$DMT L3, $ETH ETF, HyperLiquidX & More

The Castle Chronicle: Volume 70

 👀 What’s to Come in Volume 70

🔑 Key News: Headlines, Exploits, Continued Adoption, DeFi Updates, New Projects & more from CJ

On-Chain Sleuthing feature from Cl

🔥 Hot Narratives $ETH ETF & HyperLiquidXfrom unexployed

📉 HTF Price Action Scenarios from Vlad

⚔️ A Call to Arms

Think you have what it takes to enter the Castle and contribute to funding and advising projects across the space?

🔑 Key News

Weekly News

  • U.S. CPI: +3.4% YEAR-OVER-YEAR (EST. +3.4%) U.S. CORE CPI: +3.6% YEAR-OVER-YEAR (EST. +3.6%)

  • BlockTower Capital's main hedge fund hacked

  • Circle plans to redomicile to the US ahead of possible IPO

  • Bybit blacklisted in France

  • Genesis Approved to Repay Creditors Billions

  • SEC asks exchanges to update 19B-4 filings on an accelerated basis for spot ETH ETFs

Project Updates

  • AlexLab BTC exploited for $4.3M

  • Sonne Finance exploited for ~$20M, released post mortem

  • pumpdotfun exploited, releases post-mortem

  • Gala Games exploited for $22M, exploiter has been blacklisted

  • Lens Protocol introduces Lens Network leveraging zkSync

  • Maker DAO announces first subDAO to launch called Spark

  • LidoFinance co-founders & Paradigm funded Symbiotic, an Eigen Layer competitor

  • Blast delays airdrop to June 26th

  • Mantle proposal to introduces cMETH & a new governance token

  • zkSync teases v24 upgrade and airdrop rumours

  • LayerZero Labs releases list of sybils

  • Fantom FDN reveals Sonic Network and token migration

  • deBridgeFinance introduces $DBR token

  • Redacted Cartel rebranding proposal to Dinero Protocol

Interesting Projects

Courtesy of CJ - check out his telegram channel for daily news, projects updates and new releases

⛓ On-Chain Sleuthing

SankoCorp Mainnet is LIVE $DMT

I am very bullish on the new L3 created by the SankoCorp team ($DMT). If you are interested in exploring this new ecosystem, here is the main on-chain informtion:

They intend to deploy more games and socialFi-type stuff. They even hinted at a shitcoin launchpad a la PumpDotFun.

Definitely something to keep on your radar.

Sleuthing on $DMT

As the Orbit L3 was launched by Sanko, I decided to investigate the wallets that are buying the $DMT token.

I noticed an interesting wallet:

The Wallet Address [only visible for free subs]

This address has been TWAP’ing 10 ETH clip on $DMT for a couple of days now.

This address has been funded by a wallet which is labelled as a market maker and affiliated with GSR:

Alleged GSR Wallet [only visible for free subs]

Interesting to see such a huge firm accumulate this rather small cap on Arbitrum. In turn, this does explain the recent price action on $DMT.

The Layer 3 narrative seems to have started with $CHEESE, $DMT, and soon $WINR launching their Orbit chains.

Do not forget that infrastructure projects are valued at a premium over normal projects. That being said, now that every project is able to launch their own chain, the question whether this will hold is up for debate.

CT Influencoorrrs DUMPING $FRIEND

The infamous Froyo Fan has been spotted dumping a HUGE order of $FRIEND in recent days.

And so has Loomdart.

And even, MOMIND (https://x.com/momind__) who was the second biggest $FRIEND holder (after Machi) decided to dump all his bag after some frustration regarding the application itself

Momind Wallet

Even if the token distribution of $FRIEND was very innovative and 100% centered around the community, it’s not being met with a good price action.

Research and analysis by Cl

🔥 Hot Narratives

$ETH ETF

The week opened on Monday with some insane price action on $ETH: 10% candle in 10 minutes. Gwei (Ethereum native gas) spiked to >100 and users had to pay $100 for a simple Uniswap transaction.

This was caused by a Tweet from Eric Balchunas as he readjusted his odds for an Ether ETF.

These rumors were then soft-confirmed by the SEC itself one hour later when they asked exchanges to update filings to comply with the ETH ETF.

Yesterday, a lot of the big firms, such as Blackrock and Grayscale, updated their filings and removed staking from their product (source).

And then the ETFs were approved!!

Leading up to the approval, a lot of coins made significant gains, but have stagnated quite a bit now.

We think that farming GRAIL on Arbitrum may be a great opportunity to get some indirect exposure to Ethereum.

There are a lot of great pools with good APRs. Of course be cautious with your risk and be aware of high impermanent loss in case of two very degen pairings.

Nonetheless, if you have some idle ARB/WETH or USDC. You can easily park them on Camelot and farm some xGRAIL.

I believe that GRAIL is a great bet on the Arbitrum ecosystem and subsequently a good Ethereum beta.

Of course, you could also buy some PEPE or any other Ethereum meme. But for me GRAIL is a pure farming play.

Deposit tokens and sit back. Let the money work for you.

HyperLiquidX Keeps Shipping

HyperLiquid is simply unstoppable.

They pioneered a new BFT consensus engine which is extremely fast (tweet).

Now they also announced permissionless spot listings (tweet). Besides PURR there are now a few memecoins on the chain, so one could argue that it is already a saturated market.

That being said, I expect that there will be some projects opting to launch their token on HyperliquidX as it rivals the performance of CEXs.

For those interested there is a Telegram bot for spot sniping telegram: Hypurrfun.

Remember. No VCs in this one. Points are going to absolutely print.

Courtesy of unexployed

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📈 HTF Price Action Scenarios

Gm frens!

Last week I was looking for a break of the trendline and some higher highs created by a strong push and it has finally happened! The anticipated push in the re-accumulation territory is here potentially providing us with some opportunities.

  • HTF re-accumulation

  • Trendline broken

  • Big initial push

  • All MA’s reset and sloping upwards

  • Overextended

While this is exactly what we were waiting for, this push is really wild and imho overextended. I want to see price go sideways and re-accumulate on these timeframes a little bit before opening any new longs. It’s easy to feel FOMO during moments like these, but patience is of utmost importance.

This is overall a green light to start looking for setups as big money has now shown its hand. Therefore, I will wait for a pullback and look to get involved there.

Should price completely retrace and break into new lows, that would be an invalidation and a sign of either overall distribution or a longer-lasting sideways market.

Trade responsibly and I’ll see y’all next time!

Courtesy of Vlad - trend-based trader and MentFX student

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Virtually yours,

The Castle

In our newsletter, we may discuss projects or tokens in which we hold positions. While we aim to provide informative content, our views are not financial advice. Please conduct your research and consult professionals before making investment decisions. Crypto markets are volatile, and past performance doesn't guarantee future results. Invest responsibly, and be aware of the risks. Your capital is at risk, and we do not accept liability for any losses.

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