Long Web3 Short Visa & MasterCard, $AAPL Hits $3T, Polygon's 71M% Growth
Billlionaire's Spread Trade, Polygon 130 Million Addresses
Welcome to the +495 subscribers who have joined this week. At Singular Disrupt, we have grown exponentially through a rapid increase in subscribers. As you know, we write this newsletter for a New Breed of Investor, Smarter, Edgier, Contrarian, and Decentralized.
Before we dive in, let’s first have a look at the themes and names we loved and lay the groundwork over the course of 2022
Top Three Themes this Week
1. Apple hits $3T Market cap in 2022
This week, Apple has become the first American company to hit $3 Trillion. With 27 Million new pairs of AirPods and 25.6% YoY increase, it’s not hard to see earnings from its most popular products like the iPhone, Macbooks remains strong as demand for iPhones “skyrocketed” in December 2021.
The iPhone has been Apple’s core product for more than a decade now, and we’re seeing Apple transitioning into wearable as the tech-bro Silicon Valley culture now is skewing towards Web 3.0 and Metaverse. Although sales of smartphones and other technology hardware devices slowed down, Apple is making aggressive bets to transform itself into one of the world’s leading providers of digital services.
This week, Goldman Sachs expects the S&P 500 to rise another 9% to 5,100 by end of 2022. With rising interest rates and decelerating economic growth, we stay cautiously long as a tightening Fed suggest investors expect modestly below-average returns this year. Also, expect Global Box Office to Jump to $33.2B (+58% YoY) . As we wrapped up 2021, it’s been a great year with lots of ups and down as we try to understand this whacky world we live in when COVID wreaks havoc on virtually every sector.
2. Spread Trade for 2022, Long Web3 Short Visa & MasterCard
Billionaire Chamath Palihapitiya says Visa and Mastercard will be the biggest business failure in 2022, losing out to altcoin-linked projects like XRP, XLM, XDC, IOTA, ALGO.
Recently we wrote a few posts about Web 3 and DeFi which is disrupting traditional incumbents. The traditional players are now taking a step back and realize the very business model will be viable as Decentralized FInance of DeFi is ready to disrupt Fintech with users locking up over $200 Billion worth of assets into applications that are replicating the traditional financial products using decentralized blockchain infrastructure.
In our previous post, Stablecoin printing press Terra, stablecoins compared to existing fintech solutions like (Venmo, PayPal, AliPay, etc). Although the existing solutions already provide efficient payment processes, stablecoins are like the Trojan Horse into the DeFi ecosystem. Here’s a Recap if you missed it 🤔
With over four million users now on DeFi, the growth remains strong and here's a couple of projects we’re looking into. Source: Dune Analytics
Ripple- Despite its lackluster performance in 2021, XRP is showing good growth as the adoption of digital assets, in DeFi, NFT or Metaverse has gone through the roof.
Stella Lumens- Stellar, XLM aims to lower the cost of international transactions, making it easier to transfer fiat currency into crypto.
XinFin- XDC, is strategizing censorship-resistance product offerings welcoming the DeFi era.
IOTA- MIOTA a distributed ledger technology solving scalability issues in blockchain.
Algorand- ALGO provides cheaper and lightning-fast transactions.
"Be short these companies and anybody that basically lives off of this 2 or 3% (transaction) tax, andbe long well-thought-out, Web3 crypto projects that are rebuilding payments infrastructure in a completely decentralized way," he said.
Without being specific, he predicted at the same time that "a lot of these scammy crypto projects will go to zero."
"If you read the whitepapers of these crypto projects, and you systematically put together a framework, I think you can be long those and you can be short Visa/MasterCard, because I think this is their peak market cap," he added.
3. Polygon’s 71 Mn.% Growth
According to Coin98 Analytics Total Addresses, growth on Polygon has grown by 71,913,397% in the past 12 months. Polygon has have almost 130 Million Addresses compared to just 180 addresses when it started one year ago.
There is more and more mounting evidence that way too much of the value in DeFi accrues to individual consumers than institutions. But that is changing in the past 7 months as Crypto goes mainstream, PWC reported 74% of hedge fund managers looking to allocate 7% of their assets in cryptocurrency.
A lot of this is due to the nature of the recently explosive growth in wallet addresses. they have been moonshot over the past 12 months (some of them literally like Solana 13,000% , Aave 20,000% , Avalanche etc.) companies with high growth prospects and and fast solutions for smart contracts making early investors feel smarter than ever before.
There is an old adage that applies to our misses last year on this one ,”Getting the timing wrong is the same as being wrong.” Nonetheless, we still believe if DeFi can weather the storm the following
High barrier to entry for everyday users. Most DeFi Apps are notoriously complex, but we are just getting started by making it simple starting with the Singular App here.
The cost of transferring Ethereum ERC20 token called gas fees are still very high, we believe Polygon is having some positive developments solving this .
The fundamentals are in- if you want to experience the cutting edge of technology and own the coolest NFT on the Polygon Blockchain, Sign Up Below 👇
We're giving out the first 500 MetaVerse Truck NFT for Singular Disrupt Readers for Free! This NFT is digitally signed by Metaverse Plaid and will never be minted again. Sign Up and Claim Your Free NFT Now
Until then, stay innovative!