Market running out of steam?

Week in Review:

• A fake XRP ETF announcement led the token to touch $0.75 briefly before dumping. The current price is sitting at $0.60. In total, $7.3M in liquidations occurred due to this fake rumor. 

• Inflows into the crypto ecosystem have continued to accelerate. Last week, $293M of inflows were recorded, with year-to-date inflows topping $1.1B. Total AUM for crypto-related investment products exceeds $40B.

• Grok gained 13000% before rumors from renowned security expert Zach XBT that the project was linked to a scammer. As a result, the price dumped -50% and lost its marketcap, which was over $100M at one point.

Grok was an onchain darling before Zach XBT revealed the wallet that originated the project was linked to previous scams. At one point, $350K in profit was booked by smart money wallets.

AI coins have continued to outperform. November is “AI Conference” week, as we covered in previous editions of our newsletter, so this is not surprising, but is nice to see.

Notable coins:

• OLAS (7D Inflows $62K, price up 29.4%)

• TAO (7D Inflows $79K, price up 25.3%)

• RNDR (7D Inflows -$14K, price up 32%)

• PAAL (7D Inflows $100K, price up 18.7%)

DeFi coins had a nice week as well and it seems the market is souring on meme coins for the moment (perhaps GROK signified a local top). Some notable DeFi coins:

• GRAIL (7D Inflows $59K, price up -8.1%)

• BANANA (7D Inflows -$76K, price up 15.1%)

• DINERO (7D Inflows $80K, price up 125.9%)

AI is clearly in the spotlight this month with all the conferences taking place globally. For a refresher, here is a list:

AI has been the breakthrough narrative not just in crypto but in tech for 2023. As we have seen in the past, anything that happens in the real world is magnified 100x in crypto. There will be a lot of opportunities in the future at the intersection of crypto and AI. I have dug through hundreds of projects. Here are my top AI gems:

◢ $MOZ ($2M MC): AI optimized yield & liquidity strategies, powered by LayerZero.

• Laughable marketcap for a working DeFi product

• 5x growth in TVL, low circulating supply

• Confluence of narratives: DeFi, AI, LayerZero

◢ $AQTIS ($22M MC): AI optimized yield

• Exposure to LSDFi

• Roadmap update soon

• 75% shared with community

Note: 4% Buy + Sell Tax

◢ $AIMBOT ($8.9M MC): Autonomous Telegram bot that snipes the best launches based on certain parameters. 75% of profits shared w/ token holders

• 75% of profits shared w/ token holders

• Exposure to early stage narratives

• Usage: $1.1M volume over 7K trades • Revenue share: 609E ($1.2M) total

Note: 5% Buy + Sell Tax

◢ $ARC ($43M MC): AI platform that make analyzing, auditing, modifying, & creating code easier.

• DOX'd team

• Chart (break out of accumulation)

• Tokenomics (80%+ circulating, large majority staked)

◢ $PAAL ($105M MC): AI chatbot that automates natural language processing, image recognition, & problem solving

• 200K google grant

• Profit-sharing + Buybacks

• Usage - 16K+ users, 1500E (~$3M) in fees, 90K prompts

Note: 4% Buy + Sell Tax

◢ $RBX ($17M MC): DEX on starknet that offers up to 20x leverage

• Referral Program soon

• Usage - $3.2B in volume for the past week

• Fundamentals - Fast execution, Zero Fee, No Front Running

AI is an obvious narrative for next cycle. AI coins are going through their first cycle, so while hype is high, market caps are low.

Pay attention now.

🤑 Notable Raises

• Beoble - $2M Pre-seed. Sector: SocialFi. Lead investor’s were DCG & Samsung Next. Notable investors include Hashkey & GBV

• Kinto - $3.5M. Sector: Layer-2. Lead investor’s were Kyber Capital & ParaFi Capital.

• Superstate - $14M Series A. Sector: RWAs. Lead investor’s were Coinfund & Distributed Global. Notable investors include Breyer Capital & Folius Ventures

• KKRT - Unknown. Sector: Layer-2 zkEVM. Lead investor’s were Stake Capital & Longhash Ventures. Notable investors include OKX and Fenbushi Capital.

• EthXy - $1.6M Pre-Seed. Sector: GameFi. Lead investor’s were a16z Crypto School & OrangeDao. Notable investors include Pioneer Fund & Nonce Classic

• BTC: Record 70% of BTC supply lies dormant for a year or more

• Grayscale: SEC postpones decision on Grayscale ETH ETF

• Poloniex: More than $100M stolen from Justin Sun owned crypto exchange Poloniex

• Nocturne: Privacy focused project Nocturne has launched is v1

• Binance: Executives kidnapped and forced to empty wallets. $12.5M stolen.

• Safe Wallet: Smart wallet Safe{Wallet} launches on the Google Store.

🫡 Chart of the Week

This pump has been spread across the board. If you were in crypto, you made money just for showing up.

See you next week,

Mid-Curve Team

The Mid-Curve newsletter is intended purely for educational and informational purposes and should not be construed as financial advice. We encourage all our readers to conduct their own research or seek advice from a certified financial advisor before making any investment decisions. Please note that members of the Mid-Curve team may hold positions in some of the investments discussed in our newsletter.