Market Recap — Feb 1, 2022

Trade idea from Jan 24 was fine, until it wasn’t. SOL has an active retail following and it actually does have a ton of developer activity. If we know anything about this space it’s that volatility is real, and in this case, SOL has had a nice bounce out of the recent range. MCAP/TVL for SOL and FTM stand at 3.9 and 0.51 versus 3.72 and 0.44 last week, respectively, and FTM/SOL (MCAP) was at 0.20 last week but currently sits at 0.15.

There is a risk that the recent revelations surrounding Daniele Sestagalli and Michael Patryn will negatively impact the recent hype that had been supporting FTM, especially considering that was one of the main drivers of the idea. However, despite FTM’s mild underperformance, SOL is clearly the outlier compared to the other major L1's.

As for BTC, we tested Monday’s high and the FVG area above before dropping back into Monday’s range. At the very least I would expect us to test Monday’s low, and potentially a run at the equal / untested lows around $35,530.