This Week On-Chain #82 - Trump Hopium, Neiro, SEC Capitulates
Mixed emotions
Trump managed to get people excited with the mention of a BTC Strategic Reserve over the past week but never fully commited to it. Let’s get real here, the United States would never announce buying BTC before actually doing that, anyone doing so would be stupid as it would get frontrun. Most likely, they would just continue to hold the BTC they are seizing. This would imply that they got the best Bitcoin accumulation strategy, just seize it for free from criminal and proceed to hold it. They can’t lose.
Why expend tax dollar money when you can do it that easy?
On another note, the owner of the previous real DOGE called Kabosu got a new dog called Neiro and there has been immense drama concerning different tokens and who got first between 2 Neiro’s on SOL and 1 on ETH which has caused ridiculous volatility.
For now, it looks like the ETH Neiro is the winner but considering how dramatic this has been, you never know.
Market Digest
Pump Fun flipped Ethereum in 24 hour revenue
Compound Finance suffers governance attack worth $25M
Big drama concerning the “new doge” and the two “Neiro” tokens that followed
Dinero protocol announces partnership with Galaxy and Nomura/Laser Digital
Moonshot memecoin trading app goes live in 130+ countries Google Play
SEC seeks to amend complaint against Binance, no longer deems SOL a security
Pump fun competitor launches that lets you create a memecoin through Twitter
Bridge Flow
It continues to be a direct battle between Ethereum and Solana about who can attract the most capital and considering the drama concerning Neiro over the weekend it is no doubt that a massive amount of capital bridged to Solana to catch the move, while if you’re more granular it has reverted over the past 24 hours as people are fomo’ing the ETH one now.
DEX Volumes
DEX volume spiked towards the end of last week but has decreased again going into this week as we are trying to get out of the long summer lull. If you haven’t gotten positioned into anything yet, it’s about time now as time is running out before on-chain truly wakes up again. Get ready.
Pair Volumes
No surprise to see NEIRO dominate the volume on ETH after all the drama that has unfolded and will most likely continue to be the case as long as ETH on-chain starts to trend upwards for a while. MOG and MKR trails it while PEPE and TSUJI have received some interest too. MKR strength should not be taken lightly while memecoins have been the theme of the cycle so far.
NEIRO has been dominating the volume on SOL as well and even though it trumped the ETH one by a large margin, the drama between two different NEIRO’s on Solana meant that they canabalized each other while the one on ETH could come out as the winner for now. FWOG also emerged as a strong winner and went to 40m market cap in 1 day, while GAY is a token that got a CEX listing hence its appearance here.
AERO slowing down means that the Base ecosystem has slowed down as a whole as well. FWOG got a lot of bids for a day as a competitor to the one on Solana as they tried to force the Neiro drama again but it didn’t work a second time. Brett is the one that remains resilient while the rest of the tokens within the ecosystem have kept bleeding.
Not much has happened on Arbitrum over the past week with the volume plummeting across the board. It is very rare to see the ARB token trade with as low volumes as you see in the image and while ZRO was being the flagbearer for the ecosystem as a stronger token, interest has faded and the token has suffered as a result.
NFT Trading
Ordinals are in free fall and the only NFT showing any kind of strength at the moment are Pudgy Penguins, BAYC and CryptoPunks while the rest of the market is having a bad time. Ordinal hype peaked prior to the Bitcoin halving and they haven’t recovered since.
There is a general lack of excitement in the NFT market and will likely take a while before we see any significant life here again.
They have currently been replaced by memecoins which are more liquid and parasitic.
Net Inflow
We’re not really in a risk on mode yet with people still being very conservative with what they are buying, the only alts that have gotten significant bids over the past week are NEIRO and AAVE while MOYA has acted as a small beta to NEIRO that has generated a lot of volume. Apart from this people are in ETH derivatives and stables and farming as they take advantage of the sideways market.
RAY has gotten the most amount of inflows over the past week and it’s not something you expect to see on the ecosystem where people only talks about memes. Probably indicates that in comparison to the activity these memecoins have generated the ecosystem tokens might be undervalued. WIF continues to get a lot of buyers at these levels while BOME is a forgotten meme that have attracted a lot of capital over the past week. MUMU has undoubtedly been the strongest performer on the ecosystem while Bonk and GIGA keeps chugging along.
The same is the case on Base with the majority of the bids going towards BRETT while the rest of the bids across the ecosystem has been pale in comparison. Base is in need of something to reignite the ecosystem which has been stale for a while now.
No difference in the Arbitrum ecosystem comparison to others. The only token that stands out and have gotten a little bit of flows is RDNT but apart from that it’s really nothing to see here.
Sleuthing
The whales like AAVE, most likely because they recently announced a proposal where they intend to buyback their token in case they hit some growth metrics that are reasonable. Considering Aave is profitable now and a similar proposal was a strong catalyst for MKR, it is no surprise why people take interest again as a useless governance token is about to turn into a useful token.
These are the addresses for the curious people:
0xd7c5dEb9fA0aC9Ab71cf5f53CB380BF1E6fe9730
0x790c9422839FD93a3A4E31e531f96cC87F397c00
0x9af40209804D8A8d91EBF3EfA277641381684235
Token Unlocks
1INCH - 0.01% of supply worth $22.24k on Aug 2nd
GAL - 3.52% of supply worth $11.56m on Aug 2nd
W - 33.33% of supply worth $147.27m on Aug 3rd
FORT - 0.01% of supply worth $7.69k on Aug 4th
LQTY - 0.51% of supply worth $388.67k on Aug 4th
ENA - 0.87% of supply worth $5.94m on Aug 4th
MODE - 14.25% of supply worth $3.81m on Aug 5th
MAVIA - 3.64% of supply worth $1.96m on Aug 6th
Thats it for this week and there is not much yet to do except being patient and having confidence in your high conviction bags. It’s not the environment to actively trade at the moment so rest easy and prepare yourself accordingly.
See you next time.
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