Market wrap-up June 2022

While the waves of the Terra / LUNA collapse in May had somewhat calmed in early June, lending platform Celsius announced that they would halt withdrawals on June 12, sending markets down sharply. BTC even dipped below the USD 20k threshold on June 18 and 19, but has recovered above and defended that mark since.  

Adding to this sign of hope is the quite interesting announcement by Goldman Sachs, to raise USD 2bn in cash to potentially buy Celsius’ assets in case of bankruptcy (see: https://www.coindesk.com/business/2022/06/24/goldman-sachs-raising-funds-to-buy-celsius-assets-sources/). Just to make this crystal clear: The assets, Goldman intends to snap up (potentially at a hefty discount), will almost entirely be crypto assets. So while a rising number of mainstream media outlets is starting to proclaim the end of crypto (again), Goldman is moving into this market. In our opinion both these facts are very encouraging to keep on hodling! 

Continuing moves in stable coins 

Another story that’s worth revisiting is the continuing moves in the two top stable coins USDC and USDT. In June USDC’s market kept rising and hit USD 56bn while Tether’s market cap continued to decline and hovers at USD 67bn per end of June. Looking at the second quarter of 2022 in aggregate, the initial USD 30bn gap between the two top stable coins has massively shrunk and to USD 11bn now. Any bets on the date when USDC will take over the number 1 position? 

Uniswap earnings 

One very notable development in June was the strong earnings generated by decentralized exchange Uniswap. With 7-day-average fees of USD 4.9m daily, Uniswap (all three protocol variants combined) even outperformed the Ethereum blockchain it is running on, which generated USD 4.6m in daily fees over the same time period. 

This is not only great news for Uniswap and its various stakeholders, but good news for the DeFi space as a whole. And rightly so: Despite the market shakers of recent weeks, the DeFi space is working as it is supposed to work. Or as Prof. Philipp Sandner put it during our DeFi Livestream (see the video here): DeFi has been working through this difficult market phase like a well-built machine.