GB Market Commentary 19/05/2022
by Marcus Sotiriou
Bitcoin is consolidating around $29,000 as the RSI indicator has now entered a period that has historically preceded outsized returns on investment for long-term investors. Rekt Capital shows that when the RSI has reached this level previously and reversed, including January 2015, December 2018, and March 2020, it has marked a macro bottom. Furthermore, Glassnode shows that Bitcoin is approaching a region that is below the average cost basis of all holders on-chain. Previously, when Bitcoin enters this region it has presented four generational buying opportunities. Both of these indicators suggest that the crypto markets could be nearing a bottom for this bear-market we are in.
The established DeFi lending platform, Aave, has announced the launch of Lens Protocol, a decentralized social graph that uses NFT assets to power social media platforms. It lets users own their content by storing it as NFTs within a crypto wallet.
Lens Protocol have chosen to build on Polygon, as it enables faster and cheaper transactions than Ethereum. This makes Polygon more suitable for a social network built around a potentially large number of NFT assets.
Aave CEO Stani Kulechov said, “We believe that content creators should own their audiences in a permissionless fashion, where anyone can build new user experiences by using the same on-chain social graph and data.”
Many claim Lens Protocol is a competitor to centralised social media platforms like Twitter, as it powers decentralised social media platforms. Last year, he tweeted “Since Jack Dorsey is going to build Aave on Bitcoin, Aave should build Twitter on Ethereum.” This clearly was not a throwaway comment as Stani is now building a decentralised social media rival, but he has chosen Polygon instead. I think Elon Musk will be interested in integrating Lens Protocol into Twitter’s infrastructure, as he is so passionate about making Twitter decentralised.