KTX.Finance Market Edge 🎢

Summary of Key Crypto Market Developments in Nov 2023

Welcome to KTX.Finance’s Market Edge, a market update where we summarize what’s going on in Crypto Markets and how you should position yourself for the imminent bull market. Let’s dive in.

TLDR 📃

• Tides have started to shift, and market sentiment is rising with over $5B added to the stablecoin market cap in just one month!
• Number go up! Majors have risen in price with some altcoins outperforming!
• BTC and ETH up over 30% in recent weeks!
• Volume on PerpDexes is reaching yearly highs!
• 8% increase in total PerpDex volume in the past month!

Market Resurgence 🔥

The start of November has begun with a bang! Markets have signs of life after months of stagnation and there is plenty to be excited about in the Crypto world right now.

Let’s start off by looking at stablecoin inflows and what that means for the overall market:

But what are stablecoin inflows and why is that important to take note of Well, it’s a good way of measuring if

1. market participants are re-entering the battlefield

or

2. if they’re sitting out and staying sidelined.

This chart from DefiLlama shows how quickly stablecoin TVL (as shown by the blue line) dropped in 2022 and the steady decrease of stablecoin market cap since then as well.

A drop of this magnitude signaled market participants’ bearishness and they were quick to exit Crypto instead of sticking around to scoop up assets at the bottom.

But if you were to zoom in, that market cap for stablecoins is starting to increase slowly but surely. Which indicates that people are beginning to have an appetite for risk again.

We can also put our tinfoil hat on and speculate that this can be attributed to potential institutional money flowing back in as well.

As much of a meme as that has become, with recent filings from Blackrock and Fidelity for BTC and ETH ETFs, it’s becoming more and more likely that this is real.

Bitcoin: The Standard 🟠

Speaking of Bitcoin — we should cover its recent performance since it is usually the market leader, even though for this most recent rally it hasn’t been!

Since the end of September to current local highs, BTC has rallied to the tune of 38%, from 27k to roughly 38k in just a few weeks! That’s the Bitcoin we all know and love.

But what’s been causing this big move?

ETFs. There’s been talk of a BTC ETF for so long but the filing has occurred and it looks likely to happen!

This obviously brings more outside eyes to Crypto which is exactly what we need to really keep the bull market juices flowing.

But outside of that, Crypto ETFs are massively bullish for the space as a whole for a few reasons:

• Gives non-Crypto users exposure to Crypto.
• Gives an avenue for users with higher risk tolerance (ie the Robinhood degens) to want to experiment with Crypto beyond the ETF and drive them on-chain.
• Gives retail investors exposure to crypto without them having to learn wallets, differences in chains, etc.

Bitcoin is starting to reveal why it is considered an alternative to Gold as it has appreciated over 90% relative to Gold this year.

But why does it matter how BTC performs compared to Gold?

Because, Gold is considered a hedge against USD and also considered to be “hard money”.

This is due to the fact that Gold is scarce and generally performs well in inflationary environments.

BTC is starting to be more appreciated for this aspect of its “hard money” status, as it too is finite. People also appreciate the fact that BTC is code and is verifiably scarce.

Gold is also widely traded as it is a considerably liquid market while also having stable (or appreciative) price action, especially when dollars are inflationary.

BTC is also a supremely liquid trading vehicle with a price that (outside of bear markets) appreciates much faster than Gold.

So with the traditional avenue to hedge against USD not performing as well as BTC, what’s to stop normies from seeing the potential there?

Ethereum: The World Computer 💾

Look at that chart by Glassnodes. Let it sink in.

Not only has Bitcoin been outperforming the only other alternative asset that normies care about, but Ethereum has been as well.

ETH has also run about 30% to the upside in recent weeks off of the back of the same narrative, ETFs.

So it isn’t any surprise that we’re seeing the price movement that we are.

Plus ETH is often a better gateway to DeFi than BTC is and there are plenty of reasons for that:

1. ETH gives exposure to a large amount of DeFi applications/verticals like

• Liquid Staking
• Options and Options Vaults
• Interest Rate Products

2. Holding ETH also brings more network effects with it than holding BTC as ETH is essentially a proxy bet on all of DeFi

• When ETH moves, it generally brings along all of DeFi with it so you’re basically holding a hyper performative index token.

3. ETH also gives you a way to participate in DeFi while still getting its persistent staking rewards by way of liquid staking, with various options like:

• Lido’s stETH
• RocketPool’s rETH
• Coinbase’s cbETH

Giving people exposure to ETH via ETFs has the same effects as BTC: making them curious about the asset and encouraging them to explore all that ETH has to offer.

Perp Dexes Showing the Way 🧭

It’s only natural that when markets start to move and prices start to improve, Perp Dexes are among the first to see the volume.

Traders want to trade volatility and since many don’t like the CEX experience, they go on-chain to find a new trading venue.

And that has been seen these past few weeks with the last 3 weeks of trading volume going over $50B in total volume.

Looking at the chart, you can see how volume had been stagnant and then recently, spiking tremendously.

Which could mean that the traders are coming back to trade a market they see as more active and volatile.

This bodes well for the whole sector but also, us at KTX!

In the past week we’ve seen an increase in volume over 110%! Due in no small part to how well Mantle has started off, but also because of how clean our trading experience is.

Mantle’s DeFi Ecosystem has already started ramping up and that’s being reflected in their TVL growth as well as price appreciation of MNT.

In just a month, MNT has risen over 50% while TVL has doubled since October, currently peaking around $75M!

KTX.Finance is still Mantle’s leading PerpDex and we are positioned to grow alongside Mantle so for all the volume and TVL that Mantle attracts, KTX will be here to give the new money a place to trade.

Because of this recent uptick in volume/TVL, and the subsequent volume on KTX, KTC has experienced a consistently high APR being paid out in ETH for stakers.

The more volume that comes running through our platform, the more consistent our real yield APR can be for our KTC stakers!

It’s been floating over 100% APR in ETH for a bit now, so make sure you take advantage of it while it lasts!

And remember all the network effects for ETH we talked about earlier?

Imagine earning over 100% in ETH and then using that ETH in numerous ways to take advantage of all that DeFi has to offer!

Ongoing Campaigns 🏆

We still have plenty of ways to get involved with us at KTX and earn some guaranteed rewards, like our Blindbox Rush!

Our Blindbox Rush is a way to use earned Arcade Points to unlock “Blindboxes” which can be opened to get a variety of rewards like USDT, KTC, or even more Arcade Points!

You can earn Arcade Points by doing various activities like:

• Trading Volume (denominated in USD)
• Amount of KTC staked
• Amount of KLP staked
• Referral Volume (denominated in USD)

So make sure you get to earning those Arcade Points while you’re trading all this volatility in the markets right now!

And keep an eye out for future campaigns coming soon to earn more rewards and prizes!

Wrap Up 🎁

We anticipate volume to continue going up and to the right, as the masses flock back to the volatile landscape that is Crypto.

Make sure you come get a piece of this action over on KTX and take part in our various campaigns we have running! There are guaranteed prizes up for grabs!

Keep an eye out for the potential ETFs on the horizon as that’s sure to bring movement to Crypto and make trading all the more worthwhile.

Stay safe, risk appropriately, and make sure you make use of stop losses when you’re trading on KTX!

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Connect with KTX.Finance to stay updated always!

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