Markets

Here’s What Motivated Q2 Top Performers BRETT, TON, KAS; And What’s Next for Bitcoin and Crypto Investors

Published

on

In the second quarter, three tokens – brett (BRETT), Ton Network’s TON and Kaspa’s KAS – emerged as shining stars as cryptocurrency market bellwether bitcoin (BTC) crashed, dragging most major digital assets, including ether (ETH), down.

BRETT, a Base Chain-native memecoin inspired by the character Brett from the Boys’ Club comic book series, more than doubled to 15 cents, becoming the best-performing digital asset among the top 100 coins by market cap, according to data tracked by TradingView and CoinMarketCap.

Yourcoin (TONNE)The native cryptocurrency of The Open Network (TON), a decentralized layer-1 network known as the TON blockchain, rose 42% to $7.65 and the Kaspa blockchain’s KAS surged more than 35%. At the same time, the total cryptocurrency market cap fell 13.8% to $2.2 trillion.

Here’s what may have helped these pieces stand out from the general malaise in the market.

BRETT’s surge was not an isolated event but part of a broader upward trend in meme coins. Dune-based analytics platform DYOR relative strength of the crypto narrative The tracker shows that the meme coin subsector has risen more than 45% in three months while others have posted losses.

The cultural currency mog (MOG) emerged as another strong performer, driven by positive sentiment and a cult following on social platforms such as X. MOG’s market cap surged from $220 million in early April to over $700 million, briefly placing it among the top hundred tokens by that metric.

This performance is typical of a bull cycle in which investors shift profits from larger cryptocurrencies, such as bitcoin, to smaller tokens, such as memecoins, fueling a price rally and the fear of missing out (FOMO) of retail investors. In other words, the fate of memecoins is tied to investors’ risk appetite and the availability of credit.

BRETT began its meteoric rise in May after Bitcoin began consolidating at record highs near $70,000 and at one point saw its market cap approach the $2 billion mark.

“The $2.0 billion mark is the liquidity wall that many established meme coins hit before profit-taking and sideways volatility ensues. Of course, for every $1 billion more from there, retail investors will need a lot of momentum and risk-taking (aka Apes) to get these meme coins to the levels of DOGE and SHIB. Let’s see what the Degens can make happen later in this bull market cycle,” Kenny Hearn, chief investment officer at SwissOne Capital, told CoinDesk in an interview.

Hearn added that SwissOne’s Top 50 smart passive index fund holds six of the largest meme coins in its portfolio after this quarter’s rebalancing.

TON’s rise is due to its involvement in cloud-based mobile and desktop messaging app Telegram, which has 1.56 billion users worldwide and 800 million active users.

“A toncoin (TON)-based economy is beginning to take root in the messaging app Telegram,” TON’s chief investment officer said Justin Hyun told CoinDesk in April.

Several catalysts have driven TON adoption, including Telegram’s decision to switch to TON payments for ads and the Open League rewards program. TON’s network activity has also been boosted by the integration of Tether (USDT)the world’s largest dollar-pegged stablecoin, and the debut of Telegram-based digital token Notcoin.

TON’s daily active addresses reached nearly 600,000 in June, surpassing Ethereum, the world’s largest smart contract blockchain, home to leading multi-billion-dollar DeFi projects.

“During the second quarter, TON’s daily active users (DAU) saw a significant increase, surpassing even Ethereum. This growth was attributed to the introduction of mini-apps, which are decentralized applications integrated into the Telegram messaging app. Notcoin, one such app, gained popularity because users could “mine” Notcoin with the push of a button in Telegram,” Katie Talati, head of research at Arca, told CoinDesk in an email.

“Other important catalysts include the launch of USDT on TON, with approximately $550 million USDT currently on the network, positioning it for payments, a key feature of WeChat,” Talati added, highlighting Pantera’s recent “largest investment ever” in TON.

According to Hearns, KAS’s parent proof-of-work (PoW) blockchain, Kaspa’s attempts to solve the blockchain trilemma have helped the token gain investor attention.

The blockchain trilemma refers to the trade-off between three key aspects of blockchain technology: scalability, decentralization, and security.

Kaspa’s GHOSDAG enables transactions to be processed in a more asynchronous and parallel manner, unlike traditional blockchains, which rely on sequential processing. This improves performance and security while preserving the security of the PoW consensus mechanism.

“It appears this team is on a mission to solve the trilemma (scale, speed, security) with their DAG versus blockchain structure (supporting speed and scalability) while leveraging the security benefits of POW (supporting security). What appears to be a strong hodler base, i.e. low float, appears the market is very supportive of this cutting-edge technology. Again, support trumps fundamentals,” Hearn explained.

The third quarter has historically was the weakestwith bitcoin averaging just 5% gains over the past 13 years, compared to 60% in the second and fourth quarters.

There is a risk that incumbent US President Joe Biden’s recent poor performance in the presidential debate will prompt Democrats to replace him with a strong candidate against his crypto-friendly rival Donald Trump.

This could keep animal spirits at bay until the November 4 election. Moreover, the Fed and other central banks may take notice. BRI advice to avoid premature easing of monetary policy.

Nevertheless, crypto subsectors with strong fundamentals could continue to stand out.

“The long term is key for many projects that are developing in the background and addressing real use cases,” Hearn added. “We note that ONDO, JASMY and ENS fall into that category of strong fundamentals, user growth.”

Arca’s Talati said bitcoin mining stocks, artificial intelligence, gaming and DeFi sectors could see growth.

Fuente

Leave a Reply

Your email address will not be published. Required fields are marked *

Información básica sobre protección de datos Ver más

  • Responsable: Miguel Mamador.
  • Finalidad:  Moderar los comentarios.
  • Legitimación:  Por consentimiento del interesado.
  • Destinatarios y encargados de tratamiento:  No se ceden o comunican datos a terceros para prestar este servicio. El Titular ha contratado los servicios de alojamiento web a Banahosting que actúa como encargado de tratamiento.
  • Derechos: Acceder, rectificar y suprimir los datos.
  • Información Adicional: Puede consultar la información detallada en la Política de Privacidad.

Trending

Exit mobile version