Weekly Web3 Research | Further Decline in Crypto Market Value Within One Week; Total Asset Management Scale of BTC ETFs Approaches $30B; The Market Cap of Stablecoins Exceeded $130B

Weekly Trend Overview

The overall crypto market has shown a downward trend this week, with several mainstream currencies experiencing further price corrections compared to last week. The market situation for a week is still bearish due to factors such as the decrease in BTC holdings by grayscale. However, spot BTC ETF funds are continuously flowing in, and over-the-counter institutions such as BlackRock are continuously accessing funds. The number of selling and buying by both sides is relatively equal. However, considering that the number of BTCs held by grayscale is still large, this round of the market may continue for a period of time. Presently, the crypto market remains at around $1.55 trillion, a decrease of nearly $100 billion in total funds compared to the same period last week. Mainstream cryptocurrencies can continue to maintain last week’s average price after opening, but quickly decline after entering the middle of the week. Their subsequent performance is inconsistent, and maintaining a fluctuating and slightly rebounding market is currently the mainstream. Most currencies have not experienced a second round of replenishment.

The top 100 crypto projects have a rise and fall ratio of 18:82 within a week, with most currencies showing a downward trend. The price of BTC has fallen by -3.72% within a week, repeatedly breaking through the key price of $40,000 within the week, with the lowest point reaching $38,550. Prior to the decline, it mainly remained below $42,000 and continued to fluctuate. The weekly high of ETH is $2,495, with a significant decline, currently maintaining a slight fluctuation around $2,200. The crypto market trend of the Top 100 cryptocurrencies this week has remained consistent with several mainstream currencies, with a concentrated decline occurring on the 24th. Impacted by market smashing behavior, the overall crypto market has continued to decline.

The prices of BTC and ETH have risen and fallen to -3.72% and -9.39% in a week. Within this week, MANTA’s 7-day increase reached 45.98%. Due to being a new project agreement, the coin had a relatively short online time and received high attention and ICO popularity. The price of the coin experienced a rapid increase this week, breaking through the key price of $3 and stabilizing slightly around $3. Currently, the price is $3.08.

The overall decline in the crypto market has been significant this week, and the total market value has further shrunk compared to the same period last week. The market crash is still ongoing, and key changes in the market require attention to subsequent information from all parties.

Crypto Market

🔥 The total asset management scale of BTC ETF has approached $30 billion, and the daily net inflow of spot BTC ETF funds has exceeded $1 billion. The net inflow in 8 trading days has exceeded the net outflow amount significantly.

🔥 4,588 sandwich attacks occurred within 24 hours from the 21st to the 22nd, with attackers profiting $13,581.

🔥 Borrowing and lending ZeroLend TVL on zkSync for over $15 million.

🔥 The Ethereum re-staking protocol Renzo TVL has exceeded $100 million.

🔥 The market value of stablecoins has exceeded $130 billion, with USDT accounting for over 70% of the market share. At the same time, the circulation of USDCs increased by 400 million in the previous week.

🔥 The ERC420 platform, which integrates NFT and smart contracts, will be launched on Ethereum.

🔥 Within a week, token unlocking includes approximately $8.75 million in YGG, approximately $2.54 million in AGIX, approximately $1.62 million in DYDX, and approximately $440000 in ACA.

🔥 The Atomicals Market has completed the casting function upgrade.

🔥 SatoshiVM represents its own architecture diagram inspired by Scroll but with different implementation logic.

🔥 As of January, the amount of stablecoin transfers on the Solana chain has exceeded $300 billion, an increase of over 25 times year-on-year, setting a new monthly high.

🔥 Within 30 days, the market value of stablecoins FDUSD+46% exceeded $2.5 billion, of which TUSD has a market value of -23%. The total issuance of PayPal stablecoins PYUSD has exceeded 300 million. In the future, Marinfi will issue stablecoins YBX supported by Solana LST on Solana.

🔥 IBM supported blockchain startup Lygon announced bankruptcy liquidation.

🔥 Axie Infinity announced the launch of the onboard.axiedao.org platform.

🔥 25 projects/funds have announced (proposed) completion of fundraising, with a total amount of approximately $1 billion.

🔥 As of January 22, GBTC held a total of 550,000 BTCs in grayscale positions, and the amount of grayscale BTC holdings decreased by approximately 50,000 since the ETF was approved.

🔥 The founder of CryptoQuant stated that the average sleep time of BTC has reached its highest point in 5 years recently.

🔥 The founder of dForce stated that they will use Ms The email received by Mt. Gox creditor to confirm the payment address may unlock 140,000 BTCs in the next two months.

🔥 The Ordinals NFT Genesis Cat sold for a high price of $250,000 at Sotheby’s.

🔥 Justin Sun stated that all 41 million HT held by the Huobi team has been destroyed.

🔥 Last week, the transaction volume of the Ethereum NFT platform exceeded $200 million, reaching a new high in 29 weeks.

🔥 Last year, illegal crypto transactions accounted for only 0.34% of all transactions.

🔥 The cumulative income of BTC miners has approached $60 billion.

🔥 Ape Terminal stated that SatoshiVM was founded by KOL Mac, which owns a large number of unlocked SAVMs and earns $10 million in one day.

🔥 Vitalik Buterin tends to use EIP to increase the cost of calldata.

🔥 Polygon will launch AggLayer in February, which focuses on interoperability.

🔥 Solana launches a new generation of SPL token extensions that support enterprise level use cases.

🔥 The Worldcoin Foundation has opened up its iris recognition inference .

🔥 The borrow positions of the founder of Curve may face liquidation risks again.

🔥 OnChainMonkey launches KARMA tokens, with 70% used for designated airdrops.

🔥 Friendtech v2 will launch Money Club, custom curves and more.

Regulatory Policies

🔥 Hong Kong Councilor Wu Jie Zhuang announced that the 2024 BTC Summit will be held in Hong Kong.

🔥 The Shenzhen Intermediate People’s Court has announced a case of fraud involving digital collectibles.

🔥 The SEC’s stance on ETH spot ETFs is to forcefully reject but face internal resistance.

🔥 The Tornado Cash developer, with support from Snowden, has raised over $350,000 for defense.

Crypto Market Highlights

⭐️In the past week, the overall crypto market has experienced significant fluctuations, with further bearish sentiment and the selling and smashing behavior of capital institutions and individual whale investors, mainly affecting BTC related currencies. However, at present, the most important trading behavior regarding BTC in the market in the near future is still mainly through exchanging hands. The downward trend in the market is mainly driven by such behavior, and the recovery of the coin price will lag behind. The trend of mainstream currencies is mainly to recover slightly after a rapid decline or maintain the average price trend, which requires further stimulation of the market cycle.

⭐️This week, the overall market situation made up for a decline, and the projects with significant gains were mainly reflected in the rapid upward trend of the new coin launch. MANTA’s increase in seven days reached 45.98%, and the coin price remained near a key new high with sustained small fluctuations, leading the crypto market in terms of increase ranking among all currencies within a week. However, due to the launch of a new agreement, it is normal for its related currencies to receive enthusiastic attention. Currently, the price fluctuations of the coin around $3 have given initial investors good return expectations, and the subsequent trend needs to pay attention to the key support and resistance levels of the coin in the current price range.

(Data Courtesy Of CoinGecko)

BTC & ETH Weekly Performance

Bitcoin (BTC)

(Data Courtesy Of TradingView)

The price of BTC this week is divided by the intraday decline that occurred from the 23rd to the 24th. In the early stage, it basically continued the trend of last week, maintaining a small fluctuation above $41,500. Later, there was a rapid decline, directly falling below the key price level of $40,000. However, the coin price has now rebounded, with sustained small fluctuations around $40,000.

Analysis suggests that the coin price trend of BTC this week is mainly directly affected by the large-scale trading behavior in the market. In the overall cold and downward trend of the crypto market last week, the fluctuation of the coin price this week can be seen as further coin price correction. However, based on current information from various parties, while the BTC liquidity has increased, buyers and sellers are engaging in frequent exchanges of hands. The slight rebound in BTC prices also indicates this. The overall trend of the coin market is likely to remain in its current state for a period of time, and this round of market changes depends on the large-scale trading behavior of all parties in the market, which needs to be further monitored.

Ether (ETH)

(Data Courtesy Of TradingView)

The price trend of ETH this week has been greatly affected by the market fluctuations, with a decline of about 10 percentage points. It is also indirectly caused by the market’s smashing behavior, which has led to a rapid decline in the coin price, But unlike the high-frequency trading of BTC’s multi-party buying and selling, ETH lacks significant market demand and liquidity within a week, which makes the price of the coin similar to the trend of many other mainstream currencies, entering a new price range and maintaining small fluctuations. A large downward exposure needs to wait for subsequent market adjustments.

Analysis suggests that the ETH coin price trend is based on last week’s downward trend, and has seen further downward trends within a week. The coin price is mainly characterized by small fluctuations in the two price ranges of $2,470 and $2,200. Although the price trend curve of ETH within a week is similar to that of most cryptocurrencies, due to the relatively large increase in the coin earlier, this downward trend actually has a certain degree of coin price retracement. The drop of the coin price to the $2,300 level already meets the price expectations of many crypto users, However, the decline in ETH is indeed quite significant, partly due to the coin price taking back, and partly due to the lack of major hot topics related to the coin within a week, resulting in a lack of support for the coin price. However, the current price of the coin has not yet fallen further below the critical level, and there is a high probability that it will quickly return to above $2,400 as the market cycle adjusts.

Web3 Project Trend

The total market value of the seven categories of projects this week has further declined compared to last week, and has been greatly affected by changes in the market. Within a week, there has been a correction trend in the market value of various tracks, further limiting the growth of TOP projects. Overall, the market itself has been greatly impacted by special reasons within a week, which is not in line with conventional market cycle fluctuations. It is necessary to continuously monitor the dynamic changes of various parties in order to determine the subsequent trends of each track.