S&P 500 For Crypto, Decentralised Science On Solana & More

Welcome back!

This is J264G and this week I’ve got these titbits for you:

• S&P 500 For Crypto: Coinbase launches the COIN50. 

• Decentralised Science: Pump Science on Solana is gaining traction.

• Bitcoin Basis Trading: OpenDelta is set to drive the next wave of Solana DeFi.

The performance of crypto ETFs sends a clear message: Having a crypto thesis and strategy is no longer optional. Whether focused on onchain assets or the underlying network infrastructure, it’s time to get in — or risk being left behind.

Now, let’s jump right into this week’s newsletter!

Click on any underlined heading/hyperlink to learn more.

Spotlight

S&P 500 For Crypto

Here’s an eye-popping statistic: The total market capitalisation of crypto assets is now ~$3 trillion, yet that’s only ~2.5% of global equity markets. 

While Bitcoin, Ether, Solana, and USD-pegged stablecoins move into the mainstream, the innovation happening on their underlying blockchains is accelerating. Relying on Bitcoin as a proxy for the broader crypto market is, therefore, becoming less practical — instead, investors need a benchmark that continuously adapts and acts as a bellwether for the evolving onchain economy.

Enter the Coinbase 50 Index. 

The index was recently launched in partnership with VanEck's MarketVector and aims to become the S&P 500 for digital assets. Rather than picking individual tokens, investors can trade the COIN50 — e.g. on Coinbase International Exchange and Coinbase Advanced — and gain a straightforward exposure to the growing onchain economy.

Much like the S&P 500 has been a go-to barometer for nearly 70 years, the Coinbase 50 Index is designed to answer: “What’s the crypto market doing”? This is invaluable, especially as new investors navigating crypto’s complex technological jargon may not have time to analyse individual assets in depth. With a trusted benchmark such as the COIN50, however, investors have a solid entry point that adjusts as the market moves — providing peace of mind.

The Coinbase 50 Index is a fantastic step forward, but there might be areas where it could better capture the crypto landscape. 

Some current selections, for example, may not truly represent the forefront of the onchain economy. Bitcoin Cash and Ethereum Classic, for instance, play a limited role in the space, unlike Solana, which competes with Ethereum in terms of innovation, key metrics, and overall performance.

The absence of certain Solana ecosystem tokens is another point of consideration. Raydium (RAY) and Jupiter (JUP), which generate significant trading volume and revenue, don’t appear in the index, while their Ethereum counterparts, Uniswap and 1Inch, are included. Also, ApeCoin, a token outside the top 100 by market capitalisation, is included, but TRON — a top 10 asset by market capitalisation and heavily linked to the stablecoin economy — is not. 

Further, the Coinbase 50 Index omits several memecoins such as PEPE and WIF, yet includes BONK, which ranks similarly or lower to those in market capitalisation. Plus, tokens representing centralised exchanges such as Binance (BNB), OKX (OKB), and Bitget (BGB) also don’t appear in the index, possibly due to their direct competition with Coinbase. Lastly, it’s worth questioning why Livepeer and SKALE Network are included in the COIN50, especially when considering their relatively niche market adoption and market cap rank — #160 and #200 respectively. 

Understandably, Coinbase’s selection process has to be stringent to manage risk effectively. 

However, embracing a more multifaceted approach could strengthen the Coinbase 50 Index as a true representation of the onchain economy.

Regardless, the COIN50 is setting a new standard for market entry into crypto — opening the door for investors to embrace this asset class with confidence.

Having said that, I'm sure that this is only but an initial iteration of what promises to be an evolving product. Coinbase has the opportunity to expand its stewardship of our industry, and making the COIN50 a more representative benchmark — a guiding star — would be an impactful step in growing the onchain economy together.

Chart Of The Week

News Bites

Yield Trading: The yield market on Solana is gaining momentum. After Sandglass, one of the pioneering platforms in this space, Exponent has officially joined the arena by launching on mainnet — bringing fresh competition and innovation to yield trading on Solana.

Longing & Shorting Memecoins: Up until now, traders were limited to longing and shorting only established memecoins. Squeeze, however, is building a platform that enables traders to instantly long and short newly launched memecoins — opening up new possibilities for rapid, early-stage trading.

Bitcoin Basis Trading: Speaking of Solana DeFi, OpenDelta has launched a platform that provides streamlined onchain access to Bitcoin basis trading through their OpenDelta Perpetual Bond (OPB). Leveraging Solana Token Extensions, OPB holders automatically receive yield directly into their crypto wallets — eliminating the need for staking or lockups.

Stablecoin Interoperability: LayerZero now supports PayPal’s US dollar-pegged stablecoin, PYUSD, enabling seamless transfers of the token between Ethereum and Solana. This integration marks a significant step in expanding PYUSD’s interoperability across major blockchain ecosystems, further enhancing access and utility for users.

Decentralised Science: I covered decentralised science (DeSci) in a previous newsletter, but things are heating up with Pump Science — the first DeSci platform on Solana dedicated to advancing longevity research. For a deep dive into what this all means, be sure to check out this thread.

Caught In 4K

Weekly Take

Keks & Giggles

And that's a wrap!

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Talk soon!

J264G

_{DISCLAIMER
None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research. Lastly, please be advised that we discuss products and services from our partners from which our team members may hold tokens/equity.}