Weekly Market Commentary - DV Chain - March 11, 2024

March 11, 2024

Market Recap

→ We had another extremely strong week of BTC ETF inflows, about $2Bin Net inflows

                                                          (Sounce: Farside Investors)

→ $BTC flipped Silver in market cap

→ Retail Sentiment and interest in Crypto is noticeably improving

  • Crypto Trading volumes exceedthat of the entire stock market in South Korea
  • Elon Musk tweeted about bitcoinwhen it crossed 70k
  • Donald Trump makes constructivecomments about crypto
    • "There has been a lot ofuse of that [bitcoin] and I'm not sure that i would want to take it away atthis point"
  • Crypto tweet volume has beenup-ticking
  • Apps (ie coinbase) moving up inappstore ranking


  • DV’s internal retail flowssurged more than 10x during the dog coin run last week. Most interestingly, wedidn’t see as much of a buying skew as would be expected and saw most retailflows being balanced or even skewed to be selling as DOGE,SHIB,PEPE,WIF surged.
  • We also saw much heavier volume on SHIB than the newer meme coinswhich also contributes to thesis that a lot of retail was selling coins theywere bag holding through the bear market

→ AI and New Gaming coins ($PIXEL +70%, $MAVIA +40%) were the flavorof the week (see last weeks note where we picked AI coins as the next rotationafter memes)


→ $SOL options relisted onDeribit


Upcoming Catalysts / Trade Ideas


→ Basis trading/funding arbitrage

  • Funding and basis trades havecontinued to perform well with CME trading around 20-25% annualized thismorning and the offshore venues upwards of 40% on the dated futures on BTC andETH
  • Down the tail of assets seeingeven higher yields (upwards of 100% APR) via trading perpetual swap basis onthe offshore venues.
  • If you are an ECP and haveinterest in these delta neutral funding strats, please reach out to the deskand we can draw up bespoke forwards to take advantage of these premiums

→ $ETH Dencun Upgrade, 3/13

  • We like ETH L2s and ETH betagoing into the upgrade

→ $ARB $2.2B unlock, 3/16

  • We like this as a short goinginto the unlock, paired with $OP, $ETH, or $MATIC to hedge, however it’s worthnoting that it’s already been getting priced in - as $ARB has been a noticeablelaggard since last week

→ BTC Halvening, 4/17

  • $STX and $ORDI are the twoleading “BTC Ecosystem” Tokens to bet on BTC Beta

→ Nvidia AI conference, 3/18

  • AI tokens pumped hard lastweek, the trade might be ‘’sell the news’’ at this point

 → $LDO (Repost from previous weeks)

  • We think $LDO is poised tooutperform as it should benefit from a re-staking narrative that’s heating upinto the Eigenlayer airdrop
  • Having a whopping $30B in TVL,LDO arguably is the biggest beneficiary from the Uniswap fee switch proposal,but the token didn’t seem to react to the Uniswap news
    • we believe that as the marketdigests the news and if the proposal passes, there’s good odds that a $LDO feeswitch narrative emerges giving it good R/R as a bet

→ $MATIC (Repost from previous weeks)

  • Upcoming token migration to$POL, with a new set of tokenomics
    • $POL staking for airdrops(potentially $Avail?)
  • AggLayer narrative emerging




Should you require limits for any of the cryptocurrencies listed aboveor for any other coins available through DV Chain (for a complete list, see below), pleasefeel free to contact your  DVChain representativeor email



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