Uncategorized

Should SOL be Trading at a 70% Discount to ETH?

Published

6 месяцев ago

27 ноября, 2024

Solana was trading at 97% discount to ether’s market cap in January of 2023 – a clear market dislocation that has closed significantly over the last two years.

Today the gap has closed to a 70% discount.

However, solana is starting to challenge ether in terms of on-chain activity and important network usage KPIs.

Which begs the question: Is the market still dislocated?

In this short piece, we explore this key question with relative analysis across four key data points. Let’s dive in.

Network Fees

Data: Artemis, The DeFi Report, Gas Fees Only (does not include MEV). Please note that we’ve included the following L2s in the comps data: Arbitrum, Base, Optimism, Blast, Celo, Linea, Mantle, Scroll, Starknet, zkSync, Immutable, and Manta Pacific.

L2s create new demand for Ethereum L1 block space and increase the network effects of ETH the asset. Therefore, we include them in our comp analysis for solana.

In Q2, solana did $151M in fees: 27% of ether + the top L2s.

Fast forward to the last 90 days and the ratio has jumped to 49%.

2. DEX Volumes

Data: Artemis, The DeFi Report

Solana did $108B in DEX trading volume in Q2: 36% of ether + the top L2s.

Over the last 90 days, solana has done $153B in DEX trading volume: 57% of ether + the top L2s.

3. Stablecoin Volumes

Data: Artemis, The DeFi Report

Solana did $4.7T in stablecoin volume in Q2: 1.9x that of ether + the top L2s.

Over the last 90 days, solana did $963B of volume: 30% of ether + the top L2s.

Why the drop?

We think this drop is mostly due to bots/algorithmic trading that was juicing the numbers in Q2.

Furthermore, only 6% of Solana’s stablecoin volumes are peer-to-peer transfers per Artemis. On Ethereum L1, this figure is closer to 30% – an indication that ether is used more for non-speculative activity than solana.

In terms of stablecoin supply, solana has just 4.1% of ether + the top L2s on-chain value today, up from 3.5% at the end of Q2.

4. Total Value Locked (TVL)

Data: Artemis, The DeFi Report

Solana ended Q2 with $4.2b of TVL: 6.3% of ether + the top L2s.

Solana’s TVL is currently $8.2b: 12% of ether + the top L2s.

In summary, based on 90-day performance, solana now has:

49% of ether’s fees (up from 27% end of Q2)

57% of ether’s DEX volumes (up from 36% end of Q2)

30% of ether’s stablecoin volumes (down from 190% in Q2)

4.1% of ether’s stablecoin supply (up from 3.5% end of Q2)

12% of ether’s TVL (up from 6% end of Q2)

We think the on-chain data points to a fair re-pricing of solana’s valuation relative to ether.

With that said investors should consider qualitative differences between the two networks as well as potential upcoming catalysts as we head into year-end and 2025.

Uncategorized

Justin Sun Emerges as Donald Trump Memecoin’s Top Holder With $21.9M Stake

Published

44 минуты ago

21 мая, 2025

admin

Tron founder Justin Sun said he’s the top holder of the TRUMP memecoin, entitling him to attend a private dinner and a VIP reception with U.S. President Donald Trump this week.

A Solana address apparently associated with Sun holds roughly $21.9 million worth of the TRUMP coin, placing him at the top of the leaderboard in a sweepstakes that rewards the biggest token holders with access to Trump at a golf club near Washington, D.C. The leaderboard appears on a website publicized by Trump on his X account.

Sun is also a backer of World Liberty Financial, the decentralized finance project backed by the Trump family, having invested invested $75 million. The project’s co-founder, Zak Folkman, has credited the Chinese-born crypto billionaire for its success.

The TRUMP token debuted just days before the president’s inauguration in January and was met with criticism from across the crypto industry and elsewhere. Critics pointed to its timing of the launch and its structure, which allocates a large portion of the supply to Trump-affiliated insiders.

Democratic lawmakers, including Sen. Elizabeth Warren and Sen. Richard Blumenthal, have argued that Trump’s crypto effort is eroding ethical norms. They’ve introduced bills to block public officials from launching or endorsing digital assets.

The White House responded to the scrutiny by downplaying it, rejecting allegations of conflicts of interest and framing the criticism as partisan disruption.

Trump’s memecoin, it’s worth noting, saw a major price rise over the event’s announcement. The dinner falls on Bitcoin Pizza Day, which commemorates one of the earliest bitcoin BTC transactions.

TRUMP is trading at $14.40, up 8.3% in the last 24 hours.

Uncategorized

Crypto.com Buys Allnew Investments to Secure MiFID License to Offer Derivatives in Europe

Published

53 минуты ago

21 мая, 2025

admin

Crypto exchange Crypto.com said it bought AN Allnew Investments to gain a license allowing it to offer derivatives across the European Economic Area (EEA).

The Markets in Financial Instruments Directive (MiFID) license was issued to Allnew by the Cyprus Securities and Exchange Commission (CySEC), the exchange said in a website posting. It grants the exchange the right to offer a range of financial products in the 27 nations of the European Union alongside Iceland, Liechtenstein and Norway.

This acquisition bolsters Crypto.com’s presence in Europe. The exchange secured a Markets in Crypto Assets (MiCA) license in January so it could offer crypto custody and exchange services across the EEA. The company declined to say how much it paid for Allnews.

Crypto exchanges have been moving into derivatives to unlock new sources of profit. The company joins rivals including Gemini and Kraken in gaining MiFID licenses to offer derivatives in Europe. Kraken’s license was also obtained through acquisition of the holder. Earlier this month, Coinbase spent $2.9 billion to buy options platform Deribit to strengthen its position in the U.S. derivatives market.