Weekly Editors Picks is a functional column of Odaily Planet Daily. In addition to covering a large amount of real-time information every week, Planet Daily also publishes a lot of high-quality in-depth analysis content, but they may be hidden in the information flow and hot news, and pass you by.
Therefore, every Saturday, our editorial department will select some high-quality articles that are worth spending time reading and collecting from the content published in the past 7 days, and bring new inspiration to you in the crypto world from the perspectives of data analysis, industry judgment, and opinion output.
Now, come and read with us:
invest
Glassnode: How to determine the market bottom and entry time?
Short-term holders are usually new entrants or speculative traders who are more sensitive to price changes. During bull markets, these investors are often the ones who lose the most because they are more likely to sell in response to market fluctuations. This phenomenon makes the analysis of short-term holders particularly valuable when used to identify market bottoms.
The article further provides the usage of specific indicators and real-time monitoring URLs.
Narrative Trading Guide: From Trend Spotting to Profitable Strategies
Most major narratives go through three phases: First, some smart money starts buying tokens associated with a potential upcoming narrative. Then, a few X accounts with fewer followers start sharing bullish arguments for that narrative on X. Eventually, everyone starts talking about that narrative on X, and the price of the token associated with it skyrockets. This is a great time to start taking profits. Use on-chain data to your advantage, build your network, and monitor smart money wallets.
As for the exit strategy, it depends on the type of narrative of the transaction:
1. Big unexpected news (real world asset narrative due to BlackRock’s tokenized fund announcement) — Most of these narratives only last a few weeks. When trading these narratives, the best approach is to take profits gradually on the way up rather than closing the entire position at once.
2. Upcoming Catalysts (The early 2024 crypto AI narratives are caused by high expectations for the upcoming Nvidia AI conference) — In most cases, the price of tokens associated with these narratives reaches a local high a few days before the catalyst date. Take big profits a few days before the catalyst, or even close the entire position.
3. Secondary market hype (GameFi is one of the narratives that retail investors love) - in most cases it will last until the end of the bull market.
Comprehensive interpretation: Why is this bull market so different?
Compared with the previous round of bull market, we can clearly feel that funds are not so sufficient in this round, and the data also proves this.
The current cycle also reflects the following phenomena: there is almost no general rise in the market; different participants do not take over each other; Memecoin > value coins; strange airdrop phenomenon; BTC ecological narrative is cold and silent; the gaming industry is exploring.
Galaxy Digital: Is Bitcoin a financial asset or a technological tool?
Thorn highlighted the potential for businesses to leverage bitcoin technology for global remittances, saying companies could benefit from solutions such as LightSpark, OpenNode and Voltage, which facilitate using bitcoin’s lightning network as a payment channel without having to hold the asset.
Institutions now have multiple ways to acquire Bitcoin. Financial leaders are increasingly recognizing the unsustainability of U.S. national debt, a recognition that makes Bitcoin an increasingly attractive investment. There is growing curiosity among long-term investors such as endowments and pensions, who are re-engaging in Bitcoin after initial hesitation. These investors have a longer investment horizon and view Bitcoin as a hedge in a volatile risk environment. Bitcoin sits squarely in the gap between risk and hedge.
ETH ETF Narrative Trading Guide: Seizing the Golden Opportunity of ETH Ecosystem and RWA Sector
With the SEC approving an ETH ETF, signaling a more dovish stance towards cryptocurrencies, this means that institutionally driven RWA assets will also see more flows (as we’ve already seen with ONDO’s relationship with BlackRock).
The institutional “ETH thesis” has been tokenization, stablecoins, real-world settlement — major institutions will go around talking about RWA assets on Ethereum; after all, this has always been the main narrative for ETH.
Therefore, the author recommends going long on ETH and its best beta; going long on RWA, especially ONDO.
Is the “copycat season” coming? How to formulate an investment theme strategy
Successful investors often prioritize investment themes based on in-depth research and analysis rather than short-term speculation. This approach helps them make more rational and sustainable investment decisions.
A look at Multicoin Capital’s investment portfolio: Public blockchain, DeFi and other infrastructure
Entrepreneurship
Conversation with Ansem: Decoding Solana’s Rise in the Crypto Market
Solana’s rapid development and strong community support are key factors in its success. Another important advantage is Solana’s development speed. Solana’s uniqueness in the development community lies in its top-down development model, which adopts a “move fast, fix fast” strategy.
Ansem made it clear that Solana is his favorite ecosystem, with Base in second place.
Ansem recommends allocating 70% of your portfolio to relatively safe assets such as Solana, Coinbase stock, Bitcoin, and Prime.
a16z social media manager teaches you how to operate social media accounts
Produce high-quality content that is easy to share, attract target audiences by asking sincere questions, never slack off in community management, use newsletters, podcasts and other social channels to guide early fans on Twitter/X, leverage existing communication networks, make good use of memes, and establish a replicability framework.
In general, social media operations are the art of seeking consensus.
I also recommend Becoming a Web3 Developer: why and how .
Meme
MIIX Capital: PEPE Project Research Report
Initially, MemeCoin was mainly concentrated in the ETH ecosystem. With the rise of high-performance networks, the Solana network has become an important network for MemeCoin transactions, and the enthusiastic participation of its community has made it the center of the vibrant memecoin market. After the Denchun upgrade, thanks to the significant reduction in transaction fees on DEX, Base Chain has also become the main platform for trading MemeCoin.
In the first quarter of 2024, MemeCoin became the most profitable crypto track with an average return rate of 1312.6%, among which the top 5 were DOGE, SHIB, PEPE, WIF and FLOKI.
When the consensus demand for Meme narratives reaches saturation, it will turn to pursuing substantive functional exploration to expand users and support market value.
As a MemeCoin project, PEPE lacks substantial product and technical support. At the same time, the PEPE teams previous history of malicious cashing out and the legal review that the founder may face have added more uncertainty to the development of PEPE, which is also a risk factor that needs to be considered when investing in PEPE. However, PEPEs inherent communication attributes give it a unique comparative advantage, and it has already succeeded in community and cultural narratives, occupying a place in the MemeCoin market. The continued hype of PEPE by a large number of whales also provides a certain growth foundation for the long-term development of PEPE.
In terms of current market value, compared with DOGE and SHIB, PEPE is relatively undervalued and has the opportunity to achieve higher growth in the big cycle market.
Ethereum and Scaling
The Ethereum Foundation has no dreams
Since last year’s Montenegro EDCON, the industry’s dissatisfaction with the Ethereum Foundation has begun to manifest. The organization seems to have entered a mid-life crisis, and has fallen into trouble in terms of structure, efficiency, and culture. With the resurgence of Solana, the decline has become apparent. After ETH officially became a global asset, the Ethereum Foundation seems to have become the biggest burden of this ecosystem.
Today, EF is like the Congress of Ethereum. The EIP written by researchers can directly change the direction and pattern of Ethereum and affect the ecological industry worth hundreds of millions of dollars. As the number and size of ecological participants continue to grow, EIP involves more and more interests. Every participant hopes that he can get special care in the upgrade like L2, but it is impossible for everyone to be consistent with the interests of Ethereum. Therefore, EF researchers have become parliamentarians that must be won over in the eyes of capital.
Unlike most public chains, Ethereum does not have Ethereum Labs, so EF has become the only entity that has exclusive control over the ecosystem. However, as a neutral organization, it is difficult for EF to personally participate in many things within the ecosystem, which makes EF more of a hands-off image, and also makes EF seem powerless when competing with the Solana team. In comparison, EF seems less willing to dirty its hands. In the Ethereum community, you can indeed express different opinions, but interestingly, these opinions are often focused on purely technical discussions. You rarely see EF researchers arguing fiercely about the direction, governance, and culture of Ethereum. Todays Ethereum world seems to be missing a lot of things. Its culture is like poisoning, and it has almost lost its ability to think critically on certain issues.
The market needs Vitalik’s care, and EF needs blood transfusions from the market, so EF surrounds Vitalik and lets the market revolve around itself. In the end, Vitalik becomes the “hard currency” of Ethereum.
When many big protocols escape Ethereum, they still have to bear the moral judgment from Vitalik or EF. Perhaps they hope that the protocol can go with them to the end, but the development teams obviously do not want to die with Ethereum. Applications always serve users, not blockchains. Although security is an important criterion for many blue-chip protocols to consider when deploying, it is also very stupid to completely ignore the user environment and the market.
Multi-ecology
Solanas new proposal will reward validators with 100% priority fees, explaining the potential impact
On May 28, the Solana validator community voted to approve the Solana Improvement Document (SIMD)-0096 proposal, which sends all transaction priority fees to validators, changing the previous 50% destruction fee and 50% reward distribution method for validators, aiming to improve validator income and network security. In the proposal forum, validators broke out into multiple rounds of battles over token economic models, governance loopholes, and insider manipulation.
DeFi
In-depth analysis of the ENA project
Arthur Hayes, founder of BitMEX, tried to value ENA using a valuation similar to Ondo. His valuation model is based on the long-term split that 80% of the revenue generated by the protocol will go to the staked USDe (sUSDe), while 20% of the generated revenue will go to the Ethena protocol. Using a valuation similar to Ondo, the FDV is $189 billion, which is equivalent to $12.6 in coin price.
SocialFi
Channels and Frames are key to user engagement. Channels facilitate centralized community discussions by embedding URLs, while Frames turn broadcasts into interactive applications that support activities such as NFT minting, voting, and secure transactions. These features promote diverse and personalized content supply and enhance user experience.
Farcasters open social graph and content algorithms provide unique opportunities for the development of diverse clients. Potential clients include applications focused on AI, video, and audio. This openness mitigates platform risk, allows for innovation, and is expected to create the magic moment of successful social applications.
Farcasters ID registry can serve as a foundational identity layer in Web3, solving authentication and accountability issues. It provides secure, verifiable identities that link to various Web3 services, enhancing trust and transparency while managing ownership and responsibility in a decentralized environment.
Key challenges include potential issues with importing 1:1 social graphs from existing platforms, resilience in bear markets, managing bots and automated accounts, and achieving mainstream adoption beyond the crypto community. Solving these challenges is critical to Farcaster’s long-term success.
Farcasters decentralized and open infrastructure paves the way for innovative applications and a user-controlled social media landscape. By focusing on strategic planning, community engagement, and user-centric features, Farcaster can overcome its challenges and lead the next wave of social media, providing a more secure, dynamic, and user-driven platform.
Web3
Searching for the next crypto killer app: the combination of content publishers and exchanges
Web3 publishers and exchanges merge into a unified publisher-exchange, accelerating the creation and adoption of new applications. A representative example of cryptocurrency consumer applications is Frames.
Web2 publisher-exchange to adopt crypto payments to welcome the next billion users.
There are two notable features that may make Web3 significantly superior to Web2: protocol issuance credit and the gradual elimination of Cookies.
We are at a stage where the infrastructure is good enough. Now, the benefits of adopting crypto payments may outweigh its perceived risks. Web2 publisher-exchanges, in particular, face a unique opportunity to become the earliest institutional adopters of cryptocurrencies. Publisher-exchanges represent the future of e-commerce. As information becomes democratized and accessible, money will also become democratized and accessible.
From the industry supply side, there are four major driving forces for the energy and data track opportunities behind AI (algorithms, examples, energy, and data).
The second perspective of the AI narrative is the reappearance of the GPT moment and the advent of general artificial intelligence.
The risks of these two narrative deductions are: in terms of energy, the rapid decline in energy consumption caused by the upgrading of GPUs; in terms of data, the Q* plan to achieve self-generated data; the advent of AGI: OpenAIs hidden worries.
The shared ownership system brings liquidity to assets through compulsory means, avoiding the unfairness caused by monopoly. Its system design mainly includes: self-assessment and public pricing, continuous auction mechanism, and tax purposes.
Hot Topics of the Week
In the past week, Mt. Gox confirmed that it was moving Bitcoin in preparation for its October 31 creditor repayment deadline ( market impact analysis );
In addition, in terms of policies and macro markets, the Hong Kong Securities and Futures Commission : The non-violation period for operating virtual asset trading platforms in Hong Kong will end on June 1;
In terms of opinions and voices, Trump: Will ensure that the future of cryptocurrency and Bitcoin is created in the United States, will never allow the creation of CBDC , promises to pardon the founder of Silk Road if elected, supports cryptocurrency and protests Bidens actions to suppress the industry; Trumps approval rating has risen on prediction platforms such as Polymarket due to his support for the crypto industry; Trump was found guilty of all 34 charges, and he also became the first former president in U.S. history to be convicted of criminal charges; People familiar with the matter: Bidens campaign team changed its position and began to contact key figures in the crypto industry; Former CFTC Chairman : Cryptocurrency will eventually return as the king in the United States; President of the New York Stock Exchange : If U.S. regulation becomes clearer, it will consider providing cryptocurrency trading services; JPMorgan Chase: Doubts about the U.S. SECs approval of Solana and other cryptocurrency ETFs ; QCP Capital: ETH may continue to rise to nearly $4,000 due to Trumps support for cryptocurrency ; Bitfinex Alpha: ETH faces a key resistance level of $4,000 , and if it breaks through successfully, it may rise strongly; Bernstein: ETH is the first proof-of-stake token approved for spot ETFs , and similar tokens such as SOL may benefit; Glassnode: Long-term Bitcoin holders have returned to hoarding mode for the first time since December last year; Grayscale : ETH price has limited room for further increase, Solana may seize market share; Trusta Labs : Never and will never report any witch address; Casey : Only use a small position for gambling, and use the rest to buy Bitcoin ; 1 0x Research: Chiliz (CHZ) may rise sharply due to the start of the European Cup on June 14. If the inflation rate is 3.3% or lower, Bitcoin may set a new high ; Vitalik talks about the trend of diversified cultural ecology in Ethereum : Layer 2 will become the birthplace of different cultures; Polyhedra responds to the conflict with zkSync: ZKJ transaction code will be used;
In terms of institutions, large companies and top projects, Apple announced a new strategy Project Greymatter, which plans to integrate AI tools into core applications such as Safari and Photos; friend.tech co-founder hinted that due to the unstable relationship between the team and Base, FRIEND fell more than 32% in 24 hours; Aave will launch Aave Network after version V4, which is expected to be realized next year; EOS Network Foundation announced the first part of the new EOS token economics , and staking rewards are expected to start at the end of June. The new token economics proposal has been passed ; ZKasinos promise of refunds has aroused doubts, and the community feedback that the 72-hour registration refund process is too short;
In the field of Meme and GameFi, Kardashian stepfather Caitlyn Jenner issued meme coins again; STEPN and STEPN GO will develop simultaneously, and GMT will still be its main governance token;
In terms of security, Normie was attacked by a flash loan; the account of well-known trader GCR X was stolen , and he posted a tweet heavy position in ORDI, which caused ODRI to rise in the short term... Well, it was another week of ups and downs.
Attached is a portal to the “Weekly Editor’s Picks” series.
See you next time~
