Web3 Research Weekly Report | The encryption market has slowed down Fluctuation this week, with minor ups and downs as the main trend; the average Gas fee of ETH network has recently reached the lowest level in years; BlackRock IBIT has attracted approximately $20.5 billion in funds since 2024.

Weekly Overview

This week, the overall market of encryption has begun to rebound. Since last week's market crash, the weekly market mainly maintained small fluctuations and the overall Market Cap has seen a certain pump. In addition, the performance of BTC and ETH spot ETFs has been good this week, with net inflows for multiple days, and the external market environment is also turning warmer, which has given the encryption market a more obvious trend of warming up this week. At present, the overall market of encryption remains above $20,000, with small fluctuations as the main trend in the past week, and the market as a whole is still in a continuous oscillation cycle. The total Market Cap of the encryption market has not changed much compared to the same period last week. Currently, the total Market Cap is still around $2.09 trillion, which has fallen by 0.34% in the past 24 hours. The market sentiment remains around 43. The trend of key mainstream currencies this week has basically shown a continuous rise and fall, lacking clear signals and power in both directions. This cycle is expected to continue for a period of time.

Compared to last week, the Cryptocurrency market has been relatively stable this week. The overall recovery trend has been relatively obvious since the big dump at 805, and the situation where several Mainstream Tokens have rebounded to the key price level in a week is also common. Currently, the ratio of ups and downs of Mainstream Tokens in a week is 3:7, and the market is still in a relatively sluggish oscillation period. The BTC price has experienced multiple ups and downs around the key price level of $60,000 in a week, and is currently in a rapid decline phase, with a weekly decline of about 2.8%, and the price is around $57,862. The weekly decline of ETH is about 1.14%, and it is currently maintained at around $2,560.

The overall market performance this week is still not good, with only a few coins showing a relatively small upward trend. ZEC has a 7-day increase of about 22.12%, and the price curve continues the upward trend from last weekend, still experiencing a good pump this week, with the price currently hovering around $41.5.

The overall market situation of the cryptocurrency is likely to fluctuate significantly this weekend, and it is expected to continue during the weekend, but the overall magnitude will be controlled within a small range.

Encryption Market

🔥According to the on-chain analysis platform Lookonchain, the possible reason for BTC's breaking through the $60,000 mark on Monday may be due to institutional halting of the stablecoin buying frenzy. Institutions stopped receiving USDT from the Tether Treasury and transferred it to the exchange two days ago. Prior to this, monitoring on August 9th showed that since the market crash on August 5th, a total of 1.3 billion USDT has been transferred from the Tether Treasury to the exchange.

🔥 Bitcoin shows the signal of "local bottom" for the third time in 2024. According to the latest research from on-chain analysis platform CryptoQuant, the network value to transaction golden cross (NVT-GC) tool shows a bullish trend. This week, BTC/USD faces the risk of another decline as the MA forms the so-called "death cross".

🔥The US SpotEther exchange-traded fund (ETF) has seen net inflows in its first week since its launch on July 23. According to data from ETF tracking firm SoSoValue, the nine newly launched US SpotEther coin ETFs saw a total net inflow of $104.8 million in the week starting from August 5.

🔥In the past month, 99,308 BTC has been transferred from CEX, worth $5.96 billion.

🔥Greeks.live macro researcher Adam released this week's key events (8/12-8/18) on the X platform: After a week of adjustment, the market has recovered from the impact of the interest rate hike by the Central Bank of Japan. The recent dovish remarks from the Central Bank of Japan have also given the market confidence, despite the continuous Unfavourable Information. This week, the market sentiment is relatively optimistic.

🔥 According to BeInCrypto, due to the increasing volume on the Layer2 network of the Ethereum network, gas fees on the Ethereum network have fallen to the lowest level in years. According to Etherscan data, the average gas fee on the Ethereum Mainnet fell below 1 Gwei last weekend, but has since rebounded to around 2 Gwei, equivalent to $0.06.

🔥MicroStrategy currently holds 226,500 BTC, with an average acquisition cost of $37,000.

🔥According to the statistics from @newtoneinsteinx, as of August 10th, a total of 1,700,691 Tokens were launched on Pump.fun, of which 23,800 were successfully listed on Raydium, with a listing rate of 1.4%.

🔥According to the data from the DefiLlama website, the top 5 protocols by revenue in the past 7 days include: 1. Tron, with a revenue of $8.35 million; 2. Ethereum, with a revenue of $6.72 million; 3. pump.fun, with a revenue of $5.78 million; 4. Solana, with a revenue of $4.22 million; 5. Trojan, with a revenue of $2.40 million. Affected by market fluctuations, the total revenue of various protocols has decreased to varying degrees.

🔥Optimism developers have released a roadmap plan aimed at building an interoperable communication layer between Layer2 chains in its Superchain ecosystem, which will include messaging protocol, Superchain Token standards (SuperchainERC20), interoperable fault proofs, and a set of interoperable chains.

🔥Market data shows that ARB, EOS, and ZEC prices have dropped to new all-time lows in this round of pullback, with ARB hitting a historical low of $0.4316 on August 5, down about 75.9% from its All-time high of $2.39; EOS hitting a historical low of $0.408 on August 5, down about 97.8% from its All-time high of $22.71; and ZEC hitting a historical low of $16.08 on July 5, down about 98.7% from its All-time high of $3,191.

🔥According to official sources, the Cross-Chain Interaction service deBridge has announced the formal establishment of the deBridge Foundation. The foundation will be obligated to seek benefits for the entire DAO and its key participants (including core contributors, strategic partners, and the community). Governance will empower DBR holders to shape the future of the protocol.

🔥The US SpotETH exchange-traded fund has achieved net inflows in the first week since its launch on July 23.

🔥 According to BeInCrypto, due to the increasing volume on the Layer2 network of the Ethereum network, gas fees on the Ethereum network have fallen to the lowest level in years. According to Etherscan data, the average gas fee on the Ethereum Mainnet fell below 1 Gwei last weekend, but has since rebounded to around 2 Gwei, equivalent to $0.06.

🔥Decentralized derivative exchange dYdX announced that it will launch dYdX Unlimited upgrade for dYdX Chain this autumn, including permissionless market launch, MegaVault (obtaining Liquidity from dYdX users and acting as a market maker for all dYdX Chain markets), Affiliates Program, and permissioned Secret Key (providing a more secure and customizable environment for institutions and high-value traders).

🔥Matrixport's latest report indicates that since March 2024, BTCSpotETF buyers have been strictly implementing the Buy the Dips and wait-and-see strategy.

🔥The Polkadot network aims to significantly shorten the unlocking period of the DOT token through the RFC 97 proposal. After review and discussion, the proposal has been approved by the Fellowship, and its code or design has been merged into the main codebase.

🔥Data shows that in July, the number of active on-chain addresses of Solana reached a record high of 54.33 million, a significant rise of 151% compared to the 21.6 million at the beginning of 2024. In addition, the number of non-voting transactions on the network also reached a peak of 1.3 billion in July, indicating a very active on-chain activity.

🔥The ETF Store, Inc President Nate Geraci revealed on X platform that data shows that the iShares Bitcoin ETF by Beladex SpotBTC exchange fund has attracted approximately $20.5 billion in 2024, while the second largest non-SpotBTC ETF among all 375 new ETFs launched in 2024 has only attracted about $1.3 billion in fund inflows. IBIT, FBTC, ARKB, and BITB SpotBTC ETF have become the four major exchange-traded fund products launched in 2024.

🔥According to Decrypt, the amount of BTC held by the US BTCETF will soon surpass that of its mysterious anonymous founder, Satoshi Nakamoto.

🔥According to Bitwise's data analysis, about 66% of institutional investors held or increased their Holdings in the US BTC spot ETF in the second quarter of 2024.

🔥Spot Ether ETF has seen capital inflows for the third consecutive day, marking the longest period of capital inflows since its launch. According to FarsideInvestors, the total inflow of Spot Ether ETF on August 14 reached $10.8 million. IBIT from BlackRock and FETH from Fidelity led the inflows with $16.1 million and $6.6 million respectively, while Grayscale's ETHE once again experienced the only outflow, amounting to $16.9 million. Meanwhile, the total outflow of funds for Spot $BTCETF on the same day reached $81.4 million.

🔥According to PRnewswire, Web3 listed company Decentralized Finance Technologies released its financial performance report for the three and six months ended June 30, 2024, disclosing the following: 1. As of June 30, 2024, the cash balance was 19.5 million Canadian dollars (14.2 million U.S. dollars), while holding USDT worth 54.5 million U.S. dollars and 110 BTC. 2. As of August 14, 2024, the position of digital assets held includes: 204.23 BTC, 12,775 SOL and 1,484,148 CORE, with a total value of approximately 21.2 million U.S. dollars. 3. Assets Under Management increased by 43.7% from 508.1 million Canadian dollars (370.8 million U.S. dollars) as of December 31, 2023 to approximately 730.1 million Canadian dollars (532.2 million U.S. dollars) as of June 30, 2024. 4. Total revenue for the second quarter of 2024 was 133.2 million Canadian dollars (98 million U.S. dollars), a significant improvement from the total revenue of 7.4 million Canadian dollars (5.4 million U.S. dollars) for the same period in 2023.

🔥Solayer announced the launch of an endogenous Application Verification System (AVS) standard for restaking on Solana Mainnet. Solayer's unique advantage lies in leveraging Solana's stake weight QoS to create a decentralized cloud marketplace.

🔥CoinShares Research Director James Butterfill revealed on X that BlackRock has recently surpassed Grayscale to become the largest digital asset fund management company in terms of total assets under management.

🔥According to official sources, Telegram has added the feature of paid emoji responses to posts. Users can now respond to posts with star emojis, sending Telegram Stars to their favorite channels and content creators.

Regulatory & Macroeconomic Policies

🔥 According to Bloomberg, one of the most followed legal cases in the cryptocurrency field made significant progress last week. A federal judge ordered Ripple Labs Inc. to pay a civil fine of $125 million for selling its XRP Token to institutional investors without registering with the United States Securities and Exchange Commission (SEC). This fine is only a small portion of the $2 billion sought by the agency, which may be good news for other encryption companies fighting against the SEC.

🔥According to the second quarter 13-F filing submitted to the SEC by Millennium Management, the hedge fund Millennium Management dropped its Position (reported value) in SpotBTCETF in the second quarter, with -14% for FBTC, holding $5.89 billion; -48% for IBIT, holding $3.71 billion; -52% for GBTC, holding $82 million; and +71% for BITB, holding $65 million; and +8837% for MSTR, holding $121 million.

🔥 According to Bitcoin Magazine, the United States Securities and Exchange Commission (SEC) has approved the first leveraged long MicroStrategy ETF.

encryption market highlights

⭐️Over the past week, the overall Cryptocurrency market has shown a pullback trend after the 805 big dump collapse, and the encryption market as a whole has continued to fluctuate in a new cycle of fluctuation after the weakening of external mainstream financial environment and news factors. However, this situation has actually been ongoing since last weekend. Although the current market has shown some signs of warming, it is probably difficult to rebound to the market situation before the previous collapse in the short term. It is expected that the current fluctuation cycle will continue for one to two weeks.

⭐️This week, there were few mainstream coins with a significant pump in the market. Most of them were the coins that maintained the pump after the market rapidly declined last week. However, the coins that performed well in terms of price increase had limited actual gains. ZEC continued to lead this week with a growth rate of around 21.63%, and the current price is around $41. The highest price of this coin during the week was around $45, and it is currently in a clear downward trend. It is expected to experience further price drops in the coming week. (Data Source: Coinmarketcap)

BTC& Ethereum Weekly Performance

比特币 (BTC)

(Data Source: TradingView)

Within this week, the overall price of BTC has been fluctuating within a range of thousands of dollars. The price has experienced several key levels. After the coin opened at the beginning of the week, it quickly dropped below the key level of $60,000. During the middle of the week, it continued to fluctuate within the range of $58,000 to $61,000, experiencing fluctuations. However, after falling below $60,000 again, the coin began to show a more obvious downward trend, falling below $58,000 in the short term. It is highly likely that the coin will continue to fluctuate in the following week, with a low probability of a significant pump, and will likely maintain continuous fluctuations around $60,000. The highest price of BTC this week was around $61,860, and the lowest point was around $57,300.

Analysis believes that the price fluctuations of BTC this week have been influenced by multiple factors. After the market gradually recovers, institutions have temporarily halted large-scale purchases of stablecoins, and the market cycle has once again entered a significant Fluctuation phase, which has a greater price impact on the currency. Currently, the actual price performance is still dominated by oscillations. After entering the near weekend period, the price of BTC once again fell below $60,000, and it is expected to have a certain rebound trend, but the subsequent price after this week is likely to be difficult to maintain above $60,000 for a long time.

Ethereum (ETH)

(Data Source: TradingView) The highest price of ETH this week was $2782. Due to the impact of the market last week, the currency experienced a large-scale price decline. Although it is in the phase of price recovery this week, the overall fluctuation is still relatively intense, with a weekly decline of about 1.85%. Currently, the currency is in a clear downward trend, but the price still remains above $2500, with no significant decline. Currently, the currency is maintaining a continuous fluctuation around $2543.

Analysis believes that the performance of ETH price this week is greatly influenced by the net inflow of Spot ETF, which is the best period since its approval. However, the pump resistance of the price is still relatively high, coupled with the overall sluggish performance of the market, which makes it difficult for this currency to perform well as one of the leading mainstream currencies. At present, it is difficult for ETH to return above $2800 in the short term.

Web3 Project Trends

This week, the total market capitalization of seven types of projects has rebounded across the board, as the negative impact of market cycle changes and external news gradually fades. Although the gains in various tracks are different, the overall market situation is still within a relatively small range of changes. It is expected that various sectors may experience further rebound in the weekend period.

| Project Category | Weekly fall | Top three Tokens with the highest weekly fall | Overview | | ------------ | ------------ | ------------ | ------------ | | Layer 1 | 5.4% | PYI,HAC,STOS | There was a certain degree of rebound in the Layer 1 track this week, but it mainly focused on non-mainstream currencies, and the actual rise was basically maintained within a moderate range. The track still has some pump space overall. | Layer 2 | 5.6% |HACD,NWC,ZKB|The overall increase in the Layer 2 track this week is similar to that of the L1 track, but the increase is more concentrated, and there is still a strong expectation of a significant increase in the overall performance of the track. | Decentralized Finance | 6.6% | OPENLI,ZEX,NEST | The Decentralized Finance sector is experiencing a significant pump, with overall Liquidity experiencing some drop. The growth of leading currencies has also returned to a generally average level of performance. | Non-fungible Token | 3.4% | MTRM,LORDZ,TCP |The non-fungible token market has warmed up this week, and the top growth currencies within the week are concentrated in relatively niche projects at the bottom of the rankings, with the overall field lacking obvious signs of recovery. | MEME | 0.4% | NEIRO,PEOPLE,COBY| The MEME coin track has basically remained unchanged this week. Although some top coins have experienced a certain pump, the continuous decline of many other mainstream coins has kept the overall track in a Sideways state. | Liquid Staking | 7.9% | TAPT,QCKUJI,AMPKUJI | The overall warming of the track is more obvious this week, with a significant impact from the pump of mainstream currencies. | AI | 4.5% | EYE,KIZUNA,DOAI | The AI track has seen some recovery this week, with limited rise in the top currencies. Apart from EYE, which has experienced a significant increase since its recent listing, other currencies have seen smaller gains.

Author: Charles T., Gate.io Researcher *This article represents only the author's point of view and does not constitute any trading advice. *This content is original, and the copyright belongs to Gate.io. If you need to reprint, please indicate the author and source, otherwise legal responsibility will be pursued.