• BRETT TON KAS Shines in a Lame Quarter for the broader Crypto Market
  • The surge in TON was due to the involvement of messaging giant Telegram, whereas KAS benefited from sentiment surrounding its technology stack.
  • The third quarter could be a standout for BTC mining stocks and gaming sectors.

Three tokens – brett, Ton Network’s TON and Kaspa’s KAS – emerged as shining stars in the second quarter as crypto market bellwether Bitcoin (BTC), which weakened, pulled most major digital assets lower, including ether.

According to TradingView and CoinMarketCap, the value of BRETT (a memecoin that is native to the Base Chain) has more than doubled, to 15 cents. It’s now the top-performing digital coin among the top 100 by market capitalization.

TON Price Index and Live Chart – CoinDesk”>(TON), the native cryptocurrency of The Open Network (TON), a decentralized, layer-1 network popularly known as the TON blockchain, rose 42% to $7.65 and Kaspa blockchain’s KAS surged over 35%. The total crypto market cap fell by 13.8%, to $2.2 trillion.

What may have made these coins standout from the general market malaise?

Meme mania

The BRETT surge is not an isolated incident but part of a broader trend in meme coins. The Dune-based crypto narrative tracking tool from analytics platform DYOR shows that the meme coin sector rose by over 45% within three months, while other sectors registered losses.

Culture coin mog, or MOG for short, is another asset that has performed well. Its market capitalization has risen from $220m in early April to $700m. This puts it briefly among the top 100 tokens according to this metric.

Meme coins have been the most successful sub-sector in the past three months. (DYOR) (DYOR)

This performance is typical of an upward cycle, in which investors move profits from larger coins such as bitcoin to smaller tokens, like meme coins. This causes a rise in price and FOMO among retail investors (fear of losing out). The fate of memes is determined by investor risk appetite and the availability of credit.

BRETT’s meteoric rise began in May, after Bitcoin reached record highs of $70,000. At one point, its market capitalization was near $2 billion.

“The $2.0bn is the liquidity barrier that many meme coins reach before they start to lose money and experience sideways volatility. Retail investors will need a lot more momentum and risk taking (also known as Apes) for each $1bn above that mark to bring these meme coins up to the level of DOGE and SHIB. Let’s wait and see what Degens will do later in the Bull Market cycle,” Kenny Hearn told CoinDesk.

Hearn said that SwissOne’s Top 50 passive smart index fund has six of the biggest meme coins in its holdings following this quarter’s rebalancing.

TON and Telegram

The surge in TON’s stock price is due to its involvement with the cloud-based mobile messaging app Telegram. This app boasts 1,56 billion users globally and 800 millions active users.

Justin Hyun, Director of Investments at TON, told CoinDesk that in April, “a toncoin-based economy has started to take root” in Telegram.

TON adoption was boosted by several catalysts, including Telegram’s decision to switch to TON for advertising and the Open League rewards program. USDT Price Index and Live Chart – CoinDesk”>(USDT), the world’s largest dollar-pegged stablecoin, and the debut of Telegram-based game Notcoin’s digital token.

In June, TON’s active daily addresses surpassed Ethereum, the largest blockchain for smart contracts in the world, which houses prominent DeFi projects valued at several billions.

“During Q2, TON’s daily active users (DAUs), which are decentralized apps embedded into the Telegram messaging app, experienced a significant increase. They even exceeded Ethereum. This growth can be attributed to mini apps which are decentralized applications embedded within the Telegram messaging application. Notcoin is one of these apps that gained traction because users could mine’ Notcoin simply by pressing a button in Telegram,” Katie Talati said in an email sent to CoinDesk.

Talati noted that the USDT launch on TON is another significant catalyst. With approximately $550,000,000 USDT already on the network, it positions the network for payments, a feature key to WeChat.

KAS solves the Blockchain Trilemma

According to Hearns’ parent blockchain (PoW), Kaspa’s efforts to solve the blockchain trilemma, helped the token attract investor attention.

The blockchain trilemma is the result of the trade-offs between three aspects of blockchain: decentralization, scalability and security.

Kaspa’s GHOSDAG enables transactions to be processed more asynchronously and in parallel, as opposed to traditional blockchains which rely on sequential processes. This helps improve performance and security, while maintaining the security of PoW consensus.

It appears that this team is on mission to solve the trilemma of speed, scale, and security through the DAG structure versus the blockchain structure, which supports speed and scalability, while using POW’s security benefits (supporting security). It would seem that the market supports this cutting-edge technology with a “strong hodler” base, meaning low free float. Hearn said that the market is supporting this technology over fundamentals.

The KAS token also has received a bullish push by the announcement of Marathon Digital that they have started mining KAS in order to diversify their revenue stream.

What’s next?

historically, the third quarter is the weakest. Bitcoin has averaged a gain of 5% in the last 13 years, compared to 60% gains both in the second and the fourth quarters.

The recent performance of incumbent U.S. president Joe Biden in the presidential debate could lead Democrats to replace him by a strong candidate who will take on Donald Trump, the crypto-friendly competitor.

This could help keep animal spirits in check until the November 4 elections. The Fed and other central bankers could also heed the BIS’ advice in order to avoid prematurely easing the monetary policies.

Crypto sub-sectors that have strong fundamentals may continue to be the most successful.

Hearn said that “the long-term strategy is key” for many projects, which are quietly building in the background to deliver on real use cases. “We notice that ONDO JASMY and ENS are in this category, which is characterized by strong fundamentals – user growth.”

Talati, of Arca, said that the artificial intelligence, gaming, and DeFi sectors, as well as bitcoin mining stocks could all grow.

Shaurya malwa is the editor.