Rotation Season Is Here: Farm the Hype, Don’t Finance It

This market went from coma to cocaine in 48 hours. 📈🤡

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📅 May 11, 2025 | 💰 ETH: $2,583.68 | BTC: $104,153.72 | SOL: $177.34
🌐 Market Mood: Greed is back (Fear & Greed Index: 70) — Altcoins are rallying as Bitcoin consolidates, signaling a rotation into riskier assets.

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Big Story: Capital Rotation = Yield Opportunity

What just happened?

Bitcoin ripped through $100K. Ethereum soared past $2,500. Solana’s nearly doubled in two weeks. And suddenly, the same people calling “game over” in April are back posting laser eyes and price targets.

But there’s a logic to this move.

And if we zoom out, the story becomes clearer — and more actionable.

Why Crypto Just Exploded

This rally didn’t come out of nowhere.

Macro set the stage. The Fed didn’t pivot, but they paused. Inflation softened, jobs data came in cooler than expected, and markets began to price in rate cuts before year-end. The bond market moved first crypto followed.

At the same time, liquidity started quietly flowing back in:

• The U.S. Treasury refilled its cash balances

• Reverse repo levels dropped

• Global central banks (including Japan) are still stimulative

In short, the dollar weakened, and risk-on assets caught a bid.

Bitcoin moved first as it always does. Institutions and funds poured in, driving price past $100K. Then Ethereum followed, fueled by stronger fundamentals and institutional flows looking for “the next thing.”

And now?
We're entering the next phase: rotation.

Why Capital Is Moving to Alts

It’s a familiar pattern.

Bitcoin rallies → it stalls → capital rotates into ETH → then into alts with narratives, liquidity, and momentum.

That’s what we’re seeing now.

Ethereum is outperforming BTC on multiple timeframes. L2s like Base and Blast are seeing inflows. Farming incentives are back. And traders are rotating into higher-beta altcoins looking for 2x and 3x plays.

But here’s the mistake most make: they chase price.

They see a coin that’s up 80% and assume it has another 80% in it. Sometimes it does — often, it doesn’t. Meanwhile, early buyers exit, and volatility does the rest.

There’s a better approach.

We Don’t Chase Pumps — We Farm Them

When capital rotates into alts, it creates yield.

Protocols pay incentives to bootstrap liquidity. Vaults launch with high APRs. LPs earn from increased trading volume. In a market that’s rotating, yield leads, price follows.

So instead of guessing which token will pump next, we ask:

• Where is the liquidity going?

• Which vaults are still early?

• Who’s paying for our attention?

Right now, that includes:

• Vaults on Cetus like SUI/HAUSI with triple-digit APRs

• Stable pairs on Aerodrome offering low-risk, double-digit returns

• Lending markets onboarding new alt collateral (e.g., stETH on Base)

We’re not chasing the hype.

We’re positioning ahead of it where capital is flowing, emissions are highest, and incentives are aligned.

(Disclaimer: This is not financial advice. Always DYOR—Do Your Own Research.)

Yieldstacker Strategy of the Week: Want to Make 14% Without Touching Volatile Tokens? Here’s How..

DeFi Radar: What Happened Last Week

📰 Quick updates on key DeFi events you should know about.

🔹 SEC’s Tokenization Roundtable Kicks Off May 12

• What’s Happening:
  The U.S. Securities and Exchange Commission (SEC) is hosting a roundtable on May 12 to discuss the tokenization of real-world assets (RWAs), the future of capital markets, and the infrastructure needed for blockchain-based asset issuance.

  Why It Matters:
  The SEC rarely extends an olive branch to crypto. This roundtable signals a shift — regulators are beginning to understand that tokenized RWAs might not just be compliant, but inevitable. Clarity here could bring trillions of off-chain assets on-chain.

  Read More: SEC Official Announcement

🔹 Coinbase Acquires Deribit in $2.9B Deal

• What’s Happening: Coinbase acquired Deribit, the world’s largest crypto options exchange, in a $2.9 billion deal — $700M in cash and 11M Coinbase shares. Deribit brings institutional-grade options and derivatives exposure into Coinbase’s product suite.

  Why It Matters:
  This gives Coinbase a clear foothold in the global derivatives market, which consistently dwarfs spot in volume. It’s also a statement: Coinbase wants to own not just the retail on-ramp, but the institutional derivatives stack too.

  Read More: FT Coverage of Coinbase-Deribit Deal

🔹cbXRP Incoming? Wrapped XRP May Hit Base

• What’s Happening: Coinbase is exploring cbXRP — a wrapped version of XRP that could be deployed on Base and Optimism. Similar to cbETH and cbBTC, this would allow XRP holders to participate in DeFi (lending, LPing, collateralizing) without leaving the Coinbase ecosystem.

  Why It Matters:
  There’s an estimated $3–4B in dormant XRP sitting in Coinbase wallets. Wrapping it unlocks new DeFi flows — and it positions XRP as a serious collateral asset on Base, potentially boosting TVL across lending platforms like Moonwell.

  Read More: Decrypt: Rumors Swirl Around cbXRP

Deep Dive: How to Surf the Rotation Without Becoming Shark Bait

1. The Rotation Rerun (Yes, It’s Always the Same Plot)

1. Liquidity spigot opens → Macro loosens, cash leaks everywhere.

2. Bitcoin hoovers it up → Big funds treat BTC like the S&P-500 of crypto.

3. Risk waterfall → ETH outperforms, mid-caps moon, microcaps melt faces.

We’ve seen this movie so many times that we can quote the dialogue. The twist? Retail still buys the popcorn at the top every single showing.

2. Our Cheat Code: Farm the Hype, Don’t Finance It

When fresh capital barges in, protocols start bribing anyone who can spell “TVL.”
That’s our cue to:

• Collect trading fees while speculators arm-wrestle each other.

• Hoover up emissions before they age like milk.

• Front-run airdrop farmers who haven’t read the documentation.

Yield > crystal-ball price calls. Every. Single. Time.

3. The Four-Step “Don’t Get Dumped On” Blueprint

4. Live Example — HAUSI/SUI on Cetus

• Launch TVL: $4 M | APR: ~380 %

• Day 4 TVL: $11 M | APR: ~160 %

• We farmed aggressively for five days, then skimmed half when APR dropped under 200 %.

• Net: ≈ 5.8 % yield in a week while price swung ±40 %. That’s someone else’s anxiety funding our coffee.

5. Rapid-Fire Risk Scan

• Emission Half-Life — Rewards decay faster than your enthusiasm.

• Exit Liquidity — Can you bail without nuking the pool?

• Stack Depth — DEX + autocompounder + bridge ≠ bedtime story security.

• Correlation Creep — Too many correlated LPs turn a dip into a crater.

Print it, tape it to your monitor, and ignore it at your own peril.

6. Sirens That Tell Us “Leave the Party”

1. APR < your boring-bank stable vault.

2. TVL chart goes vertical after a single influencer thread.

3. Governance vote to “optimize emissions” (read: rug the yield).

4. Daily volume falls off a cliff while Telegram screams, “Wen moon?”

Two strikes — we’re out.

7. TL;DR for the Attention-Challenged

Rotations are inevitable; becoming exit liquidity is optional.
We farm the frenzy, pocket the bribes, and step aside before the clean-up crew arrives.

We’re not here to predict the next 20×.
We’re here to tax the tourists chasing it.

The Real Yieldstacker Portfolio

🗂 Current Holdings:

✅ USDC Valut (Moonwell.Fi) – 6% APY – Low risk
✅ SUI (Navi) – 3.6% APY – Medium risk

🔄 Want to See Our Recent Moves + Some of Our Higher-Risk Plays?

Chart of the Week: Bitcoin Dominance Pulls Back From 65%

This TradingView snapshot shows Bitcoin’s share of total crypto market cap sliding from a local high near 65 % to ≈ 62.9 % in just three sessions. The purple 50-day SMA (63.55 %) is now acting as overhead resistance, while the 200-day SMA (60.46 %) still trends upward below.

Why It Matters

• Rotation Confirmation
  A dominance rollover—especially against a rising ETH/BTC ratio—is the textbook kickoff for capital cascading into ETH and alts. We’re seeing that break right at the 50-SMA.

• Liquidity Spillover
  Money that exits BTC rarely leaves crypto; it hunts yield elsewhere. That spill is already boosting swap volume on ETH pairs and incentivized LPs like our SUI/USDC and ETH/USDC positions.

• APR Tailwinds
  As traders reposition, DEX fees spike and protocols up incentive budgets—exactly the conditions that pushed our HAUSI/SUI vault over 100 %+ APY and kept stable-coin pools near double-digits.

If dominance loses the 60 % handle while ETH/BTC pushes higher, history says the alt-coin party (and its yield opportunities) is just getting started. Stay nimble, farm first, exit early.

Beginner Mistake to Avoid: Chasing Green Candles, Ignoring Green Emissions

The Slip-Up

Newcomers see a token up 40 % on the day and rush in, convinced it’ll do another 40 %. Nine times out of te,n they’re buying someone else’s exit.

The Fix

1. Check the Yield First
   Before buying any token, ask: “Is there a place to earn on this without owning it outright?”
   If the APR on an LP or staking vault is > market-rate stables, farm it; don’t chase it.

2. Follow TVL, Not Tweets
   Real liquidity flows show up on-chain hours before they appear on your timeline. Use DefiLlama or Dune dashboards to spot growing pools—then front-run the influencer hype.

3. Size for Volatility
   If you still insist on holding the token, keep the position small enough that a 50 % drawdown is an annoyance, not a life-changer. Use the rest to farm something boring but profitable.

Bottom line

Green candles whisper, “Buy me.” Green emissions whisper, “Let them buy while we get paid.” Stick with the latter, and you’ll still be here long after the pump-chasers rage-quit.

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