Time flies and I have already made 10 of these which is a small milestone in itself. However, as I alluded to in last week’s post there has been a continuous de-risking taking a place across the board with volumes continuing to decline while narratives are becoming increasingly shorter as the same number of people are PvPing against each other. Despite this, the bear market is experiencing heavy activity which bodes well going forward. It might be a bear market in relation to price but it is a bull market in on-chain activity.
Let’s get into it.
Stablecoin Flow
Arbitrum is still going strong in relation to stablecoin inflow and the better part of your time is spent there instead of chasing narratives as there is a clear apparent risk appetite. Also, Optimism stablecoin inflow has turned positive again after the announcement of Base. If you have remained patient as I have been consistently iterating that you should have capital deployed there, then you should be reaping your rewards and sit on comfortable profits at this stage.
On another note, a certain forgotten chain called Tezos is experiencing heavy inflow and has an upcoming smart contract update that might spike on-chain activity. More on that coming in the advanced part of the stack.
DEX Volumes
We have seen another stark decrease compared to the previous week’s action amounting to -25%. Unless you are swing trading on an ecosystem where capital is flowing in and fueling the momentum, you’re better off protecting your capital. This is easier said than done because the hardest thing is not doing anything. Nonetheless, at this moment in time, your portfolio will thank you for it until the momentum shifts again.
Pair Volumes
The volume trend can clearly be seen in regards to altcoins as BLUR which experienced $680m worth of volume last week has fallen to a staggering $20.5m. The one that stands out of the rest is Liquity which finally is catching a bid after the targeting of stablecoins by the SEC and incoming regulation. Considering Liquity is running the most decentralized stablecoin out there LUSD, it was due to some love.
Without giving away too much, you might want to keep your eyes close on those above that narrowly missed out on the list.
Optimism is among the few ecosystems that have experienced a positive volume increase over the past week. While the average volume might not be as high as others, the trend is currently going in the right direction as the ecosystem is building momentum. The unusual strength in OP and VELO was an indicator of what would happen when the momentum shifted and it has proven to be true.
RDNT is leading the Arbitrum altcoin pack for the week as people are incredibly hyped about the release of RDNT V2, one of the core updates involves how emissions will be distributed. It will only be distributed to liquidity providers and will be extended to 2027 thus not making them aggressive and predatory. Surprised that more threads haven’t appeared about it yet but I guess it’s just a matter of time (aka exit liquidity). GMX remains as strong as ever. Last but not least, DPX and RDPX are at it again as the testnet for rdpx v2 is being released. Also, a contract that should be on the list based on volume is El Dorado Exchange as well but Dune hasn’t updated the ticker yet.
NFT Trading Volume
A large number of upsets based on previous lists. More Loot is unexpectedly leading the list while we can observe a couple of new entrants to the top 10 volume list in the form of Invisible Friends, Artblocks, and Forgotten Runes Wizards Cult. As I’ve alluded to in a previous Twitter post, a lot of NFT collections will experience higher liquidity than normal due to BLUR airdrop farming, if you’re just swing trading some collections or have been trying to get out for a while, take the money and run.
Notable NFT mints
There is literally only one large mint that is worth paying attention to this week as we are entering March which is “The Honey Jar” mint by the beras at Berachain which will take place on the 4th of March at 00.20 UTC. It will be gated based on if you have managed to mint other articles that have been released by Janitoor.
Great thread going into the details below.
Time for token net in/outflows.
Net In/Outflow
Ethereum
No surprise to see LUSD at the top as it fits the bill with the recent LQTY activity as well. The one truly decentralized stablecoin is being accumulated that provides attractive farming rewards as well. The second contract on the table is “McPepes” which I’m not familiar with and seems dubious, beware. HEX is that one token that never seems to want to go away no matter how much it’s disregarded, the strength in that cult (and bagholders) is unmatched. Apart from that FXS, ILV, and DODO are notable on the list.
Arbitrum
No surprise to see RDNT with the highest 7-day net inflow of the week while RDPX is being accumulated aggressively over the last day. The third one on the list is El Dorado Exchange which migrated from Binance Smart Chain to Arbitrum and is seeing an increased volume and accumulation over the week. The contract following EDE is a scam and trying to dupe people to buy a fake Roseon contract which is another perpetual exchange that will migrate to Arbitrum.
Optimism
After the mid and low caps of Optimism have had their fun (VELO, SONNE, KWENTA, THALES) it looks like capital is flowing to the giant of the ecosystem (apart from OP) called Synthetix. If you’re curious about the unnamed contract in the table it is a new L2 NFT exchange called NFT Earth which launched its token a little bit over a week ago.
Upcoming token launches to watch in March
It’s the first week of March which means it’s time to feature launches:
JustBet - Decentralized gambling platform launching March 6th on Camelot.
Halls Of Olympia - Immersive gaming and SocialFi protocol that will launch March 13th on Camelot.
Perpy Finance - Web3 Social Perpetual Trading Protocol launching March 16th on Camelot.
Interesting Movements
None other than rDPX V2 is the interesting movement of the week. After more than a year of hyping this upgrade, testnet is finally going live. Will it pop or will it flop? Buy the rumor and sell the news?
Up to you to judge anon. Nonetheless, the recent rDPX price action indicates that the token holders are excited. Let’s see how long it lasts for the most volatile coin on Arbitrum.
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Disclaimer: All Content on this site is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing on the site constitutes professional and/or financial advice, nor does any information on the site constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. I am just a random degenerate sensei sharing an opinion.