Aptos Foundation Announces Airdrop; Azuki Announces New Token Standard Linked To Physical Item

GM Treehouser 🌳

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Our Daily View

What We Are Covering Today

• US stocks closed in green but off intraday highs; UK PM Truss apologized for “mistakes” in tax cut policies; UK CPI releases later today (more in Macro & TradFi)
• Aptos releases tokenomics for APT token and airdrop details (more in DeFi & CeFi)
• Number of exchange deposits for ETH reaches 2-year low (more in On-Chain)
• IV continues to slide; Put skew at levels seen prior Terra-implosion (more in Crypto Derivatives)
• BTC and ETH started to retrace near their previous H4 structural highs as focus turns to the equities market this week (more in Crypto Technical Analysis)

Macro & TradFi

GM! US stocks trimmed gains into close. Risky assets still managed to churn out a green day as sanguine US corporate earnings and UK PM backing out from unfunded tax cuts boosted market sentiment. Goldman Sachs stocks rose 2.73% after delivering a well-received earnings report. A separate Bloomberg survey of 42 economists puts the probability of a recession over the next 12 months at 60%, up from 50% a month earlier. The British CPI Y/Y is set to release before the London session opens later today.

The S&P 500 index jumped 1.64%, while Nasdaq advanced 1.72% and the DJI rose 1.33%. US10Y government bonds inched higher by 2 basis points to 4.04%. Meanwhile, WTI crude oil plummets by over 2.48% to $83.60 a barrel.

DeFi & CeFi

• DeFi TVL up 0.40% over past 24hours
• Aptos Foundation releases summary of tokenomics ahead of exchange listings
• Aptos Foundation confirms airdrop to early network participants
• Lending protocol Moola Market exploited for $8.4 Million
• Azuki volume rockets after announcement of new Physical Backed Token (PBT) standard

Aptos has launched a summary of their network token APT's tokenomics after announcements of exchange listings. The allocation announced by the Aptos foundation is 51.02% to the community, 16.5% to the Foundation, 19% to core contributors, and 13.48% to investors. Investors and core contributors are subject to a 4 year lock-up schedule. They have also announced a 20 million APT airdrop to 110,235 early network participants, particularly users who have completed the application for an Aptos Incentivized testnet or minted an APTOS:ZERO testnet NFT.

Anime inspired NFT project Azuki announced the launch of the PBT token standard, which aims to tie a digital token on the Ethereum blockchain to a physical item. This works through the use of the BEAN chip, a physical cryptographic chip that upon scanning, allows the PBT to be minted or transferred to the owner's wallet. This would allow the current owner of the item to tie it to a digital token in their own wallets for easy authentication and ownership tracking. Azuki trading volume has been up 560% since the release of this information.

On-Chain

For on-chain, the number of exchange deposits for ETH (7d MA) just reached a 2-year low of 473.75 and number of addresses holding 1 or more ETH just reached an ATH of 1,594,752. This indicates that there is an increasing amount of investors accumulating ETH at the current price levels with a possible long-term outlook.

Crypto Derivatives

• Funding rate remains negative for both BTC and ETH perps
• 30-day IV rose slightly for both BTC and ETH to 54.1% and 66.9%, respectively
• 30-day 25d put skew eased for both BTC and ETH to -5.08% and -5.58%, respectively

Total liquidations for futures totaled $64M on Monday, of which $48M were long liquidations.

On the options front, IV continues to fall, with the 30-day IV finally approaching its RV. Term structure for both BTC and ETH remains in contango. The 25d 30-day skew is currently fluctuating around -5%, which is similar to levels seen prior to the Terra-implosion in May. It appears that near-term tail risk has been somewhat priced out of the market. This could be a good opportunity for protection buyers to scoop up some cheap downside protection.

On the flow side, bull call spreads dominated the tape for BTC yesterday. In addition, given the current depressed IV levels, traders are inclined to put on long vol structures, as long straddles were one of the most traded structures yesterday, particularly on ETH. The combination of these two suggests a scenario where prices rip to the upside in a volatile fashion, which could be a possibility should equities stage a fierce rally on more than optimistic earnings and short covering flow over the coming days.

Crypto Technical Analysis

BTC dropped by 1.14% to $19,300 as it was unable to hold its steam during the earnings season. On the H4, price was unable to test its $19.8K previous high, marking yet another lower low on structure. BTC falls under its H4 50 EMA and still remains under its 50 day EMA as it continues to be range bound during the uncertain period in the markets. A break below its $19K support level could send it back to its major support at $18.5K.

ETH inched lower by 0.6% to $1,300. Price has managed to reject its $1,340 precisely since the London session yesterday. Similarly, ETH remains caught in a range between its $1,340 resistance and $1,275 support levels. On the H4, there are no indications of bulls or bears in control as no higher highs have been formed. It is worth noting that on the H1, both assets have currently broken into a bearish structure as sellers have stepped in momentarily until another key liquidity area is tested.

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Daily Readings

TradFi

• Netflix reverses subscriber slump, shares surge 14%

• Biden to lay out plan to complete emergency oil sales, support U.S. production

• Fed may need to push policy rate above 4.75% -Kashkari

• U.S. stocks extend rally, Treasury yields dip after solid earnings, economic data

• U.S. Treasuries post record foreign inflows in August -Treasury data

• BoE to start selling bonds on Nov. 1, but not longer-dated gilts

• BT pensions scheme lost $12 bln in assets after UK 'mini-budget' -annual report

• United Airlines posts strongest earnings in three years

• Apple iPhone maker Foxconn says it wants to make cars for Tesla as it ramps up EV push.

• Asia-Pacific markets inch up after Wall Street gains overnight.

Crypto

• Market Wrap: Crypto Prices Decline Slightly as Trading Volumes Continue to Sag.

• Aptos Token Opens For Trading After Blockchain's Rocky Debut.

• A16z Doesn’t Support Plan to Break Up DeFi Giant MakerDAO.

• Effort to Reverse Bitcoin Fund Rejection Wins Broad Crypto Industry Support.

• Bitcoin Slips as Stocks Rise, Sparking Speculation Over Correlation.

• Crypto Wallet BitKeep Hacked for $1M in BNB Chain, Polygon Tokens.

• Growing Popularity of Cash-Margined Bitcoin Futures Suggests Crypto 'Liquidation Cascades' Might Become Rare.

• New Blockchain Aptos Unveils Controversial Tokenomics, APT Incentive Plans.

• NFT project Azuki launches Physical Backed Token.

• Ethereum launches testnet for Shanghai upgrade: Here’s what is next.

• Food companies secure trademarks to enter metaverse.

• Ethereum solo validators that censor blocks should ‘be tolerated’ — Buterin.

• Avalanche subnets can now let validators stake using the subnet's token

• DeFi lending protocol Moola Market hit by $8.4 million exploit

Deal Flow

• OpenSea Ventures Among Backers for $7M Round for Crypto Security Startup.

• Nischal Shetty's Blockchain Startup Shardeum Raises $18M in Seed Funding.

• Web3 infrastructure firm ChainSafe raises $18.75M as attention shifts to GameFi.

• New Bitcoin-Focused VC Firm Ego Death Capital Raising $30M.

Yours sincerely,
Treehouse Research 🌳

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