ToE's Weekly Highlights #72

Jul 16, 2024

∙ Paid

AI projects going bananas

VC backed coins taking a huge hit

Upcoming trends that you need to know and 43 early project finds🧵👇

Weekly Updates

Here are three compelling narratives worth watching in Q3 due to upcoming catalysts:

Real World Assets (RWAs)

The RWA sector is poised for growth as major financial institutions like BlackRock push their tokenization efforts forward. BlackRock’s launch of its first Tokenized Fund on Ethereum has already spurred significant interest. With the market cap of the RWA sector currently around $6 billion, the potential for expansion is immense. Key projects to watch include Ondo Finance, Clearpool, and MANTRA Chain. As more traditional finance giants announce their RWA projects, this sector is expected to reach multi-trillion-dollar valuations by 2030.

PolitiFi

PolitiFi, or political memecoins, are gaining traction as the US elections approach in November 2024. With crypto becoming a central issue in these elections, memecoins like $TRUMP and $BODEN are attracting attention. While their performance is tied to overall market conditions, these tokens could see a surge in popularity if Bitcoin stabilizes or rises.

Bitcoin Staking

Bitcoin Staking, which allows BTC holders to generate yield by securing PoS networks, is another promising narrative. Babylon, a project enabling Bitcoin staking, is set to launch its mainnet soon after raising $70 million in funding. Similar to Eigenlayer for Ethereum, Babylon offers significant potential by leveraging Bitcoin’s larger market cap. As Babylon’s launch approaches, the focus will be on projects building on its platform and the yield opportunities it presents.

Weekly Alpha by @TheDeFinvestor

Narrative Overview

Bitcoin’s Downtrend

BTC: Attempted to break ATH at $72k but was rejected.
Decline: Slow and steady, losing 2% daily without clear capitulation.
Major Dip: On June 18, altcoins dropped 10% against BTC, which also fell from $64k to $58k before rebounding to $62k.
Concerns: Fear over Mt. Gox payouts, BTC sales by German and US governments.

Ethereum and Altcoins

Ethereum: Positive ETF developments, but bearish market reaction.
Altcoins: Suffered major losses, particularly VC-backed coins like $STRK (-41%) and $WLD (-49%).

Memecoins and Large Caps

Memecoins: $BRETT (+75%) reached $2bn market cap; $MOG and $POPCAT also performed well.
Solana ($SOL): Strong performance due to VanEck’s ETF filing and market moves.

New Token Launches

Key Tokens: $IO, $ATH, $TAIKO, $ZK, $ZRO, and $BLAST. All launched at relatively low valuations due to poor performance of recent high FDV coins.

Notable Events

Curve Founder Liquidation: Caused $CRV to drop significantly before a brief recovery.
TrumpCoin ($DJT): Pumped and dumped following rumors and controversy.
Bitcoin Staking: Projects like Babylon are launching, promising yield opportunities.
Celeb Meta: Celebrities launching their own tokens, often resulting in quick pumps and dumps.
Alt L1s: $TON and $KAS reached new ATHs, gaining attention as major alt L1 contenders.

Threading on the Edge