Weekly Beluga Insights

Reporting live from the Consensus conference in Austin, the Beluga team is once again here to deliver insights to our users. The energy is really high among conference goers as you might expect given where crypto prices are at, but the main buzz is definitely around Ethereum and EVM as well as Solana. It’s a weird intersection between real companies with real products and memecoin founders, but hey that’s just crypto.

Historically prices have dumped during conferences for whatever reason, but BTC and ETH remain performing well with Ethereum nearing the $4,000 mark. Part of this is likely due to more messaging from the SEC this week which points to an accelerated process for the Ethereum ETFs to being trading. For context, while these things can take months sometimes we only had about a 2 week period between approval and trading in the case of the Bitcoin ETFs. Nobody knows how long it will end up taking, but the consensus is ETF inflows are nowhere near being priced in on Ethereum. Whatever happens, be sure to stay tuned to the Weekly Whale to keep on top of the market!

Major Movers of the Week

• Ordi (ORDI) +27.93%

• Bitget Token (BGB) +23.42%

• Core (CORE) +18.51%

• dogwifhat (WIF) +18.41%

• Celestia (TIA) +17.32%

What We’re Watching

With the recent approval of the Ethereum ETF, my eyes are focused on the EVM ecosystem and more specifically ETH Layer 2 networks. Linea is a L2 network developed by the people who created Metamask, Consensys, and has amassed over $600M in TVL since its launch in August last year. Linea uses zk technology for scaling which means transactions fees are a fraction of the cost of Ethereum mainnet and much faster as well.

Linea now has an active points campaign going on for their upcoming token airdrop which has contributed to a ton of activity on chain. The chain has been live for a while now which likely means farming now is a late start, however with the numbers the chain is doing by way of TVL, users and general app onboarding I expect to see ecosystem tokens receive some love. We haven’t yet purchased anything with the Beluga trading wallet, however by going through the list of apps via DefiLlama we can see where liquidity is being concentrated.

Normally when I’m looking for tokens in a budding ecosystem like Linea, I only go for “native apps” that have been deployed on that chain alone. The reason for this is the chains themselves tend to focus on those protocols with marketing and grants, and they are also generally low value tokens (with higher potential returns) as they are brand new rather than being migrated from another chain. Going down the list, Nile is the largest native DEX by a significant margin so that may be an attractive token to buy. Mendi is the largest native lending protocol, and they also happen to already have a token. With the massive influx of liquidity Linea has seen in combination with relatively little attention from traders so far, there should be some really nice trades within the ecosystem.

Quick Quips: Catch Up on What You Missed

• Blackrock’s Bitcoin ETF Passes Grayscale to Become Largest BTC Fund

• Aptos Launches Chainlink Integration

• Terraform Labs and Do Kwon Reach Settlement

• Caitlyn Jenner Launches Memecoin, Crashes

• Robinhood Releases new Crypto Trading API

Tweet of the Week

For anyone who wasn’t trading in the trenches this week, we had a rush of C list celebrities come out to launch memecoins - they’ve all gone about exactly as you would expect.

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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 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