🐳 Weekly Recap: Pump.Fun Tops the Charts as ETH, SOL Gain +5%

Big day for the crypto markets as Ethereum and Solana both post +5% gains over the last 24 hours, leading the altcoin market as a whole to add over $30B in market cap. One of the biggest gainers has been Solana memecoin factory Pump.fun, which now trades at a $6B FDV after dropping as low as $2.6B just after the ICO (priced at $4B). Looking back to that time, my Twitter timeline was filled with cries that pump.fun was dead and that the token was headed straight to zero. If you had bought then, you’d now be up over 230% in a matter of weeks. I don’t say this to generate FOMO, but rather to highlight this pattern of Crypto Twitter often being dead wrong about coins. Warren Buffet is famously quoted as saying “Be fearful when others are greedy, and greedy when others are fearful.” While this certainly applies in the equity markets he was talking about, it is even more powerful in the volatile market that is crypto.

Now that we’re starting to see some volume on Ethereum once again, we should be looking for a clean breakout above the $5,000 mark. As we discussed earlier this week many of the Ethereum DATs have struggled to keep a premium, however through buybacks or otherwise it seems many of them are back in the green. The inflows they provide are significant, but the impact of their marketing in light of the Ethereum Foundation’s lack thereof is even more important. Tom Lee, Chairman of the largest Ethereum DAT, recently went on air to provide his price target of $62,000 for the asset. While I may believe these predictions are a little crazy, they are also undeniably a part of the major sentiment shift for ETH over the last year.

This week’s market moves have been kind to the Beluga wallet as we currently sit just under $170k, up almost +70% since we began last year. Our plan was always to accumulate positions in our conviction bets then wait for the market to do its thing, and that strategy is now paying off. One thing you’ll notice, however, is our Optimism position is still down significantly while Arbitrum appears to be bouncing back. For those who don’t know, these are both Ethereum Layer 2 networks which we purchased at about the same time. Two years ago OP was the darling of Crypto Twitter, especially with major support from an old trading legend that went by Hsaka. These days I can’t even remember the last time I saw it discussed online, while Arbitrum has maintained decent mindshare mostly through its connection to Hyperliquid.

The third Layer 2 we hold in the portfolio is of course Plume, which rose 14% today to put our position back in profit. They’ve made real progress in onboarding major institutions and real-world yield sources, yet until now these successes haven’t been reflected in the token price. We’re finally seeing people wake up, and I expect PLUME to rise pretty significantly from here. It seems like we’re entering into a “RWA meta” being fueled by names like Blackrock and Franklin Templeton entering the tokenization race, and I believe it’s difficult to find a better RWA coin than Plume at these prices. As with all altcoins, these smaller market cap trades can be extremely volatile and carries a higher risk level than investing in Bitcoin or Ethereum, so if you do decide to invest make sure it’s with a relatively small chunk of your portfolio as we have done. NFA

The blockchain never forgets!