Research Summary
The report provides an overview of the latest developments in the crypto and DeFi space, with a spotlight on HMX, a platform offering up to 1000x leverage on Crypto, Forex, and Commodities. It also covers updates and upgrades in DeFi, key reports and news, on-chain data, macro metrics, and recent exploits and bugs.
Key Takeaways
HMX’s Growth Strategy
- HMX’s Use of Airdrop: HMX received $PYTH from Pyth Network’s retroactive airdrop program and plans to use it to fuel its growth. The initial implementation of $PYTH tokens by HMX will focus on incentivizing the community throughout February, with 500,000 $PYTH or around $250,000 at the current market value.
- Impressive Statistics: Since its Open Beta launch in late June, HMX has achieved ~$12.8 Bn in total trading volume just 4 weeks after hitting the $10Bn milestone, ~$27.5 Mn in TVL, ~5,000 unique users, 100,000+ trades supported, and >$3M of revenue distributed to the users.
DeFi Updates & Upgrades
- Launchpad: Merlin Chain: The report mentions the launch of Merlin Chain, a new DeFi platform.
- Monoswapio: Monoswapio, an AMM DEX with its own stablecoin, is currently live on testnet Blast.
- StarkWare’s Cairo Verifier: StarkWare has unveiled the launch of Cairo Verifier for Layer 3 appchains.
On-Chain Data
- Farcaster Revenue: Farcaster’s revenue hit $600,000 during the protocol’s second wave of attention.
- Bitcoin Demand: Long-term BTC demand flows this year are approximated to be $40-130B.
- EigenLayer’s TVL: EigenLayer hit nearly $6 billion TVL as its uncapped deposits window draws to a close.
Macro Metrics
- AI Mania: The AI mania has led to a divergence between stock prices and underlying fundamentals, creating an opportunity to sell.
- Nvidia’s Market Cap: Nvidia’s market cap is now over $200 billion higher than all of the companies in the S&P 500 Energy sector.
- Food Price Deflation: There are clear signs of a significant deflation in food prices worldwide at the moment.
Actionable Insights
- Monitor HMX’s Growth: Given HMX’s plans to use the $PYTH airdrop to fuel its growth, it would be beneficial to monitor the platform’s progress and community engagement.
- Explore New DeFi Platforms: With the launch of new DeFi platforms like Merlin Chain and Monoswapio, it could be worthwhile to explore these platforms and understand their offerings.
- Assess Impact of On-Chain Data: The on-chain data provided in the report, such as Farcaster’s revenue and Bitcoin’s demand, can be used to assess the current state and potential future trends in the crypto market.
- Consider Macro Metrics: The macro metrics, such as the divergence between stock prices and underlying fundamentals due to AI mania, can provide valuable insights into broader market trends and potential investment strategies.
