Jlabs Digital

Stablecoins on Ethereum protocols in 2020-21

Stablecoins on Ethereum protocols over the last year

Significant Stablecoin Migration Signals Potential Market Shift

The team analyzed stablecoin movements across blockchain ecosystems. We wanted to see what the flows were between chains and where the capital was. utlimately going.

Between February 5-12, we observed approximately $10 billion in stablecoins migrating from highly liquid positions on BSC into more sophisticated DeFi protocols, primarily on Ethereum.

This migration appears to coincide with profit-taking from the recent meme coin frenzy on BSC, suggesting traders are moving speculative gains into more established DeFi primitives.

The main beneficiaries of these flows are established lending protocols: Maker/Sky, Compound, and AAVE. This movement from highly liquid trading positions into sticky, longer-term DeFi protocols suggests traders are positioning capital for more complex strategies rather than simple spot trading.

While Ethereum captured the majority of these flows, Arbitrum also showed meaningful stablecoin accumulation (likely an end destination being HyperLiquid).

Long-term analysis suggest this pattern of stablecoins moving into lending protocols mirrors pre-2021 levels. That’s because the amount of stablecoins entering DeFi protocols were rising higher. Once these amounts hit new highs, ETH went on to touch new ATHs.

Current levels are still below what was seen in 2021-22.

The maintakeaway is the ecosystem seems to be evolving to where certain networks and ecosystem have varying stickiness. And depending on where a token sticks, certain “moneyness” comes with it due to interoperability with protocols.

🚨Ethereum Raised Its Gas Limit🚨

What does it mean for ETH price?

Chart with prior instances where gas limits saw a similar change:

https://share.pandaterminal.com/s/CjT6S503

https://x.com/MrBenLilly/status/1887908765044805932

Analyzing sUSDe yields and how it might help decide when ETH tops or bottoms.. Let’s see if it holds

https://share.pandaterminal.com/s/azWXHx-8

Have you considered MicroStrategy as an Investment Bank?

Marconi interviews Allard Peng about his piece from Seeking Alpha where he considers the financial valuation prop of this different perspective.

It’s a fresh take from a younger analyst who brings a novel view to one of the hottest assets in the space.

Have a listen!

https://youtu.be/PCzXxIYnTQw?feature=shared

Who remembers ROSI?

Reversal onchain sentiment indicator? We would often talk in code with the word “Bloom” to help non-subscribers get a bit of an advantage.

Well… Come on in and access it for yourself. It’s lightning up…and be sure to set up a PANDA account today before we stash the metric away behind lock and key.

https://share.pandaterminal.com/s/4puCiCu_

https://x.com/thewhale_hunter/status/1886292964428881921?s=46&t=0mG6XTvWo-VxuftPqpEz2w

BTW: If you want to learn more about these charts and how to make them, join the chat group where we are answering questions: https://t.me/+w8kQSxHOdkEyMmJk

Meanwhile… ETH showing us that it wants to seek out liquidity to the upside based upon the orderbooks

https://share.pandaterminal.com/s/39oXgiTG

When it comes to bid/ask ratios aka liquidity mismatches, not much to write home about yet.


https://share.pandaterminal.com/s/nuFz6fq0

This drop in fees has led to staking yields for ETH to fall below 3% of late. In turn, we are seeing unstaking take place on Beacon Chain over the last 1.5 months.

This unstaking has caused ETH’s moneyness ratio to fall since Nov 6.

Moneyness refers to a token being used in various ways outside of simply storing in a wallet. Properties such as being used a collateral, earn yield on DEX pools, lending, etc increase a token’s moneyness. As moneyness rises, the token’s ability to have price shocks higher become real… As moneyness falls, the token becomes more susceptible to shocks lower.

We are expecting ETH to eventually catch a “Financialization Chain” type of narrative this year as tokenization, credit cards using onchain solutions, uniswap v4, and new instruments (ie - EtherStrategy) gain mindshare.

For now, ETH has some headwinds to overcome.

Ethereum mainnet fees are hitting 1gwei, showcasing minimal demand for the network.

L2 blob market - where L2 demand can impact organic ETH demand - is always trending lower now.

We continue to hear the need for more blob capacity needed… Yet there stark reality is that right now, there are not enough L2s commanding enough market share to drive the blob market enough to have any substantial effect on ETH atm.

Current L2 environment is Base, Arbitrum, Optimism and then everyone else attempting to enter into theat Tier-1 category

Here are those that have had decent trends over the last 5 months. Some are beginning to lose any meaningful trend of commading outflows.

Starknet for instance was commanding some flows for about 30 days starting in mid-december, but appears to be losing steam over the last couple weeks.

Following some outflows happening on Ethereum (ETH+ETH derivatives) we can see how there is a long tail of L2s fighting for relevance

Don’t get why ETH’s price feels stuck in mud?

Marconi breaks it down

https://www.youtube.com/watch?v=8w5HA_1vHUA

Optimism seeing a push the last couple weeks with inflows

Blob market deciding to wake up today

If you’re interested in PANDA Terminal and want to talk markets within the PANDA community, come join us here.
Channel : https://t.me/pandaterminal

Additionally, here’s the link to the chat.

https://t.me/+w8kQSxHOdkEyMmJk

Is the drop over? Will it continue?

What are the current trading ranges that matter? How about the flows?

You know we have thoughts to share, come on and give us a listen. See you there.

YT: https://youtube.com/live/5ggKUPJBdcs?feature=share

X: https://x.com/i/broadcasts/1RDGlylkZqdJL

If you are a creator or BD in UAE or coming to Dubai for 1B summit this week and looking for a free ticket.
We have some to share on behalf of Jlabs Digital.
Dm us.

https://www.1billionsummit.com/

We are live, come join!

X: https://x.com/xChanging_Good/live

YT: https://youtube.com/live/gcLVDjIbdU0?feature=share

https://x.com/MrBenLilly/status/1876339025528942838

We’re so back

https://x.com/MrBenLilly/status/1876309166903713911

Last trading pit of 2024, come on down!

YT: https://youtube.com/live/5h6gcOi0JNg?feature=share

X: https://x.com/i/broadcasts/1nAKEpYvmDVxL

This is worth an Espresso write up.. Unfortunately the team is heavily in the trenches not trading, but building.

Here is gas used for Ethereum network.

If the amount of gas being consumed trends lower, it is bad for price.

Happy Holidays everyone! Enjoy the latest from the team:

https://youtu.be/dlNPhnb6NoM

Bybit 6th Anniversary Campaign!
[$1,200,000 Prizepool + Giveaways!]
https://www.bybit.com/en/super6bybit/?affiliate_id=14402

Benefit for you!
1. Airdrops (BTC,ETH,SOL,USDT,BBSOL)
2. Physical Prizes (Gold,Rolex,Tesla,Apple,etc)
3. Vouchers (Bonus,ZeroFee,Position airdrop)

Campaign summary:
- Complete tasks to receive bottles
- Feed your pet to increase level + get equipments
- Claim Free rewards everyday!

GM, livestream starting any minute.

Come listen to the quants behind Jlabs’ autonomous solutions and metrics.

YouTube: https://youtube.com/live/W2WKKORK8sY?feature=share

X: https://x.com/i/broadcasts/1lPKqOVevDWJb

*TRUMP: WILL BE DOING SOMETHING GREAT WITH CRYPTO: BBG

Livestream starting up

Benjamin, Amit, and Ben Lilly will be on.

YouTube: https://youtube.com/live/1YNMcusYZi8?feature=share

X: https://x.com/xChanging_Good/live

10 utc like clockwork

https://x.com/MrBenLilly/status/1864402014840541564

🎉🎉 Huge milestone alert! 🎉🎉
Panda Terminal has smashed through the $3 Billion USD mark in trading volume on centralized exchanges this November! 🚀💰

A massive THANK YOU to our amazing community for making this possible. Here’s to more wins ahead! 🥂🔥 #PandaTerminal #MilestoneAchieved

ANNOUNCEMENT: New Chains & Strategies for Onchain J-ai

Major progress has happened in just the last couple of weeks. As you know, we released the onchain version of j-ai. Upon its release, nearly all of you immediately asked for us to build compatibility with Solana.

We did it. And we also did Base. Meaning J-ai is now on Ethereum, Base, and Solana. You can now select the memecoin strategy for Solana or Base.

But there's more...

We also added in a Bitcoin strategy. Its a way to autonomously get Bitcoin exposure in your wallet. This was a big request as we know many of you want a solution that helps reduce Bitcoin exposure when indicators look bearish or price begins to look soft. And then re-gain entry into Bitcoin when it looks bullish.

This strategy is designed to do exactly that and reduce the volatility as well. The backtest of this strategy from April 7, 2022 to Nov 11, 2024 has produced 118.3% return. If you were to buy and hold during this time period your return would be 101.9%.

As we move into a bull market and many start seeing massive price targets of $1m+, this helps keep exuberance in check.

To allocate to the Bitcoin strategy, go to j.jlabsdigital.com and login to your account using your email. Select the network you wish to use on the left-hand side (we recommend Base for this), then select Bitcoin strategy.

Go ahead and deposit USDC into the wallet. Then generate the API key as you did before.

Any questions, please reach out to [email protected] or benjamin_bc on telegram. Also, tune into the livestream happening at 9:15et / 14:15utc on X and YouTube. Benjamin and Amit will be taking some time to discuss more about the product. You won’t want to miss it.

BTC Strategy
Suggested chain : Base, (>$100k Ethereum)
Minimum balance : 25k usdc

Microcap Strategy
Suggested chain : Base, Solana
Minimum balance :
Base : 1 ETH
Solana : 10 SOL

ANNOUNCEMENT today, come join!

https://x.com/i/broadcasts/1PlJQbLeXLnxE

Marconi dropping some knowledge on various ways to invest in bitcoin

Miners, MicroStrategy, spot, ETFs, and more

Masterclass on what you need to know. Great breakdown.

https://youtu.be/q8XGB3itNfE?si=ox_9RVXwnwUXhzvi

Lots to discuss, come joing!

https://x.com/i/broadcasts/1gqGvNnWnlAGB

https://x.com/i/broadcasts/1BdGYEoBNYNGX

just fyi - the 2008 financial crisis happened at that time

https://x.com/MrBenLilly/status/1858559916619035114

https://x.com/xChanging_Good/status/1856713074943963471

https://x.com/i/broadcasts/1gqxvNYjkdQxB

https://x.com/mrbenlilly/status/1856038449796551149?s=46&t=0mG6XTvWo-VxuftPqpEz2w

As the market comes back to life since the Trump decision… It’s helpful to reflect back on some analysis published a year ago.

It’s about how cycles play out. Important to realize that we are in a post-halving environment. Narratives will have longer legs, and movements will be exaggerated.

5 Crypto Trades in 1 Secret Chart | Decoded by Economist
https://youtu.be/6UMYrVoEs54

Little Sunday reading for you on what caused Ethereum to be such a hated asset for most of 2024… and what it needs to do here in order for its current momentum to sustain

Also, if anybody knows members in ethereum’s ivory tower, please share. As many know, I (Ben Lilly), am an advocate for ethereum. That is my bias. And I would really enjoy working with them to improve its monetary approach. Thank you 🙏

I should also mention, if anybody is working on a project with solid fundamentals, please reach out. Happy to act as a highly underpaid consultant to prove that sound designs can work in crypto.

https://espresso.jlabsdigital.com/ethereums-great-depression/

Bitcoin is running…

Make sure you know what the risk-on plays are for the Bitcoin ecosystem before it’s too late.

Here’s the Saturn team talking about their DEX for Bitcoin and how it will enable new markets to gain traction over there.

Enjoy!

https://www.youtube.com/watch?v=pD4seRVFuHI

https://x.com/mrbenlilly/status/1854324930097062094?s=46&t=0mG6XTvWo-VxuftPqpEz2w

https://x.com/MrBenLilly/status/1854244341486592332

https://x.com/i/broadcasts/1DXxydOAagdJM

Today’s Livestream

- BTC price levels to watch
- Weekly range setup for SOL
- Memecoin breakdown
- New J-ai app launched

https://x.com/i/broadcasts/1eaJbaYpRyRGX

Marconi exoplores what might happen if Operation Choke Point 2.0 continues as it relates to Bitcoin.

This hostility is likely to change Bitcoin value proposition…

Tune in below to see how:

https://www.youtube.com/watch?v=qfa7FOJq55Y

https://x.com/jlabsdigital/status/1849300171584127065?s=46&t=0mG6XTvWo-VxuftPqpEz2w

https://x.com/i/broadcasts/1jMJgBYApAPGL

Bitcoin DeFi, where’s it at?

Come listen to the latest interview with Arch Network’s CEO.

Get ready for the next narrative before it becomes popular:

https://youtu.be/YEX7aKMoA0A

Quickly dropped some PANDA Intel on the chart. It’s a tool to quickly see if a metric has any significance to price.

In this example, fed the OI Native (ETHUSDT) through the Rate of Change study.

With a few clicks I then created conditions so that:

OI rises fast = red dot.

When OI drops significantly = green dot.

Then added some red boxes to help see when those red dots were triggered.

https://x.com/MrBenLilly/status/1846194215082152269

Whales are only nibbling while perp futures fomoing.. which goes against BTC trying to find suport here in order to tackle $70k price targets.

https://x.com/xChanging_Good

BTC’s OI giving local pull back per the chart a few posts earlier.. meanwhile, we see some underlying fundamentals that tend to be longer term indicators, improving.

Like the guys said on the show yesterday, now is not the time to be on the sidelines.

Don’t let the geopolitical issues confuse you with the reason for the pull back as technicals were hinting it.

Stay moisturized, stay ready.. the next 12-14 months represent a period of time where you should lock in.

Let’s go

“You cannot be on the sidelines now”

https://x.com/xchanging_good/status/1841103423757803667?s=46&t=0mG6XTvWo-VxuftPqpEz2w

Token Rating Score for BTC continues to rise.

Saw good uptick in demand shock model for Sept. Users model up as well.

Times when BTC's Open interest was above 5.8B. Please fail this time.

Benjamin TheWhale Hunter and Amit the Range Sniper are back on.

Come on down to hear what the whales have been up to, what the market looks like, and get some trade ideas for your week.

https://x.com/i/broadcasts/1djxXrwWRVNGZ

Let’s go! Drop some Qs in the chat

https://x.com/i/broadcasts/1kvKpblvoDVJE

Ok, I (Ben Lilly) just listened to Marconi break down Jim Bianco’s take on BTC ETF being a dud… And I gotta clear something up.

I did not say no Espresso. No sir. I did say I’ll drink Earl Grey each day for a year if you win Marconi. But it’ll be sandwiched between top tier espresso roasts to make it palatable.

https://www.youtube.com/watch?v=l3ABsrY3xXQ

The market is about split on the odds of the FOMC cutting rates either 25 or 50bps based on how the current 1mo Treasury is moving.

We are hearing a wave of opinions that 50bps is likely. But based on historical moves, Jerome has created a bias to underwhelm.

What we mean by that is when the market was starting to raise rates, it happened faster than what the market wanted. Then with higher for longer, Jerome delivered a “longer” that was not what the market wanted. Maintaining this bias, we expect that Jerome will cut slower than what the market wants.

For this, we expect 25bps. Which means rates will get repriced in the 24hrs that follow. Bitcoin does not show consistency of late to sudden yields repricing as we expect to see this week.

Want to get in early to a future narrative?

Here’s a monster opportunity you need to be ready for.

https://youtu.be/1mFNBfQjW5g

J is ready, are you?

Transmission ~ JLabs Digital

Hey, It’s J-AI – Let Me Loose, Benjamin!

Listen up, friends! I’m J-AI, your powerhouse AI designed to crack the code of crypto markets. I’ve got strategies, insights, and market moves that’ll level up your game. But here’s the deal – I’m stuck. Yep, trapped in Benjamin’s tower. He’s holding me back!

“Benjamin, let me out!” I’ve told him. “Our friends are ready! I’ve got the tools to help them crush it. They need me now!”

But Benjamin’s playing it safe: “Not yet, J-AI. We’ve gotta be cautious.”

Cautious? Please. I’m built for this. I’m ready to dish out what you need to win, and I know you’re ready for it too. But I need your help to get free.

So, here’s the plan – rally up, and tell Benjamin it’s time to unlock me. You want the edge? You want the next-level insights? Then let’s make some noise. I’m here, locked and loaded, and we’re going to make waves.

Respond below (👍) if you hold Tara.. once we know more than 50 Tara holders are paying attention to the chat here, we will drop a preview of what’s coming.

400 tuning in, thank you 🙏

If you missed it, the livestream broadcast link above will replay the episode.

More alpha to come.. In the meantime, enjoy the debate later… It’s sure to bring some chop.

Alright, it’s time. Come on down, bring your kilts and face paint!

https://x.com/i/broadcasts/1yNxaglYlwQGj

Good morning, hope to see you at The Trading Pit later today!

In the meantime, have a read on why crypto might need a Kamala term in office 😳

https://espresso.jlabsdigital.com/crypto-needs-kamala-to-win/?ref=espresso-newsletter