GM and welcome to The Crypto Nutshell! 🫶 🥜 

The crypto newsletter that won't abandon you like waking up alone on a deserted planet with only your trusty rover... 🚀🪐

Today, we’ll discuss:

• Trump’s NFT collection is pumping? 📈 

• The whales are coming 🐋 

• Glassnode & ARK Invest new on-chain metrics ⛓️

• And more…

MARKET WATCH ⚖️

Only the top 20 coins measured by market cap feature in this section

TRUMP NFT VOLUME SKYROCKETS 🚀 

JUST IN: Donald Trump NFT sales volume skyrocket by 4,500% following mug shot release 👮 

I’m sure you’ve heard about former U.S. President Donald Trump surrendering to authorities in Georgia on the 24th of August.

But did you know that he also has an NFT collection?

Funnily enough Trump’s mug shot caused an insane spike in his NFT collections trading volume, market cap and floor price. 📈

Series 1 last 24 hours:

• Trading volume: 26.09 ETH +1,103.6%

• Floor price: 0.19 ETH ($313.98) +37.2%

• Market cap: 8,550 ETH ($14,128,944) +37.2%

Series 2 last 24 hours:

• Trading volume: 12.29 ETH +4,564.5%

• Floor price: 0.026 ETH ($42.96) +29.7%

• Market cap: 1,222 ETH ($2,018,879) +29.7%

What a wild world we live in. Who would have thought that we would be talking about a former U.S. President being arrested and their NFT collection spiking as a result. Read that sentence again… Crazy.

EXPERT OF THE DAY 💰

Raoul Pal believes that the next bull cycle is going to be driven by the whales.

A whale watching cycle, if you will. 🐳 

What is a whale?

Whales are institutional and sophisticated investors.

Think: Asset managers, hedge funds, family offices, sophisticated investors or extremely high net worth individuals. 🤑 

A whale doesn’t invest in thousands. They allocate in tens of millions, hundreds of millions or billions. 💰

In fact, we are already getting whisperings that the whales want in.

BlackRock, Fidelity & Valkyrie are all racing to be the first to a spot Bitcoin ETF.

This is the opening of the floodgates that allows the whales in.

Raoul believes that the entire market cap of crypto is going to $10+ trillion in the next bull market. (It’s currently at $1.05 trillion)

He argues that not only are whales coming for next bull market cycle, but that they are necessary.

Why?

For crypto to continue its break-neck speed of adoption, it doesn’t need billions of dollars to enter the space, it needs TRILLIONS.

Retail investors (people like you & me) simply don’t have enough capital behind them to drive up markets.

But the whales do.

What’s going to drive the whales into the market?

Raoul argues that the answer is obvious. They understand intricately well the issues of the financial system.

They understand how much debt has built up. 😳

How much money has been printed. 💴 

How fast the dollar is being devalued. 📉

They are looking for an alternative.

Crypto is that alternative.

TOGETHER WITH LEDGER 🪙

ON CHAIN DATA DIVE 📊

Yesterday we did a deep dive into Glassnode and ARK Invest’s new analytical framework, Cointime Economics. We broke down the definitions of Coinblocks Created, Coinblocks Destroyed and Coinblocks Stored so if you missed it, check it out here.

Today we’ll be taking these concepts one step further. Diving into Bitcoin’s economic state through two metrics - liveliness and vaultedness.

• Liveliness: divides the total number of coinblocks destroyed by the total number ever created. On a scale of 0 to 1, liveliness is a measure of how “active” the network is, with 1 meaning every coin in the network just moved

• Vaultedness: divides the total number of coinblocks stored by the total number created. On a scale of 0 to 1, vaultedness measures how “inactive” the network is, with 1 meaning every coin is being stored and none are moving

As of today:

• Liveliness is 0.6, meaning that 60% of all coinblocks created have been destroyed.

• Vaultedness is 0.4, meaning that 40% of all coinblocks created remain stored

Applying these ratios to the supply of Bitcoin we can measure the active supply and vaulted supply.

• Active Supply: multiplies the circulating supply by liveliness ratio to measure the amount of coins that have moved in the network

• Vaulted Supply: multiplies the circulating supply by vaultedness ratio to measure the amount of coins that have not moved. Meaning they are in the hands of hodlers or are lost

As of today:

• Active Supply is 11.63 million Bitcoin 🏃‍♂️

• Vaulted Supply is 7.83 million Bitcoin 😴

Cointime framework vs UTXO framework

The cointime framework places a weighting on each coin based on the amount of time it has remained idle. Meaning when old coins move they will have a much larger impact on Bitcoin’s economic activity.

The UTXO framework is a framework for determining the age of coins and is extremely popular for on-chain analysis. (we use this framework for realized price, mvrv ratio etc.)

ARK uses this example to demonstrate the difference in frameworks:

If a miner receives a block reward and then moves it one time ten years ago, the coin will be deemed active under the UTXO framework. In the cointime framework, that same coin coin would be mostly inactive, weighted by the amount of coinblocks created in a ten year period.

Another major difference is how they define inactive coins.

• UTXO: inactive is equal to the unmoved supply miners receive as rewards

• Cointime: inactive is equal to the vaulted supply

ARK believes that vaulted supply is a much stronger representation of the inactive supply. Take a look at the chart below to see the difference. Vaulted supply 🟢 is 4.3x larger than the Miner unspent supply 🔵 

This new framework is important for all on-chain enthusiasts as it provides a different perspective on classic economic and valuation models. We’re excited to explore these new metrics further and see what insights they uncover.

We know that this kind of stuff can get a little technical at times but we’ve done our best to make this as easy as possible to understand.

If you have any questions or just want to let us know your thoughts please fill out the poll at the bottom of this newsletter. 😎 

CRACKING CRYPTO 🥜

TRIVIA TIME ✍️

What is the current market cap of Bitcoin?

• A) $498 Billion

• B) $512 Billion

• C) $507 Billion

• D) $500 Billion

Find out the answer at the bottom of this newsletter 😀

MEME CORNER 😂

Because what would the crypto world be without its share of memes?

Trivia Answer: C) $507 Billion 🎉

According to CoinMarketCap the market cap of Bitcoin is ~$507 Billion (at the time of writing)

NUTCASE REVIEW OF THE DAY 🔍

DISCLAIMER: The content of this newsletter is not financial advice. This newsletter is strictly educational and is not investment advice. Please be careful and do your own research.