Chaindege Smart Money Weekly Report: Trading volume and liquidity are flocking to Solana’s Meme

Bonk’s trading volume increased 20 times, while the ETH instrument’s trading volume fell by approximately 80%.

Written by: ONCHAIN WIZARD

Compiled by: Shenchao TechFlow

Chaindege has released this week’s Smart Money Weekly, which takes a deep dive into the latest trends in the cryptocurrency market, specifically the significant shift in trading volume and liquidity away from Ethereum and towards the Solana meme.

Before we start this article, it is very important to note that the market for trading any token on ETH/ARB/AVAX has been very weak for the past two weeks or so. All trading volume, users and liquidity were transferred to hyping the meme coin on SOL. The best way to visualize this shift is to look at the user/volume changes for the TG trading instrument.

Bonkbot (sol's main TG bot) had fewer daily users than Maestro on December 13th, and since then the number of users has increased 6x, reaching 36,000 yesterday. As of yesterday, Bonk's TG robot user share increased from 34% to 91%. This is a significant shift in terms of attention/liquidity/volume and has resulted in weak or even falling price action for ERC20 tokens.

From a transaction volume perspective, this shift is even more obvious. On December 13, Bonk's trading volume was $3 million, while Maestro and Banana's combined volume was $27 million. Bonk's trading volume yesterday was $67 million, while Maestro+Banana's combined volume was $5.6 million. In other words, Bonk’s trading volume increased 20 times, while the ETH instrument’s trading volume dropped by approximately 80%.

As you would expect, most popular ETH DEX token prices peak around the 13th and are trending downward. So, if you are looking for an ETH recovery/ERC20 token reversal, it would be a good idea to watch the DEX trading bot dashboard to see where the Degen flows are going.

chainEDGE Weekly Report: December 27, 2023

Based on the number of holders above $10,000, smart money's favorites right now are OLAS, AGRS, MUBI, BANANA, $VAULT, MXH, and HYPR. Overall, smart money token holdings have been trending downward across the board as attention/volume/liquidity has shifted away from ERC20 tokens.

Of these coins, several that have seen accumulation (or at least flatline) since December 13 include:

• OLAS (up 2%) *MXH (newer coin) *HYPR (flat)

In terms of smart money owning $20,000 of newer coins:

• KOI USD 103,000/5 wallets (i.e. 5 smart wallets hold USD 103,000 KOI)
• MXH $298,000 / 27 wallets
• MARK $181,000 / 5 wallets
• FI $167,000/5 wallets *OMNI $159,000/8 wallets
• RSTK $102,000 / 7 wallets
• MZERO $64,000/6 wallets
• vMINT $47,000/4 wallets
• TUX (operation) $26,000 / 2 wallets
• UEFN USD 20,000 / 12 wallets

Overall, we have seen the entire market (and smart money) move towards Meme on Sol, and more fundamental projects on ETH. Then in-depth analysis shows that the tracks for capital inflow are artificial intelligence, BRC20, and then projects with more specific situations, such as HYPR, BANANA, and MXH.

Judging from the exchange traffic in the past week, EVM’s attention to the coins on AVAX and ARB has cooled down, mainly returning to ETH. It is worth noting BDID, OMNI, TURT, MUBI, MXH, LBR, 1CAT and ENQAI, each Each coin has a net purchase of more than $50,000.

Looking at non-ETH traffic, we see OWL, HMX, NOLA, and SMOL becoming the leaders on ARB, while traffic on other major EVM chains is quite weak.