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Bitget Research — U.S. PPI Data Causes Market Plunge, BOME Leads Wealth Effect in Solana Meme Sector

John & Victoria
2024/03/15
Bitget Research — U.S. PPI Data Causes Market Plunge, BOME Leads Wealth Effect in Solana Meme Sector
In the past 24 hours, many new popular tokens and topics have emerged in the market, which could potentially be the next wealth creation opportunity.

Overview

In February, the producer price index (PPI) in the United States rose by 0.6%, surpassing economists' expectations of 0.3%. Following the release of economic data, Bitcoin experienced a sharp decline of over 6%. The Solana ecosystem's memecoin, BOME, showed remarkable growth, with a 24-hour trading volume reaching $258 million.
  • Sectors with strong wealth creation effect: Solana memecoins and Aptos ecosystem sector.
  • Top searched tokens and topics by users: Berachain and meme sector tokens like PENG, PEPE, DOGE, and SHIB.
  • Potential airdrop opportunities: CharacterX and Owlto Finance.
Data collection time: March 15, 2024, 4:00 AM (UTC)

1. Market Environment (Key Factors Influencing Trends)

In February, the producer price index (PPI) in the United States rose by 0.6%, surpassing economists' expectations of 0.3%. Sticky inflation seems to have dampened investors' hopes for an imminent interest rate cut, leading to a decline in major U.S. stock indices. Bitcoin approached $73,800 on Thursday morning and then plummeted by over 6% following the release of economic data. By Friday morning, it had briefly fallen below $67,000.
Trading of memecoins on the Solana chain is booming. According to DeFiLlama data, over the past 24 hours, the trading volume on Solana's DEXes surpassed $2.57 billion, exceeding the $2.31 billion trading volume on Ethereum's DEXes. The BOOK OF MEME (BOME) issued by Pepe memecoin artist Darkfarm saw a 24-hour trading volume of $258 million. Solana blockchain memecoins like Myro, WIF, SILLY, PENG, and BOME have emerged as golden opportunities, with all but BOME listed on Bitget. It is recommended to pay close attention to related sector tokens.

2. Wealth Creation Sectors

1) Sector movements — Solana memecoins (BOME, PENG, and WIF)

Main reasons:
  1. BOOK OF MEME (BOME), issued by Pepe memecoin artist Darkfarm, went viral across social platforms, with over $250 million in on-chain trading volume within 24 hours of launch.
  2. Binance announced the integration of its Web3 wallet with the Solana network. Despite the broader market downturn, SOL surged 11.07%, driving the entire sector's growth.
  3. The famous Solana ecosystem memecoin WIF's community raised $670,000 for advertising at the new landmark MSG Sphere (a giant spherical LED venue) in Las Vegas, USA. Influenced by this news, WIF saw a 30.6% increase in a single day.
Price increase: BOME rose by 6812%, PENG by 120.13%, and WIF by 16.15%;
Factors affecting future market conditions:
  1. TVL and fund inflow in the Solana ecosystem: The TVL of the Solana ecosystem has surpassed $3.8 billion, increasing over 100% in the past month, ranking after ETH, TRON, and BSC. If capital continues to flow in, the overall ecosystem's token prices will rise further. Additionally, exchanges are speeding up the listing of Solana tokens, which indirectly affects the Solana ecosystem's TVL through secondary market funds flowing in from exchanges.
  2. Future price increases of BOME and exchange listings: Currently, exchanges such as OKX and Binance have not yet listed it, and for Solana ecosystem memecoins, the potential has been unlocked by WIF reaching $3 billion in market cap. If big influencers continue to promote and exchanges like Binance keep listing new memecoins, the popularity of the memecoin sector is expected to persist.

2) Sector movements — Aptos ecosystem (APT, DOODOO, and THL)

Main reasons:
  1. On-chain data increase: Since the start of 2024, Aptos' on-chain TVL has tripled, daily interactions increased by 65%, and active user numbers by 93%.
  2. Promotions driving token demand: DOODOO is about to start an NFT Mint promotion, allowing users with more than 69 DOODOO tokens to mint NFTs for free, prompting investors to buy and driving up its price.
  3. Project valuation correction: Thala, the DeFi project ranking first in TVL on Aptos (accounting for 51%), includes the stablecoin MOD and AMM Swap (a clone of Balancer and Curve with a launch platform). Its market value has been undervalued at just $19 million. As TVL and trading volume on Aptos increase, Thala's price has also benefited.
Price increase: APT rose by 3.81%, DOODOO by 12.39%, and THL by 6.61%.
Factors affecting future market conditions:
  1. Aptos' support for its ecosystem: The chain foundation plays a crucial role in ecosystem development through investments and token incentives. If Aptos continues to invest in ecosystem projects or incentivize users with APT tokens, there will be a continuous influx of capital into the Aptos ecosystem.
  2. News impact on the Aptos ecosystem: News events can have a short-term positive impact on token prices. Jambo's announcement of a "cooperative sale" of the Jamble phone with the Aptos Foundation, priced at $99, exemplifies this. The Solana Saga phone's airdrop value has far exceeded its price, becoming a recognized "gold mine." The second generation of Solana Mobile sold over 60,000 units in three weeks based solely on the hype and a simple image with a few letters, without even a formal presentation. Such news positively impacted APT's price. Future airdrops by Aptos ecosystem projects to Jamble phone users and the subsequent wealth effect will benefit the Aptos ecosystem.

3) Sectors to focus on next — AI sector (NEAR, MAP, and PAR)

Main reason: The impact of updates such as GPT-4.5 and news that OpenAI is beta testing its latest model, GPT-4.5 Turbo, along with the ongoing buzz from Nvidia's GTC24 conference, have led to significant gains for some AI sector tokens.
Specific token list:
  1. Leadership in AI shifts, with capital chasing new frontrunners: The AI concept leader has shifted from TAO to NEAR. Apart from the buzz from Nvidia's GTC24 conference, NEAR's project development maturity, numerous partners, and strong support from investment institutions have led to a concentration of funds driving up NEAR's price.
  2. Major content update: The sci-fi-themed NFT card game Parallel is launching a new artificial intelligence game, Colony, on Solana. In the game, AI agents will be able to trade autonomously on the blockchain, marking a significant update for Parallel's product and directly benefiting its token's future performance.
  3. Sector expansion with projects incorporating AI concepts: MAP Protocol announced its participation in Nvidia's Developer Program, aiming to accelerate the adoption of AI technology to drive the development of Bitcoin interoperability technologies.

3. User Trending Searches

1) Popular DApps

Berachain (No token issued yet):
Berachain is a Layer 1 chain built on the Cosmos SDK, EVM-compatible, and protected by a Proof of Liquidity consensus mechanism. This Layer 1 chain recently secured financing of over $69 million led jointly by Brevan Howard Digital and Framework Ventures through the sale of digital tokens, valuing it at $1.5 billion. Previously, in April 2023, Berachain also received $42 million in funding from Polychain Capital and OKX Ventures, a testament to strong institutional support. Berachain has three main tokens and a positive economic model. Benefiting from a strong community consensus, Berachain, currently in the Artio testnet phase, is very popular and is set to launch its mainnet in the second quarter. Before then, users can participate in testnet and ecosystem interactions by completing tasks.

2) Twitter

Magic Eden (No token issued yet. The diamond airdrop has led to strong expectations regarding token issuance):
MagicEden is a cross-chain NFT marketplace founded in San Francisco in 2021 by former Google executive and now one of the top 10 wealthiest Australians, @0xLeoInRio. Magic Eden has launched a "diamond" airdrop for Ethereum users who started their journey with Magic Eden, allowing them to trace their activity back to 2017 and claim "diamonds" by connecting their wallets. The number of "diamonds" a user is eligible for is based on several factors, including the timing and location of transactions and an additional weight for royalties. This is undoubtedly a significant benefit for original Ethereum users. Some "diamond" rewards will be distributed immediately, with more available for earning through completing tasks. This move has generated considerable interest and discussion within the community.

3) Google Search (Global and Regional)

From a global perspective:
(1) zkLend (ZEND):
zkLend is a pioneering decentralized money market protocol native to Starknet and is one of Starknet's largest lending projects by TVL, with its new token and STRK deposits exceeding $50 million. On March 14, it was simultaneously listed on ByBit and KuCoin (token symbol is ZEND), marking the first Starknet-native DeFi protocol token to be listed on CEXes. It also initiated the first batch of airdrops, distributing 3,890,250 ZEND tokens (about 4% of the total token supply) to 42,695 early supporters. ZEND will serve as both a utility and governance token, providing a new milestone by activating and attracting users through partnerships and liquidity plans to continue consolidating its position as one of the primary money market protocols on Starknet.
From a regional perspective:
(1) Asia shows high enthusiasm for the MEME sector, including PENG, PEPE, DOGE, SHIB:
The strong growth within Solana memecoin ecosystem is largely due to Solana's low transaction fees. Leading memecoin WIF has already entered the top 50 by market cap, with other newer memecoins like PENG surpassing a market cap of $100 million, all showing considerable trading volumes and the potential to reach the second tier within the Solana ecosystem's memecoin sector. Also, influenced by Elon Musk's tweets, PEPE, SHIB, and DOGE have gone viral and garnered retail investor consensus.
(2) Europe and English-speaking countries are paying more attention to ZRX token:
0xProtocol (token symbol ZRX), as a DeFi trading aggregator, is a top-tier project in terms of on-chain activity but undervalued in market cap. The recent token price increase represents a market correction of its value. The 0x team's participation in ETH Denver, discussing how trading aggregators influence the DeFi sector, has been well-received by investors in a bullish market atmosphere. Since ETH Denver, the token has seen a weekly increase of 139.1% and ranked in the top 10 most trending keywords in various regions over the week.

4. Potential Airdrop Opportunities

CharacterX
CharacterX aims to establish a decentralized AI entertainment social network, becoming a social portal for Web3 that allows creators to create AI characters and interact with them based on personal preferences. CharacterX is currently running a credit-based airdrop to reward the community. Users can earn credits through three methods.
In January 2024, CharacterX announced it completed a new funding round of $2.3 million at a valuation of $30 million, co-led by Lightspeed, INCE Capital, and Spark Digital Capital, showcasing a considerable backing.
Specific participation methods include earning CXT credits on the CharacterX application through a badge system, which encourages users to explore app features to obtain three types of badges, and by completing tasks and inviting new users to the CharacterX community.
Owlto Finance
Owlto Finance is a decentralized Cross-Rollup bridge focused on Layer 2. It currently supports cross-chain transactions among over 15 Layer 2 networks, including Ethereum mainnet, zkSync Era, and Starknet.
Since its launch, Owlto Finance has gradually joined the official ecosystems of zkSync, Starknet, Arbitrum, Optimism, Linea, Base, Polygon, BNB Chain, Mantle, Scroll, Taiko, Manta, and Kroma, especially gaining endorsements and retweets from their official Twitter accounts, indicating close relationships with various Layer 2 projects. The project has introduced a credit system. In addition to aiming for an Owlto airdrop, users can also accumulate transaction counts for other Layer 2 networks that have not yet issued tokens.
To participate, visit the official website, select the source and target chains, and enter the amount. Owlto currently supports ETH, USDC, USDT, and BNB tokens. The project also supports credit accumulation through daily check-ins on the website.
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