May was a challenging month for the crypto markets. We certainly got our fair share of FUD between regulatory threats, Elon Musk tweets, China power outages, and liquidation cascades. The fear was apparent in the price action, with most crypto assets down significantly during the month. However, ETH and some DeFi tokens held up relatively well thanks to, dare I say, fundamentals. ETH is hitting all-time highs on many metrics of network activity, and it’s hard to bet against it heading into EIP-1559. As for DeFi, we continue to see strong cash flows despite market turmoil. Uniswap and Aave are bringing in more fees than the entirety of the Bitcoin network. Furthermore, the success of Polygon and the anticipation of L2 solutions going live are keeping many optimistic about the scalability of Ethereum and DeFi.
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Metaverse Index Monthly Update - May 2021
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May was a challenging month for the crypto markets. We certainly got our fair share of FUD between regulatory threats, Elon Musk tweets, China power outages, and liquidation cascades. The fear was apparent in the price action, with most crypto assets down significantly during the month. However, ETH and some DeFi tokens held up relatively well thanks to, dare I say, fundamentals. ETH is hitting all-time highs on many metrics of network activity, and it’s hard to bet against it heading into EIP-1559. As for DeFi, we continue to see strong cash flows despite market turmoil. Uniswap and Aave are bringing in more fees than the entirety of the Bitcoin network. Furthermore, the success of Polygon and the anticipation of L2 solutions going live are keeping many optimistic about the scalability of Ethereum and DeFi.