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COIN METRICS SUPPLY TRANSPARENCY REPORT – Q3 2021

The Supply Transparency Report brings visibility to the actions of the important thing classes of a cryptoasset’s holders that are deemed to limit provide from the market, as outlined within the CMBI Float Adjustment Methodology . The present universe of cryptoassets that are lined on this report is reflective of those who Coin Metrics administers Free Float Supply values for, which incorporates: 0x, Aave, Balancer, Basic Attention Token, Bitcoin, Bitcoin Cash, Bitcoin Gold, Bitcoin SV, Cardano, Compound, Chainlink, Crypto.com Coin, Curve, DASH, Decred, Digibyte, Dogecoin, Ethereum, FTX Token, Huobi Token, Litecoin, MakerDAO, NEO, Stellar, Uniswap, XRP, Yearn and Zcash.
Note, for all the month-to-month and quarterly U.S. Dollar values herein, an approximate combination quarterly worth has been calculated by taking the online provide added or eliminated every day and multiplying it by that particular date’s Coin Metrics End of Day (00:00 UTC) Reference Rate .
The extra web worth added to crypto markets from property included on this report throughout Q3 2021 was $1.9B,down considerably from the $10.5B that was added in Q2. The most vital causes for this lower was:

$2.1B of Bitcoin that was faraway from circulating provide due to cash in addresses that aged over 5 years in the course of the quarter.
$2.1B of Ether that was faraway from circulating provide, largely due to cash that returned to group managed addresses from the earlier quarters outflow. 
Generally decrease common costs of property in Q3 relative to Q2 will replicate in decrease USD worth for a similar quantity of asset offered.

The largest contributors to the rise in free float worth in Q3 2021 had been FTX ($1.6B), Cardano ($1.5B), XRP ($876M), and Chainlink ($452M). 
The largest contractors of free float worth in Q3 2021 had been Ethereum (-$2.1B), Bitcoin (-$2.1B) and Huobi Token (-$74M).
The cryptoassets with the best free float annual inflation fee (denominated in native items) over the past yr had been Curve (969%) 1 , Compound (183%) 1 , Balancer (131%) 1 and FTX Coin (60%). Over the identical interval, Crypto.com Coin (-24%) 2 , Huobi Token (-21%) and Bitcoin (1.2%) had the bottom annual inflation fee.

Note 1 : Compound launched in March 2020, Balancer in July 2020 and Curve in August 2020, all with low preliminary floats and a liquidity mining program that contributed to their excessive early inflation.
Note 2 : In February and April 2021, Crypto.com performed two one off burns of 59.6B and 5B CRO respectively from Foundation managed addresses.
The web worth of cryptoassets that moved outdoors of recognized Foundation/Company managed addresses was $4.7B, throughout Q3 2021, up from $3.5B within the earlier quarter. The two largest sources of this quarter’s Foundation token actions could be attributed to: 

The FTX Foundation who transacted $1.6B from Foundation managed addresses to extra liquid ones
The Cardano Foundation firms who transacted $1.6B from their addresses to extra liquid ones

Note: Company/Foundation asset gross sales could be performed for a lot of causes, together with however not restricted to working bills, group member/advisor vesting, strategic long run partnership/BD, scheduled and unscheduled token burns, strategic investments and treasury administration. Companies/Foundations might also behave in another way, both selecting to problem giant volumes sometimes or problem on an as wanted foundation. Further, motion of property from Foundation/Company managed addresses doesn’t essentially imply property have been offered (e.g. distribution to group members, burns, strategic placements, group incentive packages, and so on).
Note : In February 2021, the Crypto.com Foundation burned $13.3B value of CRO
Note : In April 2021, the Crypto.com Foundation burned $1.2B value of CRO
The web worth of cryptoassets that moved outdoors of recognized Company Team addresses decreased considerably in Q3 2021, falling to $650M to $3B. The group members that contributed most to adjustments within the free float provide of their property throughout Q3 2021 had been:

Ethereum – the place $670M value of Ethereum (~332k ETH) enter carefully held group addresses and thus had been faraway from free float provide.
Chainlink – the place a further 19.5M LINK entered extra liquid markets, representing a worth of $450M.

Note: Movement out of Team managed addresses doesn’t essentially imply property have been offered, however fairly could be a sign of exercise (e.g. motion to passive yield producing instruments similar to Compound).

Changes to Free Float Summary

0x (ZRX)
During Q3 2021, the full ZRX moved from Foundation owned addresses was 9.5M, an lower of 24M from the earlier quarter. It is worthwhile noting that in Q2, 21M ZRX had been deposited into the ZRX vault and thus may need simply been the inspiration using their treasury property to make them productive. As tokens within the vault earn curiosity, carry out governance capabilities and are indistinguishable from each other, they are thought-about to be energetic and thus extra liquid than passively held property. 
The entirety of the 9.5M ZRX that entered free float in Q3 belong to group members. This was a discount from the earlier quarter (16.9M), however nonetheless a major improve from This fall 2020 and Q1 2021, which noticed a mixed 4.2M tokens transferring from carefully held group member addresses.
Aave (AAVE)
Having solely launched in This fall of final yr, there is restricted free float historical past for Aave. At the top of Q3, Aave owned addresses nonetheless managed just below 3M AAVE. Of this quantity, ~500K are nonetheless within the Migration contract, unclaimed by holders of  Aave’s earlier token, LEND. AAVE additionally launched their liquidity mining in Q2 which led to an elevated fee of emission from the AAVE DAO which now holds ~2.4M AAVE. Through Q3, there was a free float improve of 361K AAVE.
Balancer (BAL)
Balancer launched 1,885,000 BAL tokens into circulation via their liquidity mining program, mimicking the identical numbers from the earlier 3 quarters. The variety of BAL launched from the Balancer Foundation into extra liquid markets elevated in Q3 to ~1M BAL. With a comparatively small switch of 5K BAL tokens from group owned addresses to extra liquid markets, the online change to free float via the Q3 2021 was 2.9M.
Basic Attention Token (BAT)
Throughout Q3 2021, the quarterly improve of Basic Attention Token free float was its lowest over the past yr. Only 5.5M new BAT entered circulation in Q3, down from 11.2M in Q2 and 47.2M in Q1. The majority of the discount got here from much less exercise from basis managed wallets, probably the most energetic being the ‘ BAT: UPG Reserve ’, which solely had a web inflows of 6.4M BAT (3.6M BAT outflows and 10M BAT inflows from one other basis managed handle).
Identified group addresses transactions elevated free float 2.5M BAT throughout Q3.
Bitcoin (BTC)
The new Bitcoin issued from mining actions in Q3 2021 was 85.6K, which represents a return to ranges skilled prior to the hash fee crash that resulted in sluggish block manufacturing occasions throughout Q2 after the Chinese mining restrictions got here into place. 
Bitcoin skilled its largest quarterly achieve in long run holders (>5yrs and not using a ship transaction) in Q3, including 140K Bitcoin and eradicating them from the free float provide. 
This resulted in a web free float discount of 55K BTC for the quarter.    
Bitcoin Cash (BCH)
Bitcoin Cash’s free float elevated ~173K BCH throughout Q3, representing a slight improve from the earlier quarter. Whilst the emissions from mining in Q3 had been consistent with the earlier quarters, solely 90.5K BCH entered free float provide from cash activated for the primary time since Bitcoin Cash forked from Bitcoin, up from ~50K in Q2. 
This resulted in a web free float improve of 173K BCH for the quarter. 
Bitcoin Gold (BTG)
Bitcoin Gold’s free float elevated 181K BTG all through Q3 of 2021, barely larger than the earlier two quarterly will increase of ~160k BTG. The BTG added to the free float from mining actions (81K) matched the issuance in earlier quarters given the regular issuance schedule. However, it was the extra 98K BTG that was added to the free float of Bitcoin Gold from cash that had been activated for the primary time because the BTG fork that resulted within the web free float improve of 157K BTG for the quarter. 
Bitcoin SV (BSV)
Bitcoin SV’s free float provide elevated 128K BSV throughout Q3 2021, down considerably from Q1 (498K BSV) and Q2 (182K BCH) 2021. Whilst the brand new issuance of Bitcoin SV from mining associated actions was consistent with earlier quarters, solely 46K BSV had been activated for the primary time because the BSV fork, the bottom quarterly improve in activated provide since Q3 of 2020.
This resulted in a web free float improve of 128K BSV for the quarter. 
Cardano (ADA)
Cardano’s free float elevated 907M ADA in Q3 2021, a major improve from Q2, however decrease than Q1’s report free float provide quarterly improve of 1.4B ADA. The majority of this quarter’s improve was the results of ADA from basis managed addresses into extra liquid markets (690M). An additional 208M was added to the free float from proof of stake emissions.  
Chainlink (LINK)
Chainlink’s free float provide elevated consistent with Q2’s worth of 19.5M LINK, to once more report the equal largest quarterly improve since Q3 2019. The entirety of the rise in free float provide could be attributed to transactions from group recognized addresses. 
Compound (COMP)
During Q3, 666K COMP had been added to free float provide after a number of points which launched sudden funds from basis wallets into extra liquid markets. Of the full quantity, 546K got here from basis managed addresses. 
Crypto.com Coin (CRO)
During Q3 2021, Crypto.com had its quietest month-to-month basis and group handle exercise ever. There was no exercise of Foundation addresses and solely a comparatively small quantity of CRO that transacted from Team Controlled addresses. 
The web impression of all these adjustments was a discount in CRO free float provide of 340.2M.
Curve (CRV)
The free float provide of Curve elevated 126M. This represents a lower from Q2 (173M) however a rise that is consistent with earlier quarterly adjustments (Q1 2021 and This fall 2020). Curve is a comparatively new protocol that launched in August of 2020 and has a predefined fee of token issuance that is set to proceed at an identical tempo for the following few quarters. The majority of the rise in free float provide was from elevated issuance of tokens from basis managed addresses to liquid markets and the discharge of group managed CRV.
DASH (DASH)
DASH’s issuance from mining associated actions in Q3 was 149K DASH, consistent with earlier quarters which had been after the ~6.0% inflation fee adjustment that occurred throughout Q3 of 2020. During the quarter, there have been 13K DASH that had been recognized as being inactive for over 5 years and as belonging to long run strategic traders or misplaced provide. The web results of the 2 aforementioned elements was a rise in DASH’s free float provide of 137K for the quarter.
Decred (DCR)
300K DCR was added to the Free Float Supply throughout Q3 2021, largely consistent with Q2’s improve (289K). The majority of the rise resulted from the 319K DCR that had been added to the full on chain provide from mining actions in the course of the quarter, with 37K DCR being faraway from provide due to ageing (>5yrs outdated) and basis accumulation.
Digibyte (DGB)
The Free Float Supply of Digibyte elevated 257M DGB in Q3, a slight improve from Q2 (252M). Inflation from Digibyte mining associated inflation continues to lower each quarter, with 267M added this quarter, down from 272M in Q2 and 279M in Q1. There had been additionally 10M DGB that had been faraway from free float in the course of the quarter as they aged over 5 years with out exercise. As per the Free Float Methodology, these cash are categorized as doubtless belonging to strategic long run holders or as being misplaced, thus not contributing to liquid markets (and free float).
Dogecoin (DOGE)
Dogecoin’s important fee of free float improve slowed down in Q3, with just one.29B tokens added to the free float provide, of which 1.26B are from mining associated actions. The extra improve in free float provide was from a web discount within the variety of DOGE held by long run holders (>5 years and not using a ship transaction). 
Ethereum (ETH)
Ethereum’s free float decreased for the primary quarter ever, with a web discount of 754K. The major contributor to this was the 1.26M ETH that sits in addresses that aged over 5 years with out sending a single transaction. 
Also contributing to the free float lower was the activation of EIP-1559 which resulted in ~400K ETH being burned and destroyed in the course of the quarter. Minting of ETH from mining associated exercise nonetheless resulted in a rise of provide consistent with earlier quarters (1.2M).
FTX Token (FTT)
During Q3, the free float provide of FTX Token elevated considerably as 35M FTT moved from basis managed addresses to the FTX Exchange. Further, given the constructive worth efficiency of FTT, much less FTT (1.3M) had been burned (despatched to the 0x000 handle) in the course of the quarter (FTX have dedicated to common burns which are relative to their exchanges revenues. If the worth of FTT grows sooner than revenues, it will end in much less FTT being burned.).
Huobi Token (HT)
Huobi Token continues to be one of the vital constant deflationary property within the crypto market, recording a discount in free float provide each quarter of 2020 and 2021 thus far. During Q3 the HT free float provide was diminished by 6.1M. This was comprised of: 

Huobi continued to conduct on-chain burns of HT, sending tokens to the 0x000…000 handle which acquired 8.8M HT in the course of the quarter. 
The Huobi Foundation transacting 2.7M HT from basis owned addresses into extra liquid markets.

Litecoin (LTC)
Litecoin’s free float provide elevated 584K LTC throughout Q3, which is typically consistent with earlier quarterly will increase. Whilst the brand new provide from mining associated exercise remained comparatively constant, including 672K LTC in Q3, a web improve to LTC in addresses which have remained dormant for over 5 years (88K) eliminated some liquidity from markets. The web end result was a rise in free float provide of 584K LTC throughout Q3 2021.
MakerDAO (MKR)
The free float provide of MakerDAO elevated once more in Q3 2021, with 63K MKR added to the free float. The major motive for this improve was due to a web lower of 64K MKR from the MakerDAO Governance contract .
NEO (NEO)
The NEO free float provide elevated by 2M in Q3 of 2021, nearly all of the stability coming from Team owned NEO that had been moved to extra liquid addresses in the course of the quarter.
Stellar Lumens (XLM)
The Stellar Lumen free float provide elevated 575M XLM throughout Q3 2021, consistent with Q2’s improve. The entirety of the rise in free float could be attributed to Foundation owned addresses transferring XLM to extra liquid addresses in the course of the quarter.
Uniswap (UNI)
The free float provide of Uniswap elevated by 1.4M UNI throughout Q3 2021. The entirety of this improve got here from the switch of UNI in addresses managed by the inspiration into extra liquid markets. These UNI got here from liquidity mining rewards and from customers nonetheless claiming their airdrop from the UNI distribution handle for the primary time.
XRP (XRP)
The XRP free float provide elevated 1.0B throughout Q3 2021, which is half the rise to XRP free float provide skilled in every of the earlier 3 quarters. The largest contributor of additional liquidity to the market in the course of the quarter was from Ripple Foundation managed addresses, which skilled web outflows of 686M XRP. Ripple Team managed addresses additionally skilled a 333M XRP web outflow.
Yearn (YFI)
During Q3 of 2021, Yearn’s free float provide elevated 1,058 YFI. The majority of this got here from the rise of YFI held in basis managed addresses, most of which was utilized by the Foundation to stake in Maker to entry DAI.
Zcash (ZEC)
Zcash free float provide elevated 329K ZEC throughout Q3 2021, very related to the earlier quarter’s improve. This low stage once more is the results of the latest ZCash block halving occasion in November of 2020. 
There had been no different identified adjustments to the free float provide of Zcash. Note it is unknown if the inspiration/group management property if they make the most of shielded transactions (privateness works!).

Detailed Free Float change breakdown

ABOUT COIN METRICS
Coin Metrics is a number one supplier of clear and actionable cryptoasset market and community knowledge. Coin Metrics delivers mature knowledge throughout a number of codecs to varied {industry} stakeholders, together with monetary enterprises, funds, media and analysis retailers, and knowledge/utility suppliers. Coin Metrics’ knowledge empowers its shoppers and the general public to higher perceive, worth, use, and finally steward public crypto networks. Further Coin Metrics analysis could be discovered right here .
ABOUT CMBI
Coin Metrics launched CMBI to carry impartial and clear index options to the cryptoasset funding group. In the nascent and infrequently complicated cryptoasset market, CMBI Indexes attempt to be dynamic and regulate to the quickly altering market circumstances to design and preserve investable merchandise. CMBI Indexes present markets and clients with industry-leading options that assist in efficiency benchmarking and asset allocation.

The publish COIN METRICS SUPPLY TRANSPARENCY REPORT – Q3 2021 appeared first on Coin Metrics .

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