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Trusted by 100,000 crypto investors. |
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Health, Wealth, and Happiness |
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"What we think determines what happens to us, so if we want to change our lives, we need to stretch our minds."
- Wayne Dyer
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Weekly Fundamentals: Another Premium Benefit |
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Here's another great benefit just for Premium Members (that's you!).
Starting this week, you'll receive Weekly Fundamentals: the top 10 most-valuable charts to help you make better crypto investing decisions.
Sure, you could pay hundreds of dollars subscribing to separate crypto reporting services then wade through all the charts (95% of which are useless).
Or you could get one tight, focused report of the crypto fundamentals that matter most to find great investing opportunities before the market does.
All included in your premium subscription. Enjoy!
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Top 10 Weekly Fundamentals
by BMJ Editors
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1. Bitcoin Daily Active Addresses
Our thesis: cryptocurrencies are like companies. Active addresses are like customers, similar to active users of Facebook or active subscribers of Netflix.
We can measure the price (black line) relative to the active addresses (green line) to see if things are currently underpriced or overpriced.
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Investor takeaway: Bitcoin's active addresses are holding steady even during the market downturn, which is promising. It's greatly underpriced on a DAA basis compared to last fall.
2. Ethereum Daily Active Addresses
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Investor takeaway: Ethereum's active addresses and price are ticking upward in anticipation of The Merge. Ethereum is not the bargain it was in 2020, but we think it's still a smart long-term buy.
3. Top Crypto "Companies" by Total Revenue
Our thesis: crypto revenue like transaction fees is how a crypto "business" makes money. Smart investors look for the projects generating the most cash.
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Investor takeaway: Ethereum (the top blockchain platform) is still the workhorse, followed by OpenSea (the top NFT platform) and Uniswap (the top DEX). All are well-managed projects generating healthy cash flow.
4. Top Crypto Companies by Protocol Revenue
Protocol revenue is money paid back to token holders or company treasuries (vs. being paid out to liquidity providers as with Uniswap, or NFT holders as with OpenSea). You might roughly think of this like stock dividends.
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Investor takeaway: Ethereum continues to dominate protocol revenue. That number is likely to go up after The Merge.
5. Total Value Locked
TVL represents how much is held or "locked" in a company's smart contracts. It is roughly equivalent to the deposits held by a bank and can signal a crypto company's strength:
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Investor takeaway: Curve (CRV) and MakerDAO (MKR) top the charts, but Lido (LDO), the Ethereum staking service we recently recommended, has rocketed to #3 with $11 billion in TVL.
6. Top Crypto Exchanges
Our thesis: Crypto exchanges, both centralized and decentralized, are arguably the most important applications in blockchain. Savvy investors look for which will be the #1 and #2 exchanges over the long term.
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Investor takeaway: All crypto exchanges see their fortunes rise and fall with the overall market. We look at who's winning and losing market share. Our pick is Uniswap, which is bouncing back nicely as other exchanges struggle.
7. Top Lending Protocols
Our thesis: Lending and borrowing is another proven use case of blockchain. Savvy investors look for the companies that will dominate the lending market long-term.
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Investor takeaway: Aave and MakerDAO are still the leaders as many of last year's darlings, like Abracadabra, have gone up in smoke.
8. Top Layer 1s
Our thesis: Foundational blockchains, also known as L1s, are like the operating systems for Web3. We predict there will be two or three big winners that will go on to dominate the internet of tomorrow.
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Investor takeaway: Bitcoin, Ethereum, and Binance Smart Chain remain the top 3 contenders. This is why they make up the bulk of our Blockchain Believers and Future Winners portfolios. The others are likely to become also-rans.
9. Top DeFi Protocols
Our thesis: DeFi companies are the future giants of fintech, disrupting or replacing all the legacy payment and banking systems of today.
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Investor takeaway: Uniswap still dominates. That's why it makes up the remainder of our Future Winners portfolio. The blockchain game Axie Infinity comes in at #2, but we regard AXS more as a passing fad (the numbers bear it out).
10. Top NFT Collections
Our thesis: NFTs make up a specialty area of crypto. It's only appropriate if you really love collecting, and even then, they should not compose more than 1% of your overall portfolio.
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Investor takeaway: CryptoPunks, the NFT OGs, continue to rank #1 in NFT collections, proving the key NFT investing idea that it can pay to invest in the first of something.
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ICYMI
In Case You Missed It
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RIP, GPUs.
The premiere of our new Crypto Market Outlook (premium content).
How to get the best rates on USDT lending and staking.
You're soaking in it.
Vitalik Buterin lays out the future of Ethereum.
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We're here to save each other from throwing our money away. |
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Bitcoin Market Journal is a daily newsletter that makes you a better crypto investor. It is created by John Hargrave, Nick Marinoff, Steve Walters, Anatol Antonovici, Daniel Joel, Stephen Robert, and Vlad Vronsky.
Premium subscribers get full access to our top crypto picks. Both free and premium subscribers get content to build them into better investors.
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