RECAP: STAGFLATION FEAR?

📉 OCTA: How Stagflation Spooks Markets! 🦌

Today’s Nuggets

• How to Quickly Discover Overvalued Chains

• Accusations from ICP

• U.S. Consumer Confidence Hits Two-Year Low

• Stagflation Fears are Mounting

• How Not To Become Exit Liquidity

• Phantom Wallet Surpasses Coinbase

• MicroStrategy Keeps Stacking

• Where is Tesla Investing $10B?

• The Fed is Stuck

• 99% of the AI Market Will Be…?

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Crypto Market Recap:

• The global crypto market cap is $2.21 trillion.

• The price of Bitcoin is $60,100 and BTC market dominance is 53.8%. 

• The Crypto Fear & Greed Index is currently Greed (67), which this index is off as it should be far more fearful.

• People believe that the Fed could raise rates, which always puts a bit of a lid on the markets. After they do not raise rates, the markets typically rebound. 

• Stagflation fears have risen as investors realize that the Federal Reserve is unlikely to cut interest rates shortly to stimulate the economy.

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The crypto market has been brutal over the last seven days.

Tron is the only green spot on the board worth mentioning. 

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For the week:

• Bitcoin is down 5.26%;

• Ethereum is down 6.95%; and

• Solana is down 8.13%.

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The chains in the red box are ones you do not want to invest in - except Ethereum, which has such high fees and so many L2s. Currently, ETH is valued at $1M per user.

The market cap over daily active users helps you quickly identify chains that are overvalued unless they can quickly fix their adoption problem.

Other chains in the red box include:

• DOT = $2.3M MC/DAU

• STX = $1.8M MC/DAU

• ICP = $1.2M MC/DAU

• ADA = $803K MC/DAU

• SEI = $784K MC/DAU

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This chart serves as a weekly reminder that 99% of crypto is a money grab.

The big unlocks this week include: 

• MEME = 34% 

• WLD = 11.18%

• DYDX = 11%

• SUI = 3%

• GAL = always grabs money, so be careful

With a few exceptions, all new tokens in 2024 will smash you!

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For the first time in this cycle,