Yesterday in Crypto - Issue #24

Read time: ~8 minutes

Coinbase, the top exchange in the U.S. crypto scene, just scored a big win by getting the thumbs up to offer crypto futures to everyday people in the U.S. This approval came from the National Futures Association. This is a pretty big deal for Coinbase, especially since they've had some back-and-forths with the U.S. Securities and Exchange Commission recently.

With this green light, Coinbase is rubbing shoulders with some of the big traditional finance players. Places like the Chicago Mercantile Exchange and the Chicago Board Options Exchange already offer Bitcoin and Ether futures in the U.S. And let's be real, the global market for crypto derivatives is huge, making up about three-quarters of all trades and being worth close to $3 trillion. So, Coinbase diving into this space is a smart move to grab a slice of that pie.

While we're still waiting to hear when exactly Coinbase will roll out these futures to the public, it's clear they're pushing to offer more to their users. And even though their stock took a tiny hit after the news, it's been on a pretty impressive climb, shooting up 130% YTD.

Shiba Inu's much-anticipated layer 2 network (Ethereum scaling solution) Shibarium, has encountered some turbulence shortly after its launch.

However, the launch hasn't been without its challenges. Shortly after going live, users reported issues with the Shibarium network, particularly with bridging tokens between different networks. Blockchain data indicated that transactions on Shibarium were stalled for several hours. During this period, users transferred assets, including 954 ether (ETH) valued at $1.7 million and bone (BONE) tokens worth $750,000, to the network's contract. Despite these challenges, the Shibarium developer team responded by stating that the issues were not related to the bridge but were due to a sudden surge in transaction volume.

For those new to the crypto world, "bridging" refers to the process of transferring tokens between different blockchains. It's a crucial tool in the decentralized ecosystem but can be vulnerable to issues.

The Shibarium network aims to move Shiba Inu away from its meme coin reputation, positioning it as a serious blockchain project. Despite the initial hiccups, the network's vision is to provide a cost-effective platform for applications, especially in the metaverse and gaming sectors.

• What is Sommelier?

  • A next-generation financial advisor tailored for the decentralized finance (DeFi) world.

  • Helps users navigate crypto trading and maximize returns.

• How does it work?

  • Users deposit digital assets into secure vaults.

  • Advanced smart contracts manage these assets.

  • Strategies are crafted by expert "strategists" on trusted platforms.

  • Aim is to position assets for optimal yields.

  • Sommelier strategy possibilities are endless - right now, the main vaults are ETH, BTC, USDC, and FRAX.

• Community Involvement:

  • Sommelier believes in the power of its community.

  • Through its native token, SOMM, users can:

    • Propose ideas.

    • Vote on platform decisions.

    • Earn staking rewards

  • This ensures the platform evolves with user needs.

Here’s a preview of the Somm platform:

Strategies

RealYield ETH

I personally DO NOT use the SOMM vaults - but I like the project and own some of the native token, SOMM.

Here’s why I’m bullish on SOMM.

1. Interoperability

   1. Sommelier is a Cosmos Chain, making it interoperable with dozens of other blockchains

   2. Strategies can be implemented all over - I like projects that can spread and capture AUM from the entire cryptoverse. More strategies and chains = more users and AUM = More demand for the SOMM token.

2. TVL vs Market CapSommelier has ~26.7m locked on its platform - with a SOMM market cap of 33.67m - a ratio of 0.79.The TVL/MC ratio helps gauge whether a project's market valuation (reflected in its MC) aligns with its actual utility and usage (reflected in its TVL). It's a tool to help differentiate between projects that are genuinely providing value versus those that might be more hype-driven.I like Somm’s ratio and expect it to climb towards 1.0 and beyond as more users look for yield on their assets.

3. Fundraising:

Somm has raised money from venture capital firms - here is the fundraising

A high ratio of funds raised to MC might suggest that a project is an "undervalued" or "hidden gem" in the market. It’s market cap may not have caught up yet.

Somm has raised 27.5m. The market cap, as discussed, is 33.67m. They have raised almost the same amount that the project is currently worth - a ratio of .82Where else can you find opportunities to enter at close to the same level as the venture capital firms?

Nowhere. Only in Crypto.

That’s all for today. We’ll see you tomorrow.

“The signal is monetary expansion everywhere. The problem is people are going to lose half their wealth in a few years. The solution is Bitocin”

– Michael Saylor - Founder, Microstrategy