In today’s newsletter:
🔎Best crypto move right now
📊On-chain alpha
😂Crypto meme of the week
🗞️The latest DeFi news
Today’s email is brought to you by Jiritsu Network - An innovative Layer 1 blockchain with a native ZK-MPC oracle designed for real-world assets
Check out Jiritsu’s innovative solutions for real-world assets!
🔎Best crypto move right now
It’s been 6 months since BTC’s latest all-time high.
Since then, the crypto market has been in a downtrend that proved to be hard to endure especially for altcoin holders.
A while ago, I covered why I’m still bullish on crypto for Q4 despite the recent price action, what I’m looking for in projects, and my take profit strategy.
In this issue, I want to discuss a few additional things that I’m doing right now to minimize my losses and prepare for the next market phase.
Let’s dive in👇
Keep an eye on the upcoming token unlocks
In my opinion, one of the main reasons why many altcoins have performed so badly lately is their very high selling pressure from recent unlocks.
Many altcoins (especially the new ones) have a large % of their supply set to unlock soon. As a lot of their early investors want to take profits, these unlocks obviously have a negative impact on their prices.
In a bullish environment, unlocks aren’t a big issue as there’s also a lot of buying pressure. But that’s not the case in a bearish environment like the current one.
That’s why I’m constantly monitoring the upcoming token unlocks and making sure that I don’t invest large amounts of money in tokens with very high inflations. (e.g. 80%+ annual inflation)
To do that, I use primarily 2 tools:
TokenUnlocks is the one I use most often for the most popular tokens. To check the next unlock events for a token, you just have to search it using the search bar.
The tool also displays the token distribution and the % of tokens that are in circulation. The higher the circulating supply is, the better.
Look for projects with major catalysts on the horizon
As I said many times, I believe that Q4 will be a great quarter for crypto.
And in a bullish market environment, the best-performing coins are usually either related to a hot narrative or have a big catalyst in the near future.
To identify projects with major upcoming catalysts, here’s what I usually do:
search for X posts using keywords like “roadmap” & “catalysts” from ppl I follow
talk with the teams of projects in their project’s Discord server / Telegram group to find out what are their plans for the next months
A token that is related to a hot narrative (e.g. RWA), has no major upcoming unlocks, and has a massive catalyst in the near future, is a winner you want to bet on.
Create a plan for cutting losses
A lot of investors who have a take-profit plan don’t think that it’s important to also create a plan for the scenario where things don’t go as expected.
But the investments we make are based on imperfect information, and it’s better to sell at a loss when you realize you were wrong than to do nothing.
A few examples of situations when it can be a good idea to cut losses:
The TVL of the dApp you invested in keeps decreasing for a few months in a row while its competitors are growing in popularity
The team of the project constantly overpromises and underdelivers
The project’s social media accounts become inactive
Cutting losses is hard. But trust me when I say that watching one of your investments go straight to 0 is even harder.
With that being said, I hope you found all these tips helpful.
While the market conditions have been very rough over the past months, I continue to believe that not leaving crypto will soon start paying off.
Together with Jiritsu Network
RWA Verified On-Chain
RWA is one of the fastest-growing crypto narratives.
And by 2030, real-world assets are expected to become a multi-trillion-dollar sector.
A project that is at the forefront of RWA innovation is Jiritsu Network - a cutting-edge L1 blockchain that innovates the process of tokenizing real-world assets by simplifying off-chain asset registration, verification, and tokenization
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Here are a few of its core RWA Products:
Institutional RWA Assets - Jiritsu enhances Verification for Tokenized Funds and ETFs by implementing real-time verification of their assets
Supply Chain and Inventory - The platform redefines supply chain management by offering real-time verification of inventory, crucial for securing loans
Verification of Gold Reserves - Jiritsu ensures that the physical gold backing tokenized assets is verified daily, advancing beyond traditional quarterly audits
Real Estate Tokenization -Jiritsu seamlessly integrates real-world properties into the blockchain, ensuring that tokenized assets are backed by a verified property
In short, Jiritsu aims to offer a solution to the RWA projects that face 3 major challenges: Regulatory Compliance, Enforceability, and Dependence on Oracles.
The project also has an ongoing campaign on Galxe where you can share a $10,000 prize pool by completing a couple of simple tasks related to Jiritsu.
Last year, its team raised a whopping $10.2 million in funding.
Learn more about how Jiritsu revolutionizes the RWA landscape!
On-chain Alpha🔎
Ethereum L2s hit a new all-time high in throughput every single month in 2024
While Ethereum L1’s gas fees are at multi-year lows, the L2 activity keeps increasing as the transaction fees on L2s are now cheaper than ever before.
As a result, ETH is no longer deflationary as less ETH is now being burned given that Ethereum L2’s gas fees decreased following its latest upgrade.
Still, I think that reducing the Ethereum L2 gas fees was the right thing to do as way more users can now afford to use these scaling solutions.
And if the L2 activity skyrockets in the future, ETH could become deflationary again.
Crypto Meme😂
The latest developments in DeFi
Arbitrum’s Stylus Upgrade went live. With Stylus, Arbitrum developers can now write smart contracts in Rust, C, and C++
EigenLayer announced EIGEN Season 2 Stakedrop. ETH & EIGEN stakers, key contributors, and active community members are eligible
Avalanche introduced the Avalanche9000 upgrade, which will enable anyone to launch a dedicated blockchain for their app in minutes
Coinbase has completed the first crypto transaction managed entirely by an AI bot
Polygon’s tokenomics upgrade to migrate MATIC to POL went live. There is no deadline for the migration process
Cardano’s Chang hard fork upgrade went live. This introduces on-chain decentralised governance to Cardano
Frax Finance introduced the Frax Name Service, a fork of Ethereum Name Service for the Frax ecosystem. The revenue from it will be used to burn FXS tokens
Polymarket has been integrated by the Bloomberg Terminal
Donald Trump promised to make US the 'Crypto Capital of the Planet'
AAVE introduced the Sky Aave Force, a DeFi initiative in partnership with Sky (formerly MakerDAO)
Liquity V2 codebase has been made public. Liquity V2 will introduce several key enhancements including User-set interest rates, native stablecoin yield, and more
NATIX Network announced its $NATIX token burning strategy. The protocol fees and revenue will be used to buy back & burn $NATIX tokens
WINR Protocol has launched the WINR Chain, a blockchain built for decentralized gambling products
Ethena launched its Season 3 points program. The airdrop for Season 2 participants will be available for claiming on Sept. 30
Pear Protocol's Intent-based trading engine went live. Pear enables trading the whole Binance orderbook on-chain
That’s all for this week!
Until next time,
The DeFi Investor
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