77th Edition

This week in The Flippening, TL;DR

• Crypto market scales $1 trillion peak for the first time since November
• Developers keep crypto warm amid its brutal winter
• 1inch launches hardware wallet to support self-custody trend

Top Highlights of the Week

1. We're picking up steam again

The total market cap of cryptocurrencies touched the $1 trillion mark this week- for the first time since November 8 last year. Bitcoin and Ethereum have been leading the rally, with the OG cryptocurrency briefly achieving a two-month personal best of $21,528. While Bitcoin's been on the uptrend with a 26% hike since the beginning of the year, Ethereum is doing even better, raking in 29% in gains since January 1.

Our takeaway: Crypto enthusiasts have been patient through one of the most brutal winters the space has seen. Patience has never gone unrewarded in the crypto business, and it looks like the HODLers are about to reap the rewards- in a big way! All signs point toward the end of the bear market, and our fingers are crossed for the trend to continue.

2. Burning the midnight oil

Despite crypto markets taking a tumble in 2022, full-time developers in the blockchain space have never been higher- 23,000 monthly active developers doing their part in growing open-source projects. While markets saw a 70% decline, the developer count saw a 5% year-over-year increase. FYI, compared to the last crypto winter that started in 2018, that is a whopping 297% increase!

Our takeaway: Bear markets are the perfect time to build infrastructure, and that’s exactly what we’re seeing right now. The healthy amount of full-time developers amid the crypto winter is a promising sign of crypto’s comeback. The introduction of regulations in multiple jurisdictions across the world will only help crypto’s case. When the time comes for a rally, crypto will be ready to run at full speed.

3. The 1inch expansion

DEX aggregator 1inch Network launches its own hardware wallet to cater to the growing demands of customers turning to self-custody. The wallet will be air-gapped, meaning it will have no direct connection to the internet and will need no wired connection of any kind. As for dimensions, the product will be as big as a bank card.

Our takeaway: In an industry that embodies the phrase 'for the people,' catering to growing demands from the community is the only way to stay relevant. And with hardware wallets, 1inch is supporting a fast-growing trend that will only see an increase in adoption across the board. Seems like a smart move, wouldn't you say?

Beyond our top headlines:

• OKX's latest proof-of-reserves report reveals 7.5 Bn in clean assets. Winning back the consumers' trust. Read here.
• Bonk, Dogecoin, and Shiba Inu see a combined $25 Bn in monthly trading volume. Are we sure we're in a bear market? Read here.
• Crypto bank, Silvergate Capital, reports losses of $1 Bn in Q4. With the way 2023's going, get ready for a dramatic turnaround. Read here.
• Crypto rally sees $500 million in short positions liquidated. And that, folks, is why you invest and not trade. Read here.

Crypto simplified

In our last edition, we released a detailed analysis of the significance of the on-chain metrics of Bitcoin for December. BTC’s volatility was extremely low, which is not its usual characteristic. Comparing this reduction in volatility with similar conditions observed over the past decade is how we built a strong case in support of a market reversal.

In this edition, we are going to list out a few factors on how you can spot a market reversal. It means that after a period of remaining bearish, the market suddenly takes a bullish turn.

All of these are fundamental telltale signs that one should not miss.

Consolidations after a period of volatility: Usually, BTC follows a consolidation after highly volatile market conditions. If the consolidation persists for more than two weeks, you can expect a reversal soon. However, you need to look out for a few more signs. The recent narrow-range bound consolidation lasted for more than three weeks.

On-chain metrics: The Total Value Locked (TVL) in DeFi protocols kept continuously rising over the past month. However, when the market was bearish, this rising TVL was a significant bullish sign.

Memecoin rallies: Although this is a slightly unconventional parameter, it definitely has been effective in spotting reversals. Remember Bonk, the Solana-based memecoin? It gained an astonishing 3000% in a week towards the beginning of this month. Shortly after, investors take out their profits. On most occasions, after the memecoin rally fizzles out, the profits go to the blue-chip cryptos, such as Bitcoin and Ether. That is when we observe rising activity leading to higher volumes and a corresponding rise in prices. And that has been the trend with the rally in the recent BONK token as well.

Crypto week in numbers

1.04 Trillion: The total crypto market cap reached over the $1 trillion mark this week

16 million: A record-breaking total of 16 million ETH has been staked into the Ethereum blockchain, valued at approximately $22 billion. This staked ETH will remain locked in the Ethereum network until the Shanghai upgrade allows for withdrawals later in the year.

Disclaimer: All price movements are recorded up to 03:30 PM UTC, 20th Jan 2023

The crypto market continues its good run, with Bitcoin and Ethereum leading the charge.

Disclaimer: All price movements are recorded up to 03:30 PM UTC, 20th Jan 2023

Looking at this, you wouldn't think we're in a bear market.

Coin of the week 💸

Ether: $ETH

The largest altcoin has been showing considerable positive momentum lately. With the Shanghai upgrade coming closer, we have also seen a significant rise in liquid staking protocols. It points to a bullish sign for ETH as investors are looking to stake and hold.

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