Weekly Web3 Research｜BRC-20's Popularity Failed to be Sustained, LSD Projects Significantly Strengthened
Weekly Trend Overview
Across the past week, a majority of the top 100 cryptocurrencies have seen moderate declines, which range from 0.48% to 6.35%. As of now, the global crypto market cap stands at $1.11T.
Crypto Market
🔥 The Brazillian Central Bank has announced its official selection of 14 participants for its CBDC pilot. These include the likes of Visa and Microsoft, as well as their largest local banks.
🔥 In a recent court filing it has been revealed that the new FTX CEO is considering a reboot of the disgraced exchange. The filing highlighted a range of activities centered around reviving the exchange throughout April, including a ‘Review [of] and finalize 2.0 reboot of exchange material for distribution’.
🔥 The DeFi protocol, WDZD Swap, has been exploited for $1.1M. It has been alleged that the known exploiter ‘Fake_Phishing750’, was behind the attack according to BscSCan.
Regulatory Policies
🔥 The Hong Kon SFC is gearing up to push a new regime for virtual asset regulation following a week-long consultation on regulatory guidelines for crypto platforms. Crypto exchanges operating in the jurisdiction will have to seek licenses under the SFO and AMLO.
🔥 Japan is set to tighten up crypto anti-money laundering rules in the coming month for roughly two years in response to criticism that has been levied against their current regulatory practices.
Macro Economy
🔥 The ERSB has stated that it believes the crypto sector does not yet pose any ic risks to the TradFi economy due to a lack of ‘signficant’ links between the two.
🔥 Treasury Secretary, Janet Yellen, says that the banking industry is likely to consolidate further into bigger industry giants as the industry continues to face turmoil.
Crypto Market Highlights
⭐️ Assets from across the Doge Chain eco have been privy to major gains across the past week following the surge in popularity of Dogecoin once again. Clavell Inu (CLAVELL) saw the most significant increase across the past week, totaling 488.72% in 24 hours.
(Data Courtesy Of CoinMarketCap)
⭐️ Clavell Inu saw an increase of 1981.43% across the past week which saw its market cap permeate $2 million and total $2.07M at the time of writing. The current spur in interest in low market-cap projects can be attributed to the recent meme coin revival due to the PEPE coin accelerating by over one thousand percent in the space of 24 hours. This has bolstered low market cap projects’ value across the entire crypto market.
(Data Courtesy Of CoinMarketCap)
⭐️ Learn more: PEPE Claims Throne Of Meme Coins, Leaving Dogecoin And Shiba Inu In The Dust
BTC & ETH Weekly Performance
Bitcoin (BTC)
(Data Courtesy Of TradingView)
Having recovered from yesterday’s flash weakness due to the daily candle close, Bitcoin is likely to experience volatility catalysts according to analysts. With the past day’s macroeconomic reports from the US, including GDP estimates for Q2 and jobless claims, failing to drastically push the market deeper into bearish price lows, popular trader Jelle has hypothesized that Bitcoin could potentially retest $26.6k, which would act as an ‘ideal scenario’ to act as a springboard for BTC/USD to reclaim its previous bullish rage.
On the flip side, Crypto Tony, another trader, reemphasized his claims that the downside target of around $25k could ‘nuke’ Bitcoin lower, which fellow trader, Skew, has alleged is due to Binance traders engineering a sweep. As of now, analysts believe that BTC has realized a head-and-shoulders pattern, which denotes a rapid shift from favoring bulls to the bears, which is now currently trading in the neckline of this pattern into a new resistance zone. It is likely that this bearish pattern will continue to validate itself and could spell BTC into the lower end of the $20k zone.
Ether (ETH)
(Data Courtesy Of TradingView)
Today, the ETH price faced resistance at the $2k level and dropped below a short-term upward trendline, this has led it to endure a pullback to test this same trendline. ETH is also up against the 100-day moving average, which shows a strong support level near $1781. In order for ETH to fall below this, a significant increase in selling pressure would be necessary.
Web3 Project Trend
This week, there have been moderate losses across a majority of the sectors, with the exception of Lido Staked (LSD) projects and BRC-20 tokens, with either on vastly different ends of the spectrum. As BRC-20 tokens have failed to capture and retain widespread market attention for their innovation the sector has been privy to a detrimental fall in value that is nearing 45%. On the other hand, LSD projects have witnessed notable growth and strengthening across the past week as more investors dabble in staking.
| Project category | 7d Change | Top 3 Gainers | Comment |
|---|---|---|---|
| Layer 1 | -2.7% | CCD, KAS, DNX | The prices of layer-1 tokens have moderately fallen in line with wider market performance. |
| Layer 2 | -2.2% | METIS, MATIC, OP | There have been minor price declines because of wider market turbulence. |
| DeFi | -2.4% | LVL, ROOK, RBN | DeFi has suffered moderate losses, however, some assets have been able to accrue minor gains. |
| NFT | -0.4% | KNDX, OVR, HUSL | NFT assets have seen an acceleration in value at the top end of the scale, however, notable losses on a weekly scale have led to a moderate decline for the sector. |
| MEME | -5.6% | CARTEL, SMUDGE, COLLAB | As interest in low market cap projects begins to shift to other sectors, the meme coin sector has dimmed. |
| LSD | +5.5% | BRG, STMATIC, MATICX | The LSD sector has seen major gains across the past week as the sector strengthens. |
| BRC-20 | -41.2% | TRAC, NALS, PIZA | The concept of ordinals has failed to retain attention, which has led to major declines in value. |
