3 Reasons The Bear Market May Be Nearing Its End

Morning Phenoms. Tired of staring at charts that only move sideways? Us too. Today, we're here to delve into the prospects that might breathe life back into the crypto market.

Reason #1: The Bitcoin Halving Event

Every four years, a seismic event ripples through the crypto sphere - the Bitcoin Halving. It's like Mother Nature's way of rationing the digital gold supply. The next one is poised to grace us with its presence around April 2024.

Why should you be interested? Well, history paints a vivid picture. Previous Bitcoin Halvings have acted as catalysts for crypto outsized returns. In 2012, Bitcoin skyrocketed 365% before the halving and an astounding 8,000% in the year that followed. In 2016, it surged 142% prior to the halving and then another 284% afterward. Even in 2020, a relatively modest 17% bump came before the halving, followed by a jaw-dropping 559% surge.

Reason #2: ETF Approval

The institutional bigwigs are finally deciding to play catch-up in the crypto carnival. Names like BlackRock, Fidelity, and Franklin Templeton, which once wouldn't touch crypto with a ten-foot pole, are now eagerly trying to lasso it in. It's like watching a game of tug-of-war with invisible ropes.

Why does this matter? Well, ETFs have a knack for sending asset prices into the stratosphere. Just peek at Gold's history. The first gold ETF launched in 2004, and within days, it saw over $1 billion in inflows. In a few years, Gold had a record-breaking bull run.

Reason #3: Crypto's Strengthening Fundamentals

While prices have taken a rollercoaster ride, crypto's underlying value has been on a steady ascent. It's like billionaire Dharmesh Shah once said, "Valuation oscillates up and down around value."

Why should you believe this? Consider Ethereum. Its price may be down, but its value? No, it hasn't taken a nosedive. In fact, it's surged ahead. And when we cast our gaze across the entire crypto market, the evidence is overwhelming.

Shopify's embracing stablecoin payments, Visa's partnering with Solana for smoother cross-border transactions, Telegram's diving headfirst into the crypto ocean, and even Grab, the Uber of Asia, is flaunting a web3 wallet. Twitter's added NFT features, and whispers suggest crypto payments may be next in line. Musicians and artists are minting their creations on the blockchain - the list goes on.

In conclusion, it's evident that crypto fundamentals are at an all-time high. It's not a question of 'if' but 'when' these fundamentals will ripple through to the prices. So, keep your analytical eye on the charts and your spirits high - the crypto world remains an intriguing playground for investors and its only a matter of time before we stop crabwalking.

Protocol Preview

In light of substantial enhancements to the Lyra protocol and its token, as outlined in the team's V2 vision, we're taking a peak at LYRA.

Catalyst

For a considerable time, Lyra has been the preferred avenue for degens to access crypto options without seeking permission. However, the protocol is now set to expand its offerings by providing a comprehensive exchange experience, encompassing both spot and perpetual trading markets. Settlements will be executed on the Lyra Chain, an OP Stack rollup that offers high throughput and cost-efficiency. Under a revised tokenomic framework, LYRA holders stand to benefit from trading fees, liquidation fees, interest rate spreads, and a 50% share of gas fees generated.

Despite the historically attractive profitability of providing liquidity on Lyra—where flagship ETH LP pools have averaged an impressive 6-8% in real yield over the past 1.5 years—there's been a lingering issue of options requiring full collateralization, rendering the Lyra AMM somewhat capital-inefficient. To address this concern, Lyra V2 options writers can now leverage portfolio margin capabilities. This feature promises to boost liquidity per dollar of TVL and enable Lyra V2 to maintain current volumes with less than 7% of its existing TVL.

Price Impact

Spot and perpetual trading volumes have transitioned onto the blockchain in 2023, primarily due to a loss of confidence in centralized entities following the tumultuous events of the previous year. Lyra's potential as an investment might be more of a longer-term play, as significant token price appreciation against ETH is likely contingent upon the launch of V2. Nevertheless, the protocol is strategically positioning itself to capitalize on this trend and solidify its position as a frontrunner in the crypto options arena."

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Closing the ledger for now, but the crypto revolution continues. Stay curious, stay bold, and keep chasing those blockchain gains!

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