🧘‍♂️Trending NFT Projects

Dear Meditators

It’s ugly out there. Bankruptcy and investor losses are commonplace in headlines today.

But it’s not all bad news…

Solana’s NFT space is turning up the volume versus Ethereum and we’re looking at how to use Nansen to read market movements and bend on-chain analytics to our investing advantage!

Today’s Meditations: 

• Solana NFT Insights With Nansen
• Voyager Bankruptcy
• Uprise Coming Up Short

With Nansen’s On-Chain data, you get an edge over everyone else by tracking the behaviour and on-chain activity of prominent wallet addresses.

• Exciting New Opportunities. Follow Smart Money, identify new projects, and trace transactions down to the most granular level.
• Perform Due Diligence. Get more information on projects or tokens before you invest.
• Defend Your Positions. Create real-time custom alerts and get notified when and where a wallet has been moving its funds.
• Track The Biggest NFT Traders. See what the most profitable NFT wallets are investing in.

Every week, we share new ways you can use Nansen to profit in the crypto markets. So simply sign up and follow along!

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⏰ Top Headlines

• Voyager Account Holders Likely Won’t Get All Their Crypto Back
• Ethereum testnet Merge mostly successful – ‘Hiccups will not delay the Merge.’
• Boris Johnson resigns: Five things that led to the PM’s downfall
• Crypto owners banned from working on US Government crypto policies

☀️ Always Sunny in Solana?

NFTs have been a major source of profit for those with the right tools. However, with so much information available, it can be difficult to spot new opportunities. Using Nansen’s NFT data, we are able to compare NFT ecosystems, helping us spot opportunities before the rest of the market.

Step 1: Assessing the Macro Picture

Before looking at individual projects, we can use Nansen to compare NFT transaction volumes on Solana and Ethereum, helping us understand where to focus our search for profit:

     Solana         

Nansen.ai: 07/07/2022 – NFT Trends: Solana

    Ethereum

Nansen.ai: 07/07/2022 – NFT Trends: Ethereum

1. For the past 5 weeks, weekly transaction volume has been greater on Solana than on Ethereum – indicating that Solana is the hotter ecosystem right now.
2. OpenSea is the dominant marketplace on Ethereum.
3. Magic Eden, recently valued at $1.6bn, is the dominant marketplace on Solana.

Step 2: Diving Deeper into the Ecosystem

Now that we know that there may be an opportunity on the Solana blockchain, we can use Nansen to find the biggest NFT projects, helping us understand risk and reward:

Nansen.ai: 07/07/2022 – NFT Paradise: Solana – sorted by market capitalization

1. The largest project on Solana is DeGods with a market cap of $110m.
2. The 4 largest projects range between $20m – $110m market cap, indicating that even the largest projects are significantly smaller and potentially riskier than those based on Ethereum. For context, Bored Ape Yacht Club, the largest project on Ethereum has a market cap of $1.5bn.

Solana-based NFTs have grown at a blistering pace since September 2021, now eclipsing the transaction volume of Ethereum-based NFTs. However, projects on Solana have significantly lower market capitalization, indicating that these carry greater risk.

Using Nansen we are able to understand the hottest NFT ecosystem, and dive deeper to find opportunities that could outperform the market.

? Voyager Files for Bankruptcy

Voyager Digital has announced that they are filing for Chapter 11 bankruptcy. What happened?

• On Wednesday, Voyager Digital filed for Chapter 11 bankruptcy in the Southern District Court of New York. The bankruptcy indicated that they were responsible for anywhere from $1 billion to $10 billion in assets to more than 100,000 people.
• Voyager CEO, Stephen Ehrlich, said in a statement that this move is part of a “Plan of Reorganization.” If executed, the plan would enable access to customer accounts again. He further said that Voyager would “return value to the customer.”
• If the plan of reorganization is successful, customers with crypto in their accounts would receive a combination of crypto, proceeds from the 3AC recovery (if any), common shares in the newly organized company, and Voyager tokens.
• Voyager will continue to operate and it intends to continue paying its employees (including benefits). All trading, deposits, withdrawals, and loyalty programs, though, will be suspended indefinitely.
• Customers can access U.S. dollars in their accounts after a “reconciliation and fraud prevention process is completed with Metropolitan Commercial Bank.” Unfortunately, this insurance does not apply to any stablecoins.

In these times of turmoil, crypto security is vital. Everyone must understand the risks with crypto and keeping them on exchanges – as well as the risks of cold storage.

? An Uprise Gone Wrong

According to Seoul Economic Daily, Korean cryptocurrency investment firm ‘Uprise’ lost 99% of its customer’s funds during the LUNA collapse in May. Many investors were stung by the collapse of LUNA, as they saw the coin collapse from $120 to virtually nothing.

• Although most investors lost their money from purchasing at what looked like a significant discount and then holding the coin to zero, Uprise lost most of its customer’s funds by shorting the coin.
• The firm reportedly lost 99% of its customers’ funds, equivalent to $20.5 million, and an additional $3 million of its own money.
• Uprise is reportedly considering some form of compensation for affected customers, who are high-net-worth individuals and corporate entities.
• The firm’s unique selling point was its AI-enabled automatic trading strategies, which were supposed to reduce the risk involved with leveraged crypto trading. However, brief price spikes to the upside were enough to wipe out Uprise’s leveraged positions.
• The collapse of LUNA  started a domino effect of financial problems for hedge funds and lenders within the crypto space, worsening the current bear market.

Bear markets can be intimidating and mentally draining, especially for newer investors. That’s why it’s our job, to make your path to financial freedom as pain-free as possible.

Check out our Bear Market Survival Guide to find out how you can not only survive, but thrive during this current bear market.

?‍♂️WATCH OUT For This Data! Driving Crypto Prices

For today’s top headlines, head over to the Market Meditations YouTube where you can watch our Market Update Video.

Twitter

• So, they are effectively trying to say that only no-coiners will be allowed to shape the conversation around #crypto regulation. Hypocrisy much? – CoinBureau
• U.K. Prime Minister @borisjohnson said Thursday he will resign after a series of ministers left his government. – CoinDesk
• #PeckShieldAlert  Seems like Crema Finance Exploiter already returned ~6k $ETH and ~24k $SOL – PeckShieldAlert

 ? Act

• Sign up for Nansen to unlock industry-leading analytics.

? Read

• Get familiar with Magic Eden.
• Study our Nansen NFT Tutorial.

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??‍♂️✍️ Stories in this newsletter were written by Misael Calleja, Kai.A, Nick T., Max P., Kimia K., Ellen B. and Koroush AK. Graphics were produced by Ellen B.

Not financial or tax advice. The content in this newsletter is for informational purposes only. Nothing in this email is intended to serve as financial advice. We are not financial advisors. Every investment and trading move involves risk. Do your own research when making a decision. See our important security disclaimers here.

Disclosure. Some of the links we’ve included are affiliate, they give you rewards and discounts and earn us a commission. Additionally, the Market Meditator writers hold crypto assets. See our investment disclosures here.