Institutional-Grade Analysis, In-depth Insights, Animoca Brands Research

Animoca Brands Research

Institutional-Grade Analysis, In-depth Insights

Animoca Brands Corporation Ltd. is a Hong Kong-based game software company and venture capital company

Crypto

<ul><li>Large unlocks (over 1% of circulating supply) significantly impact prices, mainly concentrated in the week before and after the unlock. A 1% token unlock triggers, on average, a 0.3% price drop over the week preceding the unlock and another 0.3% drop over the week following the unlock.</li><li>The strongest price effects occur two days before the unlock and on the third and fourth days after the unlock. Interestingly, the actual unlock day and the day after show little price impact.</li><li>The similar magnitude of price drops before and after the unlock suggests that market anticipation is just as influential as the actual selling pressure.</li></ul>

Large unlocks (over 1% of circulating supply) significantly impact prices, mainly concentrated in the week before and after the unlock. A 1% token unlock triggers, on average, a 0.3% price drop over the week preceding the unlock and another 0.3% drop over the week following the unlock.The strongest price effects occur two days before the unlock and on the third and fourth days after the unlock. Interestingly, the actual unlock day and the day after show little price impact.The similar magnitude of price drops before and after the unlock suggests that market anticipation is just as influential as the actual selling pressure.

The Impact of Token Unlock Events on Cryptocurrency Prices: An Empirical Analysis

LayerZero is an omnichain interoperability protocol designed for lightweight message passing across chains. LayerZero provides authentic and guaranteed message delivery with configurable trustlessness. It is a “blockchain of blockchains” that allows other blockchain networks to communicate directly and in a trustless manner.

LayerZero’s key feature is Ultra Light Nodes (ULNs). These smart contracts run on each blockchain and act as endpoints for cross-chain communication. ULNs verify the validity of transactions and messages from other chains using block headers and transaction proofs, ensuring security and efficiency.

LayerZero supports any blockchain that can run smart contracts, such as Ethereum, BNB Chain, Avalanche, Polygon, Arbitrum, Optimism, Fantom and other chains. LayerZero also supports non-EVM chains like Aptos. These so-called omnichain applications should become a key layer of a multi-chain future, where different blockchains interact simultaneously.

LayerZero aims to create the optimal interoperability solution for blockchains with seamless and trustless cross-chain transactions.

<ul><li>The $ZRO token was introduced in June 2024, with planned utilities that include protocol governance, transaction fee payment, and staking for DVN security. All three utilities have strong implications for $ZRO’s value.</li><li>We foresee that the next three years will be marked by a rapid increase in $ZRO's circulating supply, alongside growing utilization within the protocol and its adoption as a common currency for cross-chain trades.</li><li>We propose a valuation framework for $ZRO that leverages the Market Cap to Transaction Volume (MC-Tx) ratio, combined with projected transaction volume scenarios. This framework aims to provide readers with a perspective on the relationship between protocol growth and token value.</li></ul>

The $ZRO token was introduced in June 2024, with planned utilities that include protocol governance, transaction fee payment, and staking for DVN security. All three utilities have strong implications for $ZRO’s value.We foresee that the next three years will be marked by a rapid increase in $ZRO's circulating supply, alongside growing utilization within the protocol and its adoption as a common currency for cross-chain trades.We propose a valuation framework for $ZRO that leverages the Market Cap to Transaction Volume (MC-Tx) ratio, combined with projected transaction volume scenarios. This framework aims to provide readers with a perspective on the relationship between protocol growth and token value.

Toncoin (TON) is the native cryptocurrency of the decentralized layer-1 blockchain, The Open Network (TON). The TON blockchain is open-sourced and supported by many network contributors, including the Switzerland-based non-profit organization, the TON Foundation.

<ul>
<li>In September 2023, TON Foundation and Telegram announced a strategic partnership with the ambitious goal of onboarding 30% of Telegram's active users to TON by 2028. Serving as the infrastructure layer, TON leveraged Telegram Mini-App to reach and engage Telegram's vast user base.</li>
<li>The success of Notcoin paved the way for activating Mini-App users through social games. Subsequently, users were introduced to crypto through airdrops of game-launched tokens and meme coins. To support this growth trajectory, the foundation has utilized TON Grants, The Open League, and offline events to align with these objectives.</li>
<li>By July 2024, Telegram Mini Apps reached 500 million monthly active users (MAUs), elevating Telegram's MAUs to a new peak of 950 million. By October, 30 million of these users had transitioned into the cryptocurrency world.</li>
</ul>


In September 2023, TON Foundation and Telegram announced a strategic partnership with the ambitious goal of onboarding 30% of Telegram's active users to TON by 2028. Serving as the infrastructure layer, TON leveraged Telegram Mini-App to reach and engage Telegram's vast user base.
The success of Notcoin paved the way for activating Mini-App users through social games. Subsequently, users were introduced to crypto through airdrops of game-launched tokens and meme coins. To support this growth trajectory, the foundation has utilized TON Grants, The Open League, and offline events to align with these objectives.
By July 2024, Telegram Mini Apps reached 500 million monthly active users (MAUs), elevating Telegram's MAUs to a new peak of 950 million. By October, 30 million of these users had transitioned into the cryptocurrency world.


TON Part 2: A Win-Win Outcome from One Year of Partnership

<ul><li>Polymarket, an on-chain prediction market, solved a critical information gap by providing quantitative odds for future events, offering a numerical representation of probabilities that was previously lacking in news media and social discussions.</li><li>The platform has experienced remarkable growth over the past six months. Between April and October, monthly trading volumes surged from $40 million to $2.5 billion, while open interest climbed from $20 million to $400 million. The amount of locked capital now rivals that of leading decentralized exchanges like SushiSwap AMM V3 and matches the Total Value Locked (TVL) of networks like TON.</li><li>In October, the Polymarket website drew 35 million visits—double the traffic of popular betting sites like FanDuel. Its prediction on the US election is frequently quoted by mass media like WSJ and Bloomberg. This surge indicates that Polymarket has evolved from a notable project within the crypto space to a platform reaching mainstream audiences, marking a milestone for public adoption that Web3 has been eagerly seeking.</li></ul>

Polymarket, an on-chain prediction market, solved a critical information gap by providing quantitative odds for future events, offering a numerical representation of probabilities that was previously lacking in news media and social discussions.The platform has experienced remarkable growth over the past six months. Between April and October, monthly trading volumes surged from $40 million to $2.5 billion, while open interest climbed from $20 million to $400 million. The amount of locked capital now rivals that of leading decentralized exchanges like SushiSwap AMM V3 and matches the Total Value Locked (TVL) of networks like TON.In October, the Polymarket website drew 35 million visits—double the traffic of popular betting sites like FanDuel. Its prediction on the US election is frequently quoted by mass media like WSJ and Bloomberg. This surge indicates that Polymarket has evolved from a notable project within the crypto space to a platform reaching mainstream audiences, marking a milestone for public adoption that Web3 has been eagerly seeking.

The Rise of Polymarket: Here to Stay or an Election Phenomenon

<ul><li>The cross-chain interoperability sector, where LayerZero operates, has been experiencing rapid growth. By September 2024, the total cross-chain transaction/message volume reached 3.5 million, with an average daily volume of 118,000.</li><li>The sector has evolved from the early dominance of IBC to the rise of LayerZero, with both protocols now leading in volume. A growing list of competing protocols is also competing for market share.</li><li>This growth is driven by the increasing demand for asset bridges, the penetration of interoperability protocols into bridge services, and the emergence of cross-chain use cases beyond asset transfers. We project that the sector will continue to grow at an annual rate of over 100%.</li></ul>

The cross-chain interoperability sector, where LayerZero operates, has been experiencing rapid growth. By September 2024, the total cross-chain transaction/message volume reached 3.5 million, with an average daily volume of 118,000.The sector has evolved from the early dominance of IBC to the rise of LayerZero, with both protocols now leading in volume. A growing list of competing protocols is also competing for market share.This growth is driven by the increasing demand for asset bridges, the penetration of interoperability protocols into bridge services, and the emergence of cross-chain use cases beyond asset transfers. We project that the sector will continue to grow at an annual rate of over 100%.

LayerZero Coverage Part 2: Growth of Cross-Chain Interoperability Sector

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Animoca Brands Research
Institutional-Grade Analysis, In-depth Insights
• Animoca Brands Research

The Impact of Token Unlock Events on Cryptocurrency Prices: An Empirical Analysis

Large unlocks (over 1% of circulating supply) significantly impact prices, mainly concentrated in the week before and after the unlock. A 1% token...

Animoca Brands Research

LayerZero Part 3: $ZRO Token

The $ZRO token was introduced in June 2024, with planned utilities that include protocol governance, transaction fee payment, and staking for DVN...

Animoca Brands Research

TON Part 2: A Win-Win Outcome from One Year of Partnership

In September 2023, TON Foundation and Telegram announced a strategic partnership with the ambitious goal of onboarding 30% of Telegram's active...

Animoca Brands Research

The Rise of Polymarket: Here to Stay or an Election Phenomenon

Polymarket, an on-chain prediction market, solved a critical information gap by providing quantitative odds for future events, offering a numerical...

Animoca Brands Research

LayerZero Coverage Part 2: Growth of Cross-Chain Interoperability Sector

The cross-chain interoperability sector, where LayerZero operates, has been experiencing rapid growth. By September 2024, the total cross-chain...

Animoca Brands Research