Solana (one of the two assets spotlighted in last week's newsletter) pushed through resistance at $245 and is now holding that level as support. Maintaining it would be a healthy sign. Meanwhile, Kyle Salami had a very Tom Lee–like week, keeping his DAT, Forward Industries, and Solana in the headlines.
HYPE, the other asset mentioned in last week's newsletter, hit an all-time high on Thursday, breaking $59. Worth watching: HYPE unlocks in November. Will this play out in the typical bearish fashion, or will it mirror Solana last cycle, the rare "bullish" unlock?
Another possible headwind for Hyperliquid is the rise of a new meta: alt-perps DEXs, which would direct money and attention away from Hyperliquid towards upstarts. Taiki Maeda, one of the Steady Lads, observed:
"Last cycle, we had alt-L1 rotations since people wanted to buy "ETH killers" since ETH r/r got worse above 4k
Wonder if this time around we're going to rotate between alt-perpDEXes since sidelined capital want to ape something that could pump harder than $HYPE"
We've already seen MYX, ASTR, and ZEX emerge in quick succession. The speed with which we've had these alt DEXs feels a bit like the speed of memecoin runners in the short memecoin seasons we've had so far this cycle. If that's the case, attention burns itself out too fast for anything sustained.
An important tailwind for both SOL and HYPE, along with top 30-40 non-Bitcoin/Ethereum coins, is the news that SEC has approved generic listing standards for commodity based trust shares, which includes crypto ETFs. Bloomberg ETF analyst James Seyffart posted, "Get ready for a wave of spot crypto ETP launches in coming weeks and months."
The last coin's price action worthy of mentioning is also one of the bigger stories this week. From last Friday to this Friday, PUMP increased as much as 50%, hitting an ATH. It has since retreated 17%, but is still above the previous ATH made on July 16. Pump has been on a tear since late August, going up more than 170%. There are several reasons for this.
The team, which made over $1 billion in the ICO and had hundreds of millions in the bank before that, has been buying back the token. They've bought back more than 5% of the circulating supply, with about 4% of that in the last month alone. They've increased their daily active users, and they're going after streaming incumbents like Twitch with more lucrative revenue sharing.
But wait, there's more. Being the darling of Solana, Pump will benefit from SOL appreciation. Finally, everyone of note on CT (Crypto Twitter) seems to be a bagholder, ensuring a steady stream of FOMO.
There might be no such thing as bad attention, and Pump is getting plenty of it, but I find what many of the people streaming on Pump.fun to be deeply unsettling.
Elsewhere, Ethereum and Solana folks were at each other's throats on CT. This week it was about the Ethereum exit queue, which is over 45 days long. Graham and I covered the topic on this week's episode of Token Narratives, but here's a picture that captures one conclusion we came to:
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