Artemis Big Fundamentals in Crypto

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Artemis Weekly Wrap-up (3/3/2023)

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Artemis Weekly Wrap-up (3/3/2023)

your go-to source for weekly fundamental updates

Jimmy Zheng
Mar 4
4
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Artemis Weekly Wrap-up (3/3/2023)

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Happy Friday and gm to those in Denver 🏂

What happened in crypto this week 👇

đŸ‘» Prominent crypto institutions including Circle, Coinbase and Paxos drop Silvergate as a banking partner

đŸ€Œ Camelot and Sushi continue to dominate DEX activity on Arbitrum

🛳 New product updates from the Artemis team

Thanks for reading Artemis Big Fundamentals in Crypto! Subscribe for free to receive new posts and support my work.

The crypto markets saw a sharp drop-off at the end of the week with an average and median WoW price decline of 12.7% and 13.3%, respectively. The price action was preceded by Silvergate fud from earlier in the week where the crypto-friendly bank questioned whether it would be able to operate on a going concern basis.

đŸ‘» Prominent crypto institutions including Circle, Coinbase and Paxos drop Silvergate as a banking partner

A wide swath of institutional crypto businesses including Coinbase, Galaxy Digital, Circle, Paxos and Bitstamp announced on Thursday (3/2) that they were severing ties with Silvergate. Silvergate has been the pre-eminent bank for crypto companies and at its peak held $16bn of assets during Q4 of 2021.

Twitter avatar for @circle
Circle @circle
1/ We maintain relationships with several banking partners. We are sensitive to the concerns around Silvergate and are in the process of unwinding certain services with them and notifying customers. Otherwise, all Circle services, including USDC are operating as normal.
4:58 PM ∙ Mar 2, 2023
610Likes125Retweets
Twitter avatar for @coinbase
Coinbase @coinbase
At Coinbase all client funds continue to be safe, accessible & available. In light of recent developments & out of an abundance of caution, Coinbase is no longer accepting or initiating payments to or from Silvergate.
1:23 PM ∙ Mar 2, 2023
1,416Likes287Retweets

Silvergate stated on Wednesday (3/1) that “it won’t meet an extended deadline to file its annual report and warned it may not be able to operate another 12 months” - shares dropped 50% on March 2 to an new all-time-low. Silvergate noted that new developments in 2023 included “the sale of additional investment securities beyond what was previously anticipated and disclosed in the Earnings Release primarily to repay in full the Company’s outstanding advances from the Federal Home Loan Bank of San Francisco (FHLBSF).” Silvergate previously stated on January 5, 2023 that it had sold $5.2bn of debt securities at a $718mm loss and now expects to “record further losses on its securities portfolio.”

Twitter avatar for @BloombergTV
Bloomberg TV @BloombergTV
Silvergate Capital shares sank to a record low after the company said it wouldn’t be able to file its annual report on time and was reviewing whether it can remain viable. @kgreifeld has more on “Bloomberg Markets: European Close” trib.al/jOhFrEK
5:20 PM ∙ Mar 2, 2023
22Likes18Retweets

Meanwhile, large-cap trading firms including Citadel and Susquehanna had previously made investments in the equity of the beleaguered bank. Citadel and Susquehanna own 5.5% and 7.5% of Silvergate’s equity as of Feb 14, 2023. This is not the first foray that heavyweight Citadel has made into the crypto ecosystem. Citadel previously disclosed a minority investment from Sequoia and Paradigm, with Matt Huang, Co-Founder and Managing Partner of Paradigm, noting that he looks “forward to partnering with the Citadel Securities team as they extend their technology and expertise to even more markets and asset classes, including crypto.”

Twitter avatar for @GregoryDusch
Nuclear Pasta @GregoryDusch
coindesk.comKen Griffin’s Citadel Securities Discloses 5.5% Stake in Crypto Bank SilvergateCitadel’s move is based on its market making positions, rather than a directional call on the stock, according to a source familiar.
1:06 PM ∙ Mar 3, 2023
15Likes5Retweets

đŸ€Œ Camelot and Sushi continue to dominate DEX activity on Arbitrum

Back on-chain, DEX usage on Arbitrum has continued to heat up with Camelot and Sushi volumes seeing upticks towards the end of February. Arbitrum continues to see meaningful growth in daily active addresses and daily gas usage primarily driven by DEX activity, which represents 50%+ of total gas usage and 30%+ of total DAUs.

Camelot is a new DEX on Arbitrum that served as a launchpad for a few new projects including hyped DeFi project Factor. Factor was a major contributor to the spike gas usage, with an IDO period that ended on February 23rd, 2023 (coinciding with the increase in gas paid and daily active addresses. Factor saw some backlash on Twitter after FCTR tokens fell to ~44 cents in the first week of trading after pricing at 75 cents at IDO.

SushiSwap saw an uptick in active addresses, transactions and gas usage alongside the clamor for the FCTR IDO while Uniswap saw a decline in WoW usage.

A week later, Uniswap has reclaimed its position at the top of the Arbitrum DExs as the entire ecosystem saw a pullback in trading activity.

🛳🛳 New product updates from the Artemis team

Stacks, the Bitcoin L2 platform that supports the Ordinals NFT project is now live on Artemis! We can see that metrics including DAAs, DTs and TVL grow rapidly over the past 90 days

Twitter avatar for @Artemis__xyz
Artemis âžĄïž ETH Denver ⛷ @Artemis__xyz
✹Stacks✹ is now supported on Artemis! Over last 90 days: 📈 DAA up 326%% (4.8K) 📈 Daily Transactions up 258% (14K) 📈 TVL up 252% ($28M)
Image
2:00 PM ∙ Mar 3, 2023
23Likes4Retweets

Base, the new L2 Coinbase-led project has launched on testnet, and you can now track fundamental data for the chain on Artemis!

Twitter avatar for @Artemis__xyz
Artemis âžĄïž ETH Denver ⛷ @Artemis__xyz
✹Base Testnet✹ is now supported on Artemis!
Image
Image
9:20 PM ∙ Mar 3, 2023

Detailed L1 dashboard for people who love more numbers in smaller font:

Note: Revenue represents fees that go to the protocol’s treasury or are returned to tokenholders via a burn mechanism (source: Token Terminal). Weekly commits and weekly dev activity as of 2/24/23.

The content is for informational purposes. None of the content is meant to be investment advice. Use your own discretion and independent decision regarding investments.

Thanks for reading Artemis Big Fundamentals in Crypto! Subscribe for free to receive new posts and support my work.

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Artemis Weekly Wrap-up (3/3/2023)

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