maker Protocol allows users to create the stablecoin Dai by depositing collateral assets, such as ETH, into smart contracts.
When you deposit collateral, you can then mint DAI, a stablecoin that aims to maintain a 1:1 value with the US Dollar.
Think of MKR like "stock" in the company that oversees Dai. It is a governance token that gives tokenholders voting rights in the future of the company.
MKR has done quite well over the past year, returning 153% to investors. Our analysts ran the MKR token through our industry-leading Investor Scorecard to determine if MKR is still worth your investment dollars.
Premium members can download the Maker Investor Scorecard here to learn what our analysts say about the stability of USDP.
Not yet a Premium member? Sign up now to access our complete library of tools to make you a better crypto investor. |
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| Must-Reads This week's most important stories for crypto investors. |
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| (Coin Metrics) - Nine Ethereum ETFs from both traditional and crypto-native firms debuted on July 23rd, providing a new way for ordinary investors to buy ETH without the hassle of opening crypto wallets. Some companies are even temporarily waiving fees. This is a significant milestone for Ethereum, and for crypto: another big step toward going mainstream. |
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| Ethereum ETFs Did $1 Billion in Volume in First Day of Trading (The Defiant) - Ethereum spot ETFs achieved $1 billion in trading volume at launch, compared to the $4.6 billion brought in by bitcoin ETFs on their first day. The impact on ETH price will unfold over time, possibly mirroring bitcoin's initial post-ETF launch dip before its price surge. Over time, it will attract more investor interest into Ethereum, making ETH one of our favorite long-term investments. |
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| Political Pivot On Blockchain (Pantera) - Historically, U.S. regulators have been hostile to blockchain, but this stance is changing, as evidenced by the SEC's recent approval of Ethereum ETFs. The shift in regulatory approach mirrors early U.S. support for the internet, highlighting the potential for blockchain to become a significant asset class. More political support is a pivotal development for crypto. |
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| Binance Half-Year Report 2024 (Binance) - Total crypto market capitalization finished H1 at about US$2.27T, representing a 37.3% growth year-to-date. Ethereum saw a restaking explosion, and incentivized airdrops brought large inflows of capital onto Ethereum L2 chains. Other crypto trends included memecoins, AI tokens, and DePIN projects. In the second half of 2024, the report predicts six key themes, including macro environment, bitcoin ecosystem, ownership economy applications, and RWAs. |
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| (Medium) - Energy competition between bitcoin miners and data centers (such as those powering AI) is a growing concern. While bitcoin miners can shut down during peak demand, data centers cannot. Moreover, data centers' energy use is rising, projected to triple in the US by 2030 and double globally by 2026. The energy-intensive Proof of Work model could mean long-term trouble for bitcoin. |
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Chart of the Week Crypto Lending Activity Picks Up |
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| After a flat period from mid-March through mid-May, lending interest has increased significantly. The total amount in lending protocols is approaching $13 billion, up from $10 billion in May.
Lending can also be particularly profitable, mainly when stablecoins are used as collateral. Current lending rates on USDT and USDC can be over 10% on some platforms.
In the chart above, Aave (AAVE) is the leading lending platform in fees collected, with nearly $400 million in fees over the past 365 days. Second-place contender Aave (AAVE) has seen nearly $300 million in fees collected.
Lending will likely continue gaining more attention as some traders look to leverage their positions. This added demand will also increase fee revenues, increasing lending yields even as staking yields are trending lower.
Smart investors can invest in the leading lending protocols by buying and holding their tokens for the long term. |
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| | | ICYMI In Case You Missed It |
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In case you've missed our recent newsletters, here are links to the July 22 and July 15 newsletters, as well as the most recent BMJ investor content:
Binance has risen to the top. Can it stay there?
How does bitcoin stack up against stocks? The answer in one easy chart.
It’s gambling. And gambling should be regulated. |
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| Bitcoin Market Journal is a daily newsletter that makes you a better crypto investor. It's created by John Hargrave, Steve Walters, Anatol Antonovici, Matthew Du, Daniel Joel, and Preetam Kaushik.
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