ApeCoin goes bananas as Bitcoin takes a dump. Twice.

The past week in cryptocurrency markets has been tricky, to say the least.

Participants observed an erratic Bitcoin breaking downside as prices visited the US$ 38K - 39K region.

Not once, but twice.

The wider cryptocurrency market experienced pullbacks with notable Layer 1 coins Solana ($SOL) and Avalanche ($AVAX) paring back their earlier gains from the weeks prior. The native token of the Bored Ape ecosystem ($APE) has been the highlight with 42% gains week-on-week with prices currently sitting around US$ 18.15.

As mentioned in our subsequent week’s articles, the Non-Fungible Token (NFT) market has been buzzing—and positively brimming with exciting innovations and opportunities to participate.

When looking solely at OpenSea, its marketplace has seen a near 39% trading volume increase since last month to US$ 850m.

Blue-chip collections including Bored Ape Yacht Club and more recently, MoonBirds, exhibiting robust performances in price action.

Make sure to save our recent post about NFT Metrics: An Explorer’s Handbook if you haven’t already. Click here to read the full #FreeAlpha 👉

The real highlight of the NFT ecosystem is Solana currently, with transaction volume increasing by 51% since last month—see the chart below.

Qluster Data Labs estimates that almost 97% of the transaction volume across the ecosystem is dominated by Magic Eden, which has been able to decisively seize the market initiative through:

1. Easy to use marketplace combined with strong user experience

2. Community-building initiatives including the creation of MagicDAO

3. Cementing relationships with new projects through their Launchpad feature

4. Strong marketing efforts including reference to meme culture

For now, let’s get stuck into the latest view on-chain for Bitcoin and Ethereum.

Bitcoin

In a continuation of the report published in Edition #34, supply on exchanges remains at a flatline.

Levels of supply appear intent on remaining at an all-time low with less than 10% of the total supply parked on trading exchanges. In short, the current supply of Bitcoin continues to dwindle with little perceivable evidence to suggest otherwise from on-chain metrics.

The total supply on exchanges as a percentage of the total available supply of Bitcoin is outlined on the chart below:

Ethereum

Surprise, surprise!

Nope, just kidding—our regular readers are likely to find that there have been minimal material changes from the previous update of Ethereum’s on-chain metrics.

As expected, the narrative is remarkably similar to that of Bitcoin at present. The supply of Ether on exchanges continues its steady trudge downhill, which exacerbates the confluence between dwindling supply and lacklustre demand coming in to support prices.

The chart below depicts the total supply of Ether on exchanges as a percentage of its total available supply:

Have you seen the newest episode of #ChartingWithf? Here’s a link to watch the full video, packed full of nical analysis and chart goodies 👉

Well done! You’ve made it to the end of the article. Now, help us share our latest market intelligence with a friend (and then scroll down for tonight’s conclusion…) 🚀

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Logging Off-Chain

Qluster Data Labs prepares a special article for our next edition of On-Chain Outlook.

For the following report, our team prepares to take a deeper dive into the Solana NFT ecosystem and looks at some arguments for why it appears promising.

Considering the macro effects on the broader cryptocurrency market, a few moments of respite from the excessively volatile spot and derivative markets might present an opportune time to explore the wider ecosystem and its dynamic set of real-world applications—like, for example, NFTs!

The world is in the midst of one of the most influential technological shifts since the inception of the internet. Perhaps, the biggest deal since the rise of ye olde steam engine?

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See you again for the next update.

- q

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