💰The Memecoin Market Is About To Get A Lot Bigger
💰The Memecoin Market Is About To Get A Lot Bigger
Like $1.3T bigger. And catch up on why Bitcoin fell 6% overnight.
TylerD's Market Summary
GM!
Today's top news:
BTC falls to $65k as DXY hits 5-month high
Ansem's cat token $HOBBES does 2.5x more volume than all of NFTs
Blast announced new Multipliers for point farming
Memeland introduces Memenet for exclusive memecoin trading (using $MEME)
Base open edition "Paid Group" 200x's after closing
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🟠 Memecoins Are Coming To Bitcoin
Most of crypto has been a memecoin casino for the past few months.
And that casino is about to get a lot bigger.
Like $1.3T bigger.
Memecoins are coming to Bitcoin, and soon.
What Happened?
On Sunday, Casey Rodarmor shared a major update for the Runes Protocol, expected to go live at the Bitcoin halving.
The final implementation of runes is included in ord 0.17.0 and some highlights include:
First hard-coded rune is UNCOMMON•GOODS
Runes 1-9 will no longer be hardcoded (most likely)
UNCOMMON•GOODS will be an open mint running from this halving to the next one, with 1 free mint per block
Etchings (term for launching a rune) can be paused
Rune mints can have constraints like supply caps and start / end heights
There's more to it and the update is mostly technical.
To help clarify, Casey did a 2-hour X spaces yesterday with Leonidas and other Ordinal leaders.
Leonidas offered his own TLDR here.
Why It Matters
There has been much speculation about what the Runes launch will mean for Bitcoin, fungible tokens on Bitcoin and NFTs on Bitcoin.
At the highest level, after the halving daily sell pressure on Bitcoin is reduced. This should be a net positive for price action assuming demand stays steady.
The network is likely to be more congested for at least the first few weeks post-halving, if not much longer.
This means the cost of transactions will go up and will likely mean fewer new launches in the NFT sector.
That also seems to be a positive for miners who will be seeing higher fees post-halving defying earlier expectations of the opposite.
As for fungible tokens and their success - sentiment is mixed.
Some believe Bitcoin will become the largest casino in the world, and that its early memecoins (runes) will do very well.
Others think it's overblown and that most Bitcoin holders won't choose to spend it on runes (and that Runes aren't a significant upgrade on the existing BRC-20 standard).
I'm somewhere in between. I do think some of the early runes will likely do very well, but that we won't see Solana-like memecoin action on Bitcoin. At least not in the near future.
The NFT impact is harder to predict.
There will be less dilution with new launches likely slowing down due to higher costs - that's a net positive for existing winners.
It likely comes down to wealth effect. If traders do very well with early runes coins, they likely rotate some profits back to digital flexes in leading Ordinals.
One risk to that theory is that "rune mania" lasts several months and attention and liquidity are siphoned away from Ordinals for an extended period, leading to a draw down.
One thing is clear - no one knows what will happen.
But post-halving, everything is going to change.
🚚 What else is happening in NFTs?
Here is the list of other notable headlines from the day in NFTs:
ETH led NFT trading volume with $10.3M on the day (+17%); BTC was next with $7.5M (-25%) and then Solana with $6.9M (+20%)
ETH NFT leaders were very red on the day with most down 3-12%; BAYC -3% to 11.9 ETH, Pudgy -12% to 12.21 and MAYC -5% to 2.03 led volume
ANIMO and Invisible Friends were notable winners, jumping 63% and 39% each
Paid Group was a notable winner on Base, jumping from a $1 open edition to a .06 ETH floor (~$200), briefly touching 0.18 ETH at peak
Runestone led volume on the BTC NFT board with just 19.8 BTC in a quiet day; most leaders chopped or dipped, Ink falls to 0.031 BTC
Solana NFTs mostly chopped on the day; Mad Lads -1% at 131 SOL, Tensorians +3% at 38, Claynos even at 19.7
Memeland announced a new Memenet, a blockchain meant solely for memcoin building and trading using $MEME as the native gas token, with testnet coming in June and mainnet in Sept
Pixelmon dropped a trailer for its new Anime Series called "Nova Thera: The Reckoning", coming soon
OpenSea announced a new native bridge and swapping feature for certain EVM tokens using its SocketDotTech functionality (with 0 fees)
💰 Token, Airdrop & Points Tracker
Here's a rundown of major token or airdrop news from the weekend:
Blast announced new Multipliers for points, earned by using any featured spot dex or perp dex
Munchables shared new details on their upcoming refund, including a new team restructuring, huge multipliers for returning depositors, donations and more
The Pacmoon team opened up the claim for $PAC airdrop 2, with the claiming window open thru Noon EST on Weds
Kreatorhood announced that some Pudgy Penguin owners are eligible for $HOOD ahead of their upcoming airdrop
Creators earned more than $4M on Zora in March according to month-end numbers
$200 worth of $MEW was airdropped to Solana Saga 2 phone pre-orderers on Monday
The $PUPS team clarified its tokenomics, stating 1B total supply with 77% for the BRC20 holders and 23% for Rune Pups (though with 2 different allocations for the common and rares)
🌎 Around Crypto and Web3
A few other Crypto and Web3 headlines that caught my eye:
Crypto majors are very red this morning; BTC -5.5% at $65,850; ETH -6.5% at $3,320; SOL -8.5% at $180
Memecoin majors were hit even harder; DOGE -11%, WIF -15% and PEPE -14%
Strong U.S. factory data lifted the U.S. Dollar index (DXY) to 5-month highs, a likely driver in Bitcoin's overnight dip
A memecoin named after Ansem's cat $HOBBES has already seen $100M+ volume in 12 hours and reached a $30M market cap
Tether reportedly added ~8,900 BTC to its holdings in Q1 2024, as the stablecoin giant continues to use profits to add BTC
Babylon and Lorenzo Protocol announced a partnership to advance a Bitcoin liquid restaking product
🚀 NFT Total Volume
BAYC (797 ETH, 11.86 ETH floor)
Pudgy Penguins (725 ETH, 11.95 ETH floor)
MAYC (492 ETH, 2.03 ETH floor)
Runestones (20 BTC, 0.044 BTC floor)
Lil Pudgy (231 ETH, 1.06 ETH floor)
📈 NFT Floor Price Increase (ETH)
ANIMO (63%, 0.19 ETH Floor)
Matrix Kuku (40%, 2.17 ETH)
Candy Collective (17%, 0.66 ETH)
alignDRAW (16%, 1.28 ETH)
Invisible Friends (15%, 0.32 ETH)
🗓 Upcoming NFT Mints and Reveals
Today is another slower day of drops with most action focused in the art sector.
Joshua Bagley is dropping Phototropism with the Highlight group.
And Foundation is expanding to Base and bringing back OG artists to drop 1/1 auctions.
See the full list and dive in for more details with Swizzy's daily mint monitor.
Ordinal Sigma X (9:00 a.m. ET)
GM Network - Cyber V (9:00 a.m. ET)
Joshua Bagley - Phototropism (12:00 p.m. ET)
Crypto The Game - Anon Island (1:00 p.m. ET)
Foundation - GENESIS (1:00 p.m. ET)
Surreocity - Galactic Fusion (2:00 p.m. ET)
Enjoy this write-up and/or want to sponsor the Morning Minute? Follow along with me on Twitter @tyler_did_it or reach out via email to tyler.warner@luckytrader.com.