Markets
Here’s what drove Q2’s top performers BRETT, TON, KAS; and what’s next for Bitcoin and crypto investors
The second quarter saw three tokens – brett (BRETT), Ton Network’s TON and Kaspa’s KAS – emerge as shining stars as the cryptocurrency market bellwether, bitcoin (BTC), wilted, dragging most major digital assets, including ether (ETH), lower.
BRETT, a Base Chain-native memecoin inspired by the character Brett from the Boys’ Club comic book series, has more than doubled to 15 cents, becoming the best-performing digital asset among the top 100 coins by market cap, according to data tracked by TradingView and CoinMarketCap.
Ton Coin (TONNE)The native cryptocurrency of The Open Network (TON), a decentralized layer-1 network popularly known as the TON blockchain, surged 42% to $7.65 and the Kaspa blockchain’s KAS surged over 35%. Meanwhile, the total cryptocurrency market cap fell 13.8% to $2.2 trillion.
Here’s what may have helped these coins stand out from the general market malaise.
The rise in BRETT was not an isolated event, but part of a broader bullish trend in meme coins. Dune-based analytics platform DYOR relative strength of the crypto narrative tracker shows that the meme coin subsector is up more than 45% in three months, while others have seen losses.
Cultural coin mog (MOG) has emerged as another high-performing asset driven by positive sentiment and a cult following on social platforms like X. MOG’s market cap has skyrocketed from $220 million in early April to over $700 million, briefly placing it among the top 100 tokens by that metric.
The performance is typical of a bull cycle in which investors rotate profits from larger coins like bitcoin into smaller tokens like meme coins, fueling a price surge and retail investor FOMO (fear of missing out). In other words, the fate of meme coins is tied to investor risk appetite and credit availability.
BRETT began its meteoric rise in May after Bitcoin began consolidating at all-time highs near $70,000 and at one point saw its market cap approach the $2 billion mark.
“The $2.0 billion mark is the liquidity barrier that many of the established meme coins hit before profit-taking and sideways volatility set in. Of course, for every $1 billion more from there, it will take a lot of momentum and risk-taking from retail investors (aka Apes) to push these meme coins to the levels of DOGE and SHIB. Let’s see what the Degens can do later in this bull market cycle,” Kenny Hearn, chief investment officer at SwissOne Capital, told CoinDesk in an interview.
Hearn added that SwissOne’s Top 50 Smart Passive Index Fund holds six of the largest meme coins in its portfolio after this quarter’s rebalancing.
TON’s growth stemmed from its involvement in the cloud-based mobile and desktop messaging app Telegram, which has 1.56 billion users worldwide and 800 million active users.
“A toncoin (TON)-based economy is starting to take root on the Telegram messaging app,” said TON’s chief investment officer. Justin Hyun told CoinDesk in April.
Several catalysts have boosted TON adoption, including Telegram’s decision to switch to TON payments for ads and the Open League rewards program. TON’s network activity has also received a boost with the integration of tether (USDT)the world’s largest dollar-pegged stablecoin and the debut of the Telegram-based Notcoin gaming digital token.
TON’s daily active addresses surged to nearly 600,000 in June, surpassing Ethereum, the world’s largest smart contract blockchain that is home to major DeFi projects worth several billion dollars.
“During Q2, daily active users (DAUs) for TON experienced a significant increase, even surpassing Ethereum. This growth was attributed to the introduction of mini apps, which are decentralized apps embedded within the Telegram messaging app. Notcoin, one such app, gained notable traction as users could ‘mine’ Notcoin by simply pressing a button within Telegram,” Katie Talati, head of research at Arca, said in an email to CoinDesk.
“Other significant catalysts include the launch of USDT on TON, with approximately $550 million in USDT currently on the network, positioning it for payments, a core feature of WeChat,” Talati added, highlighting Pantera’s recent “largest investment ever” in TON.
According to Hearns, KAS’s parent proof-of-work (PoW) blockchain, Kaspa’s attempts to solve the blockchain trilemma have helped the token gain investor attention.
The blockchain trilemma refers to the tradeoff between three key aspects of blockchain technology: scalability, decentralization, and security.
Kaspa’s GHOSDAG allows transactions to be processed more asynchronously and in parallel, unlike traditional blockchains that rely on sequential processing. This helps improve performance and security while maintaining the security of the PoW consensus mechanism.
“It seems this team is on a mission to solve the trilemma (scale, speed, security) through their DAG vs blockchain structure (supporting speed and scalability) while using the security benefits of POW (supporting security). What appears to be a strong “hodler” base, meaning little free float, seems like the market is very supportive of this cutting-edge technology. Again, support on fundamentals,” Hearn explained.
The third quarter historically was the weakestwith bitcoin recording an average gain of just 5% over the past 13 years, compared to 60% in the second and fourth quarters.
There is a risk that current US President Joe Biden’s recent poor performance in the presidential debate could prompt Democrats to replace him with a strong candidate against crypto-friendly rival Donald Trump.
This could keep animal spirits in check until the November 4 elections. In addition, the Fed and other central banks could meet BIS Council to avoid premature easing of monetary policy.
Still, cryptocurrency subsectors with solid fundamentals may continue to excel.
“The long-term play is key for many projects that are built quietly in the background and delivered on real use cases,” Hearn added. “We see ONDO, JASMY, and ENS all fall into that category of strong fundamentals, user growth.”
Arca’s Talati said stocks in bitcoin mining, artificial intelligence, gaming and DeFi sectors could see growth.
This week saw $722 million worth of Bitcoin spot ETF inflows, including the largest daily inflow in a month.
Cryptocurrency markets rallied on Wednesday, driven by inflows into spot Bitcoin exchange-traded funds (ETFs).
The price of Bitcoin (BTC) is up 3% over the past 24 hours to last change hands at $65,200, according to CoinGecko. Ethereum (ETH) is up 2% and is trading at $3,471. Solana (SUN) and Polkadot (POINT) increased by 4%.
Bitcoin spot ETFs saw $422 million in daily inflows on Tuesday, the highest in the past 30 days, according to Far side data, . The all-time record for a single day was $1.05 billion on March 12.
Among Tuesday’s top contributors, BlackRock’s IBIT led with $260 million in inflows, followed by Fidelity’s FBTC with $61 million. This week has already seen more than $722 million in inflows.
Among the top 100 cryptocurrencies by market cap, Worldcoin (WLD) led with a 28% increase, followed by Helium (HNT) with 20% and Lido DAO (LDO) with 15%.
Worldcoin, a decentralized identity project led by OpenAI CEO Sam Altman, announced is extending the lockups for early investors and team members. This means that tokens will be gradually released through 2029, instead of the original 2027 plan. Token unlocks are generally seen as a negative because they increase supply and early investors can sell their tokens for profit.
Meanwhile, XRP, the token of the XRP Ledger network, jumped 8% after the CME and CF benchmarks introduced new indices and reference rates for XRP.
U.S. stocks faced a downturn on Wednesday. The S&P 500 fell 1%, while the Nasdaq Composite and Dow Jones Industrial Average both fell 2%.
Markets
Altcoins on the cusp of a major breakout – WLD, AR, and INJ prices could surge by 20% in the coming days
Crypto markets appear to have been taken over by the bulls as major tokens have surged above their crucial resistance zone. Bitcoin surged above $65,000 while Ethereum was above $3,500, and XRP, which had remained passive for quite some time, surged over 40% in the past few days to hit $0.6. The uptrend has been captured in most altcoins, with Worldcoin (WLD), Arweave (AR), and Injective (INJ) leading the rally. Here’s what to expect for these tokens in the coming days.
Worldcoin (WLD) Price Analysis
O Worldcoin Price has been trading inside a descending wedge since it marked a new ATH near $12 in the final days of Q1 2024. The recent price action helped the price break out of the upper resistance of the wedge, breaking above the crucial resistance zone between $2.21 and $2.39. Market sentiments have changed, but technicals suggest that the bulls may remain passive for a while, which could offer some room for a bearish pullback.
The price broke out of the wedge with a significant increase in volume, but the current volume suggests that the bulls have taken a step back. Meanwhile, the RSI is about to reach the upper boundary, which could attract bearish forces. Additionally, the DMI has undergone a bullish crossover, but the decline in the ADX suggests that the rally may remain consolidated above the gains. Therefore, the WLD price is expected to maintain a horizontal consolidation between $3 and $3.3 and trigger a fresh rally to $4.4 during the next bullish rally.
Arweave (AR) Price Analysis
Arweave formed a strong base around $25, which helped the rally trigger a recovery during the bearish attack. Mt. Gox and German terror forced the price to fall below $20. However, the recent price action has brought the altcoin within the bullish range and raised expectations of maintaining a decent uptrend for a few more days.
AR price has hit one of the major resistances around $30 to $31.5, which could act as a strong base once overcome. The buying volume is slowly increasing, which could keep the bullish hopes for the rally high. Moreover, the supertrend has just flashed a buy signal, indicating a clean reversal of the trend. Therefore, AR price seems primed to maintain a healthy uptrend and rally above $40. However, if the bulls maintain a similar trend, making new highs above $50 may not be a tedious task for the bulls.
Price Analysis of Injective (INJ)
Injective price has been showing sharp strength since the beginning of the year and hence, the recent turnaround is expected to revive a good uptrend going forward. The bears engulfed the rally to a large extent, but the recent price action suggests that the bulls have regained their dominance. Therefore, INJ price is expected to maintain a strong uptrend with a bearish interference on the way down.
INJ price has surged above the lower support zone and has registered consecutive bullish candles. Although the volume is below the required levels, the OBV is maintaining a sharp uptrend. Furthermore, the Ichimoku cloud lead span B is heading towards the lead span A and a healthy crossover indicates the start of a new uptrend. However, INJ price may be out of the bears’ reach once it secures the resistance zone between $30.77 and $32.12, which seems to be on the horizon.
Ethereum (ETH) supply on exchanges has hit a 34-month high as the asset’s price surpassed the $3,500 mark.
ETH has risen 2.3% over the past 24 hours and is trading at $3,490 at the time of writing. The second-largest cryptocurrency — with a market cap of $419 billion — briefly touched an intraday high of $3,517 earlier today.
ETH Price, Whale Activity, RSI, and Exchange Supply – July 17 | Source: Santiment
Ethereum’s daily trading volume also increased by 7.6% to reach $19.8 billion.
According to data provided by Santiment, the supply of Ethereum on exchanges has reached $19.52 million ETH. This level was last seen in September 2021, when the asset was trading around the same price.
On the other hand, data from the market intelligence platform shows that the number of whale transactions has fallen by 12% in the last day — falling from 8,730 to 7,629 unique transactions per day.
The move shows that the supply of Ethereum on exchanges has been increasing with small deposits rather than large transactions from whales.
Additionally, the ETH Relative Strength Index (RSI) is currently hovering at the 60-mark, per Santiment. The indicator shows that Ethereum is slightly overbought at this price point, but it may not be in a critical position due to its large market cap.
One of the main drivers of Ethereum price increase is ETH spot expectations ETFs in the US Investment products are scheduled to start trading on July 23rd.
Markets
Bits + Beeps: How to Play the ‘Trump Trade’ in Cryptocurrencies After the Assassination Attempt
Also, how much will the Fed cut rates (and when)? What will be the inflows into ETH ETFs? And what is the near future for Bitcoin?
Posted on July 17, 2024 at 12:00 PM EST.
Listen to the episode at Apple Podcasts, Spotify, Capsules, Source, Podcast Addict, Pocket molds, Amazon Musicor on your favorite podcast platform.
In this episode of Bits + Bips, hosts James Seyffart, Alex Kruger and Joe McCann, joined by guest Jack Platts, dive into the market reaction to the recent assassination attempt on former President Donald Trump, analyzing how this event will influence the 2024 US presidential election and the cryptocurrency markets.
They also cover potential rate cuts: Could there be a cut in July? How big could the September rate cut be? Could the decision be influenced by the upcoming election?
They also give their predictions on what percentage of BTC ETF inflows the ETH ETFs will reach, and James talks about what he expects for Grayscale’s ETHE (hint: his outlook would be positive for ETH).
Finally, they delve into what’s next for Bitcoin as the German government runs out of BTC and Mt. Gox distributions begin. Just now?
Program Highlights:
- Whether Trump’s shooting decided the election and whether the event caused a “flight to safety”
- How election markets are becoming a place to watch election probabilities and whether cryptocurrencies “lean right”
- Whether rate cuts will occur in July or September and by how much they will cut: 25 bps or 50 bps
- How Joe sees the relationship between global liquidity cycles, rate cuts, and the potential rise of Bitcoin
- What are the new updates about Ethereum ETFs and their expected launch?
- Why Solana Hasn’t Performed Significantly Better Since Trump News
- What Market Breadth Indicates About the Current Market Rally and the Impact of Rates on Small Caps
- Everyone’s predictions on ETH ETF inflows and how much outflow we’ll see on Grayscale’s ETHE
- What’s Next for BTC After German Government Exits Bitcoin and Mt. Gox Giveaways Starting This Week
Hosts:
Guest:
- Jack PlattsCo-Founder and Managing Partner of Hypersphere Ventures
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