This Week On-Chain #132 - Ethereum Disbelief Rally
The silence is deafening
Ethereum is on the verge of breaking all time highs and the silence is deafening due to most of the people being sidelined on this ETH rally. However, considering the BTC → ETH → Large caps → Small caps flow is playing out at a slower pace you don’t need to get to worried yet even if one might have messed up the initial parts yet already.
80% of the gains are made in the last 20% of a bull market which we are approaching and there will be a lot of euphoria and round trips along the way. It’s a great time to make an exit plan and sticking to it when things go completely crazy and if you get the chance to change your life, make sure you take it.
As it currently stands, the market is showing us there is no reason to be bearish and any short term fear is treated with a V reverse upward. Be a friend with the trend as flushes are for buying.
Market Digest
Plasma launches institutional fund with Aave
0xKyle thread about the evolution of speculation
Coinbase unlocks millions of assets via DEX trading
Sonic invest in Silo
Uniswap Foundation proposing the foundation of DUNI
Qubic 51% attacks Monero (XMR)
Circle building their own L1 called ARC
Stripe building their own L1 with Paradigm called Tempo
ALT5 Sigma Corporation unveils WLFI treasury strategy
LayerZero acquiring Stargate
CapMoney launching on Ethereum instead of MegaETH
BNMR filed to raise $20B to buy more ETH
Bridge Flow
Flows continue to flow to Ethereum and Base aggressively as that is where the opportunities have continued to be for the last weeks and aren’t showing any signs of slowing down soon.
Solana’s flows are starting to increase again since last week after lagging for a couple of weeks which shouldn’t be faded either. Multiple ecosystems can win and if you want to trade utility you do it on Base. If you want to gamble on memes you do it on Solana. However, your chance of success is likely to be higher on Base right now.
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DEX Volumes
DEX volume is starting to significantly increase as activity is going bonkers again. The flows on Ethereum are likely to the buying from treasury vehicles and on-chain momentum is increasing across the board on other ecosystems as Base continues dovetail next to BNB and pass it in volume on specific days.
Pair Volumes
Ethereum on-chain activity is reserved for the good old large caps in the form of AAVE, LDO and LINK and it tends to be a sign of something good when all of these three get significant volume at the same time. Buckle up because the appetite for alts are increasing.
Volume still remain spoofed but there is still a token to pay attention to here which is CLIPPY on Solana which is the latest on-chain runner as they are bringing back old school character and memes lately with the emergence of TROLL. If you are a millenial you likely have some familiarity with Clippy which is why it is gaining traction right now as it is very memeable.
Aerodrome DEX trading being integrated on Coinbase has made AERO a much more interesting investment going forward considering the volume it will generate by having every Coinbase user being able to access the dApp indirectly. VIRTUAL and ZORA are the other tokens that are being actively traded significantly on Base with size besides the low caps that are exploding.
NFT Trading
Faith in NFTs are being restored with the performance on ETH with people hoping to get a levered bet on ETH by holding the right collections considering it is denominated in that asset. Likely a fruitful strategy if done right with the blue chip collections.
Bothering with new mints is likely a waste of time.
Net Inflow
Suprisingly, people are buying a lot of SEI which is worth looking into as it’s not something I would expect to top the accumulation table at these times, otherwise people have been buying a lot of DOLO as a proxy to the WLFI trade.
Fartcoin bounced significantly after CT collectively started to gravedance on the token as usual and the same has happened for PUMP which doesn’t look to bad right now. However, memes continue to outperform on Solana even if people are accumulating RAY. Although the real story of the week is the performance of Tokabu as an on-chain runner as believing in “some things” is starting to pay off again.
AERO is the big story on Base over the last week as the latest Coinbase integration is big for them and was likely the catalyst it needed after consolidating within a range for 4 months causing a violent breakout. This is very good for the health of the Base ecosystem.
BIO protocol is one to watch with their upcoming DeSci launchpad and is being accumulated on-chain already. Additionally, KTA is back and is continuing going from strength to strength.
Sleuthing
Borrow rates on Aave are starting to skyrocket for USDT in particular, the higher it goes the more defense you should practice as it indicates a need for a leverage flush. USDC being below 10% is still good and we got room but something to worth keeping on your radar nonetheless.
Token Unlocks
AVAX - 0.33% of supply worth $42.00m on August 15th
STRK - 5.98% of supply worth $18.20m on August 15th
XCN - 0.83% of supply worth $4.08m on August 15th
SEI - 1.21% of supply worth $19.01m on August 15th
ARB - 2.04% of supply worth $50.34m on August 16th
ZK - 3.61% of supply worth $11.65m on August 17th
APE - 1.72% of supply worth $10.01m on August 17th
FTN - 2.08% of supply worth $91.40m on August 18th
TRIBL - 1.35% of supply worth $33.28k on August 18th
EIGEN - 0.48% of supply worth $2.05m on August 19th
IOTA - 0.42% of supply worth $3.28m on August 20th
ZRO - 8.53% of supply worth $58.10m on August 20th
KAITO - 8.82% of supply worth $27.55m on August 20th
Times are getting exciting with ETH being so close to all time high’s, let the fun begin as a potential breakout shouldn’t be taken lightly.
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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