08:56 opinion analysis
16:03 Sentiment Drives Hypergrowth
16:40 How I/O Fund traded Bitcoin
19:08 Audience Q & A
29:00 Promising Ethereum competitors
31:30 Final takeaways
How to Value Crypto:
There are a few valuation metrics that are used to value crypto and Decentralized Finance ( DeFi ). sum prize locked ( TVL ) is emerging as one of the go indicators. If you divide the market capitalization by TVL, the proportion could potentially help investors value crypto assets similarly as price-to-sales ratio, which is based on tax income. Crypto does not offer financials or quarterly results so the next good thing is to look at growth in terms of the sum amount of funds locked into DeFi projects. In 2021, sum value locked grew over 1200 % with Ethereum claiming 62 % of TVL. notably, TVL growth benefits from increase in the implicit in token price. In 2018, Ethereum had a much larger contribution of TVL in the > 90 % roll. This year, Ethereum ’ s dominance in TVL was challenged by Binance, Solana, Polygon, Terra and others. institutional inflows can besides be a leading index, with Solana seeing upwards of $ 2 billion in venture capital with $ 250 million invested into SOL-based exchange-traded products ( ETPs ) with $ 42.2 million invested in one month. In a research report from Coinshares dated November 29th, “ in terms of inflows relative to assets under management ( AuM ), Polkadot and Solana continue to be the winners, with inflows representing 8.6 % ( US $ 11.5m ) and 5.9 % ( US $ 14.6m ) of AuM respectively last workweek. ” Polygon ’ mho popularity can be tracked in terms of network usage and the number of addressees from senders/receivers. In early October, the network saw a high of 566,516 which surpassed Ethereum ’ s 527,158. This represents 30-day increase in October of 168 % compared to Ethereum ’ s 0.6 %. Polygon ’ mho custom is driven by NFTs on the OpenSea market and gaming with Arc8 seeing over 100K users within days of launch. Metrics are fairly fragmented and hard to track yet unique addressees and act of developers on the platform can be tracked. For exemplar, Solana has 2.3 million monthly active addresses on its net, 1 million active users for its Phantom wallet and 1,750 developers as of November. Network hash rate is a imprison indicator for Bitcoin so far helps determine if the drift is up or down .
The I/O Fund’s Unique Approach:
In a contrarian position, the I/O Fund does not believe valuation is what drives crypto. alternatively, the portfolio director, Knox Ridley, tracks sentiment in order to actively manage these assets. notably, the I/O Fund was a initiate in adding crypto aboard stocks with proper allotment and active management. Most funds and portfolios avoid this as the volatility in crypto is complex. We besides send real-time trade notifications for every entry/exit and this helped us drive market-leading returns of 236 % in annual. Sign up for I/O Fund’s free newsletter with gains of up to 1100% – Click here Below is an example of how crypto performs like high beta stocks. On the chart, you can see the price fluctuations for Bitcoin, Ethereum and Upstart are closely identical in terms of drawdowns. While many investors become refer by this price action, it ’ randomness actually quite normal for the pricing in disruptive technical school to be volatile. Over the long terminus, the gains about always outweigh the losses, which is why the declare time period for technical school must be a minimal of three years and up to ten years. Near the bottom, when fear is at its most extreme levels, investors begin to question their harbor period and decide to exit early, which is a behavior that leads to devastating losses. It ’ s much better to assume disruptive technical school will have extreme fluctuations and to hold firm to the original plan of holding for an extend period of time. The alone exception to this is if the history basically changes.
reference : Ycharts ; data as of December 1st To give you a good exemplar of what we mean by sentiment is that when Bitcoin was trading around $ 19,000 — – everyone wanted to buy ( extreme point avarice ), and when it dropped to $ 4,000 — cipher wanted to buy ( extreme fear ). The I/O Fund specializes in disruptive technical school stocks and Knox Ridley helped guide entries in the $ 7000 scope during this time period. We provide a chart of our Bitcoin entries and exits below. The point is not to time the accurate penetrate, quite to get in at a fair price . source : I/O Fund, Portfolio with real-time trade wind notifications for stocks and crypto assets According to the technical analysis from our portfolio coach, Bitcoin has the potential to reach $ 108- $ 160K before the adjacent major selloff ( i, note : assets and stocks do not go up in a analogue fashion ; consequently, pullbacks are distinguished from selloffs ). You can besides follow our portfolio coach Knox Ridley on Twitter and sign up to our free newsletter to get regular updates on Bitcoin ’ randomness price movements. lead analyst for the I/O Fund, Beth Kindig, has been covering crypto since 2013 which is three years before Ethereum ’ s launch. therefore, we are more comfortable than most in weathering the fundamentals and technicals for crypto. This has helped the research firm build a singular subset of crypto positions. We believe Ethereum competitors have an advantage right now and should be closely assessed for opportunities. This is due to Ethereum ’ sulfur high boast fees, longer-than-expected proof of impale unite, far 1-2 class delays on shards and rollups, and overall, a complex product road map where many things can create delays for the # 1 DeFi network. We discuss this and more in the Finimize Crypto discussion. Additional previous articles from I/O Fund. Why the I/O Fund Cut BTC at the exceed
What ’ south Next for Bitcoin ? Levels to Watch My early on Bitcoin Bull analysis disclaimer : This is not fiscal advice. Please confer with your fiscal adviser in regards to any stocks you buy .