Weekly Web3 Research｜Cryptocurrency Market Experiences Fluctuating Decline this Week; BTC Spot ETFs Face Continous Net Outflows
Weekly Trend Overview
This week saw a downturn in the crypto market, with a significant daily decline among the leading cryptocurrencies. Despite a slight recovery towards the end of this week, the market has not returned to the more favorable conditions seen in the previous two weeks. Market sentiment is still high at 80 points, reflecting an overall optimistic mood. Total market capitalization stands at $2.46 trillion, marking a 1.28% increase over the past 24 hours. Mainstream cryptocurrencies have been subject to erratic swings, with current prices below their weekly open. Overall, the market experienced sharp fluctuations, driven by the unwinding of substantial long positions, adverse news, and the withdrawal of over-the-counter (OTC) funds, resulting in a generally poor performance for most currencies.
This week, the cryptocurrency market saw a continued decline in total trading volume compared to last week. Mainstream currencies, having hit a peak earlier, underwent a considerable drop, reflecting the trend in overall market volume. Despite this, some sectors within the market achieved new highs in both trading volume and prices, even though most sectors experienced notable declines. As the weekend draws to a close, there’s an uptick in the overall market trend. Looking ahead, the market is anticipated to encounter significant shifts during the weekend, with a strong likelihood of witnessing a modest increase.
The top 100 cryptocurrencies this week display a ratio of gainers to losers at approximately 20:80. In line with the market’s overall bearish sentiment, the majority of mainstream currencies have trended downwards. Bitcoin (BTC) notably breached several critical support levels, dipping below the $61,000 mark for a time and recording a weekly change of -7.39%; it is now trading near $64,848. Ethereum (ETH) mirrored this volatility, briefly dropping below $3,100, and has seen a weekly decline of -10.09%, with its price currently around $3,432
In a week marked by widespread market downturns, ONDO has distinguished itself with an impressive 7-day growth of 35.2%, now valued at around $0.7353 and earning the title of the week’s top gainer.
This week’s cryptocurrency market has witnessed considerable fluctuations and general downtrends. Towards the week’s end, a slight increase has occurred, yet it is a modest improvement. The market is presently adjusting through a correction phase. In the next couple of weeks, it is less anticipated that the overall market capitalization and key cryptocurrency prices will climb back to the recent highs. Continuous observation is necessary to gauge how the market will unfold.
crypto market
🔥Affected by the liquidation of massive long positions and unfavorable news, the market fell significantly this week.
🔥As the week kicked off, we witnessed record-setting performances across several projects, with spikes in NDR and PRIME prices, a surge in SOL’s market cap, all-time high transaction volumes for Solana‘s BonkBot, soaring search interest for Solana on Google Trends, and unprecedented daily transactions on Base. US spot BTC and ETFs saw their highest weekly net inflows and trading volumes in the past week, and the digital asset investment products also witnessed the largest weekly net inflows. The MEME mania on Solana persisted, and the AI sector experienced an overall uptrend.
🔥As of Monday’s data, the cumulative pre-sale earnings from all Meme coin projects over the past 72 hours have hit the $100 million mark.
🔥This week saw SOL temporarily overtake BNB, claiming the position of the fourth largest cryptocurrency by market value, before BNB regained its standing.
🔥Due to an error by the Slerf team, the fundraising LP Token and airdrop tokens were destroyed and are not recoverable, leading to severe fluctuations in Slerf’s market performance. The Slerf Founder has assured that the team is actively seeking solutions to this issue and is committed to making things right with the pre-sale contributors. Nevertheless, the most pressing issue at hand is the lack of adequate funds to provide refunds to the pre-sale participants.
🔥Several projects have announced plans to distribute airdrop tokens to those who participated in the SLERF sale.
🔥El Salvador’s wallet has received nearly 200 donations in BTC.
🔥NodeMonkes has overtaken Boring Ape NFT in market value, claiming the spot as the second-largest NFT by market cap.
🔥ether.fi airdrop is now open for claim.
🔥Over the week, BTC spot ETFs hit a new high in single-day net outflows, while GBTC witnessed its largest single-day withdrawal ever; this coincided with a general downturn in the market and a fall in U.S. crypto stock prices.
🔥SLERF’s 24-hour trading volume on the Solana chain exceeded $2.2 billion, second only to SOL and USDC.
🔥According to statistics on the 19th, the top three DEXs by 24-hour trading volume are all on the Solana chain, namely Raydium, Jupiter and Orca.。
🔥The New York Times reported that about 30% of the world’s blockchain game gold miners are based in the Philippines.
🔥Bitcoin Spot ETF recorded large net outflows for consecutive days, with blockchain-related stocks declining generally. On March 19th, Bitcoin Spot ETFs saw a net outflow of $326 million, followed by an outflow of $500 million on the 20th, and an additional outflow of $261.5 million was recorded again on the 20th.
🔥Polygon‘s $4 million aid for Starbucks’ crypto entry fell short, ending in failure.
🔥Within 24 hours on March 20th, the network saw a sweeping liquidation of positions amounting to $666 million.
🔥An ETF analyst from Bloomberg forecasts that the chances of a spot Ethereum ETF getting the green light in May are slim.
🔥Grayscale GBTC saw an outflow of US$444 million on March19th.
🔥Tether issued an additional 1 billion USDT on the TRON network (authorized but not yet issued).
🔥NFTfi launches the NFTfi Foundation and will launch the DAO through the NFTfi Council.
🔥0n March 19th, Bitcoin recorded its largest single-day decline since the collapse of FTX, with the price falling over 8% in a single day.
🔥The cumulative trading volume of the U.S. spot Bitcoin ETF exceeded US$150 billion.
🔥Grayscale Ethereum Trust discount hits lowest level since November 2023.
🔥Robinhood launches its crypto wallet to Android users worldwide.
🔥There were market rumors suggesting that the Ethereum Foundation was being investigated by the government in a country, but CEHV partners later clarified that the news was false.
🔥Over the past week, the Base chain witnessed an influx of more than 840,000 new users, marking a substantial 510% surge from the week prior.
🔥Mystiko Network, the basic layer of Web3, completed $18 million in seed round financing.
🔥CryptoPunk #7804 sold for over $16 million worth of ETH.
🔥Grayscale GBTC had recorded a net outflow of US$386 million on March 20th.
🔥The BTC halving is expected to be completed on April 20, with a countdown of less than 30 days.
🔥Global X will soon launch the BTC futures strategy ETF with the code BTRN.
🔥The total market value of stablecoins in the crypto market has exceeded US$150 billion.
🔥The total claims by the U.S. government against FTX are anticipated to range between $3 billion and $5 billion.
Regulatory policy
🔥After 17 years, the Bank of Japan has increased interest rates, shifting the benchmark rate from -0.1% to a range of 0 to -0.1%, thus ending the era of negative interest rates. It is expected that a relatively accommodative monetary environment will be maintained for the foreseeable future.
🔥Dutch authorities accuse Alexey Pertsev of helping launder $1.2 billion through Tornado Cash。
🔥SBF has contended that the U.S. prosecutors’ suggestion of potentially subjecting him to up to 50 sentences is a distortion of reality.
🔥The US SEC launched a legal campaign aiming to classify Ethereum as a security.
🔥The Federal Reserve has held interest rates unchanged, with the chairman stating that while there has been a substantial fall in inflation, it remains above target levels, opening the possibility of a rate cut later in the year. He also asserted that the Fed is not discreetly fostering the creation of CBDC.
crypto market Highlights
⭐️This past week, the cryptocurrency market has seen a prevailing downtrend, with the majority of the week painted in red candlesticks. However, there has been a slight recovery as the week comes to a close, offering a glimmer of hope for weekend trading activity. Following a period of rapid growth in recent weeks, there is a growing sentiment that the market may have been overheated. The downturn in major currency prices has sparked significant liquidations of long positions. This, alongside widespread liquidations and persistent large outflows from BTC spot ETFs, has contributed to this week’s market lethargy. Currently, the crypto market is undergoing a period of consolidation and adjustment, with the potential for noticeable trend shifts in the week ahead.
⭐️ The market has continued its downward trajectory this week, with numerous currencies reflecting this decline. Despite a scarcity of bullish news within the crypto sphere, the U.S. fund market has experienced several positive shifts due to recent Federal Reserve policies. These shifts have notably benefited Ondo, which specializes in the tokenization of real-world assets (RWA). Ondo’s rise of 35.2% may not match the recent surges seen in the MEME sector’s currencies, yet it remains a notable exception in the bearish trend, with its price hovering around $0.7353. Beyond external market factors, Ondo’s upward movement can also be attributed to its brief issuance cycle and the optimistic market sentiment toward its potential as a nascent cryptocurrency.
(Data Sources: Coinmarketcap)
Bitcoin & Ethereum Weekly Performance
Bitcoin (BTC)
(Data Sources: TradingView)
Since the beginning of the week, BTC has been on a downward trajectory, subsequently entering a phase of significant and sharp adjustments. The price saw a dramatic fall from $69,000 to $61,000 in a brief time frame, with the biggest single-day drop exceeding 8%. Currently, BTC is in a consolidation phase, sustaining active daily fluctuations. A potential change in trend is anticipated as the end of the week approaches.
Analysts believe that the BTC has broken down several key support levels this week, triggering massive liquidations, which has a greater impact on the market. Combined with the massive outflow of OTC ETF funds, BTC has entered a relatively sluggish trend. Combined with the imminent halving event, it may take some time for the currency to return to above $70,000, achievable only with substantive change in both the internal and external market dynamics.
Ethereum (ETH)
(Data Sources: TradingView)
ETH’s price movement this week has mirrored that of BTC. Similar to its BTC, ETH saw a swift decline as the market opened. Having dipped below the $3,100 mark, it has since seen some recovery. Throughout most of the week, ETH’s price fluctuations have been somewhat milder compared to BTC’s, managing to stay above the crucial support level of $3,000. Currently hovering around $3,500, ETH is anticipated to experience a rebound as the weekend draws to a close.
Analysts contend that the recent performance of ETH is not only in sync with the broader downturn across the cryptocurrency market but is also partly due to the SEC’s regulatory stance towards ETH. The rejection of ETP applications related to Ethereum, along with the SEC’s enforcement actions targeting the coin, have cast a pall over the ETH market. Given these circumstances, analysts predict that it will be challenging for ETH to return to the $4,000 price point in the near term.
Web3 Project Trends
This week, the leading nine sectors within the Web 3 space have seen a steep drop in market value. With the market embracing a general bearish trend, Solana MEME stands out as the exception, maintaining an overall growth trajectory. However, most other projects have faced sharp downturns, with all showing rapid declines, and prospects for a quick and substantial recovery seem slim.
