This Week On-Chain #105 - Inauguration, Ross Ulbricht & Acceleration
The fun starts now
It’s been a turbulent weekend starting with the launch of the official TRUMP memecoin that vamped a lot of liquidity from onchain over the weekend while it reached a 75B FDV at the peak. As people’s holdings were bleeding while TRUMP was running prior to him taking office, people were scared and calling it a top signal due to market froth.
Meanwhile, over 400k new onchain users were onboarded over the weekend, and capitulating just before the most crypto-friendly U.S. administration in history seems ridiculous at this point. Nonetheless, don’t get it twisted as we enter the cycle's final phase, which is the most exciting but also where you make the most money.
It's time to set a plan and stick to it so you don’t give everything back, which is what happens to the majority of people in a bull market.
Additional good news is that Silk Road founder Ross Ulbricht is a free man who has finally been pardoned from his life sentence. This is the best news in a long time and a win for the crypto industry.
Market Digest
Department of Government Efficiency updates its website to showcase $DOGE
MicroStrategy acquires 11,000 BTC
Coinbase endorses Strategic Bitcoin Reserve in the US
Proposal to change SOL emission rates
Base 2025 roadmap
Nillon presents Ripple framework
World Liberty Finance announces total strategic purchases
Ross Ulbricht is freed
Updates concerning the Ethereum Foundation treasury
Linea filters 500k Sybil wallets
Mark Uyeda selected as the active chair of the SEC
Ethereum Foundation exploring staking
Founder of Lido and P2P.org creates a 2nd Ethereum Foundation
Bridge Flow
It was no surprise to see Solana completely dominate flows. Everyone rushed to the TRUMP coin's launch to bridge to the chain, which also pushed Solana to new all-time highs, as everybody needed to get their hands on it to operate on the chain.
Considering the amount of new blood that has landed on Solana, the violent parts of the bull market will likely continue there. Plan accordingly.
DEX Volumes
Solana onchain volume skyrocketed to all-time highs over the weekend due to the TRUMP launch and is currently dwarfing any other chain out there. If you’re looking for an onchain casino that moves swiftly you know where you should have your capital in this bull market. I don’t see this changing for the foreseeable future even if Base and BNB will have their time.
Pair Volumes
The volume on Ethereum mainnet is high for its standards but low when you compare it to other ecosystems in a bull market. Nonetheless, the tokens that have garnered the most interest over the past week have been AAVE, LINK and TRX which are related to the World Liberty Finance purchases.
There is no way TRUMP shouldn’t be first here, I assume Dune has an inssue with picking it up (same for MELANIA). Might be a case of the data source struggling to pick up Meteora data. Nonetheless, outside of them you get a good interest of onchain pulse as BARRON generated a lot of volume over teh past week alomngside Fartcoin,GPU and ai16z.
Base volume has remained concentrated amongst AERO, AIXBT and VIRTUAL over the past week. Otherwise, you see uncreative Base developers always trying to launch a blue “based” meme of a popular Solana meme to generate some exit liquidity which aren’t worth covering.
Arbitrum not worth covering so will keep it out until that changes.
NFT Trading
Anyone that has spent any time on Twitter over the past week has had a hard time missing the drama surrounding the Ethereum Foundation that has been heavily criticized for being out of touch with culture and letting the winning mentality slipping out of Ethereum. Vitalik took this personally and switches his PFP to Milady which caused a lot of other builders to band together around the collection. Hence why it is up 39% over the past week.
After the TRUMP launch people are speculating that Trump card holders will be receiving an airdrop which is why they are surging as well.
Net Inflow
To the interesting part.
As alluded to above, LINK, TRX and AAVE make up the majority of the flows over the past week while ONDO has received significant flows as well. Large capital is flowing towards large caps on Ethereum as they are banking on fundamentals over speculation. Unsexy perhaps but can’t blame them.
974M worth of SOL was bought over the past week as the TRUMP launch was a massive onboarding event and liquidity blackhole. Second to that Fartcoin has been massively bought over the past week and continues to go from strength to strength although it likely needs a breather now to consolidate. RAY is catching attention as one of the strongest fundamental plays on Solana that is powering the onchain casino. While BUZZ (Hive AI) that launches during the market pullback currently is pushing for new highs.
cbBTC continues to be the strongest accumulated token on Base that rightly prefers it to Ethereum while. Considering other alts AIXBT is carrying the Base ecosystem when it comes to onchain capital interest while there aren’t much interest with significant amounts of funds over the past week in other tokens as people derisked, thus a good opportunity is available for you.
Arbitrum is dominated by the same tokens on Ethereum mainnet so won’t be included, there is no activity there.
Sleuthing
World Liberty Finance have agressively been buying onchai tokens over the past week which are supposed to be used to fund their money market with. Adding significant amounts of ETH, TRX, AAVE and LINK to their portfolio.
TRX is the big surprise here but considering Justin Sun invested $75m into WLFI, it is likely the reason why they have repaid the faith. Goodwill goes far with the Trump family.
Token Unlocks
JUP - 41.51%of supply worth $605.62m yesterday Jan 22nd
IMX - 1.43% of supply worth $29.42m on Jan 24th
MOCA - 0.15% of supply worth $441.95k on Jan 24th
FET - 0.13% of supply worth $4.31m on Jan 28th
EIGEN - 0.55% of supply worth $3.41m on Jan 28th
ENA - 0.42% of supply worth $11.50m on Jan 29th
CELO -0.15% of supply worth $499.55k on Jan 30th
1INCH - <0.01% of supply worth $5.07k on Jan 30th
Jupiter had one of the biggest “unlocks” yesterday because they did a second airdrop to long time users that acts as a stimmy for the Solana onchain casino. They have built a lot of goodwill since their TGE and seem to be very in tune with culture which is serving them well not only from a community standpoint but the price action of the JUP token too.
We are about to witness what happens when we have the best conditions possible for crypto ever, buckle up it’s about to get very fun.
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.
If Crypto Taxes ever give you a headache, check out our suggested Tax Partner here
Steer clear of security compromises and safeguard your assets reliably with GridPlus - The Fortnox of Hardware wallets here.
Wallet security overview for beginners here.
Sharing this post helps it reach out to more readers which would be great. If you are interested in future posts from me or premium research, do not hesitate to subscribe. Thanks for taking the time.
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. This post may contain affiliate links. I am just sharing an opinion.