Research Summary
The report discusses the performance of the global economy and the crypto market in 2023, highlighting the success of quiet leaders like Coinbase, Tether, and Solana. It also discusses the impact of regulatory changes on the crypto market and the growth of DeFi applications.
Key Takeaways
Quiet Leaders in the Crypto Market
- Strong Performance of Coinbase: The report highlights the success of Coinbase, which continues to lead in exchange volumes, venture capital, and M&A, resulting in a 340% YTD increase in its stock price.
- Tether’s Resilience: Despite being considered a threat to the crypto market and the global economy, Tether has managed to outperform its competitors, with its AUM rising steadily throughout the year.
- Smart Contract Protocols and DeFi Applications: These continue to work as designed with no downtime and few hiccups, contributing to the overall growth of the crypto market.
Regulatory Changes and Their Impact
- Guidance from the Financial Accounting Standard Board (FASB): The FASB issued guidance on how public companies in the U.S. can account for digital assets on their balance sheet, marking Bitcoin at fair market value.
- Impact on Corporate Treasury Departments: While Bitcoin is likely a volatile asset for most corporate treasury departments, it remains a great asset for functional purposes. The report suggests that more companies may start buying Bitcoin for their balance sheets due to the FASB change.
Growth of Solana
- Increasing Activity on Solana: The report notes that growth in the crypto market is largely coming from Solana, driven by airdrops and rewards. This is leading to higher prices and more companies issuing airdrops.
- Different Approach to User Engagement and Growth: Unlike the Ethereum-based rally that focused on TVL as an essential measure, the Solana renaissance is occurring without a lot of wasted capital being parked in the ecosystem. Instead, users are playing games and interacting with products to earn more Solana-ecosystem tokens.
Actionable Insights
- Monitor the Performance of Quiet Leaders: Companies like Coinbase, Tether, and Solana have shown strong performance in the crypto market. Monitoring their strategies and performance could provide insights into successful practices in the crypto market.
- Understand the Impact of Regulatory Changes: The guidance from the FASB has the potential to change how companies account for digital assets. Understanding these changes could help in making informed decisions about investing in digital assets.
- Explore the Growth of Solana: With its different approach to user engagement and growth, Solana is showing significant growth in the crypto market. Exploring its strategies and understanding its growth drivers could provide valuable insights.
