💡 Welcome back to DV Chain's Weekly Market Commentary! Last week saw markets begin to unwind some “Trump Trades,” with crypto holding up better than broader markets like the NQ. ETF inflows remained strong, with BTC and ETH seeing significant contributions, while memecoins and legacy "Dino" coins outperformed on the back of key listings. Meanwhile, MicroStrategy’s massive Bitcoin purchase and signs of a crypto-friendly regulatory environment under Trump continue to fuel optimism in the space. Dive in for insights on the latest market trends and potential trade ideas:
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Market Recap
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• Last week, markets started to unwind some ‘Trump Trades’ towards the end of the week, crypto included, but Crypto held up relatively well compared to NQ which gave back more than half of the post election gains but seems to have found a bottom when futures opened
  
  
• Last week ETF Flows:
  • BTC: +$1.67B
  • ETH: +$515M
    
    
• Michael Saylor's MicroStrategy announced that they bought 51,780 Bitcoin for $4.6B over the past week
  
  
• Memecoins and ‘Dino’ Coins (XRP, XLM, ADA) outperformed this week
  
  
• Memecoins seemed to be kicked off due to a Coinbase and Robinhood listing some popular memecoins
  
  
• Gary Gensler gave a speech, in which the language sounded like an exit speech, so his resignation could be imminent
  
  
• Trump continues to choose his cabinet, thus far seems to be very crypto friendly
  • JD Vance, Vivek Ramaswamy, Tulsi Gabbard, and Elon Musk all own Bitcoin
  • The secretary of Treasury is still in contention with Scott Bessent and Howard Lutnick leading on Polymarket
    
    
• Pennsylvania Bill for Strategic $BTC Reserve
  
  
• Franklin Templeton Expands Money Market to Ethereum
  
  
• Tether Launches Tokenization Platform
  
  
• Monad launched their testnet

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Upcoming Catalysts / Trade Ideas

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• $ETH
  • The ETF has been a non factor since the launch and has been a big underperformer this year for that reason, but in the 4 trading days post election we’ve seen that change
  • Future flows aren’t priced in yet, which has been the biggest driver of the cycle
    
    
• $SOL
  • Memecoin craze is primarily on Solana, and Sol continues to benefit and onboard new users as memecoin mania keeps going on
  • An ETF can be expected under the new Trump admin
    
    
• $FTM
  • Monad testnet launched, but while there is no token, traders may chase exposure to parallel execution tokens
    
    
• $LDO
  • DeFi as a sector is going to benefit from the shift in regulatory environment
  • LDO fundamentally is a very strong project, clipping almost $150m in fees on an annualized basis to its treasury
  • It has maintained majority of market share in the LST/LRT space, despite higher temporary yields in new competitor’s liquidity bootstrapping farms
  • From an institutional standpoint, it is much stronger than competitors in terms of safety and network effects. The Lido Dao’s roadmap prioritizes institutional adoption, which we think is an astute plan, given the recent interest in crypto and tokenization from Wall Street
  • It’s likely a Staked ETH etf will be coming under the Trump admin
  • Fee switch likely incoming
    
    
• $JTO
  • Along with $LDO, one of the most profitable protocols in the space (see graphic below)
  • Earrings $2-3mm a day in revenue from MEV tips
  • Fee switch likely incoming
  • Benefits from memecoin mania

• HYPE (Hyperliquid) TGE, Q4
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• FTX creditor distributions in Q4 ‘24 - Q1 ‘25
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• MapleStory Universe Game Launch, End of Year

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