1. Summary of industry trends
Industry News
Last week, the crypto market fluctuated sideways and trading volume shrank. The current daily spot trading volume of the exchange is less than 10 Billion USD, a 70% drop from the beginning of the year, and market activity has dropped to freezing point. Bitcoin's intraday fluctuations did not exceed 5%. As of writing, Bitcoin closed at 16796.95, an increase of 0.35% during the week, with an amplitude of 4.81%; Ethereum closed at 1210.58, an increase of 2.33% during the week, with an amplitude of 7.39%.
It is the last word to keep building in a bear market. Layer 2 in the infra sector, currently the most favored by capital, made new progress last week. The first is that Optimism is testing the functions of its infrastructure Bedrock and will migrate the test network on 1/12. Bedrock is a Rollup architecture that reuses Ethereum code, infrastructure and design patterns on a large scale. As a "clone" of Ethereum, it can Like EVM, it is well compatible with the Ethereum ecosystem, and provides advantages such as reducing transaction fees and increasing throughput. At the same time, the star L2 project StarkNet also started to officially deploy contracts this week, and the airdrop of its token STRK should be carried out soon. The current team has already conducted multiple small-amount transfer tests on Ethereum.
Last Wednesday, U.S. time, SBF returned to the United States and was detained by the FBI after accepting the terms of extradition. On Friday, a New York judge approved a bail of up to 250 million U.S. dollars. This bail also set a record for the highest amount of bail in the history of the United States. Pre-bail. SBF's deposit is in the form of a guarantee (Recognizance), which will be guaranteed by four guarantors. At least one of the guarantors needs to be not a family member of SBF. Currently, only his parents have signed the guarantor. SBF's court date is January 3, 2023. If he can appear in court on time, the guarantor will be exempted from paying the bail. If there are any violations during SBF or failure to appear in court on time, the guarantor will be saddled with this huge bill. Currently, SBF has returned to his parents' home in California and will be banned here. There are also other prohibitions such as wearing electronic monitoring bracelets, limiting consumption and attending events.
Looking back at the U.S. stock market, last week was the last week before the Christmas holiday. The legendary Santa Claus rally did not appear this year. Judging from historical records, in the last few trading days before the end of the year, U.S. stocks are always likely to perform strongly. , this pattern also has a performance of nearly 6% in 2021. However, this trend did not last last week. The Nasdaq reached a low of 10313 during the week, reaching the lower track of the rectangular consolidation. Overall, the performance was relatively weak, and the market lacked momentum to rise. It was announced last Friday that the U.S. PCE price index increased by 5.5% year-on-year in November, which was the same as expected and lower than the previous value of 6%. It was the fifth consecutive month of slowdown, while the core PCE increased by 4.7% year-on-year in November, slightly higher than expected. of 4.6%, a slowdown from the previous reading of 5.0%, and lower than the 4.8% forecast by the Federal Reserve in December. For PCE, Fed officials expect core PCE to fall to 3.5% by the end of next year, so the Fed is expected to continue raising rates until inflation drops to a satisfactory level. This week is the last trading week of the year. It coincides with the Christmas holiday and New Year's Day. There are only four days of trading in U.S. stocks. As expected, there will be no new lows. The market will face the market in 2023 at the lows of the year.
Industry data
1) Public chain&TVL
As of December 25, the overall lock-up volume of each public chain in US dollars has not changed much, falling to 39.4 B from 39.73 B last week.
The TVL of various public chains fell to varying degrees this week, and the rankings did not change much. Among them, Tron’s TVL dropped relatively significantly.
Tron’s TVL fell this week mainly due to the decline in the deposit size of the lending agreement JustLend. On-chain data shows that Justin Sun withdrew 200 million USDT from JustLend on December 25, of which 2 million USDT was used to purchase USDD on SunSwap, and the remaining 198 million USDT was transferred to the Binance hot wallet.
Justin Sun tweeted that the deal was a "Christmas gift."
However, since the FTX incident, the algorithmic stablecoin USDD issued by Tron has been unanchored (Alemeda was one of the early whitelist issuers). Due to insufficient actual stablecoin reserves of USDD, the market is worried that USDD and TRX will experience a death spiral similar to LUNA-UST. This concern has also led to the recent decline in Tron’s TVL.
2) Stablecoin
As of December 24, the total supply of the top four stablecoins (USDT, USDC, BUSD, DAI) was approximately 133.831 billion, which was once again significantly reduced by approximately 1.421 billion (-1.05%) from 135.252 billion a week ago. The supply of stablecoins has fallen for six consecutive weeks, and funds have continued to flow out. The decline accelerated again this week.
Among the three major legal stablecoins this week, the supply of USDT increased slightly this week by about 196 million pieces, and the rebound momentum continued; after the supply of USDC increased by 2.2 billion last week, the supply decreased by about 752 million pieces this week. After a massive outflow of 3.6 billion last week, BUSD’s downward trend has slowed down this week, with a decrease of approximately 876 million coins. The supply of both USDC and BUSD has decreased. It is speculated that last week it may be due to the influence of Binance FUD. Users chose to convert a large amount of BUSD into USDC for withdrawal, and this week these funds began to be exchanged for legal currency and flowed out.
DAI, which is leveraged by ETH, has ended its short-term upward momentum and has not changed much this week. Corresponding to the convergence trend of market fluctuations, funds on the market are not enthusiastic about doing long.
Overall, the market liquidity shortage has intensified. Affected by negative events on exchanges, a large number of funds have chosen to withdraw from the crypto market. The market is expected to remain volatile in the future until confidence is re-established or macro liquidity improves.
2. Macro and technical analysis
From a macro level, the market is facing the suppression of risk appetite due to high interest rates in the coming year, resulting in general market liquidity. At the same time, the market is still suffering from the negative aftershocks of FTX and Binance exchanges, making it difficult for short-term market preferences to rise.
At present, the overall trend of BTC is weaker than that of ETH
The two-year U.S. Treasury note moved to 4.33
Nasdaq will most likely test its previous low
Ahr 999: 0.32, you can make fixed investment
MVRV: 0.844, the same cost performance as Ahr 999
Number of BTC addresses: The number of addresses holding more than 100 coins has begun to gradually slow down.
Number of ETH currency holding addresses: The number of addresses holding more than 100 currency is also beginning to slow down
3. Summary of investment and financing situations
Investment and Financing Review
During the reporting period, the financing scale and number of projects were sluggish, with only 8 financing projects disclosed, with a total financing amount of US$30.2 million;
During the reporting period, there was no project with a financing size exceeding US$1,000.
Institutional dynamics
4. Encrypted ecological tracking
1. NFTs & Metaverse
(1) This week’s NFT market
Market overview: This week, the NFT blue chip index has increased slightly compared to last week. As of December 23, the market has generally recovered, but the NFT market is still at the freezing point of a bear market. The NFT blue chip index has increased in the middle of the week. , overall, but there has been no significant change, and the market is still in the recovery period.
This week, the total market value of the NFT market had a significant increase before Christmas, rising by 5.9%. The total transaction volume has declined slightly compared to last week's 95% increase, but it has remained at a relatively stable position. The steady increase in total market trading volume also shows that the nft market has shown some signs of recovery.
The holders of the NFT market have not changed much this week. The activity of traders has increased to a certain extent compared with last week (+8.66%). The number of buyers has increased by 9.58% compared with last week, and the number of sellers has increased by 9.44% year-on-year. Overall, , the market's performance this week is still good.
The top three NFTs by market transaction volume this week are BAYC, BAKC, and MAYC, all of which are owned by the Boring Ape family.
The BAKC series of NFTs restarts with a 2.5% royalty rate. The floor price of BAKC series NFT has increased by approximately 42.2% in the past three days, and the current floor price of this series on OpenSea is 8.7 ETH. The floor price of BAYC has not changed much at present and remains around 67 ETH.
(2) This week’s dynamic focus:
a. Jellyfish NFT - Aquarium de Paris Paris Aquarium NFT
The Aquarium of Paris (the oldest aquarium) and the Metaverse Metaseum have teamed up to launch a series of NFTs based on real jellyfish in the aquarium. Not only does the Paris Aquarium have the second largest collection of jellyfish in the world, the NFT series it launched is also the first NFT project based on science and marine life, with a total of 1,234 issued, and the issuance price is approximately 0.18-0.2 ETH.
NFT design:
This jellyfish collection contains 60 random combinations created from 3D jellyfish models. Each one is presented as an animated image and paired with 24 unique ocean backgrounds. The most important thing is that the characteristics of each NFT are 1: 1 replica of the real jellyfish in the aquarium. Each jellyfish’s NFT design has also been verified by local marine biologists. The marine biology team has verified the Latin name, morphology, tentacles, family, danger index, geographical location and age of the jellyfish in the collection. Since the characteristics of the jellyfish will be permanently stored on the blockchain, this also makes the Paris Aquarium the first collection in history to use metadata to classify the scientific characteristics of organisms as NFTs. This marks a new combination of biology and technology.
Owner's rights:
Unlimited free admission to the aquarium and discounts on in-store merchandise;
Free admission to future aquarium events (private dinners, social receptions, etc.);
Collectors can also unlock invitations to VIP events, access exclusive science content, and connect with the aquarium’s biologists, such as Meet the Biologists.
Collectors will also be invited to participate in the metaverse space that the aquarium will build in the future and enjoy future additional benefits.
NFT holders also have the opportunity to actively participate in the management of the aquarium.
The project also hopes to take this opportunity to build a Web3 community composed of ocean world, Web3 and art enthusiasts.
b. Football Ape Fan Club Legend Football NFT Series
Football Ape Fan Club (FAFC) is a collection of NFTs on the Ethereum blockchain inspired by legendary football players from around the world. The series aims to create a sports metaverse. In addition, FAFC holders will receive free whitelists of four sports-related NFT projects that will be launched later within one year, and will have the opportunity to claim short positions for the four projects. These projects include Baby FAFC, Mutant FAFC, NFL NFT, and NBA NFT.
How to get FAFC NFT?
The minting process was carried out in four stages, with a total of 7910 FAFC issued to pay tribute to the iconic football player, with the numbers 7, 9 and 10 being the legendary player's numbers and the rarest. Each stage has different quantities and different prices for NFTs.
The first phase launches 2,500 FAFC NFTs at 0.04 ETH each.
The second phase launches an additional 2,500 FAFC NFTs at 0.06 ETH each.
The third phase launches 955 FAFC NFTs at 0.08 ETH each.
The fourth phase launches 955 FAFC NFTs at 0.1 ETH each.
The Football Ape Fan Club project is similar to many of the recent crazy rising projects. With the help of the popularity of the World Cup, it wants to make more people interested in football and sports do some impulse consumption related to NFT. FAFC also hopes to create a sports original universe and use it as an interface to provide various sports-related NFT projects. It also provides users with the opportunity to participate in and collect sports-related NFT works. However, the World Cup has ended. Whether such projects can continue to develop healthily and continue to provide rights and interests to the community remains to be further observed.
(3) Key projects: Invisible Friends
Project Introduction:
Invisible Friends is a collection of 5,000 randomly generated animated images featuring invisible characters, differentiated by backgrounds, accessories, eyes, limbs, clothing, and more. It's perfect for streetwear enthusiasts and fashion-conscious users. Each NFT presents a continuous walking action in animated GIF format. The design team of the project also mentioned that each NFT requires about 40 pictures, with more rare ones. The animation series has a strong narrative and is lively and interesting, and the character modeling makes the characters more vital. It also reflects the hard work invested by the project team.
This year, the floor price of Invisible Friends soared to 12 ETH on the day it opened on February 23, a 43-fold increase when it went online, and it directly reached the blue-chip level. The current market value of the project has exceeded US$50 million, and the total transaction volume has exceeded US$70 million.
Some of the most traded pieces in this NFT series include Invisible Friends#1125(200 ETH), which features a crime scene. The white lines and accessories such as the wraparound tape are unique features of the series.
The highest-priced Invisible Friends, "Golden Friends", was sold for 496.69 ETH, setting a record for the highest transaction in the series. The proceeds from the auction were donated to the RCC Charitable Fund. The winner of the auction also received five undisclosed Invisible Friends NFTs.
Whitelist contention:
The whitelist “fight” for Invisible Friends is fierce. Before the project was released, the number of active users in the Discord server exceeded 500k, and the number of Twitter followers was close to 300k. It is very difficult to get a whitelist for this project.
Half of the 5,000 NFTs are reserved for holders of previous NFT collections by the RCC project team, projects like SlimHoods and MoodRollers; the other half is distributed to early supporters and active community members. In order to get the whitelist, many community members not only completed every task in the community, some members also designed many derivative products for the project, and even made a first-person game called "invisible friends".
Why is Invisible Friends successful?
Strong team, outstanding work
First of all, Markus Magnusson is well-known and has more than 210,000 fans on Instagram. He has cooperated with Google, YouTube, etc. The animations he produced before are both creative, infectious and spiritual. The two projects of the team behind RCC, Slim Hoods and Mood Rollers, are quite popular, with transaction volumes on OpenSea exceeding 9,000 ETH each.
SlimHoods is a collection of 5,000 character animation NFTs wearing hoodies, headscarves or hats. The current floor price is 0.7 ETH.
MoodRollers are 5,000 continuously rolling characters designed based on rollers on different metal sheets.
Marketing strategy works
The whitelist distribution method is also fair and has a wider spread. Every competition launched by the project team is very popular. In addition, the spread on Instagram and TikTok is very popular (15 million times).
Invite big names to cooperate: The famous American rapper Snoop Dogg bought Invisible Friends#4963for 5.9 ETH and released a music NFT with#4963as the background on Twitter, with a total of 500 pieces limited.
NBA star Kyrie Irving also spent 8.5 ETH to buy Invisible Friends#4818and join the Invisible Friends family.
Future rights and interests: Invisible Friends has announced a cooperation with Kith, they will not only launch a new nft. The holder will also receive a physical version of the suit worn by the corresponding invisible man. Try to create a connection between entities and nft.
The RCC team will also launch a series of invisible man 3D toys, which will reproduce 5,000 online nft works in physical form at a 1:1 ratio.
2. GameFi chain game
Petroleum is a Gamefi project running on Arbitrum. Players can purchase land, mine, refine oil, purchase other concessions, and guess future oil prices in the game.
As of writing, 1,800 game players have been accumulated, and a total of 2,231 plots and 1,279 oil pumps have been developed.
How to play:
land:
The land type determines the potential income that may be obtained. There are currently four land types: Desert, Mountain, Island, and Lava. Their respective game parameters are as follows:
Oil pump:
Players must purchase an oil pump to play the game. The oil pump itself has durability. When the durability is exhausted, the player needs to spend money to repair it, otherwise it will no longer produce oil. The oil pump will also become clogged after the output reaches the upper limit. If the oil is not collected in time, will result in a subsequent decrease in production. There are currently three types of oil pumps: Wellhead, Oil pump, and Golden oil pump. Their respective game parameters are as follows:
tower
Increase oil production by 5%. Only one can be built per land.
tank truck
Store the mined oil to purchase more in-game items, enriching the experience and increasing later profits.
refinery
The originally mined Coil cannot be used for circulation and exchange for legal currency. It must be converted into OIL through the refinery before it can be circulated and traded.
Token Economics:
There are two main token modes in the game - $oil and $Coil. Their functions are as follows:
In short, both can be used as in-game currencies for purchasing props. The only difference is that COIL needs to be refined into OIL before it can be traded and exchanged for legal currency.
$OIL tokens will start with an initial supply of 920,000, and the distribution will be composed as follows:
The initial supply of $COIL is 1 million, with 95% sold in the presale and 5% used for airdrops.
The price trend of $OIL/DAI is as follows:
Summary evaluation:
The game itself has limited playability, and the playing experience is somewhat similar to the early QQ Farm, but the props inside the game are far less rich than the former. Compared with other Gamifi, the game entry threshold options are diverse and can adapt to the participation of players with different profit expectations. What’s important is that Petroleum’s early investment return rate is relatively appropriate, and the token consumption scenarios in the game are diverse, so that the project will not cause early profiteers to leave the market due to excessive short-term returns, which will bring great selling pressure to the market.
3. Social&DID&DAO
Soulflake is a Web3 greeting card application developed by ConsenSys Innovation Lab on the Polygon chain.
The word Soulflake is a combination of Soul and Snowflake. The former Soul represents the soulbound nature of the NFT greeting cards sent, while the latter Snowflake is the logo and main theme of this platform.
Greeting cards can be issued to users through wallet addresses, ENS, and LENS, and fixed-amount red envelopes can also be sent.
The dApp is free to use, but it requires senders to pay a small amount upfront as an anti-spam mechanism.
After sending, the greeting card will appear in the user's wallet as an NFT. Due to the nature of soul binding, the greeting card cannot be traded, but users can choose to burn unwanted greeting cards.
5. Team News
JZL Garden progress
This month, JZL Garden has launched the Garden project’s first NFT series “Dandelion” on the Upstairs platform, which was completely sold out within one hour of public sale. This is an important milestone moment for JZL Garden, thank you all for witnessing it.
Last week, we collected the wallets and emails of Holders of the first phase of JZL GARDEN’s project “Dandelion” and have begun to continuously empower Holders.
External cooperation: discuss cooperation plans with Bybit, OKX, Element NFT, and Binance NFT
Project construction: Complete Aristotle’s second and third phase NFT design plans; Willow Leaf and Glacier Memory projects polish narrative and NFT design
about Us
JZL Capital is a professional institution registered overseas that focuses on blockchain ecological research and investment. The founder has rich experience in the industry. He has served as CEO and executive director of many overseas listed companies, and has led the global investment of eToro. Team members come from top universities such as the University of Chicago, Columbia University, Washington University, Carnegie Mellon University, University of Illinois at Urbana-Champaign, and Nanyang Technological University, and have served at Morgan Stanley, Barclays, Ernst & Young, KPMG, and HNA Group , Bank of America and other internationally renowned companies.