Web3 Research Weekly | The encryption market generally declined last week; outflow of $305 million from digital asset investment products last week; the market expects the Fed to cut the Benchmark intrerest rate by more than 2% in the next 12 months

Weekly Overview

Within this week, the overall market capitalization of encryption has shown a significant downward trend, with most Mainstream Tokens falling continuously. Influenced by the overall market decline, the prices of several key Mainstream Tokens have reached recent lows. Overall, the prices of various key Mainstream Tokens this week have set new recent lows, with most major coins falling by more than 5% from the opening price within a week, and the overall market capitalization experiencing a certain decline. The various types of market news factors this week are relatively conventional, with low value token unlocking and a relatively sluggish market overall. Currently, the overall market capitalization of the encryption market has fallen below $20 trillion again, and the overall trend within the week is characterized by price fluctuations and declines. The market capitalization of the encryption market has slightly declined compared to the same period last week, reaching around $1.97 trillion, a decrease of 2.75% in the past 24 hours. The market sentiment has fallen to around 34. The trend of key Mainstream Tokens this week is currently showing a clear downward trend, and it is expected to see a new round of trend changes at the end of the week.

Compared to last week, the performance of the Cryptocurrency market this week has basically experienced further price declines after a slight shakeout last weekend. Currently, the market is in a relatively sluggish state, with several key currencies hitting recent lows this week. The ratio of rise and fall in Mainstream Token species is 1:9 this week, with most Mainstream Token species showing significant declines. The price of BTC came to around $55,000 within a week, with a weekly decline of about 5.78%, and currently maintains a price of around $56,111. The weekly decline of ETH is about 6.6%, and it is currently maintained around $2,369.

The market has been mainly on a continuous decline this week, with most Mainstream Tokens showing small fluctuations. HNT has risen by about 13.5% in the past 7 days, and its price has continued to fluctuate and pump, making it the biggest gainer among Mainstream Tokens this week. The current price is around $8.2.

The probability of a overall warming trend in the Cryptocurrency market this weekend is small. It is expected that the overall market will continue to fluctuate slightly during the weekend.

encryption market

🔥According to the Financial Times, Telegram holds $400 million in digital assets by the end of 2023.

🔥According to J-PlatPat, a well-known Japanese intellectual property platform, Pokémon, the company behind the popular anime and game IP, has completed a patent application regarding Distributed Ledger and Non-fungible Token.

🔥Messari released the LayerZero Q2 2024 State Report, which added support for 12 networks, facilitated the transfer of $5 billion in encryption assets, and increased the average value of each transfer by 78% to over $400. The transfer volume of the Ethereum network rose by 26% compared to the previous period, reaching $913 million, mainly due to the drop in gas fees after the Dencun upgrade and the introduction of full-chain stake.

🔥The current StacksBlock chain adopts the POXMining mechanism, where MinersstakeBitcoin and are rewarded with STX Tokens. Each BTCBlock rewards 1000 STX Tokens. After a successful upgrade by Stacks Nakamoto this month, according to the new Consensus rules, the rewards will Halving, with each BTCBlock only rewarding 500 STX Tokens.

🔥BlockBeats news, on August 26, according to Token Unlocks data, the total value of all unlocked tokens in the mainstream market in the next week is only 7255 million dollars.

🔥Cardano activated the Chang hard fork, introducing a Decentralization governance model based on ADA.

🔥According to the latest weekly report from CoinShares, the outflow of digital asset investment products reached $305 million last week. The negative sentiment was mainly focused on BTC, with outflows totaling $319 million.

🔥Matrixport released a chart report pointing out that there is always the opportunity for a Bull Market in the market. Although Crypto Assets have gone through a typical summer downturn, BTC's dominance has reached a new high in the cycle.

🔥QCP Capital's latest analysis indicates that September is usually a Bear Market month for cryptocurrencies and other asset classes, but October has historically performed strongly. Data shows that in the past 9 years, BTC has achieved positive returns in October in 8 years, with an average increase of 22.9%.

🔥Aave Labs announced the introduction of Sky Aave Force, an initiative launched by Rune and Aave founder Stani, aimed at promoting widespread adoption and narrowing the gap between Decentralized Finance and TradFi. Sky Aave Force will propose integrating USDS and savings USDS (sUSDS) on Aave V3 and providing native Token rewards. Creating a new Spark/Aave market to achieve seamless interaction and exclusive rewards.

🔥Ripple announced key announcements this week in South Korea and Japan. Ripple and the XRP community are committed to bringing new programmability to the XRPL ecosystem by 2025 through the XRPL EVM sidechain (already in progress), including Smart Contracts, and exploring native functionalities on the XRPL Mainnet.

🔥Syncracy Capital co-founder Ryan Watkins posted on X platform that pump.fun has become the fastest-growing application in the encryption economy history, achieving a revenue of 100 million US dollars in just 217 days.

🔥The official announcement of Dash on the X platform that its Evolution chain has officially started and is now producing blocks. The Evolution chain has now started executing data contracts and sending files to Decentralization storage.

🔥The Grayscale Research team recently stated that if the US dollar remains weak and the interest rate continues to decline, Bitcoin will receive favourable information.

🔥EigenLayer announced the upgrade of the EIGEN and bEIGEN contracts to introduce programmatic incentives. As a first step in this process, the trading of upgraded EIGEN and bEIGEN contracts has been queued in the TimelockController.

🔥Former Mt.Gox CEO Mark Karpeles plans to launch his new Cryptocurrency trading platform later this month, with a focus on transparency and user-friendliness. The upcoming platform is called EllipX and is set to launch in Europe later this month, with its headquarters based in Poland.

🔥Avalanche ecosystem social protocol The Arena announced that the ARENA token information is now live on its application on X platform. Users can click on the 'ARENA Tokenomics' in the dropdown list under the profile icon to learn more. The improved dynamic wallet is currently in the final stage of testing.

🔥Samsung Next, an investment company under Samsung Electronics, officially revealed today that it has invested in Soneium, a Layer2 network developed by Sony, in collaboration with Startale Labs. Earlier reports indicated that Soneium, an Ethereum-based Layer2 network developed by Sony and Startale Labs, has been launched on Testnet.

🔥 The rise in US Treasury yields continued on Tuesday, with the two-year Treasury yield falling from over 5% at the end of April to around 3.85%. The pump in the past four months is the longest continuous pump since 2021. This is due to market expectations that the Federal Reserve will cut the benchmark interest rate by more than two percentage points in the next 12 months, which would be the largest decrease since the 1980s, except during periods of economic downturn.

🔥According to Cointelegraph, payment giant Mastercard has partnered with European encryption payment infrastructure provider Mercuryo to launch a Euro-denominated debit card that allows users to directly use Cryptocurrency stored in non-custodial Wallets for consumption at merchants accepting Mastercard.

🔥Euler announces its return to the market and launches the modular Decentralized Finance lending protocol Euler v2. It is reported that the modular design of Euler v2 allows builders to design highly customizable vaults and connect to other vaults.

🔥Circle Vice President Yam Ki Chan said in an interview during the Korean Blockchain Week on Wednesday: "All major jurisdictions around the world have set minimum standards for well-regulated stablecoins, and the United States has not yet fully implemented this standard."

🔥ApeCoin released its transparency report for the first quarter of 2024 (January-March 2024), as of March 31, 2024, the main treasury status includes: 1. Holdings approximately 326 million APE; 2. Accounts payable is 255,060 APE; 3. Reserving 59 million APE for grants; 4. No APE inflows; 5. 1 million APE outflows for operational expenses, including 148,627 APE to support community activities; 6. The total amount of foundation grants is 20.6 million APE. In addition, 20 previously approved AIPs by the community and 1 AIP approved by the special council will continue to be paid out according to plan; the community has also accepted nine additional AIPs, with payment outflows commencing during this period.

🔥Penpie released an analysis report of the attack incident, which pointed out that its platform was attacked on September 3rd, resulting in the theft of 11,113.6 ETH (approximately $27,348,259). Deposits and withdrawals are currently suspended, and the frontend restoration is complete.

🔥On September 5th, Synthetix announced the upcoming start of a new governance cycle and the launch of AppChain SNAXchain on the Optimism Superchain infrastructure. It is reported that the nomination for the new round of governance committee will start at 5:54:58 Beijing time on August 31, lasting for one week.

Regulation & Macroeconomic Policies

🔥Monochrome Asset Management and its responsible entity partner Vasco Trustees Limited have submitted an application to Cboe Australia to launch the Monochrome Ethereum ETF (code: IETH).

🔥The U.S. Securities and Exchange Commission (SEC) has once again delayed the final decision on the listing of a carbon offset Bitcoin ETF on the New York Stock Exchange (NYSE) Arca. According to a filing on September 4th, the decision's new deadline has been extended to November 21st.

🔥Ripple Labs’ legal team requested a pause on the $125 million fine payment from the August 7, 2023, ruling, and the SEC has agreed to postpone the payment until after September 6. Ripple proposed depositing 111% of the judgment amount (about $139 million) into a bank account until the end of the appeal period or the appeal result is determined. This move may indicate that the SEC will appeal.

Encryption market highlights

⭐️In the past week, the Cryptocurrency market has shown overall Fluctuation, with most Mainstream Tokens being affected by market fluctuations and external factors, leading to a significant downturn. Currently, the overall performance of the crypto market is characterized by sustained minor fluctuations, low market sentiment, and a somewhat sluggish trend. It is highly probable that Fluctuation will continue in the short term, and the current market situation is expected to persist until a significant change occurs at some point next week.

⭐️The mainstream currencies that experienced a pump in price this week are relatively few, and most of them are still showing a downward trend. The currencies at the top of the increase are actually showing limited real gains. HNT has the highest increase this week, with a seven-day increase of about 14%, and the current price is around $8.28. The highest price of this currency in the week was around $8.33, and it is currently in a more obvious Fluctuation trend, and it is expected to maintain a certain upward price movement in the following week. (Data Source: Coinmarketcap)

BTC & ETH Weekly Performance

BTC (BTC)

(Data Source: TradingView)

During this week, the price of BTC remained below the corresponding level after falling below $60,000 last weekend, instead showing a more intense price Fluctuation. For most of the week, it mainly fluctuated within the range of $56,000 to $59,000. Currently, the price of the currency has reached a recent low, showing a continuous decline. It is likely that the currency will continue to oscillate downward in the following week, with a low probability of a significant pump. However, there is a high probability of returning to the price above $58,000. The high point of BTC's price for the week was near $59,700, while the low point was around $55,600.

Analysts believe that the price changes of BTC this week are mainly influenced by the overall market downturn. As BTC basically occupies a mainstream position in the current market cycle, the continuous decline in price is the mainstream trend this week. After reaching a recent high point, the price of BTC began to show a continuous oscillating decline, but the magnitude remained relatively controlled within a small range. Although the actual price performance of BTC is still relatively low at present, the probability of a significant pump in the short term is relatively small.

Ethereum (ETH)

(Data Source: TradingView)

The high point of ETH's price this week was near $2560, and overall it maintained a strong correlation with BTC, basically following the overall downtrend of the market. The price of the coin has seen a significant decline over the week, continuing to trend downward since the weekend, but the overall magnitude still remains within a relatively small range. ETH has experienced a decrease of about 6.5% over the week. Currently, the currency is in a more obvious Fluctuation phase, with the price maintaining continuous fluctuations near the $2360 mark.

Analysis believes that the performance of ETH price this week is affected by both factors of news and overall market fluctuation. Most mainstream tokens have performed poorly, and ETH has basically followed the trend of the market. In the short term, the fluctuation of the price will mostly continue to be maintained below $2,500.

Web3 Project Trends

The total Market Cap of the seven categories of projects performed differently this week, and the market recovery trend is obvious. Although the fluctuations in various tracks are different, the overall market is still in a phase of Fluctuation, and it is expected that various sectors may usher in a new round of rebound market during the weekend.

| Category | Weekly fall | Top three Tokens with weekly increase | Overview | | ------------ | ------------ | ------------ | ------------ | | Layer 1 | -5.6% | LIBRA,IXI,KLS | The Layer 1 track has experienced a certain degree of decline this week, with the actual growth of the top currencies remaining within a reasonable range, similar to the overall market trend. The distribution of gains and losses is relatively even. | Layer 2 | -8.7% | CYBA, MODE, CULT | The Layer 2 track has experienced a significant overall decline this week, with limited growth in top-performing coins and a general downward trend across the board. | Decentralized Finance | -5.3% | VEGA, CAP, TRADE | The Decentralized Finance sector also experienced a certain degree of decline. This week, overall Liquidity has dropped, and the top-performing coins lack significant increases in value. | Non-fungible Token | -9.9% | CATGIRL,METADOGE,PKR |The Non-fungible Token market saw a pump this week, mainly favoring MEME-style tokens, although the overall track still experienced a significant downturn. | MEME | -6.2% | ZUZU,AKITA,CATGIRL| The MEME coin track has also fallen significantly this week, but the top growth coins have increased, mainly focusing on non-mainstream top coins. | Liquid Staking | -6.7% | STDYDX, AMPKUJI, QCKUJI | This week, the entire track has seen a significant decline, and the overall market is not good due to the weak performance of mainstream tokens. The top rising currencies have small gains. | | AI | -11.9% | OJA,MBD,DCD | The AI track has experienced a significant decline this week, affected by the sharp drop in the stock prices of mainstream AI industry. The track as a whole has trended downward, and the rise of the leading currencies within this track has been relatively limited.

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. Please indicate the author and source if you need to reprint, otherwise legal responsibility will be pursued.