⚡Capital Flows Back into Crypto
Plus Solana leads market rally, the Chainlink bull case, and more
The Dynamo DeFi newsletter covers trends, on-chain analysis and tools in crypto each week.
📈Trends and Narratives
Solana Leads Market Rally
This week Solana broke above $30 and SOL/ETH hit its highest point in over a year.
Chris Burniske describes how the best returns come from non-consensus assets like SOL that later become consensus assets. I always like to say that by the time something is consensus, you’re no longer early.
Mert, a Solana ecosystem dev and advocate, describes how nonlinear growth in a single app can propel one ecosystem above others.
If Solana’s rally has you interested in looking deeper at the Solana ecosystem, I published a video about Solana DeFi over the weekend. To sum it up briefly, my focus is on accumulating points for potential airdrops on Jito, a fast-growing liquid staking protocol, and MarginFi, an up-an-coming money market.
Has Chainlink’s Time Arrived?
Besides SOL, the other strongest performer among majors this week was LINK. Up 35% in 7 days as of the time I’m writing this email.
Chainlink has effectively positioned itself at the apex of several ongoing narratives:
Infrastructure for tokenizing real world assets
The connection between TradFi and DeFi
These, combined with Chainlink’s uniqueness in a market of sameness have pushed it higher.
Winter Soldiers outlines the uses and bullish case for Chainlink in this long post:
⚡The First Dynamo Research Call is This Week
The paid version of Dynamo DeFi, called Dynamo Research, gives you deeper insight into the crypto market.
For $11/month (less than lunch in most countries), premium subscribers get:
⚡Monthly group calls. Each month, I’ll conduct a group video call to discuss the market, latest crypto trends, and more. Premium subscribers can access this week’s call here.
⚡Discord to discuss on-chain data and trades. Learn more here.
⚡Exclusive newsletters & on-chain data indicators. Actionable insights about which tokens have strong fundamentals. Plus special in-depth reports.
⚡Pre-recorded videos. These will be longer in-depth videos where I show my research process. View past videos here.
🔢On-Chain Analysis
Total Stablecoins Stabilize in Key Market Indicator
In an update on a trend we’ve been tracking for awhile in this newsletter, total stablecoins in the crypto market have now been flat for 3 months. This hasn’t happened since early 2022.
As the vast majority of stablecoins are backed by external collateral, stablecoins can be a proxy for capital in the crypto markets.
For a sense of the significance of this, the total stablecoin market cap continued to drop even during the price rallies last summer and this spring.
Tron On-Chain Stats Hit New Milestones
Tron’s on-chain activity has been quietly growing over the past few years.
Transfer volume of hot tokens has been on a long-term uptrend going all the way back to 2019.
TVL broke its all-time high from late 2021 last week, the only major chain to do so.
I attribute Tron’s under-the-radar growth to 2 phenomena:
USDT. Most USDT is on Tron and Tron USDT is increasingly used for remittances and OTC payments around the world.
The founder of Tron, Justin Sun, was a massive whale in Ethereum DeFi and has shifted many of his funds to Tron DeFi.
🛠️Tool Spotlight
Track Portfolio Across Any Chain with Pulsar
With the growth of Solana, many people are venturing to non-EVM wallets, either for the first time ever or the first time in years. Unfortunately, most portfolio trackers are only compatible with EVM addresses (ex: Ethereum, Arbitrum, Polygon, etc).
I found Pulsar to be a highly useful portfolio tracker that’s compatible with every chain I checked, including Solana. I’m currently using this to track my Solana portfolio.
📅Key Events This Week
Prepare for the Next Bull Market with Double Your DeFi Next Week
My friend The DeFi Edge and I are teaching another cohort of our Double Your DeFi course this November. This is an intensive course to transform your DeFi skills in 5 weeks.
I secured a $300 discount for the first 5 people that sign up from my email list.
Use the coupon code: DynamoDeFi
That’s all for this week. For more frequent content, follow me on Twitter and YouTube.
Until next time,
Patrick Scott
Dynamo DeFi
Solana is pumping hard. We, at Loch, wrote about it on Twitter. Check it out for some further on-chain analysis and smart money movements - https://x.com/loch_chain/status/1715627929718423922?s=20
and go to - https://app.loch.one/home/FWznbcNXWQuHTawe9RxvQ2LdCENssh12dsznf4RiouN5?redirect=home to follow this $SOL smart money in detail!