1. Cryptocurrency Market Cap Recap
As of today, 9/28/2020, the global cryptocurrency market cap is around US$350B, where $200B of that value was added since March 2020. There’s no doubt that crypto markets and traditional markets are tightly linked, so keep that in mind when tailoring your portfolio to prepare for important global events (November 2020 ??). Also note, $350B is an incredible and encouraging figure for a space that I still consider in its infancy, where successful proof-of-concept use-cases are only just starting to pop up.
Comparison of S&P (top) to Global Crypto Market (bottom) since March of 2020.
2. DeFi Recap
The Decentralized Finance (DeFi) market cap has exploded to $14.5B with around $11B of that figure locked away within smart contracts. 20% of this locked currency is on the Uniswap decentralized exchange — or DEX. This explosion has occurred mostly over the last several months, with a doubling in the last month. Due to the massive DeFi explosion (of which the vast majority is “plugged-in” to the Ethereum blockchain) has caused ETH transaction fees to explode as well, meaning expenses for propagating standard Ethereum transactions spiked to all time highs (e.g. $30 for activating transactions that would normally cost $2–5). DeFi is an addictive use case for crypto networks (especially Ethereum), and the greater global world of finance as traditional strategies begin to get explored on cryptocurrencies.
3. Recommendations
I definitely recommend exploring DeFi, keeping in mind the risks and potential rewards of things like yield farming and being a provider in liquidity pools. Currencies like ETH, BTC (see wBTC), and USDT have very powerful use-cases and are extremely widespread right now, so there is less worry that these currencies will plummet to zero anytime soon. I am personally interested in stocking up and holding onto Ether, as ETH 2.0 is on the horizon and I expect a sharp price spike as phase 0 starts roll out in November 2020 (or the start of 2021 if they continue to be behind schedule).
Thanks for reading and stay safe!
Twitter: @DanKazenoff
*P.S. Statements shared above are just my personal opinion, so be sure to always do your own research first before making any financial decisions!
