Gm Nansen Explorers,
Welcome to this week's edition of Nansen's Weekly Research Roundup, where we bring you the latest research reports from our team. Lets dive in!
1. Blend: Disrupting NFT Financialization
Tharm explores Blend, a prominent peer-to-peer NFT lending platform that has gained significant traction since its launch. The platform has facilitated over 12.5k loans, totaling 40.1k ETH ($74.7m), involving 1.1k borrowers and 1.5k lenders. Blend distinguishes itself from competitors through its unique approach, which includes zero protocol fees, no oracle dependencies, no loan expiries, and refinancing auctions. These borrower-friendly features enable flexible repayment options and provide lenders with the opportunity to exit positions through refinancing auctions. However, it's important to consider the potential risks associated with the introduction of leverage in their Buy Now, Pay Later program and the possibility of liquidation. Blend has also replaced listing points with lending points, incentivizing liquidity for borrowers and contributing to its rapid growth. Overall, Blend's innovative design and user-friendly features have positioned it as a prominent player in the NFT lending landscape.
2. Cosmos Ecosystem: An In-Depth Analysis of Upcoming Catalysts
Jake analyzes the significant developments poised to address liquidity challenges, enhance cross-chain functionality, and drive growth within the Cosmos ecosystem. Noble Chain aims to alleviate liquidity issues by issuing native USDC, while Axelar Network's General Message Passing (GMP) technology enhances interoperability. Stride Zone, a leading LSD provider, offers attractive staking rewards and is expected to experience further growth through shared security and DeFi integrations. Neutron Chain plans to airdrop tokens to stakers and share transaction fees, while Injective Protocol's INJ token holds potential for increased activity through integrations. Sommelier, a top Cosmos chain, has released high-performing yield strategies. Despite these exciting catalysts, the Cosmos ecosystem needs to prioritize the development of user-friendly applications to effectively compete with Ethereum. Nevertheless, with upgrades, privacy chains, scaling solutions, and shared security with Bitcoin, the Cosmos ecosystem is well-positioned for future success.
3. Where are we in the crypto cycle?
Aurelie analyzes tactical and cyclical indicators in the crypto market. Short-term tactical indicators suggest neutral to negative returns for BTC and other crypto assets, indicating a range-bound price regime. When comparing crypto fundamentals to traditional assets, the risk-reward ratio for crypto currently appears inferior to USD cash and US investment-grade credit. However, this situation could change if the US Federal Reserve cuts rates, although such a move is unlikely to happen this year and has a higher probability in 2024. Tactical indicators such as the BTC call-put spread, BTC price momentum, Crypto Risk Premium (CRP), and breadth indicators are taken into account to provide insights into market sentiment and volatility. Overall, caution is advised in the short term, and it is important to carefully consider the risk-reward dynamics of the crypto market in relation to other financial assets.
That's a wrap for this week! If there's anything you'd like to see in future issues, just let us know. Follow us on Telegram to get notifications when reports go live or head to our Research Portal to get more insights.