📅 For the past month, we have generated actionable insights to the NFT market, illustrating how to find the hottest projects using Nansen.
💡 However, NFTs represent only one area of opportunity and for the next month, we will be diving into another with huge potential for profits: DeFi.
5️⃣ Top 5 Things You Need To Know About Crypto Today
🎆 DeFi Guide: How To Use Nansen To Spot Profit Opportunities
🧚♀️ Axie Infinity: Now & The Future of This Leading NFT Game
🎵 TikTok x Crypto: What Next?
With Nansen’s On-Chain data, you can secure an edge in the crypto and NFT markets:
🤲 Exciting New Opportunities. See where funds are moving their money.
💥 Perform Due Diligence. Get more information on projects or tokens.
🌀 Defend Your Positions. Create smart alerts to track over 100 million ETH wallets.
🔥 Track The Biggest NFT Traders. See what the most profitable NFT wallets are investing in
To grow your crypto portfolio today check out the Nansen website. Currently, they are running a 7 day trial for just $9. Link here 👇
⏰ In A Rush?
Our Market Meditations are longer format educational segments. Each letter features a Market Meditation which will deep dive and analyse a relevant crypto event, theme or tool.
🎆 DeFi-ing Gravity
DeFi (or Decentralized Finance) refers to the system of financial products that is now available on the blockchain. Using Dapps (or decentralized applications), anyone is able to carry out financial transactions, such as lending, without a centralised entity (like a bank) - earning crypto for doing so. This is all enabled by smart contracts.
Consider a vending machine, upon entering your desired drink and the right amount of money, the vending machine will automatically distribute your beverage. A smart contract acts in the same way: they are computer programs that execute their function when triggered by predefined conditions.
We can use Nansen to dive into these smart contracts and find opportunities that we would have otherwise missed:
1️⃣ Hottest Contracts - Sorted by Smart Money Deposits Over the Last 7 Days
Using this metric we can see the contracts that have been interacted with by the most number of smart money wallet addresses (for a reminder of exactly what smart money is, check out Nansen’s wallet label guide).
The top two contracts relate to Abracadbra.Money. This is an innovative protocol that allows you to use DeFi assets from well known protocols such as Yearn as collateral. A total of 17 smart money addresses interacted with these contracts, showcasing that rewards could be high as part of wider strategy.
Convex Finance is another protocol that allows you to interact with a well known Dapp (Curve Finance) in order to boost yield. This time we can see 8 smart money wallets have interacted with this smart contract.
2️⃣ Hottest New Contracts
We can also filter the above table so that it only shows contracts created within a certain time frame. This allows us to find new smart contracts that have quickly gained traction with the wider market or within the smart money sector.
Doing so would reveal the 2 of the top 5 contracts belong to Paladin Finance - a new protocol that allows you to use governance tokens as collateral. However we can also see that there is only one smart money depositor - highlighting that this could be a very risky opportunity.
3️⃣ Balances Changes for USDC over the Last 7 Days
This metric shows the money flows of USDC around the Ethereum Network, sorted by biggest positive inflows.
We can see that the top 4 represent well known, lower risk protocols such as Yearn, dYdX and Curve.
This is no surprise with the growing number of projects that allow users to earn more yields whilst their funds are locked in the protocol
The opportunity to earn sizable yields in DeFi is everywhere. The problem is knowing where to find it. Using Nansen’s Hot Contracts and Balance Change features, we can discover ways to best optimize DeFi returns and over the next 3 weeks will dive deeper into specific metrics that help you start profiting from DeFi.
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⏰A Non-Fungible Tik-Tok
Social media has not only changed the way we use the internet but everything about our lives. At the height of Facebook's popularity, a perfect storm of technology advancements and mobile connectivity catapulted social media into the hands of almost everyone.
This prepared us for the next wave of social media giants, such as Instagram, Twitter, and Tik-Tok. Now, these social media giants are preparing to catapult NFTs into the mainstream.
Which social media giant will be in the lead?
Facebook has never hidden its interest in crypto, though their attempt to create the Libra (now known as Diem) appears unsuccessful to this point.
Instagram has a variety of apps, including BeyondMarsArt.com, which allows you to mint NFTs directly from your Instagram account with no up-front costs.
Twitter is working on verifying NFTs on the app.
Was there any doubt that Tik-Tok would also want to join the club? They are launching a collection of NFTs created by the platform's best content creators like Lil Nas X, Rudy Willingham, and Gary Vaynerchuck alongside top NFT creators Coin Artist, x0r, and Grimes.
Due to the network effects, infrastructure, and ecosystem, Tik-Tok has chosen to build the collection on Ethereum. Tik-Tok will be utilizing (what they call) a true Ethereum layer 2, Immutable X. Immutable X allows users to create, mint, and trade peer-to-peer without gas costs and a token.
These social media giants have not only changed our daily lives and offered content creators a self-promotion platform, but they have changed industries such as advertising and data mining. If history is an indicator of how they can propel a viral meme, we can only imagine what they will do for the world of crypto.
♾️ Axie Infincible
And that position may only strengthen going forward, as the developer Sky Mavis announced on Tuesday that they had secured an additional $152 million of investor funding. Let’s dig in:
Like any start-up, Axie Infinity set out to raise money for development and started the classic funding path of seed and series funding rounds.
They successfully raised $1.5 million in a 2019 Seed round and a further $7.5 million in a May 2021 Series A round, with Animoca Brands and Libertus Capital respectively leading the investments. The funds were put towards growing the team and scaling the game.
But the dramatic user growth and high trading volume over the summer has fast-tracked a Series B funding round, led by venture capital fund Andreessen Horowitz (also known as a16z). This massive injection of funds came with a staggering valuation of $3 billion, immediately catapulting it into the land of unicorns.
Sky Mavis, now with more than 20 firms and individuals backing it, said that “…adding institutional investors to our community will enable us to expand our reach, reinforce our legitimacy when it comes to regulatory protection, and will give us the flexibility to scale and hire aggressively without touching our AXS token reserves.”
So the money and the big guns are rolling in for crypto’s flagship NFT game. Hopefully for Axie they have a mid- to long-term vision and won’t let the high valuation get in the way of product delivery. For the low down on what Axie Infinity and the Play to Earn concept are, check out our dedicated guide.
Not financial or tax advice. The content in this newsletter is for informational purposes only. Nothing in this email is intended to serve as financial advice. We are not financial advisors. Every investment and trading move involves risk. Do your own research when making a decision. See our important security disclaimers here.
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