gm onchain enjoyers, and welcome to the 64th edition of the Parsec Weekly.
I’ve been AFK for the last month and only got back on screen a few days ago. I’ve managed to loop myself in relatively well and I stayed semi tapped into larger market movements and narratives while I was away. So let’s chat about some of the things happening lower down the risk curve.
Off the bat, majors had a good March with BTC briefly making new highs and taking ETH and SOL along for the ride. Price action has been relatively sideways since then forming a good environment for the crypto casino to flourish.
Solana meme coins have been leading the pack and seeing the majority of volume and general activity, Base is not too far behind at the moment, with Mainnet struggling to keep up and looking like a wasteland in comparison.
Personally I think Ethereum is beginning to fulfill its destiny as the settlement layer, reserved for longer term trades and larger caps. I recently sold off the last shitcoin I was holding on Mainnet as I fail to see a catalyst that would bring the action back across the bridge when we have a much better trading experience on Solana, Base and perhaps Blast at some point. As the shitcoin UX is improved greatly by the speed of other chains, a few months of liquidity games and toes being dipped has led to the majority of successful shitcoins residing on higher throughput chains.
Presale Meta
I’ve written about this before but traditionally Soylana shitters have had terrible mcap/liquidity ratios which result in giga pumps and giga dumps. It was not uncommon for them to do -90% before making new highs, but now the liquidity seems stickier and more coins are being sustained. This month the presale trend was rehashed in a big way.
Everyone and their dog was doing a presale on Solana
“STUPID COIN PRESALE IS LIVE - Send SOL to fdsbwhqifbqhlidffdsaiiqjj” - Everyone and their dog
Stupid amounts of money were raised across the board, there were rugs, there were ruined reputations, but one positive that came out of it for a few coins was a stupid amount of liquidity relative to the standard - generally beneficial for a coin as whales can enter and exit with lower slippage. Some of these coins raised upwards of $30m and generally a large chunk of that would go straight into liquidity.
The two most successful were BOME and SLERF. BOME (Book of Meme) was one of the first presales to launch and was conducted by popular crypto and meme artist Darkfarms. It launched around $4m mcap and ran to $1.5b in just over 48hrs. Right now it still sits at $700m with $65m in liquidity (for reference, WIF is $3.6b with around $30m of onchain liquidity). On it’s 3rd day of trading it did $922m in onchain volume, absolutely record breaking numbers all round.
Then along came SLERF. Beginning with a hilarious blunder you will only ever see in crypto, the founder accidentally burned $10m worth of tokens he had set aside for the presalers. Deep liquidity and no one to dump was the perfect set up for a meme coin and it ended up outpacing BOME’s performance in speed and volume. SLERF ran to $700m in just a few hours and did $2b of volume in its first day of trading. Read more about the SLERF story here.
Blast and Munchables
To start, popular Blast GameFi app Munchables was exploited for $60m in ETH earlier this week. An emotional day on the timeline to say the least. Due to the two week withdraw buffer and Blast’s ability to upgrade the bridge contract we had an angry divide - half calling for them to stop the outflow and half saying that it would ruin Blast’s reputation and goes against the values of decentralisation. A day of silence from Pacman before he retweeted the Munchables account detailing that the hacker had willingly handed over the keys to the $60m wallet. No idea what actually happened behind the scenes but my guess is they either found the hackers identity or they gave up because Blast could have just stopped the withdraw process.
On Blast; I think it’s time for it to start ramping up. We went through the extremely high TVL and hyped launch resulting in not much actual onchain activity (typical of this type of launch imo). But weeks have passed, Blast gold is being distributed by dapps to users and the BLAST token launch nears. I expect some attention to drift back towards farming and shilling Blast over the next few weeks.
Benefactor Base
Base season is brewing, and in my opinion it will be the benefactor of the some of the Solana memecoin liquidity when the time comes.
$DEGEN is sitting at a $300m mcap/$900m fdv and there are multiple other shitcoins sustaining in the 8-9 figure range, yet Solana 24h volume still sits at 3x that of Base.
FriendTech V2 is on the way, points are selling for around $4 on whales.market. The airdrop and substantial liquidity injection should start a fire in the belly of base as we’ve seen time and time again.
And perhaps most notably, Base NFT’s have been doing remarkably well. It’s the first time a chain outside of Ethereum or Solana has seen ongoing NFT activity since Magic last cycle. Yet it’s still easy to see that there is not enough interest/liquidity to sustain these relatively high prices for longer.
Many collections had big run ups and equally as big drawdowns in the last week, which reminds me of Solana shitcoins a couple of months ago before they became sticky.
This article is getting a bit long, so just very briefly before I wrap up, two more things:
In January I wrote about the $6m WIF market buy on low liquidity when it was at just $100m mcap. That buy caused a wick to $4. Today that wick was filled.
The second is the emerging cat coin narrative. Cat themed coins have historically had poor performance relative to dog themed coins. As chatter on the timeline increases and the narrative boils up and permeates crypto’s many circles, there are currently around 5 cat coins sitting between $70m and $500m mcap. Just as ‘Fill the wick’ was memed into reality for WIF, these cat coins are fighting it out to be the first cat to $1b - Good luck soldiers.
As always we appreciate your readership, if you enjoyed this article please leave a like and share it around. Have a good weekend and we’ll see you next week!
gooo
goo