Hyped NFT Project, Art Gobblers, Hit 13 ETH Floor Price on Debut; pSTAKE launches $stkATOM; Equities Rally Come to a Halt Ahead of FOMC

GM Treehouser 🌳

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Our Daily View

What We Are Covering Today

• US job openings rose in September as the labor market remains tight (more in Macro & TradFi)
• Art Gobblers, created by ‘Rick and Morty’ co-creator and Paradigm, floor price skyrockets to 13 ETH on first day of debut; pSTAKE launches $stkATOM on Persistence Core-1 chain (more in DeFi & CeFi)
• BTC Miner’s face short term relief as fee revenues increase (more in On-Chain)
• Term structure flipped into backwardation as front-end IV spiked (more in Crypto Derivatives)
• BTC and ETH stay relatively flat as traders and sinvestors await FOMC (more in Crypto Technical Analysis)

Macro & TradFi

On Tuesday China said it was reviewing its lockdown measures and could reopen for business by spring of 2023. The announcement by the large importer sent oil and copper futures up roughly 2% and 3% respectively. Yesterday, US JOLTs Job openings increased to 10.7m against forecasts of 10m. The manufacturing sector in the US showed strength as ISM PMI came in just. Notch above consensus, 50.2 vs 50. In China, Caixin Manufacturing PMI also showed strength coming in at 49.2 vs a 49 forecast.

Strong data sent markets retreating from highs yesterday during US trading hours. The Dow fell 0.24%, the Nasdaq down 0.89% and the S&P 500 down 0.41%. 10Y treasury yields whipsawed, losing 9.7bps before holding ground at 4.045% again. WTI rose 3.67% after falling on Monday, it now sits at $87.

DeFi & CeFi

• DeFi TVL fell -0.14%; Ethereum TVL dipped -0.18%
• Gamestop NFT marketplace goes live on ImmutableX
• Cosmos-based liquid staking protocol Stride launches $stOSMO
• Cosmos Ecosystem Launchpad Eclipse Pad to Conduct Airdrop for $INJ Stakers
• Art Gobbler NFT floor price skyrocketed to 13 ETH on first day of launch
• Layer-2 scaling solution Boba Network integrates with BNB Chain
• Liquid staking protocol pSTAKE to launch $stkATOM on Persistence Core-1 chain

Art Gobblers is an NFT project by Justin Roiland, co-creator of Rick and Morty, in partnership with crypto investment firm Paradigm. The NFT project released the first 1,700 NFTs on November 1st to whitelisted users through a free mint, and plans to release the remaining 8,300 NFTs in the next 10 years through the project’s unique minting mechanism. The floor price currently sits at 13 ETH, and has already garnered more than $11M in trading volume on its first day of debut on OpenSea.

Elsewhere, Liquid staking protocol pSTAKE announced that it will launch $stkATOM on the Persistence Core-1 chain to provide a Cosmos-native $ATOM liquid staking solution. Users will be able to stake $ATOM and mint $stkATOM on the Persistence Core-1 chain.

On-Chain

The BTC Amount of Supply Last Active 1y-2y (1d MA) just reached a 3-year high of 4,053,088.438 BTC. Additionally, BTC's Percent Miner Revenue from Fees (7d MA) just reached a 1-month high of 2.120% as hash rates pick up.

Crypto Derivatives

• Funding rate remained positive for both BTC and ETH perps
• 30-day IV increased slightly for BTC and ETH to 54% and 79.7% respectively
• 30-day 25d put skew increased in magnitude for BTC and ETH to -1.65% and -0.12% respectively

For futures, total liquidations yesterday amounted to $80.68M, of which 51.29% were long liquidations.

On the options front, IV rose heavily on the front-end of the curve for BTC and ETH as traders bid up event vol ahead of FOMC. As a result, term structure has flipped into backwardation for BTC and ETH. On the flow side, flows leaned bearish as the dominant strategies for BTC were the short strangle and bull call spread. ETH saw mixed flows as the long call butterfly and bear call spread were heavily traded.

Crypto Technical Analysis

BTC went down by only 0.05%, closing flat at $20,480. On the H4, BTC fell yesterday during Asian hours, but found support again at key support turn resistance level of $20,228. If BTC breaks below this range, the next possible support level to look at would be $20K while a breakout of the $20,842 level could lead to a retest of the $21,050 resistance.

Daily Readings

TradFi

• Analysis: With Fed in view, dollar rally dented but not quite done, investors say

• Factory output weakens on widespread slowdown, China COVID curbs

• China property slump persists in October with falling prices, sales as COVID bites

• ECB must keep raising rates even if recession risks rise, Lagarde says

• South Korea Oct exports post worst fall in 26 months, deficit widens

• Australia central bank sticks with slower rate hikes, raises inflation forecast

• China's Oct factory activity shrinks as COVID curbs hit output, demand - Caixin PMI

• UK still faces 40 billion pound budget hole - Resolution Foundation

• Bank Negara Malaysia set to hike for fourth time in a row on Nov. 3 - Reuters poll

• Japan Oct factory growth hits 21-month low as China conditions worsen -PMI

• The Fed is expected to raise rates by three-quarters of a point and signal it could slow the pace.

• Jim Cramer says these 8 stocks can withstand the Fed’s tightening cycle.

• Stock futures are flat ahead of key Fed policy decision.

• Amazon sell-off pushes market cap below $1 trillion for first time since April 2020.

• Snap, Meta shares pop after FCC commissioner says U.S. should ban TikTok.

Crypto

• FTX exec revealed as big donor to Oregon Democrats following misidentification.

• Lightning Network releases emergency update after critical bug on LND nodes.

• 38% of US voters will consider candidates’ position on crypto in midterms: Survey.

• Moneygram to enable users to buy, sell and hold cryptocurrency via mobile app.

• MakerDAO co-founder Nikolai Mushegian dies at 29 in Puerto Rico.

• Chinese central bank exec says digital yuan will offer ‘controllable anonymity’.

• South Korean regulators aim to toughen crypto fraud punishments.

• Twitter monetization and free speech drove Binance’s $500M injection: CZ.

• Nifty News: GameStop NFT market goes live, Hong Kong’s NFT concept and more.

• Huobi Global denies ‘large-scale layoffs’ and key exec resignations.

• Steph Curry files trademark for the Curryverse, where players earn NFTs.

• Ripple’s allies expand: Coinbase files amicus brief in fight against SEC.

Deal Flow

• Web3 VC firm CoinFund eyes $250 million for seed investments

• Nomura unit invests in Orderly Network's token round at $200 million valuation

• Coinbase Ventures participates in $4.2 million funding round for NiftyApes

Yours sincerely,
Treehouse Research 🌳

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