Weekly Beluga Insights

While we’ve been basically up-only since the BTC ETF was approved, this week saw the first substantial pullback with Bitcoin dropping down to $65,000 at time of writing. Even though this is a sizeable drop from the $74,000 peak, it really feels crazy to be calling $65,000 a drop after the year+ bear market we’ve had. To me this seems like a much needed pullback after insane price action and is likely quite healthy as we continue our way up.

Major Movers of the Week

• Ondo (ONDO) +31.95%

• Fantom (FTM) +30.59%

• Jupiter (JUP) +18.24%

• Bonk (BONK) -36.81%

• dogwifhat (WIF) -35.89%

• Worldcoin (WLD) -23.77%

What We’re Watching

This isn’t the first time we’ve talked about being bullish Ethereum, but with a couple recent catalysts it seems time to revisit. Despite being up from lows around $1,000 to $3,500, ETH has underperformed relative to other crypto assets like BTC and SOL. There are a ton of potential reasons for this, but for one thing in previous cycles ETH has tended to lag behind BTC. The typical movement is BTC leads, it stalls out, then ETH and other alt coins have their rally.

If you’re into cycles, that might be enough reason for you to start buying. However, in my opinion the biggest reason for buying ETH right now centers around one thing: the popularity of its new Layer 2 networks. Two of the newest Ethereum L2 networks are Base, which is founded by Coinbase, and Blast.

Blast has been a popular topic in the newsletter so I won’t push it again, however with rumors of a Base network airdrop at some point as well as efforts from Coinbase itself to direct users on to the chain, Base has been putting up all-time-high user and activity numbers for the last week. Memecoin trading volume has also skyrocketed, which as we saw with Solana this year may be an early signal of a large rally. As all L2 networks accrue value back to ETH token holders, the rise in popularity of these two networks is hugely beneficial for the price of Ethereum. We’ll continue to watch as things progress.

Quick Quips: Catch Up on What You Missed

• Memecoin Developer Accidentally Loses $10M, Token Goes to over $1B

• Solana Memecoin Presales Raise Hundreds of Millions

• Coinbase’s L2 Transaction Spike after Ethereum Upgrade

• Fidelity Adds ETH Staking to ETF Application

• One of the Most Influential DeFi Founders Andre Cronje Claps Back Against a Bored Ape
  

Tweet of the Week

When you accidentally burn $10m worth of investor funds forever, there’s not a whole lot you can say.

Recent Beluga Content

Did you Know?

In 2021, an NFT was sent to space for the first time ever.

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.