🦀 Crab is Back: This is How You Survive

🗞 Market commentary.

GM, the blood is on the streets.

The Crab is back in full force, liquidating one leveraged participant after another. Knowledge of Crab is crucial here: Bitcoin remains stuck in the same range it entered during March. Nothing has changed since then. Remember the $60,000 new production cost area? This still stands, and now seems like the best area to create a bottom again. 

Panicking at every dump and max longing every bounce is how the Crab snatches your coins right from under you. As long as Bitcoin isn't closing weekly candles below 60K, the bull market is waving no red flags.

Meanwhile, we’re seeing a great post-capitulation resurgence of Convex. We’ve explained this particular DeFi project's opportunity in this newsletter. 

If ETH/BTC maintains its current level and tries to go higher while we simultaneously see a breakdown of the Bitcoin dominance uptrend, hold onto your wif hats. With the ETH ETF projected to launch on July 2nd, these factors might just deliver what we've been waiting for: Ethereum, DeFi, and a full-blown altcoin season for the second half of 2024.

Lastly, watch out for Tether news today, which is about to announce its new digital asset class of products today.

📊 Luke’s Chart of the Day

BTRFLY/WETH Weekly Chart

When ETH supply starts getting sucked into the ETFs - the number likely goes up, but your investment has no staking yield or related participation in the ecosystem. This will light a fire for smarter market participants to use their money legos for the intended purpose - yield generation via Defi.

The BTRFLY chart looks bottomy here, and there’s a long list of fundamental reasons why that might be the case. A man like @PhilMrlo is the expert on that tip. (BTW: watch out for tomorrow’s Degen Corner)

From my side, the chart looks like it is building yet another W bottom for a Q3 and Q4 trip back up to the cylinder top at around $600. If the $ETH price starts to run and Redacted x Berachain ecosystems take off, we can go much higher than that.

NFA as per usual, please always do your own research.

Come by the Lucky Luke Discord channel for comments, to roast my picks or to pump your own bags. All banter is welcome any time!

🔥 Degen corner.

Gambling with a 100% chance to win? Fareplay

It sounds like a joke, but in this case, it’s straight-up reality. Fareplay is launching a GambleFi casino platform with a metaverse aspect, set in the most degen-friendly haven: Berachain.

As sauces tell us, Berachain is launching during Q3, just around the corner. While in testnet, there’s an opportunity to farm the upcoming BERA airdrop. I dare to say playing in a casino while farming BERA and also farming the FARE token sounds like a great summer past-time activity to me. 

• Here's the FARE token lowdown:

Players buy FARE tokens to join games; wins mean minted tokens, losses mean burned tokens. Given that over 95% of players lose money over time, FARE tokens become deflationary. Here’s the kicker: instead of Fareplay simply profiting, every FARE token holder gains value, essentially becoming part of 'the house.'

Fareplay and Berachain go hand in hand and I’m looking forward to see you across the table.

👀 DeFi insights.

The important bits.

• Uniswap (DEX) - Implements ZkSync into its interface - read

• Sweeper (NFTFi) - Announces airdrop for Milady and… - read

• ZkSync (L2) - Launches ZKS token - read

• Zapper (Wallet interface) - Announces Zapper protocol - read

• Redacted (DeFi) - Partners with Blackwing - read

• Manifold (DeFi) - Manages to split the first block? - read

• Mantle (L2) - New LRT token mcETH is live - read

• Frax (DeFi) - Teses “relending” to revolutionize DeFi lending - read

• Karak Network (LRT) -  Introduces KUDA - read

• Layer Zero (Omnichain) - Airdrop confirmed for 20th June - read

📰 DeFi news.

Even more important bits.

• Donald Trump proposed zero income tax - read

• Paxos reduces headcount by 20% - read

• DeFi protocol UwU Lend hacked, again - read

• Gensler sees ETH ETF approval during summer - read

• US May producer index show continuing disinflation - read

• Ether sees significant long-term accumulation during the dip - )

🫠 ICYMI.

Life gets busy so here’s what you’ve missed.

Why Every Blockchain Developer Needs to Know About Sunrise’s Proof of Liquidity

Podcast

In this episode of Still Early, Grant sits down with Yu Kimura from Sunrise, a company specializing in proof of liquidity data layers.

They dive deep into the role of data availability in secure transactions and its importance for rollups.

Tune in on Spotify | YouTube →

🐥 Tweet of the day.

To save you doom scrolling.

The new Binance intern surely knows how to spark controversy.

🦍 And finally…

The Tapioca Genesis LBP was executed brilliantly, and I wouldn’t expect less of this team. While we see a nice CVX resurgence, the DeFi comeback narrative will spill over into other assets. Which asset could benefit more from these market factors than another, but this time omnichain, money market? 

Yep, TAP deserves a long-term spot in my portfolio, especially since the price is still below the final auction price. Want to know more? Brush up on your Tapioca knowledge here.

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