/1 Over the past week Crypto volatility has significantly increased to the downside.
Price volatility brings on the crashing TVL charts, which fail to capture what's really going on.
Here's a breakdown of what's occurring within $OSMO over the last week. 🧵👇
Price volatility brings on the crashing TVL charts, which fail to capture what's really going on.
Here's a breakdown of what's occurring within $OSMO over the last week. 🧵👇
/2 A simply chart of Osmosis TVL from November indicates price volatility.
A 26.51% decrease since November and a drop of 31% since the peak.
This number does not tell the full story let's dig deeper.
A 26.51% decrease since November and a drop of 31% since the peak.
This number does not tell the full story let's dig deeper.
/3 Volume has remained steady over the last week, generating around $15M in trading volume.
When compared to the prior weeks which were anomalies, trading volumes have ranged between $7M to $25M per day.
What about fees?
When compared to the prior weeks which were anomalies, trading volumes have ranged between $7M to $25M per day.
What about fees?
/4 I included the fees on along with volume to establish the correlation days with increased volatility can have on Osmosis.
$OSMO fees over 7 days averaged around $31.9K
Volatility has increased the average fees generated.
But where are the fees coming from?
$OSMO fees over 7 days averaged around $31.9K
Volatility has increased the average fees generated.
But where are the fees coming from?
/5 Looking at the pool volumes over the last 7 days can give you an indication of where liquidity providers are collecting the bulk of their fees.
$USDC/ $OSMO is the gateway pool as it has the largest volume to liquidity.
2nd $ATOM and 3rd $EVMOS
Let's dig deeper!
$USDC/ $OSMO is the gateway pool as it has the largest volume to liquidity.
2nd $ATOM and 3rd $EVMOS
Let's dig deeper!
/6 Over the last week the number of $USDC dropped -5.40%
-More people bought USDC than sold
Fees over time generated under high volatility reached $40K in a single day then returning to a base.
This exemplifies how critical stable coin liquidity is to Osmosis.
-More people bought USDC than sold
Fees over time generated under high volatility reached $40K in a single day then returning to a base.
This exemplifies how critical stable coin liquidity is to Osmosis.
/7 Similar activity can be witnessed by the $ATOM pool.
This a sharp contrast to the $USDC pool which was more reactive to volume spikes caused by price volatility.
Users were less keen to "buy" the dip here.
This a sharp contrast to the $USDC pool which was more reactive to volume spikes caused by price volatility.
Users were less keen to "buy" the dip here.
/8 It's easier to look at the flow of token liquidity by rank.
You can get an idea of what users were buying and selling $OSMO for.
With the biggest trades occurring in:
$USDC
$DAI
$ETH
$BTC
Bridged liquidity has been KEY to Osmosis's Growth
You can get an idea of what users were buying and selling $OSMO for.
With the biggest trades occurring in:
$USDC
$DAI
$ETH
$BTC
Bridged liquidity has been KEY to Osmosis's Growth
/9 I would encourage you to seek out this information for yourself and steer from solely using TVL as a metric to understand a protocol.
Sources:
- @tokenterminal
- @DefiLlama
- info.osmosis.zone
- hathornodes.com
Sources:
- @tokenterminal
- @DefiLlama
- info.osmosis.zone
- hathornodes.com
/10 Thank you for reading!
I hope you've found this thread helpful.
Follow me @Flowslikeosmo for more.
Be sure to show your support by Liking + RT the first tweet below 👇
I hope you've found this thread helpful.
Follow me @Flowslikeosmo for more.
Be sure to show your support by Liking + RT the first tweet below 👇
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