BGB Sail: December Edition
The focus of our BGB Sail Series is on the monthly performance of BGB, with a recap of the market situation at the end of each month.
BGB Sail: November Edition can be found here.
Market Summary
The aftermath of FTX continued into December, with global search interest in crypto topics further declined: searches for Ethereum remained below 15 searches/day, while it’s below 45 searches/day for Bitcoin.
DeFi’s popularity swayed a bit downwards, but the overall sentiment towards the topic was still strong. That is understandable as DeFi seems to be the solution for cases like FTX.
When we talk about DeFi, it’s simply a must to mention Total Value Locked (TVL). TVL shows that most assets were locked on Ethereum, unsurprisingly. However, Tron has been rising to the 2nd place, competing fiercely against BNB Chain ever since May-June (around the Terra/LUNA collapse). And in December, Tron’s TVL has comfortably surpassed that of BNB Chain. Aggregated TVL of all chains didn’t change much in December.
Source: The Block
The Top 3 categories by TVL have always been decentralized exchanges (DEXs), Lending and Collateralised Debt Position (CDP), but CDP is gradually catching up with Lending. In November, the ratio between CDP and Lending varied between 0.71-0.74 and has increased to 0.75-0.78 in the last month of 2022. What does it mean?
CDP is the func-tion of MakerDAO that allows users to lock their cryptocurrencies to generate DAI. An increase in the TVL of CDP means that more DeFi users, and crypto users in general, could be switching to DAI a.k.a. the true decentralized stablecoin.
Trust in centralized exchanges (CEXs) hasn’t been restored, resulting in a sustained outflow of Bitcoin from CEXs. Data from CryptoQuant shows that Bitcoin reserves from all exchanges dropped to the lowest levels since 2020 in December, with the lowest recorded hitting 2.140 million BTC across nearly 40 exchanges. Netflows were not as bad as in June but it definitely reflected a mounting concern of investors as the outflows perpetuated.
Source: CryptoQuant
BGB Performance in December
Exchange tokens’ value didn’t show much change in December; the only one with a small breakout is OKB. BGB experienced a minor loss (-7.5%), but demand for BGB was legitimately persistent; this is the only token with a one-digit decrease in monthly volume.
All other exchange tokens saw at least a 30% decline in volume, no matter if their value went up or down. That is how reliable BGB appears to be as an exchange token, well, BGB investors must consider the token a good keep, otherwise they would have come rushing to dump BGB, right?
It’s important to highlight that in the extreme case of OKB, volume still plunged despite the positive returns. Trading interest should actually go up when the asset’s value increases, because people want to get it before it’s too late (though diamond hands want to hold and wait for better prices).
It’s a good wrap-up of the year for BGB. We are proud to deliver a valuable asset to BGB holders! If you want to learn more about the charm of BGB, an analysis of previous months is available here:
Why demand is keeping BGB afloat
BGB is the only exchange token, and a rare digital asset that hit its all-time high in Q4 2022. That itself is impressive enough.
With the launch of Bitget’s new DeFi product series, BGB becomes strictly a necessity. The more BGB you own, the more you can earn - there are several options for every risk appetite. If you are risk-averse, why not try BGB Earn? Mind you, interest rates may be on the rise, but a strong US-Dollar is hurting all other fiat currencies. For example, the Euro (EUR) has lost ca. 15.9% from January to September, the British pound (GBP) 21.8%, the Japanese Yen (JPY) 26%, etc. Even the Swiss Franc (CHF) has been weakened by roughly 7.6%, whereas the BGB net value increased by 20%! Given that BGB Earn offers a 6% APR, the only question is just how many times your asset value could grow if you are a BGB holder?
Bitget-Verse
December 2022 was an emotional month for football lovers, especially those who follow the legendary Lionel Messi. As the World Cup 2022 in Qatar came to an end, so did Bitget KCGI: Football Edition. Here is the winners’ profile - a representative of the CIS region:
Congratulations to all KCGI participants for the memorable journey alongside Messi and the Argentinian team!
Spot Futures Activities
Futures activities, represented by the aggregated volume of all contracts, saw another decline of 3%. Bitcoin continued to dominate the futures markets, averaging at 67% of the total open interest for December. BGB volume shows more consistency than the total volume, of course, as BGB value is sustainedly upheld.
Futures traders now have two trading options: Hedging Mode and the new One-Way Mode. If you can open a long and short position on the same pair, under the One-Way Mode you can only Buy or Sell positions of one direction (either long or short). More about Bitget One-Way Mode can be found here: Bitget Futures: One-Way Mode
For anyone not yet join the world of crypto, our Welcome Package for new traders is boosted by 20% to 5,005 USDT! Register here and complete all tasks in Bitget Rewards Center to receive the gifts!
Bitget Dual Investment Product
What’s in store for next week? The Mighty Bitget Dual Investment Product! Bitget Dual Investment offers a smart investing scheme that sticks tightly to the ‘Buy Low, Sell High’ principal. Here’s why it is revolutionary:
• Lock assets to receive interests;
• Buy the selected asset and earn interest for that asset at settlement if the selected asset’s price is attractive;
• Sell the locked asset and earn interest in stablecoin at settlement if the locked asset’s price is reasonably high;
• Subscribing to Buy Low and Sell High at the same time possible;
• Subscribing to multiple pairs at the same time possible;
Maximum flexibility, together with compounded interests!
Bitget SharkFin
True staking has come to Bitget! The main difference between Bitget Launchpool and Bitget SharkFin is the asset lock. In-and-out is flexible with Bitget Launchpool, whereas Bitget SharkFin will lock the assets during staking time! For that reason, Bitget SharkFin also comes with a floor APR for users. If prices are to stay within the given range within the same time frame, a higher APR is guaranteed - therefore it is a structured staking product.
Two new SharkFin pools will open in less than 24 hours: BTC (guaranteed APR: 2.00%-8.00%) and USDT (guaranteed APR: 2.00%-8.40%). Below are some estimated numbers for the previous SharkFin pools:
The floor APR is increased to 2% for the upcoming pools, and for the last 2-3 rounds, we have adjusted the conditions for the Shark Scenario in that we extended the range of Bitcoin price, so that subscribers could earn more!
Need a Bitget SharkFin tour? Check out our article on Bitget SharkFin Introduction.
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