Memecoins’ ‘euthanasia coaster’ and a new Telegram bot entrant

This is a segment from the 0xResearch newsletter. To read full editions, subscribe.

---

BTC sits at $110K as of this morning, with the vast majority of tokens down – except for Hyperliquid (up 14% from yesterday’s $43 lows) and Solana (up 4% today). 

We’ve already covered Hyperliquid twice this week, so I’ll spare the details. Here’s a quick recap:

• Perpetuals volumes are up and to the right.
• Spot volumes are up and to the right.

More interestingly, we saw (potentially) His Excellency, Justin Sun, make an appearance in the pre-launch order books on the platform. A wallet associated with Justin Sun longed millions of XPL on Hyperliquid, clearing the entire order book and liquidating many who thought they were safe to hedge their pre-deposit allocations at a 10x. A good warning for future “safe 1x shorts” who want to lock their profits in.

We’re also finally seeing some relief on Solana after months of underperformance against ETH. Recent DAT announcements seem to have not been particularly private and were sold into pretty heavily (likely also due to the market downturn). Since then, the wunderkind of 2023-2024 has rebounded. We’ll have to see if the treasury companies will lead to any open market buys, or if they’re mostly in-kind. Even if they are mostly in-kind, given that SOL’s market cap is much smaller than that of ETH, we might see some positive price action if:

• The SOL DATs can put forward a figure who can compete with Mr. Thomas Lee.
• They are putting in at least a little bit of cash into the vehicles.

Unfortunately, despite being bullish on SOL throughout most of 2023 and 2024, it is difficult to not feel like the tide has moved against it, especially with memecoin activity increasingly taking the attributes of a euthanasia roller coaster (Trump into Melania into Milei into Kanye West). We’ll have to see who wins:

• Ethereum, Thomas Lee and DATs
• Solana, memecoins and gambling
• Hyperliquid and infinite buybacks

---

Get the news in your inbox. Explore Blockworks newsletters:

• The Breakdown: Decoding crypto and the markets. Daily.
• 0xResearch: Alpha in your inbox. Think like an analyst.
• Empire: Crypto news and analysis to start your day.
• Forward Guidance: The intersection of crypto, macro and policy.
• The Drop: Apps, games, memes and more.
• Lightspeed: All things Solana.
• Supply Shock: Bitcoin, bitcoin, bitcoin.