Cryptocurrency daily summary:
Roaring Kitty reveals $180 million in GME holdings, GameStop surges overnight
Blast completes blob conversion for a lower price
Solana Network Issues Nearly 500,000 Tokens in May
Let's first look at the trading activities of Bitcoin ETFs. According to Farside Investor data, on June 3, Grayscale Bitcoin Spot ETF (GBTC) continued to outflow $276.2 million; at the same time, Fidelity Bitcoin Spot ETF (FBTC) inflowed $77 million, Bitwise Bitcoin Spot ETF (BITB) inflowed $14.3 million, ARK 21Shares Bitcoin Spot ETF (ARKB) inflowed $10.7 million, and WisdomTree Bitcoin Spot ETF (BTCW) had a net inflow of $1.1 million.
Roaring Kitty reveals $180 million in GME holdings, GameStop surges overnight
GameStop shares surged more than 19% in overnight trading after Keith Gill, known as "Roaring Kitty" on Reddit, posted that he held $181.4 million worth of GameStop (GME) stock and call options.
Gill is a trader who played a major role in the 2021 GME short squeeze. He posted on his Reddit account on June 2 for the first time since April 2021. In the post, he shared a screenshot showing that he bought 5 million shares of GME for $115.7 million and put $65.7 million into call options, betting that the GME stock price would reach at least $20 per share on June 21.
After Gill posted the post, Robinhood's overnight market showed GME shares rose 19.19% to $27.58 in 20 minutes. Previously, during 2021, Gill was seen as one of the central figures in the GameStop saga, where Reddit traders successfully subverted hedge fund expectations by shorting the bankrupt physical game store.
Some also believe that the GameStop short squeeze set the stage for a massive rally in memecoins like Dogecoin, which saw their prices rise after retail investors shifted their focus.
Blast completes blob conversion for a lower price
The Blast Network completed its transition from calldata to blob last week, achieving lower fees.
Blast is a relatively new Optimistic Rollup. Blast initially attracted attention for supporting native yields. Early access began in November 2023, allowing users to deposit but not withdraw. Through the earned Blast Points bridge, the platform has naturally accumulated more than $1 billion in total locked value. Despite criticism that its invitation reward structure is similar to a "Ponzi scheme," Blast is now open to the public.
Despite not having an airdrop, Blast has attracted public attention because it is backed by Paradigm, created by the founder of NFT marketplace Blur, and offers yield opportunities.
Additionally, Blast is home to the crypto protocol fantasy.top, which allows users to trade crypto influencer trading cards. Earlier this month, the platform ranked in the top 10 by daily fees, although revenue has slowed.
Blast is still behind Arbitrum in terms of activity. Launched just as Base was experiencing its second wave of popularity, Blast lags behind Coinbase-backed Optimistic Rollup. Its daily transaction volume is generally in line with Optimism, at around 500,000 per day, which is still quite impressive for a newer network.
Regardless of use case, all Layer 2 networks will benefit from starting to publish transaction summaries using Blob instead of Calldata, as this method provides a cheaper way to store data. Since the Blob upgrade on May 27, average transaction fees on Blast have remained below $0.01, making it one of the cheapest Layer 2s.
Solana issued nearly 500,000 tokens in May, mainly memecoin
Due to the low barrier to entry and high demand for creating popular memecoins, nearly 500,000 tokens were issued on the Solana platform in May.
Most of the tokens on Solana are memecoins, which have quickly attracted the attention of cryptocurrency enthusiasts. This trend has intensified as some Solana-based memecoins, such as Dogwifhat, Bonk, and Book of Meme, have quickly risen in the crypto market rankings.
Part of the success is due to Pump.fun, a platform that makes it easier for anyone to issue tokens, spurring more issuance. Solana has issued 1.1 million new tokens so far this year. Pump.fun is the launch platform for political memecoins like Jeo Boden and Doland Tremp, which have gained popularity ahead of the upcoming US election.
The number of newly created tokens is an indicator for observing the crypto ecosystem, which reflects the cheapness and high throughput of the chain. However, it does not take into account the value accumulated by each token and is also a vanity indicator because most tokens lack liquidity and are quickly forgotten.
Market analysis: GameFi sector leads the market, short-term market downside risks increase
Market Trends
1. BTC and ETH trends
-BTC: After breaking through $70,000 yesterday, it fell back to around $69,000, showing some selling pressure and profit-taking. It is necessary to pay attention to the support and resistance of $70,000 as an important psychological level.
-ETH: Consolidating around $3,770, relatively stable in the short term. We can pay attention to whether it can stabilize above $3,800 to determine the next trend.
2. Macroeconomic environment
- US stock market volatility: The New York Stock Exchange had a technical failure, and many stocks almost went to zero, showing the fragility and uncertainty of the market. In the case of instability in the traditional financial market, the cryptocurrency market may become a safe haven for funds, but we must also be wary of the increase in overall market volatility.
-A sharp drop in the U.S. dollar index: This could make dollar-denominated assets (including cryptocurrencies) relatively more attractive.
Market Hotspots
1. GameFi section
-$ALICE 、$PYR 、$GHST , DAR, SLP, VOXEL and other tokens have surged, showing investors' enthusiasm for GameFi. Since the market value of these tokens is relatively small and the resistance to pull-up is small, there may be some room for growth in the short term.
-Strategy: You can consider holding these tokens in the short term, but be wary of the risk of a pullback after a rapid rise.
2. Stable concept
-ENA and SPELL surged: The USDe issued by ENA reached a scale of 3 billion US dollars, showing an increase in market demand for stablecoins.
-Strategy: Pay attention to the ecological development and application scenarios of these tokens, and select tokens with practical application prospects for medium- and long-term investment.
3.BTC Ecosystem
-Rune DOG surged: continuing to hit record highs, with a market value of nearly US$900 million, surpassing the inscription leader ORDI.
-Strategy: Consider taking some profits when the market is hot, and pay attention to changes in market sentiment.
4. Meme Tokens on Solana Chain
-GME, PONKE, POPCAT and others surged: At 4 a.m. today, Roaring Kitty once again posted a screenshot of her position on Reddit's Superstonk section, and her GME call options turned losses into profits, with a profit of $51.83 million.
-Strategy: These meme tokens are highly volatile and suitable for investors with high risk appetite. You need to pay close attention to changes in market sentiment and stop profits and losses in a timely manner.
The current market is full of opportunities and risks, and investors need to make flexible adjustments based on their own risk tolerance and market dynamics. In the short term, GameFi, stable concepts and some hot tokens may perform well, but we need to be vigilant to the rapid changes in market sentiment and conduct risk management in a timely manner.
Macro: Wall Street closed slightly higher due to manufacturing data and NYSE volatility, while Asian markets fell; June will see major election results in many places
The S&P 500 and Nasdaq rose slightly in choppy trading on Monday, following weak manufacturing data and a glitch on the New York Stock Exchange that briefly halted trading in dozens of stocks.
The major indices were mixed: the Dow fell 0.30%, the S&P 500 rose 0.11% and the Nasdaq rose 0.56%.
The NYSE outage caused sharp swings in the share prices of Berkshire Hathaway Inc BRKa.N and Barrick Gold Corp BRK.N. Trading in at least 60 NYSE-listed stocks was suspended due to volatility. The exchange later fixed the technical problem and resumed trading.
Traders are pricing in a 59% chance of a Fed rate cut in September, up from 53% before the ISM data, according to the CME Group’s FedWatch tool. The weak manufacturing data sent the benchmark 10-year Treasury yield to a two-week low.
The world is set to see a series of major election results in early June, with popular candidates in Mexico and India winning by landslides, while Wall Street stocks are buoyed by a critical week for the U.S. labor market. Mexico's presidential election victory for Claudia Sheinbaum sent the peso to a five-week low ahead of Monday's open.
Asian stocks edged lower on Tuesday as global investors viewed the prospect of U.S. economic "exceptionalism" beginning to fade as manufacturing activity in the world's largest economy weakened further.
MSCI's index of Asia-Pacific shares fell 0.1% after a small gain in the previous session. So far this month, the index has risen 1.6%. Australian shares fell 0.21%, while Japan's Nikkei slipped 0.77%. Hong Kong's Hang Seng was flat in early trading, while China's CSI 300 fell 0.16%.
The yield on the benchmark 10-year Treasury note hit 4.4001%, compared with Monday's U.S. close of 4.402%. The yield on the two-year Treasury note hit 4.8184%, up from Monday's U.S. close of 4.818%, as traders anticipated a rise in the federal funds rate.
In India, Prime Minister Narendra Modi is expected to be re-elected for a record third consecutive term after 642 million votes were counted in the world's largest election. Analysts say the result is expected to have a positive impact on Indian financial markets and push India to further economic reforms.
In currency markets, the dollar rose 0.16% against the yen to 156.35, but still far from the year's high of 160.03 reached in late April. The euro rose 0.1% against the dollar to $1.0912, up 0.65% in a month. The dollar index, which tracks the greenback against a basket of other major trading partners, fell to 104.
In commodities, U.S. crude fell 0.42% to $73.91 a barrel. Brent crude fell to $78.05 a barrel. Both benchmarks fell to four-month lows on Monday after OPEC+ agreed to roll back some production cuts from October.
Gold rose slightly, with spot gold at $2,350.73 an ounce.
