There is no quicker vibe shift than in crypto, we went from people calling for the bull market to be over to euphoria in a matter of days as Ethereum went from a laggard to the future of France after the odds of getting an ETF approval significantly increased. It’s a testament that fundamentals don’t lead the narrative in this industry, but instead, price always does. Keep that in mind when you see a certain narrative continuously being paraded on the timeline. The best marketing is always the price going up and it will continue to be so.
With that in mind, let’s go into what has happened over the past week.
Market Digest
Redacted proposes a token split of BTRFLY into DINERO at a 1:2000 ratio.
SEC does a complete U-turn on ETH ETF approval
DeBridge announces the DBR token
Equalized DEX on Fantom hacked
Sonne Finance hack post mortem
Farcaster (decentralized social media platform) raises $150M
Liquid Restaking Token risk framework by Gauntlet
Kain Warwick (SNX founder) launches Infinex
Sanko Corporation finally launches Sanko Chain
Bridge Flow
The tailwinds are building up for an eventual memecoin summer as capital has been flowing mainly to Solana and Base over the past 7 weeks. On-chain still remains PvP even though majors are showing strength and people will always venture to the ends of the risk curve during times like these and gamble for the next 100x. With on-chain activity normally slowing down during the summer we can expect people to increasingly gamble on memecoins on these chains (with cheap gas) to cure their boredom.
DEX Volumes
We are seeing a stark increase in on-chain activity across the board as people ripped off the band-aid after the latest pump across the majors. Interestingly, Base has been lagging the other chains on this list so far and if you don’t expect this to last, it’s still a good time to position yourself before things get increasingly hot on the chain.
Pair Volumes
ETH on-chain season is finally heating up and it is none other than the frog PEPE that is leading the way with the TRUMP token (MAGA) closely following. GALA was exploited but quickly recovered, which is why the token's volume is so high. JJ is the latest memecoin on the block while MOG remains among the strongest cults out there. UNI has been heavily traded as they finally gave a response to the SEC after their Wells notice a while ago.
The volume on Base is steadily increasing although it hasn’t been as strong as on the mainnet yet. Considering the volume remains quite distributed, it seems that this ecosystem is still in an accumulation phase and no clear winner has emerged yet which is an opportunity for you if you’re good at identifying on-chain runners cause best believe there will be one soon.
Arbitrum is starting to grow in activity too although it remains small. Tokens of interest remain to be ARB and PENDLE while MOR is continuously growing in interest as well which can be seen in the price action over the past week. DMT is likely not on this list as it’s not picking it up on Camelot but it should be there.
NFT Trading Volume
Milady’s continues to outperform every NFT on the market as ETH looks to have bottomed and is an indication that it might just be the chosen one at the moment due to the strong culture associated with Remilia. It’s up 32.94% over the past week while other colllections falter.
Also, CryptoPunks didn’t help themselves by releasing this atrocity of a new collection this week as well.
Interesting mints
Sanko Pets - GameFi platform on the newly launched Sanko Chain L3 where you mint pets that can farm and eventually will go questing and battling etc.
Net Inflow
Attention remains on none other than ETH due to the expected ETF flows as it has surged in price over the past week. The most painful scenario right now is for people who are holding the wrong altcoins and are underperforming ETH and will do the same on the downside too.
The most accumulated tokens on Base over the past 7 days are ETH, DEGEN while it remains more distributed further down the line. Considering Farcaster raised $150M it might be the case of not having to complicating it and DEGEN preparing to go on a 2nd run during the summer. Time will tell.
Most accumulated tokens here are the LRT weETH, ARB, PENDLE, DMT, and MOR. These tokens especially the latter three will most likely continue to be the ones that keep the activity on Arbitrum afloat as the rest of the ecosystem continues to falter. Although GRAIL is starting to pop up again at the bottom which normally is a good sign.
Sleuthing
Today we’re taking the time to highlight a fantastic trade on PEPE as he finally took profits. This is why memecoins are so attractive nowadays as they act as a lottery ticker with the potential for home runs like this. Bear in mind the small amount he started with as it’s fundamental to enter with a non-trivial position in order to handle the mental warfare that memecoins bring due to their volatile price action.
Token Unlocks
ALT - 7,73% of supply worth $34,57m on May 25th
DOT - 0,03% of supply worth $3,01m on May 26th
NYM - 3,26% of supply worth $4,06m on May 27th
YGG - 4,51% of supply worth $15,61m on May 28th
AGIX - 0,68% of supply worth $8,98m on May 29th
Things are heating up and people are getting excited. Instead of telling you to manage your risk after a dip has taken place, make sure you do it now or the market will manage it for you. All the best for the second leg of the bull market.
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