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BATTLING THE ODDS
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BEQUANT Crypto&Coffee

It has been an incredibly strong month for Bitcoin, with the largest crypto asset by market capitalisation gaining 25%, while Ethereum only managed to 8%. Overall, large caps fared much better with the MVIS 100 large-cap index now up 85% year-to-date (YTD), while the small cap equivalent is only up 17%. In fact, after peaking in September with YTD of around 100%, small caps decoupled from the rest of the market, driven by the apparent cooling down of DeFi offerings. However, while the underlying valuations may have come down for small caps and those involved in the DeFi ecosystem, the actual total value locked remains very well supported and thus may offer interesting opportunities. 

Back to Bitcoin and the final day of the week marks sizeable option expiry, with just over 60k BTC expiring. The aggressive nature of the recent run saw the open interest (OI) rise well into the mid-$5bln mark. Similarly, for options, the OI is close to topping $3bln mark. The one-way traffic meant that the vol has remained well capped, while the apparent decoupling from the S&P 500 is no longer as tangible, with the shorter 1-month correlation rebounding into the mid-30%. Given the recent trend of trading like a risk asset, this correlation will likely reaffirm itself yet again.

CoinDesk reported that remittance firm MoneyGram continues to receive millions in “market development fees” from its investor, blockchain payments firm Ripple. According to MoneyGram's financial results for Q3 2020 posted Thursday, Ripple handed over $9.3 million over the period. After $0.4 million in "transaction and trading expenses," MoneyGram saw a net benefit of $8.9 million. The payment is the latest since Ripple, which provides several payments products aimed at financial institutions, invested $50 million in the money sender back in November 2019.

Elsewhere, Cointelegraph reported that the second-ever governance proposal for the Uniswap decentralized exchange (DEX) is more than halfway to reaching a quorum with a little over 30 hours to go. If passed, the proposal will see 12,619 wallet addresses that interacted with Uniswap via a proxy contract receive 400 UNI tokens each. 5.05 million UNI in total will be allocated to the users of MyEtherWallet, Argent, Dharma, DeFi Saver, Nuo, Eidoo, Opyn, Furucombo, Monolith, and Rebalance. The proposal was put forward by Compound-based lending and savings protocol Dharma, who claimed its users felt “left out” by the initial distribution.

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