[Deribit] Vol Commentary: Quiet Weekend – Deribit Insights

Cumberland is commenting on the recent volatility and potential opportunities to take advantage of it.

For further information about Cumberland, please visit Cumberland website here.

Good Morning and Happy Monday from Cumberland APAC! It was a relatively quiet weekend for crypto, with BTC and ETH both essentially unchanged on ranges under 2%. Alts broadly weakened a bit over the weekend, with the L1 sector down about 1.5% and DeFi down around 2%, but otherwise a relatively calm period. We’ve been seeing an interesting trend the past few months: despite regulatory headlines and macro uncertainty, crypto has become less volatile, and at the same time volumes are actually increasing. This is a positive sign as to the maturation of crypto as an asset class, a welcome but not necessarily a given sign.

ETH Denver wrapped up yesterday, a well-attended conference with many guests traveling from Europe and Asia. Cross-chain interoperability was one of the key topics frequently discussed (potentially a result of the Interop Summit taking place right before the main event), a sign that even among the ETH-maxi-est crowd, there is a concession that the future will be multi-chain. There was a lower emphasis on gaming and NFTs as compared to last year, and a stronger emphasis on the boring-but-important stuff, infrastructure and stables. Stablecoins and asset tokenization were major themes, with the stablecoin conversation ranging from Aave’s GHO to major payment platforms talking about CBDCs.

In the stables space, two tokens in particular stand out as outperformers over the past three weeks. They are SNX and MKR, both up 35-40% over the past three weeks, projects which both have their own stablecoins, sUSD and DAI. SNX has benefited off the rally from OP, but while OP has faded and given up almost all the gains from the Base announcement, SNX has continued. Surprisingly, other coins in the DeFi stablecoin space have been fairly sluggish, matching ETH’s roughly-unchanged performance. AAVE has failed to see an outperformance ahead of GHO, and CRV and CVX are both fairly quiet despite both this stablecoin emphasis as well as the impending Shanghai fork, which should increase issuance of assets like stETH. (LDO is up 15% over the past three weeks).


The information (“Information”) provided by Cumberland DRW LLC and its affiliated or related companies (collectively, “Cumberland”), either in this document or otherwise, is for informational purposes only and is provided without charge. Cumberland is a principal trading firm; it is not and does not act as a fiduciary or adviser, or in any similar capacity, in providing the Information, and the Information may not be relied upon as investment, financial, legal, tax, regulatory, or any other type of advice. The Information has not been prepared or tailored to address, and may not be suitable or appropriate for the particular financial needs, circumstances, or requirements of any person, and it should not be the basis for making any investment or transaction decision. THE INFORMATION IS NOT A RECOMMENDATION TO ENGAGE IN ANY TRANSACTION.

If any person elects to enter into transactions with Cumberland, whether as a result of the Information or otherwise, Cumberland will enter into such transactions as principal only and will act solely in its own best interests, which may be adverse to the interests of such person. Before entering into any such transaction, you should conduct your own research and obtain your own advice as to whether the transaction is appropriate for your specific circumstances. In addition, any person wishing to enter into transactions with Cumberland must satisfy Cumberland’s eligibility requirements.

Cumberland may be subject to certain conflicts of interest in connection with the provision of the Information. For example, Cumberland may, but does not necessarily, hold or control positions in the cryptoasset(s) discussed in the Information, and transactions entered into by Cumberland could affect the relevant markets in ways that are adverse to a counterparty of Cumberland. Cumberland may engage in transactions in a manner inconsistent with the views expressed in the Information.

Cumberland makes no representations or warranties (express or implied) regarding, nor shall it have any responsibility or liability for the accuracy, adequacy, timeliness, or completeness of, the Information, and no representation is made or is to be implied that the Information will remain unchanged. Cumberland undertakes no duty to amend, correct, update, or otherwise supplement the Information.

The virtual currency industry is subject to a range of risks, including but not limited to: price volatility, limited liquidity, limited and incomplete information regarding certain instruments, products, or cryptoassets, and a still emerging and evolving regulatory environment. The past performance of any instruments, products, or cryptoassets addressed in the Information is not a guide to future performance, nor is it a reliable indicator of future results or performance. Investing in virtual currencies involves significant risks and is not appropriate for many investors, including those without significant investment experience and capacity to assume significant risks.

>> View on Deribit

Join us on Telegram

Follow us on Twitter

Follow us on Facebook

You might also like