With the Bitcoin halving right around the corner, the spotlight is intensifying on the Bitcoin ecosystem. BRC20 tokens and inscriptions are currently capturing significant mindshare and seeing their prices rise accordingly. Notably, Bitcoin now has the highest NFT trading volume across all networks, and BRC20 tokens are among the top performers in the past week. Looking beyond the halving, the SEC has targeted a new entity, serving a Wells notice to Uniswap Labs earlier in the week. The UNI token has taken a hit but price alone doesn’t tell the full story.
In this week's issue, I'll delve into two BRC20 tokens and see how Smart Money has reacted to the Uniswap news.
BRC-20s
MUBI
MUBI, a leading BRC20 token on Ethereum, sparked the initial rally in the category when it started gaining traction. Since its launch on November 14, 2023, MUBI experienced a parabolic surge, climbing over 2200% in December alone, before retreating as 2024 began. However, the token has seen a strong resurgence over the last, with its price increasing by over 60%.
Interestingly, if we look at the largest buyers and sellers over the last 7 days, we see that the largest sellers outpace the largest buyers, indicating a level of profit taking due to the recent rally.
Analyzing Smart Money activity reveals a significant spike in token holdings on March 26, attributed to Manifold Trading receiving over 10 million MUBI tokens from a KuCoin address. Since the transfer, these tokens have appreciated by 53%. Manifold Trading one of the largest holders of MUBI tokens with ownership of 1% of the total circulating supply. However, aside from this notable transaction, there has been minimal activity among Smart Money wallets in the past 7 days.
BVM
BVM, one of the newer tokens in the Bitcoin ecosystem, was launched about a month ago, on March 8. Since its launch, BVM has risen over 2800% and is near all-time highs. Despite this significant increase, BVM remains a relatively small token with a market capitalization of $63 million. Similar to MUBI, the token has had a strong surge of 68% over the last 7 days.
Over the past month, we have observed a decline in Smart Money holdings while the number of Smart Money holders fluctuated from 14 to 19 wallets. Recently, we've seen several of the largest Smart Money wallets taking profits, with one notable wallet completely liquidating its holdings valued at $278K in BVM over the last 7 days. However, the largest Smart Money holder accumulated their current position over the last 7 days.
The two BRC20s that I covered are just two popular names I’ve seen on CT that have done well over the last 7 days. I highly encourage everyone reading this to run the same analysis on other tokens that you care about!
The SEC Strikes Again
Earlier this week, the SEC issued a Wells notice to Uniswap Labs. While I don't have the legal expertise to comment on it, I am able to analyze how Smart Money has reacted to the news and whether there has been any significant UNI onchain movements.
Given the general market volatility coupled with the SEC news, it's no surprise that we're seeing larger sell-offs compared to buys over the last seven days. Both Smart DEX Traders under the “Who Sold?” tab have sold their entire UNI holdings - 0xf0b145 and 0xab2ce2.
However, beyond those wallets, we don’t see significant selling or movement from the top Smart Money holders. Funds such as a16z, Blockchain Capital and Variant are continuing to hold their tokens.
It’s been another action-packed week in crypto, but by focusing on what’s actually happening onchain, you’re able to sift through the noise and make more informed decisions. Whenever there’s major news that might affect your holdings, just head over to Nansen to analyze what other holders are doing and how they’re responding to the news before taking action.
That’s all for this week – as always, feel free to reach out with comments or questions at martin.lee@nansen.ai.
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