A Week of Mixed Signals

GM Anon!

It's been a bit of a shaky week, but definitely more positive than last week! The CPI numbers came in better than expected, though the market still took the opportunity to cause some pain with a pullback after the news. We also had a few scares with hacks, WBTC concerns, and the Phantom wallet mishap.

For those feeling chopped up or frustrated over the last few months, take note: WE ARE GOING UP—just hang in there. We'll keep reminding you, especially for the newcomers, that this is where the gains are made—by accumulating during periods like this. 

In a few months, the challenges of today will feel like a distant memory as we reach Valhalla.

If you're reading this, chances are you've survived the worst of it and have strong resolve. Interest in crypto may be declining, but those who stay updated on market developments now are the ones who are going to make it!

Let's dive in!

TLDR

• Goldman Sachs and Morgan Stanley invested over $600M in U.S. spot Bitcoin ETFs during Q2 2024, reflecting growing institutional interest despite a 12% drop in Bitcoin's price

• Pump.fun became the most profitable crypto project on August 14th

• Runecoin hints at a new BTC layer for trading Runes, sparking bullish sentiment among OG Ordinal and BRC-20 collectors

• Aave hit a new all-time high in weekly active borrowers, signaling a potential resurgence in the DeFi sector

• Notable smart money accumulations occurred on Solana with tokens like SCF, HARAMBE, and MEW, while Ethereum's activity remained relatively subdued

Market Highlights

Goldman Sachs and Morgan Stanley made significant investments in U.S. spot Bitcoin ETFs during the second quarter of 2024, collectively acquiring over $600M in these assets. This move reflects growing institutional interest in Bitcoin ETFs, despite a 12% decline in Bitcoin's price during the quarter. Goldman Sachs, for instance, took substantial positions in several newly launched ETFs, including a nearly $238M stake in the iShares Bitcoin Trust, while Morgan Stanley favored BlackRock's iShares Bitcoin ETF.

In parallel, MetaMask, in collaboration with Mastercard and Baanx, launched the pilot of the MetaMask Card, allowing users in the EU and UK to spend their crypto directly from their MetaMask wallets. This development marks a significant step toward integrating blockchain technology with everyday commerce, simplifying the process of using crypto for real-world transactions. Additionally, Coinbase announced plans for cbBTC, a new tokenized version of Bitcoin on its Base network, potentially reshaping the market dynamics for tokenized Bitcoin.

Coin Updates

Major Moves

Market leaders like BTC, ETH and SOL are down 3.9%, 1% and 8.1% over the past week , continuing to trade within a range. However, some interesting action was observed in major DeFi tokens such as CRV, SYN, and AAVE. 

Additionally, NFT-related coins like JPEG and RARE also experienced noticeable movement. The BTC ecosystem saw a boost as well, with tokens like MUBI and ORDS gaining attention.

• CRV (24.2%)

• AAVE (13.2%)

• SYN (41.5%)

• JPEG (29.8%)

• RARE (27.7%)

• VELO (15%)

• LYX (13.9%) 

• ORDS (9.1%)

• KUJI (8.9%)

• MUBI (5.2%)

• KMNO (14.2%)

BTC Ecosystem

After weeks of down only and a flood of FUD, Runes seem to have sprung back to life. Is this just a temporary bounce or the start of something much bigger? 

Runecoin has stirred up a lot of conversation on crypto Twitter by hinting at their plans for a new layer on BTC to facilitate the trading of Runes. While the specifics of what they plan to release are still under wraps, many OG Ordinal and BRC-20 collectors are extremely bullish on this protocol, which could be a promising sign of what's to come.

Many traders are attempting to front-run the anticipated Rune season by buying into key collections of both Ordinals and memes following a significant pullback since their all-time highs in April. Pay close attention to RSIC and BAMK—two protocols that offer much more than just memes.

Ordinals saw some interesting price action this week, sparking speculation about whether we could be on the brink of a new NFT season that rivals the 2021 boom. 

Projects like Puppets, Quantum Cats, NodeMonkes, Ninjas, and OMB are emerging as strong contenders to become the next big names in the space outside of the BTC  ecosystem, potentially following in the footsteps of BAYC or CryptoPunks.

Memes

Read the screenshot below. Then read it again and again.

Understand this: the first phase of the bull market is behind us. We've witnessed the rise of emerging narratives, identified the strongest coins that withstood the harsh pullbacks, and observed the areas of the market that have maintained the most interest. 

On August 14th, Pump.fun became the most profitable crypto project, generating over $5.3M in daily revenue, surpassing the combined earnings of the next 24 highest-earning protocols.

• This surge in revenue underscores Pump.fun's dominant position in the current crypto landscape, particularly within the memecoin space. 

• However, this rapid success has raised concerns about the sustainability of the memecoin market, as the platform's ability to launch thousands of tokens at minimal cost could lead to market saturation and the dilution of value for existing coins​ 

Without a doubt, the undisputed king of this cycle has been memecoins—interest has remained consistent and high, and trading volumes have been nothing short of staggering.

When people look back on this cycle, they will remember it as the era dominated by memes. While DeFi ruled the last bull market, this cycle will go down in history as the ultimate memecoin cycle. 

It's time to update your understanding of memetics, anon. For those still struggling to grasp this part of the market, it's essential to move with the current, not against it.

This week was relatively slow, but a few Trump-related memes saw a pump following the interview with Elon Musk, and the Rune ecosystem also had some memes with noticeable price action. The standouts for this week in terms of gains are:

• NEIRO, since there are multiple versions check this link (776.3%)

• GIGA (72.2%)

• BDC (32.2%)

• PUPS (26.2%)

• MIGGLES (8.4%)

• PEPE TRUMP (140.1%)

• MAGA PEOPLE TOKEN (168.9%)

Other major memes this week experienced a pullback, potentially offering some great entry points for those looking to accumulate any of the memes listed below:

• PEPE (-14.3%)

• MOG (-27.3%)

• WIF (-21.3%)

• POPCAT (-26.1%)

• MICHI (-41%)

• SCF (-35.3%)

• BITCOIN (-14.7%)

• GINNAN (-37.9%)

• AURA (-44.8%)

Smart Money Moves

Smart money moves this week have mostly been down in terms of major accumulations. However, there were notable accumulations on Solana, including SCF (22.7%), HARAMBE (9.38%), and MEW (18.69%).

Ethereum smart money moves were rather lackluster this week, with the only notable accumulation being MOG at 27.66%.

Data

Stablecoin Revolution

USDT on the TRON network has achieved a settlement volume that is now one-third of Visa's annual total, highlighting the massive growth and influence of stablecoins in global finance.

• This milestone marks a pivotal moment in the evolution of digital finance, illustrating the rapid adoption and scaling of blockchain-based stablecoins. 

• Traditionally, Visa has been a dominant force in global payment processing, with vast infrastructure and a wide customer base. However, the fact that a decentralized network like TRON, using USDT, can now facilitate transactions at a comparable scale signals a shift in the financial landscape. 

• It reflects the growing trust in blockchain technology and stablecoins as viable alternatives for transferring large sums of value, challenging traditional financial systems and potentially reshaping the future of global transactions.

DeFi Awakening

Aave has achieved a new all-time high in weekly active borrowers, signaling a resurgence in the DeFi sector.

• The increase is largely attributed to the expansion of L2 solutions, particularly Base and Scroll, which have driven substantial growth in both borrowers and depositors on the platform. 

• As one of the largest DeFi protocols by TVL, Aave's resurgence suggests a broader revival in decentralized finance, following a period of decline from its 2021 peak. 

• The renewed interest and activity in DeFi, as evidenced by Aave's performance, indicate that the sector is regaining momentum, potentially offering attractive opportunities for investors as the market continues to recover.

We’ve reached the end of today’s insights! Hope you enjoyed this edition. Till next time, anon!