Evolution of Crypto, DEX vs CEX, Bitcoin Treasuries, and Fund Flows

Happy Monday, TM Family!

Welcome to the Token Metrics Daily newsletter, where we cover key market movements, regulatory updates, and early alpha for our readers and investors. 

Let’s dive in! 

In Today’s Edition

1. Ian’s Talk at MIT: Crypto’s Evolution and Investment Insights 

2. Hyperliquid: A DEX (L1) Challenging Centralized Giants

3. Microstrategy and Metaplanet: Leading Corporate Bitcoin Adoption

4. Ethereum: Inflows Signal Renewed Confidence

1. Ian’s Talk at MIT: Crypto’s Evolution and Investment Insights 

Ian Balina, the Founder and CEO of Token Metrics, delivered a compelling talk at MIT, shedding light on the rapid growth of cryptocurrency and its synergy with artificial intelligence (AI). He compared crypto’s adoption rate to the internet’s, noting that Bitcoin (2009) and Ethereum (2015) have driven innovations like DeFi and NFTs.

Ian introduced the Token Metrics framework, a data-driven approach analyzing fundamentals such as team quality, tokenomics, and technology to generate trading signals. The framework is available at Token Metrics. Emerging technologies like DePIN (e.g., Helium’s 1M+ device network) and DePAI for robotics were highlighted as transformative.

Watch the full talk on YouTube:

2. Hyperliquid: A DEX (L1) Challenging Centralized Giants

Hyperliquid, a decentralized exchange (DEX) on its own Layer-1 blockchain, is redefining crypto trading with innovative features. Praised by several traditional finance investors, Hyperliquid combines centralized exchange (CEX) usability with decentralized transparency. It's fully on-chain order book ensures verifiable transactions, setting it apart from most DEXs. 

Hyperliquid offers spot, margin, and futures trading with up to 50x leverage and low trading fees. The platform’s “Vault” system, notably the Hyperliquidity Provider (HLP) vault, currently holds $316M, and the total value locked in Hyperliquid is $1.25B.

Hyperliquid is now generating $2M a day in fees. It redistributes 100% of trading fees to its community via a revenue-sharing model and uses fees for HYPE token buybacks, enhancing token value.

With a daily trading volume of more than $10B consistently, Hyperliquid has started competing with the biggest centralized exchanges like Binance, Bybit, and OKX. 

3. Microstrategy and Metaplanet: Leading Corporate Bitcoin Adoption

The trend of companies adopting Bitcoin as a treasury reserve asset is gaining momentum, with Microstrategy (now Strategy) and Metaplanet at the forefront. Microstrategy recently acquired 7,390 BTC for $764.9M at $103,498 per BTC, bringing its total holdings to 576,230 BTC, valued at $59B.

Metaplanet purchased 1,004 BTC for $104.3M at $103,873 per BTC, increasing its holdings to 7,800 BTC, worth over $806M. Metaplanet, which began acquiring Bitcoin in April 2024, aims for 10,000 BTC by year-end, funded by bond sales, including a $15M 15th ordinary bond issuance.

5. Ethereum: Inflows Signal Renewed Confidence

Global cryptocurrency funds saw $785M in inflows last week, marking the fifth consecutive week of positive inflows. Year-to-date totals are at $7.5B, fully recovering from earlier outflows. 

Ethereum investment products were the standout performers, attracting $205M in net inflows, bringing year-to-date inflows to $575M. This reflects renewed investor optimism following Ethereum’s Pectra upgrade, which enhanced scalability and reduced fees.

Meme of The Day

References 

1. Ian’s Talk at MIT

2. Hyperliquid: A DEX (L1) Challenging Centralized Giants

3. Strategy Buys 7,390 Bitcoin for $765M

4. Strategy, Metaplanet take Bitcoin Treasuries to New ATH

5. Strategy Expands Bitcoin Holdings

6. Metaplanet Buys Another 1,004 Bitcoin

7. Ethereum Labeled 'Standout Performer' as Global Crypto Funds Add $785M

8. Check $HYPE Trading Signals on Token Metrics

9. Trade $ETH on Token Metrics 

That’s all for today, people. Let’s talk tomorrow.

Your Friends at Token Metrics