Finance Market Analysis Cryptocurrency Technology
Ethena Labs
Ethena Labs

@ethena_labs

17 tweets 14 reads Sep 23, 2023
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1/ Presenting the 1st edition of our Weekly Research Update with a collection of charts from the last week in markets across derivatives, LSTs and stablecoins
First, a roundup of stablecoin markets:
1/ Presenting the 1st edition of our Weekly Research Update with a collection of charts from the las...
2/ Only 3 weeks in to September, but it looks like a new monthly low in stablecoin volumes on Ethereum in 2023
Largely driven by a substantial drop in USDC and BUSD volumes since earlier this year
USDT and DAI volumes have been most resilient
2/ Only 3 weeks in to September, but it looks like a new monthly low in stablecoin volumes on Ethere...
3/ Total stables market cap fell by almost $1b this week but the rate of decline has begun to slow in recent weeks
BUSD saw a decrease of $532m as it is wound down
The big trend is the fall of onshore regulated stablecoin mkt share declining from c50% to <25% YTD
3/ Total stables market cap fell by almost $1b this week but the rate of decline has begun to slow i...
3/ Total stables market cap fell by almost $1b this week but the rate of decline has begun to slow i...
4/ Looking at % market share of onchain volumes on Ethereum for the big 4 stablecoins above, USDT share has risen from 20% to 33% while USDC fell from 72% at the start of the year to 46%
DAI share of volumes has seen a huge increase among the top 4, rising from 3% to 18%.
4/ Looking at % market share of onchain volumes on Ethereum for the big 4 stablecoins above, USDT sh...
5/ stETH:
Discount remains tight, has barely dipped past 30bps since Shapella - when one of crypto's most important assets was de-risked from a liquidity standpoint
5/ stETH: Discount remains tight, has barely dipped past 30bps since Shapella - when one of crypto'...
6/ Looking at stETH liquidity, TVL in the stETH-ETH Curve pool has dropped substantially over time, largely due to both ETH price effects and the removal of incentives for liquidity providers
TVL stands at $250m today
6/ Looking at stETH liquidity, TVL in the stETH-ETH Curve pool has dropped substantially over time,...
7/ stETH trading volumes on CEXs however are beginning to improve again as stETH begins to slowly form some liquidity offchain
7/ stETH trading volumes on CEXs however are beginning to improve again as stETH begins to slowly fo...
7/ stETH trading volumes on CEXs however are beginning to improve again as stETH begins to slowly fo...
8/ Yields:
USDe yields, i.e stETH yields + ETH funding rates have consistently outpaced 3M U.S Treasuries in 2023
8/ Yields: USDe yields, i.e stETH yields + ETH funding rates have consistently outpaced 3M U.S Trea...
9/ Diving into the stablecoin yields on Aave v2, they remained flat after the weekend following a period of volatile rates over the past week
9/ Diving into the stablecoin yields on Aave v2, they remained flat after the weekend following a pe...
10/ Delta neutral yields on CEXs have shown a downward trend for both BTC and ETH, they also remained on average below the 3M U.S. Treasury rate across the period
10/ Delta neutral yields on CEXs have shown a downward trend for both BTC and ETH, they also remaine...
10/ Delta neutral yields on CEXs have shown a downward trend for both BTC and ETH, they also remaine...
11/ sDAI yields down to 5% from 8% but TVL still growing, indicating demand for DeFi yields is stronger than ever with RWA yielding ~5%
11/ sDAI yields down to 5% from 8% but TVL still growing, indicating demand for DeFi yields is stron...
12/ Binance wrapped staked ETH TVL rose by 60% in last 24hrs and has increased by c$400m this month
WBETH is now the third largest LST
12/ Binance wrapped staked ETH TVL rose by 60% in last 24hrs and has increased by c$400m this month...
13/ Derivatives:
Volume stayed below '21, '22 and '23 averages as price consolidated above $1600
At peak bottom, the ETH derivative volume was sitting at $5b on the weekend only to pick up again on Tuesday
13/ Derivatives: Volume stayed below '21, '22 and '23 averages as price consolidated above $1600 A...
14/ A steady increase in OI over the week indicates heightened activity and commitment from traders taking positions on both sides of the market
In contrast to last week, where shorts dominated, this week presents a more balanced view with traders being divided in their outlook
14/ A steady increase in OI over the week indicates heightened activity and commitment from traders...
15/ A look at open interest per exchange shows us that Bitget saw the biggest uptick in activity on a relative basis
Funding also averaged the most negative on the exchange throughout the last week
15/ A look at open interest per exchange shows us that Bitget saw the biggest uptick in activity on...
15/ A look at open interest per exchange shows us that Bitget saw the biggest uptick in activity on...
16/ An OKX pricing error led to incorrect liquidations
This was reflected in the data as OKX had a disproportionate amount of liquidations relative to other exchanges
For context OKX has about 20% share of ETH open interest but outpaced even Binance in liquidations this week.
16/ An OKX pricing error led to incorrect liquidations This was reflected in the data as OKX had a...
17/ That's all for this week's update
Keep an eye out on our socials over the next few weeks, big things cooking πŸ‘¨β€πŸ³

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