This Week's Market Trends
ETHW Plummets as Miners Exit
- ETHW (EthereumPoW fork token) has dropped over 80% since listing on FTX.
- Competing fork EthereumFair (backed by Poloniex) further disrupted the unstable launch.
Ethereum Classic Hash Rate Surge
- ETC saw a 25% price drop despite increased miner migration post-Merge.
- Liquidity challenges persist, with $100k sell orders causing 5x more slippage vs. ETH.
Price Movements
Post-Merge Sell-Off
- ETH fell ~25% despite successful Merge completion.
- ETC and ETHW were among worst performers, signaling miner profitability struggles.
Staking Discounts Narrow
Staked ETH derivatives (stETH, cbETH, bETH) discounts shrank to May 2022 lows:
- stETH premium improved from 4% to 1%.
- Liquidity rose in Curve's stETH pool (largest secondary market).
- Discounts may persist until 2023 Shanghai upgrade enables withdrawals.
Market Liquidity
USD Dominance in Crypto
- 70%+ BTC trades are USD-denominated (up from 2018).
- Regulatory shifts impacted JPY markets (-5x volume since 2018).
ETH Volume Hits All-Time High
- ETH/BTC trading ratio reached 70% during post-Merge volatility.
- Liquidity evaporated temporarily but rebounded post-event.
Derivatives Activity
ATOM Open Interest Surges
- Cosmos (ATOM) rose 40% amid ecosystem growth and anticipated tokenomics updates.
- Open interest spiked from $50M to $200M since mid-June.
ETH Funding Rates Rebound
- Post-Merge rates normalized after ETHW airdrop strategies unwound.
Macro Trends
Inflation & Fed Policy Impact
- August US core CPI rose 0.6% MoM (double expectations).
- 75bps Fed rate hike expected, pressuring risk assets.
Rising Bitcoin Correlations
BTC-stocks/bonds correlation increased in September:
- Nasdaq 100: -28% YTD
- Bitcoin: -50% YTD
FAQ
Why did ETHW crash post-Merge?
ETHW faced miner exits, technical issues, and competition from forks like EthereumFair, eroding confidence.
How does staked ETH's discount work?
It reflects lock-up risks until 2023 withdrawals. Narrowing discounts suggest reduced risk perception.
What's driving ATOM's rally?
Ecosystem growth (Kava, Thorchain) and anticipated tokenomics changes reducing inflation.
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Data as of September 2022. Not financial advice.