CoinDesk Report:
Over the past 24 hours, the market has seen numerous emerging cryptocurrencies and topics, potentially harboring the next opportunities for wealth creation.
Summary:
Bitcoin briefly dipped below $58,000, triggering heightened anxiety across the crypto market. Yesterday’s Federal Reserve minutes continued to emphasize unresolved inflation concerns.
Noteworthy sectors experiencing significant wealth creation effects include:
DePin (MOBILE, HONEY), ETH ecosystem (ENS, SSV).
Hotly searched tokens & topics include: Sentient, Astar Network, TAO.
Potential airdrop opportunities: Linea Surge, Solayer.
Data as of: July 4, 2024, 4:00 (UTC+0)
I. Market Environment
Yesterday saw an overall decline in the crypto market, with Bitcoin briefly dropping below $58,000 and market-wide panic increasing. Most major coins have breached their daily bullish trend lines, suggesting potential further declines.
The Federal Reserve’s minutes highlighted the need for more confidence data to support its interest rate cuts, indicating lingering inflation concerns. Bitcoin ETFs saw cumulative outflows of $20.5 million yesterday. Previous speculations regarding the Ethereum ETF’s commencement on July 4th have proven false, resulting in significant drops for Ethereum ecosystem tokens.
Solana LST protocol Sanctum announced details of an airdrop yesterday, with 10% of token supply allocated for initial distribution, half of which (5%) will be distributed based on Wonderland XP ratios, and the other half based on Earnestness metrics. Sanctum currently boasts an overall TVL of $790 million on Solana, ranking fifth on the Solana chain by TVL.
II. Wealth Creation Sectors
1) Sector dynamics: DePin (MOBILE, HONEY)
Key drivers:
Recent favorable announcements from several DePin projects, such as Helium Mobile launching a licensing program for its hotspots, which earn licensing fees from hotspots manufactured elsewhere, while expanding its cellular network. Hivemapper has already covered 23% of the global map area.
Performance highlights: MOBILE up 70% over the past 7 days, HONEY up 48.8% over the same period.
Future influencing factors:
DePin’s post-project performance will primarily depend on project advancements, incentive policy changes, and global node numbers. DePin’s core aims to integrate more hardware globally into incentive networks, enhancing profit sharing. Investors should closely monitor developments and data in this regard to make informed investment decisions.
2) Sectors to watch closely: ETH ecosystem (ENS, SSV)
Key reasons:
The planned launch of the Ethereum spot ETF for trading on July 4th has been canceled, causing declines in some Ethereum ecosystem tokens. However, there remains a chance for the ETF to commence trading in mid-July, potentially offering oversold rebound opportunities for some Ethereum ecosystem tokens.
The ETF Store President Nate Geraci predicts the launch timeline for the Ethereum spot ETF, noting Bloomberg’s revised S-1 filing expected by July 8th, with the final S-1 possibly submitted by July 12th, suggesting a launch week around July 15th.
Despite the June 29th SEC ruling categorizing Lido and Rocket Pool staking projects as securities, causing declines in LDO, RPL, this did not hinder the rise of tokens like ENS, SSV within the Ethereum ecosystem. ENS has reached new highs not seen in 29 months.
Future influencing factors:
The main factors affecting the token prices of Ethereum ecosystem projects: 1. Whether the Ethereum spot ETF can commence trading soon, 2. SEC’s regulatory stance on certain projects. A successful launch of the Ethereum spot ETF in mid-July would be a significant bullish indicator for Ethereum ecosystem projects; conversely, failure could lead to market sell-offs.
III. User Hot Searches
1) Popular Dapps
Sentient:
Sentient is an open-source AI development platform that initiates “activities” for contributors, each with specific metrics to evaluate contributions and rewards. The project recently raised $85 million from investors including Pantera Capital, Framework Ventures, Hash VC, Foresight Ventures, positioning it as a focal point in the future AI race. Continued monitoring of project developments is advised.
2) Twitter
Astar Network (ASTR), launched its token for mainstream exchange trading in 2022. Despite recent market downturns, it has shown an early bottoming rebound, piquing user interest. The token is now listed on Bitget; its market trend warrants continued attention. If the broader market rebounds, Astar Network could generate significant wealth effects.
3) Google Search & Regional Insights
Global perspective:
Why is down today:
Crypto markets continue to decline, with BTC finding support around $58,000. Anticipated early pricing-in of interest rate cuts for the second half of the year, along with declining 10-year treasury yields and potential weakening of the US dollar index. Interest rate cuts could benefit crypto assets; positioning for the second half of the year is advisable.
TAO:
Yesterday, Bittensor suffered an attack due to stolen private keys, resulting in the theft of 32,000 TAO tokens (worth approximately $8 million). As a result, Bittensor (TAO) fell below 240 USDT, currently reporting 237 USDT, a drop of over 10% in 24 hours. The incident drew attention due to its significant impact on token prices.
Regional hot searches indicate:
(1) Asian countries: “why crypto is down today” and “greed and fear index” are top search terms, reflecting high investor concern over market downturn reasons.
(2) European and American countries: No prominent hotspots; top tokens and terms differ by country. For instance, Italian traders focus on TAO, NOT, SOL, while German users track SOL, LDO, and UK users focus on ETH, TAO, among others.
IV. Potential Airdrop Opportunities
Linea Surge:
Following Linea Park, Linea Voyage: The Surge event has officially begun. It’s worth noting that activation on the Linea website via referral code is required to start earning LXP-L points. Whales Market has launched Linea’s points trading market, hinting at potential airdrop opportunities in the future.
Market sentiments suggest Linea may struggle to reach a $3 billion TVL, but current TVL stands at $700 million. With projects like zkSync and LayerZero launching, funds could flow into Linea, potentially achieving a $3 billion TVL and prematurely ending activities.
Participation specifics: (1) Activate a Linea account via invitation link; (2) Deposit assets supported by The Surge event such as ETH, DAI into the Linea network; (3) Stake assets in protocols like SyncSwap, Mendi Finance, SushiSwap to earn LXP-L points (Linea supports over 20 protocols, details available at: https://www.openblocklabs.com/app/linea/dashboard).
Solayer:
Solayer is a native restaking protocol within the Solana ecosystem, akin to Eigenlayer for the Ethereum ecosystem. Solayer enhances data security and facilitates high-speed transaction validation via decentralized cloud infrastructure.
The project recently completed a financing round with notable investors including Anatoly Yakovenko, Sandeep Nailwal, Joseph Delong, Joe Lallouz, Rooter, Richard Wu, Ansem, DCF GOD. Anatoly Yakovenko, Solana’s founder, and Sandeep Nailwal, co-founder of Polygon, contribute to Solayer’s high-profile status, indicating potential for a high valuation and positive wealth effects from airdrops.
Participation details: (1) Access the official website using an invitation link; (2) Deposit SOL, mSOL, Jitosol, bSOL on the official website.
