Weekly Market Commentary - DV Chain - April 22, 2024

April 22, 2024

Welcome back to DV Chain's Weekly Market Commentary! In this edition we'll explore last week's sell off, the halving, as well as upcoming catalysts & trade ideas. Let's dive right in:

Market Recap

  • Risk assets continued to sell off last week
    • NDX ended the week 6% lower, and now only up about 3% YTD
  • Crypto was choppy with upward drift over the past week, with alts leading the way
    • Strong move relative to equities
    • No significant net changes in open interest
    • Seems likely that a local bottom is in after the war headlines of last weekend sparked the largest deleveraging period of this cycle, absent of further macro deterioration
  • Bitcoin had its ‘Halving’ over the weekend on 4/20
    • ETHBTC has been trading up since the halving, suggesting that traders positioned for the event are unwinding

  • Net ETF Flows were slightly negative last week

  • $MERL (Merlin) opened up for trading on Bybit and OKX
    • Currently trading around $1 implying 2.1B FDV and ~200mm MCAP
    • The leading BTC L2 in TVL, sitting just above Polygon and Optimism
  • It’s a potentially interesting trade since:
    • it’s a potential category leader in the promising new category of BTC ecosystem tokens
    • it listed during the market selloff
    • the valuation seems reasonable compared to some other recent new listings

Upcoming Catalysts / Trade Ideas

  • SUI Unlocks, 5/3
  • SUI has unlocks coming up this May/June, one of the largest cliff unlocks this year
  • while alts are well off the highs and it doesn’t seem like a great time to be net short alts, SUI seems like a good hedge leg as investors look to lock in some profits

  • $CRO, 4/29
    • App is launching in South Korea
    • South Korea is one of the biggest crypto markets in the world, and if is able to gain some traction there, it’ll be a material development for the company

  • $ETH, 5/23
    • ETF Deadline
  • Eigen token launch, widely expected to be soon
    • mainnet is live
  • $LDO
    • We think $LDO is poised to outperform as it should benefit from a re-staking narrative that’s heating up into the Eigenlayer airdrop
    • Having a whopping $30B in TVL, LDO is one of the biggest and fundamentally strong Defi Protocols that exists, and has a first mover advantage in the liquid staking space


➡️ Should you require limits for any of the cryptocurrencies listed above or any other coins available through DV Chain (see full list below), please contact your DV Chain representative or email



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