This Week On-Chain #75 - CRV, Token Launches & Chopping Block
The best time to launch a token was in January, the second best time is now
In an environment where we continue to hover between “it’s so over” to “we are so back” these intraday movements would be enough to drive the average person insane if you continue to look at the charts the whole day. From a stark sell-off to a strong CPI print, emotions continue to be all over the place which will be trivial in the grand scheme of things when we look back at this in a few months.
It feels like this stems from people worrying whether their alts will take a further hit while also being scared of not having made enough money at this stage of the cycle which is futile.
Additionally, whenever we get uncertain market environments we get hit with the standard Curve liquidation debacle again which at this stage is becoming very tiresome.
Nonetheless, make sure you don’t get consumed by the psychological warfare that the mind might trick you into. High conviction plays that you are comfortable absorbing the volatility through seem to be the best way.
Alright, with that out of the way let’s take a look at what took place throughout the week.
Market Digest
Arbitrum gaming grant drama ensued concerning salaries
Trump wants to mine the remaining Bitcoin in the USA
Tapioca DAO finally launched their TGE after >2 years which is still active
Friend Tech announces that they are building their own chain
ZKsync announces ZK token and airdrop checker
Cheese Chain launches which is the latest L3 on the block
Ionet and Aethir launches their tokens
Symbiotic Fi launches which is another Eigenlayer competitor
Norway returns $6M in funds stolen from Axie Infinity
UwU Lend exploited
Bridge Flow
Solana is sucking capital from all other ecosystems as the majority of the activity is taking place there as that’s where the retail traders are residing at the moment. If you’re “waiting for retail” this cycle and you’re not on Solana you’re looking in the wrong place at the moment.
DEX Volumes
DEX trading volumes are increasing in comparison to last week despite the majors (BTC & ETH) slowing down significantly. Activity seems to spike across the Ethereum mainnet and Solana as they take their turns as on-chain degens are PvPing against each other. If you’re not on-chain this current market environment must be dire to endure.
Pair Volumes
On-chain volume this week has been more concentrated in comparison to last week with RCH leading the way which was a new token launch over the weekend that ran very aggressively from 0.2 up to 4 in 2 days as it is now taking a breather. Otherwise, it has been spread across memecoins and CRV as the on-chain degens are trying to grasp the next hot narrative.
The Ionet token on Base is a scam that should be ignored, whereas the real one launched on Solana over the past week. Base continues to be dominated by Brett as the leading memecoin of the ecosystem is sitting at 1.3B at the time of writing and continues to outperform the market even on red days. Otherwise, it’s a scrap between strong low cap / mid cap memecoins such as Chomp and Benji while DEGEN continues to underperform.
Arbitrum ecosystem continues to have very low on-chain activity which basically just consists of ARB, DMT, and PENDLE at this stage while the remainder is in slumber. The ecosystem is at this stage mainly reaping the reward from being a settlement layer from the increasing amount of L3s that are building on top of Arbitrum Orbit.
NFT Trading Volume
Only Pudgy Penguins are showing any kind of strength in comparison to the rest of the NFT market which continues to bleed although it isn’t significant. I stand by that they won’t reprice until the end of the cycle when people have made a lot of money elsewhere and want to flex their gains with expensive NFT purchases.
This same weakness is prevalent across Ordinals too.
However, if you minted an FU studio NFT a long time ago that I mentioned here, the FU airdrop will be happening very soon.
Net Inflow
It is almost becoming customary at this point considering as soon as we see general market weakness or uncertainty we get hit with FUD concerning the CRV loans by the founder Michael Egorov which risks multiple protocols being hit with bad debt. RCH was heavily traded over the weekend but has seen a significant sell-off over the past few days. Otherwise, you generally see on this chart that people are de-risking based on the assets bought over the last 7 days with positive inflow.
Brett continues to dominate the accumulation flows while Normie isn’t far behind despite the unfortunate exploit it recently suffered, the relaunch has been decent so far but time will tell whether it can reach the same heights it did previously. However, despite all of this it is quite telling that USDC has been the dominant inflow over the past 7 days as memecoins have experienced a sell-off.
Nothing exciting going on here except for people accumulating heavy amounts of wstETH and USDC most likely for either derisking or farming as the LTIPP incentives are live. While the market is going sideways, parking your funds in DeFi farms isn’t a bad idea if you’re willing to take the smart contract risk in return for some additional yield.
Sleuthing
A wallet that has had an extremely torrid time trading FRIEND presumed to potentially be Machi. When high conviction goes wrong:
You can check it out here: https://debank.com/profile/0xf0ea13334d6f74044ec7332de1c6ec194179df3d/
Token Unlocks
IMX - 1.72% of supply worth $47.23m on June 14th
CYBER - 3.96% of supply worth $6.57m on June 14th
STRK - 4.92% of supply worth $64.70m on June 15th
RNDR - 0.20% of supply worth $6.59m on June 16th
ARB - 3.20% of supply worth $86.92m on June 16th
APE - 2.48% of supply worth $16.85m on June 17th
NYM - 0.37% of supply worth $414.08k on June 17th
MANTA - 2.05% of supply worth $9.27m on June 18th
ZetaChain - 2.33% of supply worth $573,88m on June 18th
I can not stress this enough, the most important thing to do at this stage of the cycle is to survive. Bull markets are fun but they are not easy in any regard contrary to what people want to make you believe. The reason why it feels so good to come out with them with more than you entered is because you can look back at what you went through to get what you have at the finish line.
Stay strong and good luck out there.
On another note, we are doing a Crypto Euro 2024 Fantasy League which starts tomorrow so if you’re interested reach out to me as soon as possible.
See you next week.
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