Best Twitter threads of the day – April 21st

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A deep dive into Popular NFT investor wallet

I took a deep dive into the wallet of Mr. Top Signal himself. 🤯

Best of compilation below.

🧵⤵️
(1/10) pic.twitter.com/Il6g3YkdCp

— Carl (@Carl_m101) April 21, 2023

His first buy after a longer break, which sparked the question: Will @frankdegods withstand the storm? 😁

Let’s take a look at some of Aoki’s history next.

(2/10) pic.twitter.com/hO5WYuz6Yy

— Carl (@Carl_m101) April 21, 2023

Moonbirds:
Top buy at its best, although bear market did every collection dirty afterwards.

(3/10) pic.twitter.com/oxuV5V1SDA

— Carl (@Carl_m101) April 21, 2023

Doodles:
This was a surprise to me as he was very early here and even his 270 ETH buy didn’t mark the top.

(4/10) pic.twitter.com/E2VHDvWbLy

— Carl (@Carl_m101) April 21, 2023

Cool Cats:
Almost close to signaling the top here although we saw very nice bouncebacks before the bear market tore everything apart.

(5/10) pic.twitter.com/s4KJv1bGRp

— Carl (@Carl_m101) April 21, 2023

Clone X:
Again, very early entry, although with some rares above floor. But overall nowhere near the top.

(6/10) pic.twitter.com/l2IP6WQ2M6

— Carl (@Carl_m101) April 21, 2023

BAKC:
Back to being himself here and perfectly timing the top for his kennel buy.

Side note: He was very early on Bayc and Mayc 🤝

(7/10) pic.twitter.com/JLRbhC8lCn

— Carl (@Carl_m101) April 21, 2023

Pudgy Penguins:
Another surprise: very good buy-in here before Luca took over, almost timing bottom. 🤯😁

(8/10) pic.twitter.com/e8fcbsn4IB

— Carl (@Carl_m101) April 21, 2023

Azuki:
Mr. Top Signal at it again, but overall one of the projects that has been putting up a good fight with the 🐻

(9/10) pic.twitter.com/R7WypTLXY5

— Carl (@Carl_m101) April 21, 2023

To sum uo: Aoki might not be Mr. Top Signal after all, but we should still be careful once he buys in.

Also please note that this thread is for entertainment only and I don’t mean to FUD anything (would be fudding my own after all) ❤️

Appreciate every like, comment, share and… https://t.co/IljXXXHw5o

— Carl (@Carl_m101) April 21, 2023

Is the memecoin frenzy back?

A few wallets holding $PEPE went from 500$ to more than $3.78M (7500x) in 5 days.

What if I told you that those wallets are in relation and might nuke the market if they sell their holdings?

An on-chain investigation using @bubblemaps 🧵 pic.twitter.com/MS0yIeoyC9

— Louround 🥂 (@Louround_) April 20, 2023

We’ve seen $PEPE surging as a winner in the recent meme narrative, at the time of writing, $PEPE has a Market cap of $140M and $160M in FDV which is quite impressive for a meme token but is still coherent regarding $SHIB or $DOGE.

However,… pic.twitter.com/6TAQxa75R2

— Louround 🥂 (@Louround_) April 20, 2023

The main issue with $PEPE is the available on-chain liquidity, totaling $2.9M on Uni V2 and $1.8M on Uni V3 (benefiting from concentrated liquidity, thus much lower than $1.8M)

So what are the risks you may ask? pic.twitter.com/96giFlRgNA

— Louround 🥂 (@Louround_) April 20, 2023

When we analyze the actual connections between wallets with @bubblemaps, we identify a few wallet clusters where the major one has a connection with 2.7% of the supply ($140M * 2,7% = $3.78M)

What does that mean?

Those wallets most probably know each other/are the same person! pic.twitter.com/pAyBvO4ZOL

— Louround 🥂 (@Louround_) April 20, 2023

This causes a major risk for the market and holders as those wallets hold a token value superior to all the on-chain available liquidity.

Selling their bags will drain all the liquidity and dump the token by more than 99% 📉 pic.twitter.com/lGaE4qXYAi

— Louround 🥂 (@Louround_) April 20, 2023

What’s more worrying?

5 days ago $PEPE had 2 major clusters that had links with 5% of the supply each!

Based on the current valuation, 5% of the supply equals to $140M * 5% = $7M which is once again higher than all the available on-chain liquidity. pic.twitter.com/zUfqUTdofJ

— Louround 🥂 (@Louround_) April 20, 2023

The suspicious behavior has been confirmed by transaction timing, the wallets have been freshly created and funded for the sole purpose of purchasing $PEPE a few minutes after its listing.

That’s a really surprising coincidence!https://t.co/AyJXll5wQY

— Louround 🥂 (@Louround_) April 20, 2023

You can track by yourself the transactions and links between wallets through this link on Bulbblemaps, allowing you to carefully monitor their future activity 👇https://t.co/pzEnfJ8uv4

— Louround 🥂 (@Louround_) April 20, 2023

To conclude, the thin $PEPE liquidity compared to its market cap is a major risk for token holders, resulting in a potential market crash if some holders decide to take profit from their positions.

I would recommend to carefully manage your exposure as $PEPE remains a meme coin. pic.twitter.com/3tYNqVhXTj

— Louround 🥂 (@Louround_) April 20, 2023

This 🧵 has been made for the sole purpose of providing on-chain analytics and info due to the underlying risks the liquidity provides

I made this thread in collaboration with Bubblemaps which is part of my Ambassadorship & mission to provide on-chain data accessible to anyone.

— Louround 🥂 (@Louround_) April 20, 2023

Breakdown of Ethereum Q1 2023

1/ In a quarter marked by instability in traditional finance, #Ethereum completed its transition to PoS with the Shapella upgrade, finding improvements in activity across its ecosystem.@kunalgoel breaks down $ETH’s Q1 below 👇 pic.twitter.com/pofup5LAfI

— Messari (@MessariCrypto) April 21, 2023

2/ Q1 2023 was #Ethereum’s second quarter of negative net issuance.

As market sentiment improved, there was an uptick in on-chain activity, which led to higher fees and greater burn. pic.twitter.com/XbUoatvZhA

— Messari (@MessariCrypto) April 21, 2023

1/ In a quarter marked by instability in traditional finance, #Ethereum completed its transition to PoS with the Shapella upgrade, finding improvements in activity across its ecosystem.@kunalgoel breaks down $ETH’s Q1 below 👇 pic.twitter.com/pofup5LAfI

— Messari (@MessariCrypto) April 21, 2023

2/ Q1 2023 was #Ethereum’s second quarter of negative net issuance.

As market sentiment improved, there was an uptick in on-chain activity, which led to higher fees and greater burn. pic.twitter.com/XbUoatvZhA

— Messari (@MessariCrypto) April 21, 2023

3/ Annualized real yield for $ETH’s validators hovered around 5.9%, with the nominal yield falling to 5.6%, a decrease of 0.4% QoQ.

This decline was partially offset by higher a net deflation of 0.3%. pic.twitter.com/4xEHTNvu9Q

— Messari (@MessariCrypto) April 21, 2023

4/ Lucrative yields and the completion of the Shanghai/Capella upgrade, enabling withdrawals from the $ETH staking contract, led to 2.2M new $ETH staked over the quarter.#Ethereum’s staking ratio ended the quarter at 15%, up from 13% at the beginning of the quarter. pic.twitter.com/xuL68peD7O

— Messari (@MessariCrypto) April 21, 2023

5/ A major concern for $ETH at the end of last year centered around fears of censorship.

As stated in @kunalgoel’s December report, these concerns were overstated.

The percentage of validators using censoring relays was just 29% at the end of the quarter, down from 61%. https://t.co/P7wacmmpM6

— Messari (@MessariCrypto) April 21, 2023

6/ Onchain activity was flat for the quarter, with average daily transactions at 1.1M.

Declines in #DeFi activity were offset by increases in #NFT and Bridge activity. pic.twitter.com/mUuqWwXOnE

— Messari (@MessariCrypto) April 21, 2023

7/ The decline in #DeFi activity was likely due to increases in L2’s share of transactions.

L2 share of transactions increased to 45% in Q1 2023 from 38% in Q4 2022. pic.twitter.com/YnRzggEemq

— Messari (@MessariCrypto) April 21, 2023

8/ As mentioned in the opener, #Ethereum completed the Shanghai/Capella upgrade, allowing for withdrawals from the staking contract.

Over 1.1M $ETH has been unstaked. Even then, with 590K $ETH newly staked since Shapella, deposits outweigh full withdrawals by almost 3x. pic.twitter.com/0dhAkc0nNH

— Messari (@MessariCrypto) April 21, 2023

9/ With the Shapella upgrade, #Ethereum has fully transitioned to Proof-of-Stake.

The next upgrade, EIP-4844 or proto-danksharding, will introduce ephemeral data storage or storage blobs, potentially making rollups 10-100x cheaper. pic.twitter.com/TV90Dj7iuC

— Messari (@MessariCrypto) April 21, 2023

10/ In the previous quarter, @Binance consolidated its wallets, which led to a spike in the number of active wallets.

As a result, the average number of daily active addresses on #Ethereum saw a decline of 4% to 425K. pic.twitter.com/suMZSTlv61

— Messari (@MessariCrypto) April 21, 2023

11/ #Ethereum had a strong growth of 29% in its total value locked (TVL) to $33B.

However, its growth pales in comparison to the relative growth in the TVL of L2s, as @Arbitrum and @OptimismFND’s TVL grew by 135% and 83% respectively. pic.twitter.com/RWrDxVJeHG

— Messari (@MessariCrypto) April 21, 2023

12/ Stablecoins on ETH fell by $13B over the quarter to $73 billion.

The supply for $USDC fell by $10B as it depegged briefly, while $BUSD had outflows of $5B as Paxos announced that it will be ending its partnership with @Binance. pic.twitter.com/d2rVM93uDS

— Messari (@MessariCrypto) April 21, 2023

13/ Trading volumes on decentralized exchanges increased by 17% for the quarter to $4B.

March 11, 2023, the day of the USDC depeg, was the day of highest trading for the quarter, with $40B in volumes being logged. pic.twitter.com/J4tWP2T4is

— Messari (@MessariCrypto) April 21, 2023

14/Daily #NFT volumes saw a huge surge of 146% in Q1 2023 to $45M.

There was a noticeable increase in activity after the Blur airdrop. pic.twitter.com/7hzmXmyM08

— Messari (@MessariCrypto) April 21, 2023

15/ TVL on @Arbitrum surged to $2.5B at the end of the quarter, driven by native applications @GMX_IO and @RDNTCapital.@OptimismFND’s TVL also increased significantly, growing by 80% for the quarter to $1B, with the help of native applications @VelodromeFi and @SonneFinance. pic.twitter.com/g36ZWNbb9B

— Messari (@MessariCrypto) April 21, 2023

16/ Annualized validator yield for the quarter was 5.6%, slightly below 6% in the previous quarter.

The majority of the yield was on the back of new issuance, which contributed 3.9% of the 6%.

— Messari (@MessariCrypto) April 21, 2023

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