The market does what it does best and punishes people that get bullish late as it punishes people who get bearish late. In the meantime, the mindshare of memecoins grows as they continue to outperform the majority of the other market sectors on the latest run-up in price.
Still, they remain as polarizing as ever and will likely continue to be a hot topic for the remainder of the year and the start of the next year as well.
Additionally, while the largest launch of the year took place over the past few days, Eigenlayer, which enabled rehypothecation for staked ETH, the market took a downturn, giving us the largest liquidation event since August 5.
However, a core set of alts are emerging as clear outperformers.
So what other events have happened over the past week?
Market Digest
How North Korea infiltrated the crypto industry
RobinHood introduces crypto transfers in Europe
Solana DEX volume surpasses Ethereum’s for the first time in 43 days
Bitwise files S-1 registration for XRP ETF
Taiwan officially allows professional investors to buy Bitcoin
16B FTX distribution has started
Avalanche launches $40m grant program
Uniswap’s business model gets criticized
TardFiWhale calls out EigenLayer
Bridge Flow
As Solana passed Ethereum in DEX volume again, capital continues to migrate from Ethereum to Ethereum and Sui. It is alarming how Sui is catching up to Solana with the amount of capital entering the ecosystem. On-chain activity is starting to pick up as well as I have been harping about over the past weeks. Definitely worth paying attention to and even might be worthwhile bridging small amounts to play around there. The experience is very smooth.
DEX Volumes
DEX volumes are creeping up across the board on all chains with Ethereum having aggressive spikes in DEX volume over the past few days which likely can be related to the Eigenlayer launch. The Solana memecoin casino is back with a frenzy as well and is showing no signs of slowing down. Sui which was non-existent previously is also starting to pick up and the same is present for Base as well.
Pair Volumes
EIGEN launch has definitely propped up Ethereum on-chain volume over the past week as the high number is not based on 7 days yet and has garnered a lot of interest alongside controversy with locked staking rewards. HANA and PEPE are leading the interest among on-chain memecoins. In addition, it is impossible to disregard the performance of SPX which is a testament to that it was underowned before its ascendency.
SOL volume continues to be strong and while we have seen a resurgence in WIF over the past week, the talk of the time is none other than MOO DENG which is the viral hippo that has taken not only the world by storm but the Solana on-chain casino by storm as well. Outside of that POPCAT remains as strong as ever and continues to consolidate around all-time highs as the first and only cat coin to reach 1B market cap so far. Manyu (A Shiba Inu) has received significant attention as well while BONK is starting to receive trading volume again after a long slumber.
Base volume is finally starting to creep up with AERO starting to do some numbers, BRETT doing proper trading volume again and DEGEN is finally back amongst the charts after getting listed on Coinbase. This is the Base catalyst I have been looking for as it now gives hopes to other tokens that they have a chance of being listed on Coinbase.
The Arbitrum trading volume is sad at this stage in comparison to the other chains and it remains a chain that is solely confined to trading ARB ( who is even trading this?), ZRO and PENDLE. The rest of the activity is non-existent.
NFT Trading
NFT performance continue to falter and I would argue that the one that stands out the most over the past weeks is the Milady collection. That has continued to experience a heavy selloff alongside Remilio’s due to Remilia corporation raising $20m and still haven’t provided information about the CULT token. This has led to a reaction from people getting increasingly tired of it ans selling the NFTs. Rough times.
Still it remains tough across the board as memecoins clearly are the NFTs of this cycle.
Net Inflow
People have been focusing on acquiring ETH derivatives (normally a sign of derisking) instead of bidding alts with a lot of volume. Bear in mind that this data shows you what happened in the past. Aside form that on-chain degens have been buying the 3AC memecoin (mainly Machi did this and it turned out badly), UNI in anticipation of Uniswap v4, EIGEN as it recently launched and MKR as well.
POPCAT and MOO DENG have been leading the way over the past week in regard to not only Solana's on-chain activity but the performance of respective tokens as well. DADDY is the Andrew Tate memecoin, which seems to be making a comeback, while SCF and Lord Fishnu believers are starting to come back with a vengeance as well. GIGA and FWOG have had strong performance since launch, and they don’t look like they want to stop soon. People are more risk averse on Ethereum in comparison to Solana at the moment.
What’s most interesting about this chart is how low DEGEN is despite its performance after the listing announcement, which implies that most people have capitulated their tokens and it is under-owned. AERO is the token that has received the majority of the bids over the past week, while a lot of people otherwise derisked into USDC.
A lot of derisking has been taking place on Arbitrum as well with ZRO being the only significnat token that has caught bids amongst alts. AIDOGE experienced a short term pump over the week as well but otherwise there continues to be a lack of interesting activity here outside of ETH derivatives.
Sleuthing
Instead of direct, wallet sleuthing today it’s worthwhile to highlight that stablecoin TVL is at all time high’s despite the turmoil that is apparent this week.
A lot of capital that is ready to be deployed, patience.
Token Unlocks
LQTY - 0.51% of supply worth $393.10k on Oct 4th
IMX - 2.02% of supply worth $49.69m on Oct 4th
1INCH - 0.02% of supply worth $71.36k on Oct 4th
NEON - 93.43% of supply worth $17.95m on Oct 7th
MODE - 38.46% of supply worth $5.70m on Oct 7th
HFT - 3.00% of supply worth $1.95m on Oct 7th
ADA - 0.05% of supply worth $6.32m on Oct 7th
TNSR - 0.18% of supply worth $79.28k on Oct 8th
EIGEN - 5.32% of supply worth $33.87m on Oct 8th
It's a rough start to October, and this market hasn’t been kind to most people who haven’t held BTC. But nobody said that this would be easy. Despite all the negativity, there are tons of positives to focus on.
Don’t get distracted.
I hope you enjoyed the post. Don’t forget that you are more than welcome to leave feedback or drop any questions in the comment section.
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Thanks very much for the summary 👍🏻. I need to get around to playing around on Sui and see what all the fuss is about 😅