Parsec Weekly #74
100 day BTC range, Coinbase smart wallets, Sanctum token announcement, MOTHER & GME
Good morning crypto market participants, I’m tired boss. We’ve now been in this Bitcoin range for 99 days.
M2 money supply is on the rise, stocks at ATH, DXY down, rate cuts on the horizon, election year with crypto now a bipartisan issue, GME 2021 repeat as Roaring Kitty approaches billionaire status, ETH ETF soon and all while tardfi is pumping obscene amounts into spot BTC via the ETF. Yet we still can’t manage to break the range. Even the Bloomberg bro’s are starting to feel puzzled, I know I definitely am. Either 90% of the recent $2b in inflows is a basis trade, or Coinbase seller GCR is real and means business.
Regardless, fuck it we ball as I refuse to get bearish here considering all of the above while BTC is just ranging below ATH.
Let’s get into what’s been happening onchain this week.
Coinbase smart wallets are live
Smart wallets went live earlier this week and activity is picking up.
The reason they are important is they strip away much of the complexity for newer and less crypto native users. Instead of a new user having to do this to get onchain:
Create a wallet > create a password > store private keys safely > withdraw from CEX
They basically now get to one-click create a wallet using biometric authentication or google etc. Obviously there are trade off’s to be considered there, but the ease of onboarding is a big bonus.
Just under a year ago we were raw dogging Uniswap and Metamask. Then Telegram trading bots came in and we began realising that it didn’t need to be hard to onboard non crypto natives. Then Privy came along and you could use apps like FriendTech and Frenpet almost without realising that you were operating on crypto rails. Now Coinbase smart wallets are live and open to the masses of retail that have yet to venture onchain - progress happening before our eyes and an important piece of the coinbase onboarding funnel.
Sanctum
This week Sanctum announced the closure of their Wonderland program and future launch of their token $CLOUD sometime later this month.
A few things that gets me excited about this launch;
Sanctum originally raised at $50m back in 2021
They are the only serious competitor with mindshare in the Solana LST ecosystem
They ran and executed a fantastic gamified points program AND they only ran it for 6 weeks
They openly stated they know their TVL will now go down but would rather stop farming their users and end on a positive note (Season 2 will be back post token)
They are launching at their initial raise valuation of $50m. 10% for the initial airdrop and 18% circulating at launch
They have something up their sleeve to counteract farmers/sybils dumping at launch, taking inspiration from the $DRIFT launch
Overall they seem very well intentioned and it was incredibly refreshing to to see them go this route. Because of all of the above, it feels to me like it has the potential to be one of the better token airdrops we’ve seen recently. Congrats to the team.
MOTHER
Since I wrote about the celebrity coins last week, Iggy’s coin Mother is up over 10x to $190m mcap. This is not financial advice and I am personally not invested, but generally the coins that enter this range with very little competition and the potential tailwind of more attention, are in a pretty good position for higher.
The biggest driver of capital inflows in our little onchain economy is attention, and Iggy is currently winning that game. The controversial topic has sparked salty and disappointed comments from characters all the way up the Ethereum food chain to Vitalik, just further driving more attention to the coin.
GME
Following a brief hiatus after his initial return, Roaring Kitty and all things GME are back on the timeline after he recently posted a screenshot of his holdings which at the time totalled more than $200m. I don’t really follow stocks that much but I believe that number is currently much closer to ONE BILLION UNITED STATES BIDEN BUCKS.
He started with 50k of GME calls in 2021, just an absolutely insane trade he’s pulled off these last few years. Has to be one of the best come ups ever. Needless to say, it’s sparked a massive flow of volume and attention back the onchain beta’s like GME on Solana - Both MOTHER and GME are currently acting as a liquidity blackhole to the eco.
Roaring Kitty is going live for one of his famous streams in about 12 hours from the time of writing. Will be interesting to see whether the show goes on or he starts to secure the bag. It’s a bit of a catch 22 for him, similar to if Iggy were to start selling her coins it just signals to everyone that the show is over.
Either way, it most likely makes for a volatile environment onchain. Stay safe out there friends.
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