Blockchain

In the tumultuous world of cryptocurrency, few names have resonated as powerfully in 2023 as Arbitrum (ARB). The crypto juggernaut has rapidly ascended the ranks, outpacing industry stalwarts and marking its territory in the competitive landscape.

As the demand for its network reached a fever pitch, developers flocked to Arbitrum, surpassing the likes of Polygon, Optimism, Avalanche, and even the formidable Solana.

The meteoric rise of ARB isn’t just a spectacle; it’s a testament to its resilience and adaptability. In the latest twist of the crypto bull run, ARB has displayed an impressive recovery, trading at an enviable $1.62.

ARB Shows Mettle With 42% Rally In Weekly Charts

A formidable 25% surge in the last 24 hours and a solid 42.4% increase over the past week underscore the coin’s enduring strength as Arbitrum buckles up for major partnerships in 2024.

The journey from its yearly low has been remarkable, witnessing an 80% surge that catapulted its market cap beyond the $1.6 billion mark. It’s a stark contrast to the all-time high of $8.67, a summit conquered just nine months ago.

Arbitrum’s allure extends beyond price dynamics; it boasts a burgeoning ecosystem teeming with renowned developers. According to DeFi Llama, its Total Value Locked 24.3% surge in the last 24 hours

Arbitrum Unveiled: Ethereum’s Scaling Prodigy

Specifically created to support Ethereum’s scalability, Arbitrum is a decentralized platform. By scaling Ethereum, Arbitrum provides users with an Ethereum-like platform where they may engage in on-chain activities at a lower cost than what they would pay on the Ethereum mainnet.

The Ethereum submodules known as Arbitrum rollups power Arbitrum. The rollups remove the requirement for Ethereum nodes to validate arbitrum transactions, suggesting that Ethereum will accept the Arbitrum layer’s credibility for on-chain operations from the standpoint of “innocent until proven guilty.”

With over 50% YoY growth in developer headcount, the Arbitrum chain is among the fastest-growing Layer 2 solutions, according to the 2023 Developer Report. The ecosystem currently consists of a wide variety of components as a result of this exponential expansion in development.

On March 23rd, Arbitrum orchestrated a groundbreaking airdrop, disbursing 1.27 billion ARB tokens to over 600,000 eligible wallets. This spectacle coincided with a surge in daily transactions, hitting a single-day high of 2.73 million, as reported by Arbiscan.

With Ethereum sentiments being in the dumps right now, I’d just like to say working with Arbitrum (@arbitrum) has been a great experience

Expect more projects that combine Arbitrum with @cardano and @MinaProtocol in the 2024

— Sebastien Guillemot (@SebastienGllmt) December 26, 2023

Meanwhile, DCSpark and Paima Studios co-founder Sebastien Guillemot have discussed the possibility of working together in 2024. A member of the Cardano community and software engineer Guillemot wrote on X, predicting additional projects in 2024 that integrate Arbitrum with Cardano and Protocol.

Guillemot thinks that merging both platforms will be beneficial, especially given Ethereum’s current market conditions.

Featured image from Freepik

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Numerous price predictions have emerged as the Bitcoin price continues to demonstrate significant growth throughout the year, fueled by factors such as the upcoming halving event and potential approval of a spot Bitcoin exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC). 

Notably, the ETC Group has released a comprehensive report shedding light on the potential for new all-time highs in 2024 and an impressive milestone of $100,000 by year-end.

Bitcoin Price Recovery Sets The Stage For A Promising 2024

According to the ETC Group’s recent report, 2023 served as a recovery year for Bitcoin and crypto assets, with pivotal catalysts setting the stage for the following year. 

Per the report, BlackRock’s spot Bitcoin ETF filing in June 2023 laid the groundwork for increased adoption of this emerging asset class in 2024 and beyond. 

Despite the progress made, the report highlights that Bitcoin and other cryptocurrencies are still in their infancy in terms of adoption in most developed countries. 

Global surveys indicate an adoption rate of approximately 18%, suggesting that roughly one in five individuals worldwide holds some crypto asset.

One of the highly anticipated events expected to drive Bitcoin price appreciation is the BTC Halving scheduled for the end of April 2024. While some argue that the halving is already priced in due to its public knowledge, historical data demonstrates significant price increases following previous halvings. 

Notably, the ETC Group’s base case prediction forecasts that Bitcoin’s price will reach new all-time highs in 2024 and surpass $100,000 by the year’s end.

On-Chain Metrics Signal Bullish Outlook For BTC In 2024

Several on-chain metrics indicate that Bitcoin’s supply is scarcer this cycle than the previous one.  According to the report, key indicators such as the percentage of exchange supply at a 5-year low and the all-time high percentage of supply in the last 1+ years suggest a potential bull market with increased distribution of accumulated coins to new investors. 

Additionally, macro factors, including the potential approval of a spot Bitcoin ETF in the US, a likely US recession, a reversal of monetary policy, and geopolitical risks, contribute to a favorable outlook for the Bitcoin price in 2024.

A major point of discussion among investors revolves around the potential price impact if a spot Bitcoin ETF gets approved in the US. The report highlights that variations in global Bitcoin ETP flows have explained approximately 40% of Bitcoin’s price variation over the past six months. 

Assuming that 20% of investors would consider such an investment and allocate 3% of their assets under management (AuM) to Bitcoin, an estimated $33.5 billion of new capital could enter the market. 

This influx of funds, almost doubling the global Bitcoin ETP AuM, could lead to a price impact of around 98%.

Overall, the ETC Group’s in-depth analysis and predictions suggest an auspicious year for Bitcoin price 2024. With anticipated new all-time highs and the possibility of surpassing $100,000 by year-end, Bitcoin’s growth trajectory shows no signs of slowing down. 

Featured image from Shutterstock, chart from TradingView.com 

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Curve Finance founder Michael Erogov has moved over 23 million CRV, the native governance token of the Curve DAO, to Binance, the world’s leading cryptocurrency exchange, over the last five days, The Data Nerd, on December 27, shows. The founder moved 2.5 million CRV on December 27. This transfer may ruffle investors, raising concerns because it could indicate that Erogov is likely liquidating.

CRV Is Firm, Up 60% In The Last 3 Months

While the founder’s sale of CRV could put downward pressure, the token remains firm and is up roughly 60% from September 2023 lows. The token trades above $0.60 at spot rates, rejecting selling pressure as the daily chart shows.

If bulls press on, it could break above $0.72 to record new 2023 highs. The token is trending higher, rejecting bear attempts amid improving sentiment across the crypto scene. Although Erogov is selling CRV, the market seems to interpret the move as bullish.

The spectacular revival of CRV is net bullish for the protocol, suggesting that investors are still confident despite headwinds in early H2 2023 when several Curve pools were exploited due to a Vyper compiler issue.

Curve Founder Sold CRV To Prevent Liquidation Of DeFi Loans

Following the hack in late July 2023, Erogov was forced to liquidate a large chunk to prevent liquidation. On its part, the hack led to over $52 million in crypto assets, including 7.19 million worth of CRV, lost. In the aftermath of the hack, prices crashed.

At the time of this hack, Erogov had over $100 million in DeFi loans backed by 427.5 million CRV as collateral. As CRV prices fell, the health of Egorov’s loans fell in tandem. 

If the value of Egorov’s CRV collateral were to fall further, it could face liquidation. This meant that all protocols from where the founder had borrowed using CRV as collateral would have been forced to sell the token at spot rates to repay the loan. As an automated intervention, the event would have likely caused a cascade, even impacting ordinary holders using CRV as collateral. 

To avoid this and as a form of intervention, Tron founder Justin Sun and multiple other parties, including Jeffrey Huang, made deals to buy CRV from the Curve founder, preventing this liquidation from happening. 

According to DeBank on December 27, Erogov’s crypto portfolio was north of $136 million. Out of this, the founder owns over $38.9 million of CRV.

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Ethereum price is gaining pace above the $2,320 resistance zone. ETH is up over 5% and it seems like ETH is finally outperforming Bitcoin.

Ethereum is gaining pace and trading above the $2,300 support zone.
The price is trading above $2,350 and the 100-hourly Simple Moving Average.
There is a connecting bullish trend line forming with support at $2,380 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could extend its rally toward the $2,500 and $2,550 resistance levels.

Ethereum Price Starts Fresh Rally

Ethereum price extended its decline below the $2,250 level. ETH even spiked below the $2,200 level before the bulls appeared. A low was formed near $2,180 and the price started a strong increase, outperforming Bitcoin.

There was a move above the $2,250 and $2,280 resistance levels. The bulls even pumped the price above the $2,350 resistance. A new multi-day high is formed near $2,441 and the price is now consolidating gains. The price is now trading above the 23.6% Fib retracement level of the upward move from the $2,180 swing low to the $2,441 high.

Ethereum is now trading above $2,350 and the 100-hourly Simple Moving Average. On the upside, the price is facing resistance near the $2,440 level.

Source: ETHUSD on TradingView.com

The first major resistance is now near $2,500. A close above the $2,500 resistance could send the price toward $2,500. The next key resistance is near $2,620. A clear move above the $2,620 zone could start another increase. The next resistance sits at $2,700, above which Ethereum might rally and test the $2,800 zone.

Downside Correction in ETH?

If Ethereum fails to clear the $2,440 resistance, it could start a fresh decline. Initial support on the downside is near the $2,380 level and the trend line.

The first key support could be the $2,320 zone or the 50% Fib retracement level of the upward move from the $2,180 swing low to the $2,441 high. A downside break and a close below $2,320 might spark more bearish moves. In the stated case, Ether could revisit the $2,200 support. Any more losses might send the price toward the $2,120 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 level.

Major Support Level – $2,320

Major Resistance Level – $2,440

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Binance Coin (BNB), despite experiencing a significant decline earlier this year due to market volatility and the SEC lawsuit against Binance and its founder Changpeng Zhao (CZ), has shown remarkable recovery and promising prospects. 

Recent data indicates a resurgence in the BNB price, driven by the growing usage of decentralized applications (DApps) on the Binance Smart Chain (BSC). 

Additionally, BNB’s fundamentals, including impressive market cap figures and increased revenue, further contribute to the positive momentum. 

BNB Price Rally Fueled By DApp Adoption? 

After witnessing a sharp decline from its yearly high of $350, BNB experienced a drop to the $203 level following the SEC lawsuit against Binance and CZ. However, recent price movements show signs of recovery and bullish sentiment. 

Over the past 24 hours, BNB has gained 4.5%, and its performance in the seven, fourteen, and thirty-day time frames demonstrates an upward trend, with gains of 20%, 24%, and 38%, respectively.

One of the driving factors behind BNB’s price rally is the increasing use of DApps on the Binance Smart Chain. Data from DappRadar reveals a surge in DApp volume, currently at $4.83 billion, representing a 12% increase. 

The BNB chain boasts an ecosystem of 5,120 DApps and has recorded 4.89 million transactions, reflecting a 12.73% surge in the past seven days. These figures indicate a growing demand for BNB as it serves as the primary token within the BSC ecosystem.

Comparing BNB to Ethereum (ETH), DappRadar data highlights BNB’s superior performance in various indicators such as contracts, total unique active wallets (UAW), decentralized finance (DeFi) total value locked (TVL), and non-fungible token (NFT) volume. 

The BNB chain has held the top position over the past 24 hours, showcasing its usage and adoption. This outperformance contributes to the positive market sentiment surrounding BNB and bolsters its price.

Binance Coin Market Cap Surges To $48 Billion

Further boosting the Binance Coin prospects, Token Terminal data reveals impressive market cap figures for BNB, with a circulating market cap of $48.02 billion, marking a 14.18% increase. 

Additionally, BNB’s fully diluted market cap stands at the same value, reflecting a 28.32% growth. The revenue generated by BNB in the past 30 days has increased by 28.51%, reaching $1.47 million. 

Furthermore, BNB has recorded significant fee growth, with a 27.98% fee increase over the past 30 days and an annualized revenue of $187.56 million. These fundamentals contribute to the positive sentiment surrounding BNB.

Overall, Binance Coin has staged a strong recovery, demonstrating a notable price rally driven by the increasing usage of DApps on the Binance Smart Chain. However, there is a bold prediction by a crypto analyst that could further boost the sentiment and excitement surrounding the token.

Binance Coin To Reach New Yearly High? 

According to Captain Faibik, a prominent crypto analyst on X (formerly Twitter), Binance Coin is poised to achieve a new yearly high in the first half of 2024. 

This prediction is based on an analysis of BNB’s 1-week chart, revealing a breakout from a descending triangle pattern, signaling the end of the macro downtrend and initiating a new uptrend phase for BNB.

Looking at the chart below, Faibik suggests that BNB’s price could potentially experience an impressive uptrend of 171% in the initial weeks of 2024. This surge would propel the token’s price above the current all-time high (ATH) of $686. 

However, several resistance levels must be overcome for this projection to materialize. Notably, at the current trading price of $307, BNB faces a significant seven-month resistance barrier, which currently hinders its ascent to the $314 level, the next resistance level in the near term. 

Analyzing the 1-day chart, it becomes evident that reaching the all-time high level would require surpassing additional macro resistance levels, including $329, $402, $450, $563, $607, $639, and $653.

While the theory proposed by Faibik holds promise, the actual realization of Binance Coin’s new yearly high in the early months of 2024, along with a sustained uptrend, remains to be observed. 

Featured image from Shutterstock, chart from TradingView.com 

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Bitcoin price found support and started a decent increase above $43,000. BTC is rising, but it might struggle to clear the $44,300 and $44,500 resistance levels.

Bitcoin tested the $41,650 zone an started a fresh increase.
The price is trading above $43,000 and the 100 hourly Simple moving average.
There was a break above a connecting bearish trend line with resistance near $43,350 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could continue to move surge toward the main resistance at $44,300.

Bitcoin Price Restarts Increase

Bitcoin price was able to find bids above the $41,500 level. BTC formed a base and recently started a fresh increase from the $41,637 low. There was a steady increase above the $42,500 resistance zone.

There was a break above a connecting bearish trend line with resistance near $43,350 on the hourly chart of the BTC/USD pair. The pair even climbed above the 61.8% Fib retracement level of the downward move from the $44,429 swing high to the $41,636 low.

Bitcoin is now trading above $43,000 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $43,780 level. It is close to the 76.4% Fib retracement level of the downward move from the $44,429 swing high to the $41,636 low.

Source: BTCUSD on TradingView.com

The first major resistance is $44,000. The main hurdle sits at $44,300. A close above the $44,300 resistance could start a decent move toward the $45,000 level. The next key resistance could be near $45,500, above which BTC could rise toward the $46,500 level.

Another Rejection In BTC?

If Bitcoin fails to rise above the $44,000 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $43,350 level.

The next major support is near $42,750. If there is a move below $42,750, there is a risk of more losses. In the stated case, the price could drop toward the $42,000 support in the near term.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $43,350, followed by $42,750.

Major Resistance Levels – $43,750, $44,000, and $44,300.

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As the crypto industry marches into 2024, Ethereum draws significant attention from analysts and investors alike. Amidst the swirling currents of the crypto market, Ethereum stands at the cusp of what some analysts are predicting to be a ‘transformative period.’

This anticipation stems from two crucial developments: an impending network upgrade and the potential approval of Ethereum-based spot ETFs, according to renowned analyst CryptosRUs.

Catalysts For Growth: Upgrades And Spot ETF Approval

The Ethereum network is gearing up for its next major upgrade, slated for January 2024. This upgrade, known in the crypto community as the Dencun Upgrade, is expected to usher in a range of enhancements to boost network efficiency.

Key among these improvements are features designed to shrink transaction fees on the Ethereum mainnet. This move could significantly ease congestion issues that have long been a concern for users and developers.

Additionally, modifications to smart contract operations and enhancements to staking protocols are on the cards, setting the stage for an optimized Ethereum ecosystem.

According to CryptosRUs, the anticipated Dencun Upgrade is not the only factor fueling optimism for Ethereum’s growth in 2024. The analyst has further highlighted the potential impact of approving a spot exchange-traded fund (ETF) for Ethereum.

Such a development could mark a pivotal moment for Ethereum, potentially driving widespread adoption and significant price appreciation.  The analyst points out that approving an Ethereum spot ETF could mirror the influence seen in other markets, substantially boosting investor confidence and market liquidity.

Over the past few weeks, we have seen rotations of capital through several crypto ecosystems, including #CosmosEcosystem , #Solana, #Injective, #BRC20s, and #Avalanche.

In today’s #analysis, I am going to explain why I believe Ethereum will be the next ecosystem to see explosive… pic.twitter.com/XdFxqzkbUP

— CryptosRUs Analysis (@CRUAnalysis) December 26, 2023

Regulatory Hurdles And Ethereum Growth Trajectory

So far, the path to a spot ETF approval appears to be intertwined with regulatory processes. The US Securities and Exchange Commission (SEC) has been extending its timeline for decision-making on both Bitcoin and Ethereum spot ETFs.

With numerous applications pending, the crypto market awaits the SEC’s verdict, which is anticipated to arrive in 2024. The SEC noted in a recent filing:

The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and issues raised therein.

Meanwhile, Ethereum’s performance continues to exhibit resilience and growth. Over the past year, Ethereum’s value has increased by 88.2%, with a continued upward trajectory evident in recent trading periods. At the time of writing, ETH has experienced a 5.3% surge in the last 24 hours, trading at $2,346.

Furthermore, CryptosRUs analysis also extends to ETH, which has shown price movements analogous to Solana’s (SOL) recent surge. SOL’s value has soared by over 100% in the past month, leading the analyst to draw parallels with Ethereum’s potential price trajectory.

CryptosRUs suggest that ETH may exhibit a bull flag pattern as it heads into the upcoming upgrade and possibly spots ETF approval, mirroring Solana’s recent performance.

Featured image from Unsplash, Chart from TradingView

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A Dogecoin whale address recently made a transfer of 71.2 million DOGE valued at $6.3 million into Robinhood from a private address. According to various social media posts by whale transaction tracker Whale Alerts, large DOGE transfers in and out of exchanges have seen an uptick since the beginning of the week. At the same time, the price of DOGE has traded between a high end of $0.097 and a low end of $0.089.

Massive DOGE Transfer Into Robinhood

The uptick in massive DOGE transfers from whales has had investors thinking of the crypto’s outlook in the next few days. When whales make big transfers like this, it often signals they’re about to make a major buy or sell order that can impact the price.

In this case, data from on-chain data shows that the 71.2 million DOGE tokens were transferred from the private address “DF8jRK” to the Robinhood-linked address “DHQsfy.” The token transfer seems to have been a major part of the address’ holdings. At the time of writing, the address “DF8jRK” holds 36.3 million DOGE tokens, worth approximately $3.3 million.

71,224,271 #DOGE (6,392,254 USD) transferred from unknown wallet to #Robinhoodhttps://t.co/mSNJ8HSSot

— Whale Alert (@whale_alert) December 26, 2023

Consequently, the transfer to Robinhood, a major crypto exchange, suggests the whale may be preparing to sell their DOGE holdings, which could drive the price down.

On the other hand, Whale Alerts has reported other large transfers during the last few days. For example, 367 million DOGE tokens worth $33.6 million were transferred between two unknown wallets. 

Also, 999 million DOGE tokens worth $91 million were sent from Binance to an unknown wallet in the past 24 hours. However, the crypto exchange clarified that the transfer was part of its standard wallet maintenance.

Current State Of Dogecoin

Dogecoin’s price movement this year has generally lacked the volatility and enthusiasm it has experienced from traders in past years. The crypto is currently trading at $0.09255, down by 0.29% in the past 24 hours, and has been stuck in a sideways movement. On the monthly timeframe, DOGE is up by 16% in the past 30 days. 

DOGE recently hit a yearly high of $0.10 this December. According to crypto analyst Ali Martinez, network activity has increased this month, with a steady rise in the creation of new DOGE addresses. 

Dogecoin now has 5.29 million addresses with a balance, reiterating its position as the largest meme coin and the fifth-largest address count in the crypto market. However, IntoTheBlock’s Active Addresses Ratio shows that the majority of these addresses are inactive, with only a 2.73% average in the past 30 days.

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A pattern in the supply of the Bitcoin long-term holders could provide some hints about when the next bull run might begin in earnest.

Bitcoin HODLer Balance Has Followed A Specific Pattern In Previous Cycles

According to the market intelligence platform IntoTheBlock, the supply of the BTC HODLers is “an excellent indicator for measuring market cycles.” The “HODLers” or long-term holders (LTHs) refer to the Bitcoin investors who have held onto their coins since at least a year ago without having sold or transferred them on the blockchain.

The LTHs are the resolute hands in the market, which rarely sell their coins even when a profitable opportunity has presented itself or a deep price crash has occurred.

One way to track the behavior of these diamond hands is through the combined amount of balance they carry in their wallets. The chart below shows this Bitcoin metric trend over the past few years.

As displayed in the above graph, the Bitcoin supply held by the HODLers has been showing some growth over the past couple of years, suggesting that the LTHs have been accumulating.

This rise in the indicator has also continued through the latest rally, implying that the LTHs aren’t yet ready to start taking their profits. Something to note is that when the metric goes up, it doesn’t mean buying is happening in the present.

The indicator naturally has a 1-year lag associated with it, as coins must mature for that long before they can be included in the cohort. However, this only applies to buying as the holders moving their coins to sell instantly reset the age back to zero and, hence, remove them from the group.

In the chart, the analytics firm has highlighted a pattern that the Bitcoin LTH supply has observed during the leadup to past bull runs. It would appear that the HODLers have shown accumulation in such periods.

On the other hand, the start of selling from this cohort coincided with the beginning of the bull rally in proper. So far, the HODLers have only been accumulating recently, implying that the market may be in the pre-bull run phase.

If the historical pattern indeed holds for the current cycle as well, then the HODLer supply could be one to watch, as a significant downtrend in it could turn out to be a signal that the bull run has begun once more.

BTC Price

Bitcoin had plunged towards the $41,700 mark yesterday, but the asset has already seen some sharp recovery as its price is now trading around the $43,000 level.

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In the ever-evolving landscape of cryptocurrency, Solana has emerged as a prominent player, and within its ecosystem, meme coins are creating a buzz in the crypto community. Meme coin trading, with its inherent thrill of pump-and-dump scenarios, has gained momentum on Solana, driven by a surge in liquidity and recent airdrops that have propelled SOL prices. 

People who got the Pyth airdrop, the Jito airdrop, and the BONK airdrop need a place to dump and trade their free money, and Solana meme coins have given them the perfect avenue to do so. 

This comprehensive guide aims to walk you through the intricate process of acquiring SOL and navigating the exciting world of Solana meme coin trades, emphasizing key considerations for successful and profitable transactions.

Understanding The Landscape Of Meme Coins

Before delving into the specifics, let’s briefly understand the unique landscape of meme coin trading on Solana. Unlike traditional cryptocurrencies with established utilities and roadmaps, meme coins often lack such fundamentals. Don’t expect a life-changing technology that is supposed to change the crypto game. 

These meme coins thrive on community-driven speculation, making them a double-edged sword for traders – an opportunity for exhilarating gains or potential losses. It’s a game of rug, loss, or victory. The moment you start trading, you either make a profit or you lose. 

Acquiring SOL for Meme Coin Trades

For those new to Solana meme coin trading, the journey begins with acquiring SOL, Solana’s native cryptocurrency. Popular exchanges like Binance, Kucoin, and Bybit offer a gateway to obtain SOL. 

Once secured, the next step is transferring it to a compatible Solana decentralized exchange (DEX) wallet, such as Phantom Wallet. You can add the wallet to your computer’s browser as an extension or download the app directly to your device.

The SOL price has been trading pretty high since trading activities have been increasing, thanks to the meme coin trading. The last bull run saw the SOL price increase driven by an increase in NFT trading; this time around, it’s meme coins.

Identifying Profitable Meme Coins

With SOL in your Phantom wallet, the focus shifts to identifying promising meme coins. Platforms like Solana Dexscreener become invaluable, allowing you to track meme coins specifically on the Solana chain. 

Look for meme coins with lower market caps – an indicator that can significantly amplify profits during pump phases. Their names sometimes help, as meme coins with controversial names also help boost the chances of increasing the price or attracting people into trading them. 

Navigating Social Signals To Buy Good Coins On Solana

Beyond market cap considerations, a crucial aspect of meme coin trading is community engagement. A vibrant community can drive trading activity, contributing to a coin’s success. Check X (formerly Twitter) and other social platforms for discussions around the meme coin of interest. 

An active community that posts updates and engages with its audience adds credibility to the project. People get more excited and motivated when they keep seeing people talk about them, this is where the FOMO (Fear Of Missing Opportunity) comes into play. 

Guarding Against Rug Pulls On Solana Network

While pump and dump dynamics are inherent in meme coin trading, the specter of rug pulls adds an extra layer of risk. A rug pull occurs when the creators of a meme coin remove liquidity, rendering the coin untradable and leaving investors with a worthless asset.

Rug pulls often go undetected until they happen, making due diligence crucial when selecting meme coins for trading. You can never be too careful about them, this is why it’s advisable to trade with what you can afford to lose.

Additionally, there are scanners that provide some layer of security for investors by carrying out a rudimentary rug pull check. They check for common features of rug pull and honey pot contracts such as the inability to sell after buying, high taxes on transactions, etc. Examples of these tools include the Smart Contract Scanner by De.Fi.

Choosing the Right Solana DEX

The Solana ecosystem boasts various decentralized exchanges, each with its unique features. Jupiter Exchange, Raydium, Birdeye, and Orca are among the prominent options. Platforms like Birdeye also provide charting capabilities, simplifying the decision-making process for traders. 

Some of the charts make trading meme coins easier as they have the contract addresses of the meme coins, but to be sure, it is advisable to check their Twitter because they can be fake copies of these meme coins that might want to take advantage of the meme coin hype and rug. 

Executing Your First Solana Meme Coin Trade

With SOL secured in your phantom wallet and a meme coin identified, it’s time to execute your first trade. Obtaining the contract address from the meme coin’s Twitter page is an essential step in the trading process. 

Connect your Phantom wallet to the chosen Solana DEX, input the contract address where you are supposed to swap for SOL, and initiate the swap, converting SOL to the selected meme coin.

Alternatively, utilize Dexscreener to locate the “Trade On X” icon, where “X” represents the DEX for the Solana meme coin. A click directs you to a tab where the contract address is pre-filled, streamlining the trading process. 

This makes it easier to trade, and saves you time, should, in case, you want to trade at launch to catch the best prices. 

Risk Management And Future Trades

Prudent risk management is essential in meme coin trading. Avoiding the “MAX” button ensures you retain SOL for transaction fees during future trades. Consider allocating a portion of your SOL rather than risking the entire amount, providing flexibility for subsequent transactions. Remember to always trade with what you can afford to lose, so you don’t lose all your money.

Monitoring And Expanding Your Solana Portfolio

Congratulations, you’ve completed your first Solana meme coin trade! Now, whether you choose to monitor the chart for price progress or explore additional meme coin opportunities on Dexscreener, stay informed. 

Analyze trading activity, distinguishing between buying and selling actions – greens for buying, reds for selling. This analysis aids in making informed decisions, allowing you to stay ahead in the dynamic world of meme coin trading.

Conclusion

In conclusion, navigating the realm of Solana meme coin trading requires a blend of market awareness, community engagement, and strategic decision-making. By understanding the fundamentals, conducting thorough research, and implementing sound risk management practices, you can unlock the potential for profitable meme coin trades on the Solana blockchain.

As the crypto landscape continues to evolve, staying informed and adaptable will be key to success in this dynamic market. Happy trading!

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