What's up everybody! It's Thomas Bahamas and you are here for another episode of Solana Weekly. We've got a lot of excitement this week with the FOMC numbers coming out today and we are on the verge of a shift in monetary policy flipping from restrictive to cutting rates. This is bullish for all risk assets because cash yield is low and money gets cheaper to borrow. Pair that with the likelihood of both presidential nominees potentially debasing the US currency and we have a great setup for the largest market to buy in. ETF's aren't going great, but the flows are extremely consistent and this will do nothing but pump our bags more. In short, we're bullish.
Sol Price: 181.84, up two dollars from last week, but we spiked above 190 and the strength that it's showing versus the market cannot be ignored. I think the demand to hold Solana is there, the usage is clearly there by all metrics, and a lot of the core arguments against Solana being sustainable have been proven false lately. Again all the pieces are there for a big move up.
SOLETH: .05486 - up a small amount from last week.
SOLBTC: .00273 up a bit, and if you look at the yearly we are testing highs on this pair. Insane when you think about it with all the momentum behind Bitcoin.
SOLD - 3.61 up from 3.5
Overall, Solana is looking strong from all the metrics that track as far as price goes and we are at usage levels that are just about all time high as well. Feels like Solana Summer to me.
Biggest price narratives:
Overall in the market it's still ETF's, elections, fed cutting rates, Solana usage and memecoins. What makes me the most excited about all this is that Solana's narratives are not as dependent on trad fi narratives as BTC and ETH currently are. We get to cheer for fun new protocols, fight over memecoins, farm airdrops, onboard anyone and everyone, and try to save our NFT bags while ETH is currently waiting for The Grayscale Eth Trust to run out of Eth to sell. This was the way to buy Eth in an investment account or get exposure to Eth from an IRA before the EFT was passed last week, this was exactly the same circumstance that BTC went through, and as soon as the GBTC trust ran out of sellers Bitcoin started to go up. So by the transitive property of crypto, this same thing is going to happen, but just on a smaller scale, we are already seeing the Eth inflows to ETF's start to overpower the outflow and I'm assuming we should see this breakout at some point.
With that said, I actually still think that Solana benefits from an Eth breakout. Whether that's just more liquidity willing to go to risk assets, people watching the SolEth chart, or even the bet on Solana getting an ETF next.
Drip Haus feedback:
So much love, I would like to thank each an every one of you. Looks like it got dropped to 1000 people and 192 liked it, with 210 thanks. The number one thanker was Apricot Cicada with 501 droplets, so shout out to you Apricot Cicada, I will enjoy an apricot today in your honor. I did have some feedback that I wasn't being very beginner friendly on a few topics and I think this is extremely fair. It's easy to gloss over things and I would like to shout out to Reeny for the feedback.
I brought up Ansem in the last episode around him flipping bullish after calling for sub $100 Solana and will elaborate further. Ansem is a pretty legendary trader at this point, he goes by blknoiz06 on Twitter and his name is Zion. He basically nailed the bottom of Solana, Bonk, and was one of the loudest proponents for Solana back when it was sub $20. There really weren't that many of us left that were shouting about how undervalued Solana was, and he was probably the loudest with the biggest audience. The refreshing part of his takes was that he wasn't just a trader, he was in the trenches using all the protocols, talking to founders, degening it up with NFT's. He was really loud around $20 saying you needed a 1000 Sol suicide stack for when it goes up, calling for Solana to shoot up to .1 Eth, and brought a lot of attention to memecoins. He now kind of gets clowned on because he's still in the trenches on memecoins and would tweet up sub 100k market cap memecoins all the time and he had the audience to move the market, and was one of the biggest Wif supporters. He called a local top and sold most his Solana around $150, and was calling for $80 Sol. I muted him at this point because I don't need that in my life. But it appears like he was wrong on this call, but he's back in the game and on the bullish side. To be fair, when making public calls, his track record has been really good. Hope that sums it up and will try to take things from first principles more often, thanks again Reeny.
Biggest news: Binance lawsuit the sec no longer calls Solana and other tokens securities.
Honestly one of the last overhangs holding sol down. We got all the ftx coins out of the estate so there is no supply overhang and now we are getting out of the crosshairs of the sec.
Speaking of regulations it's a pretty sure thing at this point that Gary Gensler gets fired and moves on. Trump wins we get insanity and dollar debasement, Kamala wins we still get a new sec head, likely more regularity clarity and yes dollar debasement. Crypto seems like it's primed for a run up and we've got the etfs running too.
Looks like the rates have been unchanged for the Month of July with September rate cuts being priced in at 90%.
Protocol wise, it doesn't seem like there have been any major releases other than the ability to short memecoins being released on Solend and Marginfi.
Our NFT's remain down, hold steady and harvest some tax losses if you can. I fight the urge to buy more quekz and a MadLad daily.
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