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Bitget Research — U.S. PPI Data Exceeds Expectations, GME Leads Wealth Effect in Solana Memecoin Sector
Victoria & John
2024/05/15
In the past 24 hours, many new popular tokens and topics have emerged in the market, which are likely to be the next wealth creation opportunities.
Overview
In April, the U.S. Producer Price Index (PPI) rose by 0.5% month-on-month, hitting a 12-month high and exceeding expectations. The Solana ecosystem's GME token saw a significant increase, with a 24-hour rise of 245%.
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Sectors with strong wealth creation effect: Memecoin and AI sectors.
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Top searched tokens and topics: UXLINK and Constitution DAO (PEOPLE).
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Potential airdrop opportunities: Karak and Lava Network.
Data collection time: May 15, 2024, 4:00 AM (UTC)
1. Market Environment
Yesterday, Bitcoin fell below $62,000, closing at $61,745, with a daily gain narrowing to 0.87%. The return of Keith Gill, known as the king of U.S. retail investors, triggered a surge in the memecoin sector, with PEPE reaching a new historical high and moving up to 27th in market cap, surpassing RNDR. Additionally, net inflows into BTC ETFs yesterday amounted to $100.5 million, boosting market confidence.
On the macroeconomic front, data released by the U.S. Bureau of Labor Statistics yesterday indicated that the April PPI rose by 2.2% year-over-year, marking the highest increase in 12 months and exceeding expectations. This suggests that inflation pressures may take longer to ease, leading to reduced expectations for Federal Reserve rate cuts. Jerome Powell's speech also lifted some of the U.S. stocks, with the major indices collectively closing higher overnight. On the evening of May 15th, the Department of Labor will release the April CPI data, providing further clues for potential Federal Reserve rate cuts, with the crypto market experiencing volatility alongside U.S. stocks.
2. Wealth Creation Sectors
2.1 Sector Movements — Meme Sector (FLOKI, PEPE, and GME)
Primary reasons:
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In this market cycle, numerous infrastructure projects with prestigious funding backgrounds have underperformed and the market has shifted its focus from VC-backed coins to speculating on memecoins;
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Meanwhile, Roaring Kitty, the blogger who initiated the short squeeze on GameStop stocks during the retail investor movement in GameStop shares, returned to Twitter after three years, driving over $100 million in 24-hour trading volume on Solana's GME token;
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The revenue of the Solana chain memecoin launchpad PUMP has exceeded Uniswap, with annual revenues of $150 million. PUMP provides one-stop services for memecoin launches, charging a 1% fee, which has fueled the enthusiasm for memecoin speculation.
Gainers: PEPE rose by 24% in one day, FLOKI by 11%, and GME by 245%.
Factors affecting future market conditions:
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Whether native token price continues to rise: Many memecoins on Solana are priced in SOL. An increase in SOL's price directly boosts the value of Solana-based memecoins. If the price of SOL continues to rise, the memecoins on Solana are likely to maintain their popularity.
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Cryptocurrency market sentiment: Yesterday, the market experienced a slight rebound, with funds beginning to circulate, and the wealth effect extending its benefits to the memecoin sector. If this upward movement continues, it would be wise to keep an eye on the memecoins.
2.2 Sectors to Focus on Next — AI Sector
Primary reasons: Recent positive developments in AI from major tech companies have spurred interest in both the U.S. stock market's AI segment and the crypto AI sector:
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OpenAI launches its flagship AI model, capable of real-time audio, visual, and text reasoning processing. The release of the text-to-video model Sora by OpenAI in February drove up valuations across the sector. The launch of GPT-4o highlights the importance of maintaining focus on the AI sector.
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On May 14, Google's annual I/O developer conference took place in Mountain View, California. During the conference, Google introduced a range of AI-related products, including an upgraded Gemini chatbot and a new version of its search engine featuring generative AI capabilities.
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Anthropic's AI chatbot Claude launched in Europe.
Specific tokens:
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ARKM: Arkham is a blockchain analytics platform that utilizes artificial intelligence to analyze blockchain and on-chain data.
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NEAR: Recently, many AI projects within the NEAR ecosystem are in the development or funding stage, positioning NEAR to potentially become a future AI Hub.
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RNDR: As foundational infrastructure in the AI sector, RNDR's involvement in the AI field, along with its deep integration into the Solana ecosystem and other sectors, and its partnership with Apple as a VR collaborator, undoubtedly presents significant market potential. Market movements in response to Apple's upcoming VR device developments are also anticipated.
3. Top Searches
3.1 Popular DApps
UXLINK: UXLINK, a Web3 social infrastructure, announced the completion of a new funding round of $5 million, led by SevenX Ventures, Ince Capital, and HashKey Capital. After this funding round, UXLINK's total fundraising has exceeded $15 million. In early May, UXLINK launched the first season of its "IN UXLINK WE TRUST" airdrop promotion, expected to cover 550,000 community contributors, with more than 50% already completed. Currently, UXLINK has not issued any tokens, and those who are interested can optionally participate in its airdrop promotions.
3.2 X (former Twitter)
Constitution DAO (PEOPLE): Three years after his return to platform X, Keith Gill (Roaring Kitten), known for leading the frenzied stock trading of GameStop, has reignited enthusiasm for memecoins, with hot money flowing into these tokens. Additionally, Binance is set to list the PEOPLE/TRY spot trading pair on May 15, 2024,16:00 (UTC+8), bringing new funds to PEOPLE. Due to the rapid fluctuations in memecoin prices, users are advised to proceed with caution.
3.3 Google Search (Global and Regional)
Global focus:
Notcoin (NOT): Notcoin is a game based on Telegram where users can earn in-game tokens by clicking on coin images, similar to the "Tap to Earn" concept. Prior to the TGE, "vouchers" represented Notcoin in the game, which can be exchanged for $NOT post-TGE. The project has its own pre-market trading at https://getgems.io/notcoin, showing that 640,000 users already hold NOT pre-market tokens. It is confirmed to be listed on Binance Launchpool and OKX.
Regional focus:
(1) There is a lack of notable trends in hot search topics in Asia.
(2) The spotlight in Europe and America has returned to mainstream memecoins, with FLOKI appearing on trending searches in Switzerland and PEPE appearing on trending searches in several European countries/regions and the USA.
3. In South America and Europe, there has been significant interest in ONDO. Ondo Finance focuses on the Real World Assets (RWA) sector, with its primary operations involving the tokenization of high-quality assets like U.S. Treasuries and money market funds within a regulatory framework, facilitating investments and trades for blockchain users. ONDO has shown a relatively strong price performance recently.
4. Potential Airdrop Opportunities
Karak
Karak is an Ethereum Layer 2 restaking layer with multi-chain advantages. Backed by Andalusia Labs, a provider of digital asset risk infrastructure, it has raised $51.2 million from investors including Pantera, Lightspeed Capital, and Framework Ventures. Staking on Karak can yield staking rewards, restaking rewards, Eigenlayer points, staked LRT points, and Karak XP.
How to participate: 1. Add the Karak mainnet (can be added via Chainlist); 2. Cross-chain tokens to the Karak chain (currently supports rswETH, USDC, wETH), and stake them on Karak pools.
Lava Network
Often referred to as the "Celestia of 2024," Lava Network gained rapid recognition due to its substantial seed funding and strong investment lineup. In February of this year, it completed a $15 million seed round funding led by Jump Capital, Hashkey Capital, and Tribe Capital, with participation from North Island Ventures, Dispersion Capital, Alliance DAO, and Finality Capital Partners. Executives from blockchain projects like Celestia, Cosmos, StarkWare, and Filecoin also participated in this funding round.
Lava Network is currently in its testnet phase, with plans to launch the mainnet in the first half of this year. Before the mainnet launch, Lava introduced the Magma points reward program. Users can earn Magma points by switching their RPC connection to Lava.
How to participate: 1. Visit the official website, connect your wallet, follow the project’s account on Discord and X; 2. Change the RPC of your existing wallet by logging into Metamask network settings and updating the RPC to the one provided by Lava.
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