Daily News | GameFi Sector Led the Market; Roaring Kitty Disclosed 180 Million GME Holdings; Solana Issued Nearly 500K Tokens in May

2024-06-04, 03:42

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## Crypto Daily Digest: Roaring Kitty disclosed $180 million in GME holdings, and GameStop surged overnight; Blast completed blob conversion and charged a lower fee; Solana Network issued nearly 500,000 tokens in May
Firstly, let's examine the <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> ETFs’ trading activities. According to Farside Investor data, on June 3, Grayscale Bitcoin spot ETFs (GBTC) continued to experience outflows of $276.2 million in funds. Meanwhile, Fidelity Bitcoin spot ETF (FBTC) had an inflow of $77 million, Bitwise Bitcoin spot ETF (BITB) had an inflow of $14.3 million, ARK 21Shares Bitcoin spot ETF (ARKB) had an inflow of $10.7 million, and WisdomTree Bitcoin spot ETF (BTCW)had a net inflow of $1.1 million.

**Roaring Kitty revealed $180 million in GME holdings, GameStop surged overnight**
Keith Gill, known as "Roaring Kitty" on Reddit, posted that after holding $181.4 million worth of GameStop (GME) stocks and call options, the stock price of GameStop soared by over 19% in overnight trading.

Gill is a trader who played a significant role in the 2021 GME short squeeze. He posted his first post on his Reddit account on June 2 since April 2021. In this post, he shared a screenshot showing that he purchased 5 million shares of GME stock for $115.7 million and invested $65.7 million in call options, betting that the GME stock price would reach at least $20 per share on June 21.

After Gill posted, Robinhood's overnight market showed that GME's stock price rose 19.19% to $27.58 within 20 minutes. Previously, during 2021, Gill was seen as one of the core figures in the GameStop legend, and Reddit traders successfully overturned hedge fund expectations by short selling the struggling physical game store.

Some people also believe that the bearish squeeze on GameStop has laid the foundation for a significant increase in memecoins such as <a href="/price/dogecoin-doge" target="_blank" class="blog_inner_link">Dogecoin</a>. As retail investors shift their attention, the price of memecoins has also risen accordingly.

**Blast completed blob conversion and charged lower fees**
The Blast network completed the conversion from calldata to blob last week, achieving lower costs.

Blast is a relatively new Optimistic Rollup that initially gained attention due to its support for native revenue. Its early access began in November 2023, allowing users to deposit but not withdraw. The platform naturally accumulated over $1 billion in TVL through the earned Blast Points bridging. Despite criticism that its invitation reward structure resembles a Ponzi scheme, Blast has now been opened to the public.

Although it has not yet been airdropped, Blast still attracts public attention as it has the support of Paradigm, founded by the founder of Blur in the NFT market, and provides revenue opportunities.

In addition, Blast is also the location of the crypto protocol fantasy.top, which allows users to trade the crypto influencers’ trading cards. At the beginning of this month, the platform ranked among the top ten in terms of daily fees, despite a slowdown in revenue.

In terms of activity, Blast still lags behind Arbitrum. When it was launched, Base was experiencing its second wave of popularity, so Blast fell behind the Optimistic Rollup supported by Coinbase. Its daily trading volume is usually consistent with <a href="/price/optimism-op" target="_blank" class="blog_inner_link">Optimism</a>, at around 500,000 transactions per day, which is still quite impressive for a relatively new network.

Regardless of usage, all Layer 2 networks that start using Blob instead of Calldata to publish transaction summaries can benefit because this method provides a cheaper way of storing data. Since the Blob upgrade on May 27, the average transaction cost of Blast has remained below $0.01, making it one of the cheapest Layer 2.

**<a href="/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a> issued nearly 500,000 tokens in May, primarily memecoin**
Due to the low threshold and strong demand for creating popular meme coins, nearly 500,000 tokens were issued on the Solana platform in May.

Most of the tokens on Solana are meme coins, which quickly caught the attention of crypto enthusiasts. This trend is intensifying with the rapid rise of some Solana based memecoins (such as Dogwifhat, Bonk, and Book of Meme) in the crypto market rankings.

Part of the success is attributed to Pump.fun, a platform that makes it easier for anyone to issue tokens and stimulates the issuance of more tokens. Solana has issued 1.1 million new tokens so far this year. Pump.fun is the launch platform for political memecoins such as Jeo Boden and Doland Tremp, which have achieved great success before the upcoming US election.

The number of newly created tokens is an indicator of the crypto ecosystem, reflecting more on the affordability and high throughput of the chain. However, it does not take into account the value accumulated by each token and is also a vanity indicator, as most tokens lack liquidity and are quickly forgotten.

## Market Trends: GameFi sector led the market, increasing risk of short-term market downturn
**BTC and ETH Trends**
After breaking through $70,000 yesterday, BTC fell back to around $69,000, indicating a certain level of selling pressure and profit taking. Users need to monitor the support and resistance of $70,000 as an important psychological barrier.

ETH consolidated at around $3,770, with relatively stable performance in the short term. You can pay attention to whether it can stabilize above $3,800 to determine the next trend.

**Macroeconomic Environment**
US stock market volatility: The technical malfunction of the New York Stock Exchange has caused multiple stocks to almost return to zero, indicating the fragility and uncertainty of the market. In the unstable traditional financial market, the crypto market may become a safe haven for funds, but it is also necessary to be cautious of the overall increase in market volatility.

The sharp decline in the US dollar index may make assets denominated in US dollars (including cryptocurrencies) relatively more attractive.
### Market Hotspots:
**GameFi Sector**
ALICE, PYR, GHST, DAR, SLP, VOXEL, and other tokens have surged, demonstrating investors' enthusiasm for GameFi. Due to the relatively small market value of these tokens, there may be room for improvement in the short term due to the low resistance to pull.

Strategy: Users can consider holding these tokens in the short term, but be wary of the risk of a pullback after a rapid rise.

**Concept of Algorithmic Stablecoins**
ENA and SPELL surged: ENA's issuance of USDe reached a scale of $3 billion, indicating an increase in market demand for algorithmic Stablecoins.

Strategy: Users can monitor tokens’ ecological development and application scenarios, and choose tokens with practical application prospects for medium and long-term investment.

**BTC Ecosystem**
Rune DOG surged: DOG continued to reach a historic high, with a market cap close to $900 million, surpassing the in_script_ions leader ORDI.

Strategy: Consider taking partial profits when the market is hot, while paying attention to changes in market sentiment.

**Meme Tokens on Solana Chain**
GME, PONKE, POPCAT, and others rose sharply: At 4am today, Roaring Kitty released a screenshot of her position in Reddit's Superstone sector. Her GME call options turned losses into profits, earning a profit of $51.83 million.

Strategy: These Meme tokens have high volatility and are suitable for high-risk investors. We need to closely monitor changes in market sentiment and promptly stop profits and losses.

The current market is full of opportunities and risks, and investors need to make flexible adjustments based on their own risk tolerance and market dynamics. In the short term, GameFi, the concept of algorithmic Stablecoins, and some hot tokens may perform well, but it is necessary to be vigilant of rapid changes in market sentiment and conduct risk management on time.

## Macro: Manufacturing data and fluctuations on the New York Stock Exchange had a slight impact, with Wall Street closing higher and Asian markets falling; June will see major election results in multiple regions
On Monday, June 3, due to weak manufacturing data and the malfunction of the New York Stock Exchange, dozens of stocks temporarily suspended trading. The S&P 500 index and Nasdaq index rose slightly in volatile trading on Monday.

The rise and fall of major indices varied: the Dow Jones Industrial Average fell 0.30%, the S&P 500 Index rose 0.11%, and the Nasdaq Index rose 0.56%.

The malfunction of the New York Stock Exchange resulted in significant fluctuations in the stock prices of Berkshire Hathaway (BRKa.N) and Barrick Gold. Due to volatility, at least 60 stocks listed on the New York Stock Exchange were suspended from trading. The exchange subsequently fixed the technical issues and resumed trading.

According to the Chicago Mercantile Exchange's FedWatch tool, traders predict a 59% likelihood of the Federal Reserve cutting interest rates in September, higher than the 53% before the release of ISM data. Weak manufacturing data pushed the yield of benchmark 10-year treasury bond bonds to a two-week low.

In early June, the world will welcome a series of major election results, with popular candidates from Mexico and India winning overwhelmingly. Meanwhile, the US labor market has ushered in a crucial week, with Wall Street stock markets showing active performance. In the Mexican presidential election, Claudia Sheinbaum won, causing the peso to drop to a five-week low before Monday's opening.

On June 4, Asian stock markets slightly declined on Tuesday as global investors believed that the "exceptionality" outlook for the US economy began to fade as manufacturing activity in the world's largest economy further weakened.

The MSCI Asia Pacific stock index fell 0.1% after a slight increase in the previous trading day, and has risen 1.6% so far this month. Australian stocks fell 0.21%, while Japan's Nikkei Index fell 0.77%. The Hang Seng Index in Hong Kong remained unchanged in the early trading session, while the CSI 300 Index in China fell 0.16%.

The benchmark 10-year US treasury bond bonds yield reached 4.4001%, while the US closed at 4.402% on Monday. The yield of two-year treasury bond bonds hit 4.8184% as traders expected the federal funds rate to rise, up from the US closing price of 4.818% on Monday.

After collecting 642 million votes in the world's largest election in India, Prime Minister Narendra Modi is expected to be elected for a record third consecutive time. Analysts say that this result is expected to have a positive impact on the Indian financial market and drive further economic reforms in India.

In the currency market, the US dollar rose 0.16% against the Japanese yen to 156.35, but it is till far from the annual high of 160.03 set at the end of April. The euro rose 0.1% against the US dollar to $1.0912, up 0.65% within a month. The US dollar index tracking the exchange rate of the US dollar against a basket of other major trading partner currencies fell to 104.

Regarding commodities, US crude oil prices fell 0.42% to $73.91 per barrel. Brent crude oil fell to $78.05 per barrel. After OPEC+agreed to cancel some production cuts from October, both benchmark crude oil prices fell to a four month low on Monday.

Gold rose slightly, with spot gold trading at $2,350.73 per ounce.

<div class="blog-details-info">
<div>Author:**Sherry S. & Icing**, Gate.io Researcher
<div>Translator:Joy Z.
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>