Weekly Beluga Insights

Bitcoin has climbed above $60,000 once again this week but we remain stuck in the same range we’ve been in for the last few weeks. This price action on majors is pretty boring to be honest, and the same has been reflected in ETF flows with volume slowing greatly versus the frenzy we saw earlier in the summer. Weirdly enough, one of the big topics of the week has been the Tron network and more specifically, memecoins on Tron.

While these little liquidity rotations don’t tend to last very long, this is notably the first time we’ve seen memecoins on alt-Layer 1’s other than Solana since late last year with Sei. We didn’t see SOL outperform other majors this week like it has been previously this year, and I’m curious if that’s because of the attention shift to Tron. Even if it is the case, as I said these things don’t usually last long so I wouldn’t worry too much if I were a Solana bull.

Major Movers of the Week

Public Trading Wallet Update

Old tokens from last cycle have seen quite a bit of love this week, with Fantom as well as Aave ending the week up over 25% each. Sometimes “dino coins” pumping is a sign that the market is cooling off, however it’s my opinion that this is actually a rotation away from the hyper-speculative memecoin market and towards things that have real value. While you could make arguments about exactly how much value these tokens should have, it’s far easier to make a value case for something that has technology and revenue behind it like Aave than a simple memecoin.

I’m happy to catch some upside on this token rotation with the Beluga Public Trading Wallet (which you can find here), however I’ll admit I thought that Ethereum ecosystem tokens would be catching a stronger bid here than they have. Our two worst performing tokens continue to be Ethereum L2’s Arbitrum and Optimism, despite OP being up 18% on the week. Overall I’m pretty happy with our positioning across the board: after launching the Trading Wallet near the peak of the market in April, while many alt-coins have seen over 50% drawdowns our alt-centered portfolio saw a max drawdown of about 30%. I’m not someone who is making trades frequently (in fact we have only sold one token so far for about $3,000 profit) and rather prefer to DCA (Dollar Cost Average) into coins I’m bullish on over time, so I’m comfortable being down on paper while we wait for the second leg of the bull run to hit.

The market looks quite bullish, and with weakness in the US dollar (which can signal people are looking more to “risk on” investments like crypto) and the summer coming to an end I think we are on the verge of a big move up and to the right. We still have about $15k in USDC to deploy should there be any significant dip, but for now I’m mostly in watch-and-wait mode.

Quick Quips: Catch Up on What You Missed

• Donald Trump’s Family Touts New Crypto Project

• Kamala Harris Signals Positive Shift in Crypto Stance

• McDonald’s Hackers Steal $700,000 by Launching Memecoin

• Grayscale Announces Avalanche Trust

• Gensler Being Considered for Treasury Secretary

Tweet of the Week

Vitalik marks the bottom on ETH.

Recent Beluga Content

Disclaimer

The content on this site is for informational purposes only and should not be construed as investment advice. While Beluga strives to ensure the accuracy and timeliness of information, there may be discrepancies when comparing our data to that of financial institutions, service providers, or specific product websites. Always consult with a professional before making any financial decisions.

Will McKinnon is the Head of Content for Beluga and has spent every day for many years trading coins. For that reason there are too many to name, however his largest holdings by a significant margin are Ethereum and Bitcoin. NFA DYOR