Following the MCCN exploit, the THORChain team released a plan to deal with the liability.
The THORChain team has released the following statement via Twitter: THORChain has suffered a sophisticated attack on the ETH Router, around $8m.
Ethereum Classic block 13,189,133 arrived at 0:00 UTC on Jul. 24, 2021 (8:00 PM ET on Jul. 23, 2021), activating the Magneto hard fork.
A proposal to introduce iceCREAM, a new CREAM tokenomics has passed.
The first Helium halving event will occur on Aug. 1, 2021.
The Keep Network team revealed a new timeline for the tBTC v2 launch on Jul. 28, 2021.
Sector Performance Overview
The week ending July 29th saw a complete reversal from previous weeks. For the first time since the May crash, sectors experienced two-digit weekly returns, possibly marking the bottom of the recent multi-month decline. The leading sector this week was DeFi finishing the week with a whopping 23% return. Terra (+50.9%), Amp (+76.62%), and THORChain (+58.76%) were among the top-performing assets in the sector. The Currencies sector followed closely, posting a weekly of 22% driven entirely by Bitcoin’s performance (+22.8%).
Despite having solid weekly returns, the DEX and Smart Contract Platform sectors were the two underperforming groups of the week. On the DEX side, performance was driven by Uniswap (+9.05%), PancakeSwap (+13.01%), and THORChain (+58.76%), while the Smart Contract Platform sector was boosted by Ethereum (+14.9%), Polkadot (+14.4%), and Solana (+8.2%).
Sector Portfolio Methodology
The market-weighted “sector portfolios” for this week’s report were created by selecting the top assets (ranked by market capitalization) from each sector covered in this report. The sector portfolio allocations are the following using market capitalization data as of July 29th.
Sector Drill Down
Performance during the week ending July 29th has been the best in recent months. All sector portfolios had a phenomenal week propelled by a sudden change in market sentiment. For the first time since May, DeFi activity is showing signs of life once again with DEX trading volumes increasing and outstanding loans across major lending platforms reaching new all-time highs.
During the week, all sector portfolios followed the pattern every investor is excited to see: up and to the right. In the early days of the week, performance between the portfolios was relatively tight, with DEXs and DeFi leading the way. However, as the week came to a close, portfolio returns began to show higher levels of dispersion. In the end, the Currency portfolio outperformed the rest, finishing with a 23.4% return aided by Bitcoin’s strong weekly performance (+22.8%). The DeFi portfolio came in a close second place. Despite having solid performers like Terra (+50.9%) and THORChain (+58.76%), the DeFi portfolio has a heavy allocation to Uniswap (+9.05%), which didn’t perform as well as other DeFi assets.
The Smart Contract Platform and Web3 portfolios were the two laggards of the group ending with weekly returns of 14.6% and 16.8%, respectively.
Volatility, measured as the rolling standard deviation of the portfolio’s daily log returns, has seen a few spikes but is on a clear downward trend. Notably, since the May crash, each new peak has been lower than the previous one, showing increased market stability. Compared to levels in mid-May, current portfolio volatility is relatively low.
Week-over-week, the correlation between sector portfolios and Bitcoin saw a bit of a decline. In particular, the Smart Contract Platforms, DEX, and DeFi portfolios saw their correlation dropped 4-7% over the week. The Web3 portfolio is the only exception moving relatively flat over the past seven days.
Regarding correlation with Ethereum, sector portfolios continue to see their correlation steadily declining over the past several weeks. In particular, the Currency portfolio (which is heavily allocated to Bitcoin) has seen the most significant decline going from 88% to 80% since Mid-July.
