GB Market Commentary 20/04/2022
by Marcus Sotiriou
Bitcoin on-chain metrics continue to be bullish as Bitcoin exchange reserves plummet further, shown by data from CryptoQuant. This signals that the proportion of long-term holders are increasing as fewer people are willing to leave their Bitcoin on exchanges. Like all on-chain metrics though, we cannot draw a conclusion from looking at one, but the persistent removal of Bitcoin from exchanges is compelling.
Some altcoins have seen significant investments recently, including Cosmos, which announced last week a $150 million fund for multichain crypto projects. Some of the partners involved in the fund included prominent names such as Alameda Research, Kucoin Ventures and OKX Blockdream. I think this injection of capital is what is needed to help the Cosmos ecosystem reach the spotlight in the next year or so, as competitors have been launching their own funds worth hundreds of millions over the past year.
Furthermore, Ava Labs, the main developer of the Avalanche blockchain, is reportedly raising $350 million in new funding at a $5.25 billion valuation. This comes after the Avalanche Foundation announced the launch of Culture Catalyst a few weeks ago - a $100 million initiative that aims to cultivate arts and entertainment projects within the Avalanche ecosystem. OP3N, an NFT platform for community building, has partnered with the Avalanche Foundation to launch Culture Catalyst. The first major project to launch on this NFT platform is from the musical artist Grimes, who announced plans to launch an “intergalactic children’s Metaverse book”.
I am particularly excited to see how Culture Catalyst develops, as I see this raising of capital through NFTs as the future of art funding. Helping artists launch NFT projects is also a part of GlobalBlock’s mission, in this new and unfamiliar space.