This Week On-Chain #76 - GCR vs Shkreli, Shakeouts and ZRO airdrop
A week that had everything
CRV drama has once again been a signal of a local bottom (hopefully) while the vibes across the board are at all-time lows. It’s rare to see sentiment this low while BTC is at such a high price but it most likely stems from many people underperforming as they have been overweight alts this far which has been a painful ride when you chart them against BTC except for small pockets of outperformance.
We are also seeing things getting more bizarre with Martin Shkreli launching the DJT coin and claiming Donald Trump was involved, which a spokesman denied.
I am mostly sticking to high-conviction plays at the moment which gives me less of a headache as the conditions are currently rough on-chain.
When the opportunities are there (roughly once a week) I do my utmost to collect them when it’s time.
Also, finally brushed up on some Dune skills and there will be Solana data included going forward.
Market Digest
LayerZero launched their airdrop, you can check your eligibility here
Kraken exploited for $3m
Drama concerning DJT Trump coin and who the origin is
All bad debt on Llamalend cleared after CRV liquidation
ZKsync launches their ZK token
Ethena announced tokenomics upgrade
Maverick announces V2
Prisma proposal to acquire Moebius Finance
SEC backtracks ETH investigation that were trying to deem it a security
Bridge Flow
Capital has continued to flow between both Solana and Ethereum over the past week as both TRUMP based memecoins on the respective chains have sucked significant amounts of capital, the MAGA coin on ETH did 25m volume just yesterday while pulling similar numbers on Solana. There’s not much going on at other chains except for TON, which has exploded in volume although it isn’t covered here. Onboarding is smooth as it’s as easy as typing “/wallet” in the telegram search interface.
DEX Volumes
DEX trading volumes are still not close to levels we saw towards the end of May and the on-chain trading activity has definitely slowed down since the summer started. People are taking less risk and a breather as this market can be exhausting at times. Except for generally 1 good opportunity per week, there isn’t really much to do except accumulating high-conviction plays and chilling.
Pair Volumes
Traders have had some appetite for mainly trading the TRUMP coin while “The Glitch” with a $70m volume according to Dune is an actual glitch. Otherwise, volume is stalling out as people are trading very few alts at the time due to the dispersion we are experiencing at the moment.
BILLY is the latest hottest SOL memecoin on the block that is sucking liquidity and attention from other memecoins as it has even surpassed WIF in regards to trading volume which is an achievement in itself. Other traded tokens of interest include DADDY (Andrew Tate coin) and MOTHER (Iggy Azalea coin). Yes, we live in a simulation.
The only thing to keep tabs on at Base is that BRETT continues to be a very strong token no matter how disliked it is and has held up surprisingly well despite the market being very shaky over the past week. Apart from that, there’s not much interesting going on there except for DEGEN and BENJI starting to get some trading activity again.
TAP isn’t on this list because it’s a new token but it is without doubt the most traded token on Arbitrum outside of ARB and PENDLE this past week as Tapioca recently launched and their token has been doing very well. Otherwise, PENDLE has had a good time as well and the protocol was featured on Bloomberg recently.
NFT Trading Volume
NFTs continues to be weak and the only collection that continues to outperform are none other than Milady and Redacted Remilio babies. All the other ones have been in a free fall for a long time while these two represent crypto culture very well (for now).
It’s going to be a while until NFTs are hot again.
FWIW FU studios finally launched their token “FU” which has been airdropped to all holders and can be traded on Arbitrum and it’s up over 100% since launch.
Net Inflow
Fundamental tokens are starting to get some interest here with CRV making a resurgence after the founder’s debt is out of the way, meanwhile, 1inch and MKR have received some interest as well while cvxCRV is back on the table receiving heavy interest. Also, very surprised that CVX didn’t make this list after how strong it has been but I guess it missed out with fine margins.
On Solana, Bonk is the token that has been accumulated the most aggressively by degens while Billy is the latest hot memecoin on the block that has been bought heavily as well. MEW, TRUMP, NGMI, and RIZZ are chugging along and this is a good indicator of what the SOL degens are bidding in comparison to ETH.
The ETH degens nowadays seem to spend their time on Base as it clearly shows an appetite for a different type of token in that ecosystem, mainly being small derivatives of memecoins outside of holding Lsts. The ecosystem has been slow since the Coinbase smart wallet launch and might get revitalized when Jesse comes back from vacation as the cult figure of the ecosystem. Time will tell.
PENDLE continues to be the dominant token of the ecosystem but TAP has taken the Arbitrum market by storm and brought new life into the ecosystem which its strong performance and a new set of tokenomics (finally). People have been desperate to bid on some new innovation and TAP fits that bill. FU might turn out to be a sleeper here.
Sleuthing
This week’s sleuthing goes to Zachxbt, who completely exposed Martin Shkreli as the creator of DJT. Always reliable when you need him.
Token Unlocks
EUL - 0.31% of supply worth $208.26k Today
ID - 18.23% of supply worth $37.73m on June 22nd
BAL - 0.05% of supply worth $96.49k on June 23rd
ACA - 0.46% of supply worth $334.68k on June 25th
ALT - 6.92% of supply worth $21.11m on June 25th
PENDLE - 0.02% of supply worth $216.45k on June 26th
You have to survive this chop and you’ll be fine. The bull market is not over. And de-risking at this stage is futile, the majority of the moves take place within less than 2 weeks of the year and if you’re sidelined when those happen your return will be negative. To get exponential results, you have to stomach the volatility. Hang in there.
That’s it, see you next week.
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