Weekly Web3 Research | Market Maintained a Volatile Downward Trend; Ethereum Layer3 TPS Reached a Historic High; Spot Ethereum ETFs May Still be Launched Before July 4th

Weekly Trend Overview

This week, the overall trend of the crypto market continued the general market trend of last week, showing a relatively obvious downward trend of volatility. The overall market expectation for the middle stage of 2024 is poor, which is related to external economic factors. At the same time, there have been some anti-cutting incidents in the crypto market recently, which significantly impact user confidence. The overall market trend for a week is unclear, and there are still relatively intense fluctuations in the closing period near the weekend. Looking back, the crypto market is still in a continuous adjustment cycle, like last week, lacking positive news factors. Therefore, most mainstream coins have shown a slight decline. The overall market cap growth of the crypto market has continued to decline compared to the same period last week, with a total market cap of around $2.36 trillion, an increase of 0.04% within 24 hours. The market sentiment remains around 52, with a significant decline compared to last week. This week’s trend of key mainstream coins this week is mainly characterized by a continuous decline. Overall, the crypto market will likely continue to fluctuate in the near future.

Compared to last week, the total volume of the crypto market has further declined. Overall, the market is still greatly affected by the market’s cyclical fluctuations due to the external economic environment and lack of positive news. There will likely be a certain degree of market recovery during the weekend closing period. The top 100 crypto projects have a rise-and-fall ratio of 16:84 within a week, with most coins showing a certain degree of decline. A slight decline mainly characterizes the price trend of BTC within a week, and it is still in a volatile market near the weekend closing period. The coin price is currently maintained at around $65,000, with a weekly decline of about 2.31%. ETH is currently maintained above $3,500, with a weekly increase of around 1.54%.

The overall market was affected by the news this week, with ENS ranking first in terms of coin price increase, with a 7-day increase of 29.72%. The coin price is currently maintained at around $25.8.

There is still a possibility of further ups and downs in the overall crypto market this weekend, and it is expected that a new round of market fluctuations will occur during the weekend period.

Crypto Market

🔥 JPMorgan Chase stated in a research report on Monday that the total market value of 14 Bitcoin (BTC) miners listed in the United States after JPMorgan Chase reached a historic high of $22.8 billion on June 15th.

🔥 Ethereum co-founder Vitalik Buterin posted on social media that he believes that off-chain ZK applications underestimate the potential of using STARK, including use cases that require high privacy.

🔥 Due to the sudden surge in TPS of Ethereum Layer3, the trading volume per second (TPS) of the Ethereum eco has surged to a historic high. According to L2BEAT data, on June 16, Ethereum’s scalability network, including Layer2 and Layer3 blockchains, recorded a total of 246.18 TPS, equivalent to an estimated 21.2 million transactions throughout the day.

🔥 Despread Research, the research department of Web3 consulting firm Despread, has released a report on the evolution and future potential of the Memecoin market, analyzing Memecoin’s utility as a speculative asset.

🔥 Identity and distribution protocol developer Layer3 has completed a Series A financing of $15 million, led by ParaFi and Greenfield Capital.

🔥 According to Cointelgraph, as Ethereum is about to undergo a Pectra upgrade in early 2025, Liquid Collect and Obol have released a latest research report that reveals multiple risks associated with this upgrade. The report emphasizes the importance of client, operator, and cloud diversity, while also expressing concerns about the limited adoption of distributed validator technology (DVT).

🔥 Starknet community releases v0.13.2 and summer roadmap updates: v0.13.2 is expected to be released in August, with the aim of reducing block time without increasing L1 costs and reducing transaction confirmation time to an average of around 2 seconds.

🔥 According to official data, the total amount of ETH staked by the liquidity staking platform Lido is 9,557,117 ETH, approximately $32,908,690,053. In addition, Lido has paid a staking reward of 525,686 ETH, approximately $1,810,131,309.

🔥 According to the team’s sharing on Monday, the airdrop of ZK tokens for the Layer 2 blockchain ZKsync has been initiated, with 45% of the tokens being claimed. The ZKsync Association is a non-profit organization founded and launched by ZKsync’s development company Matter Labs last week, responsible for airdrop claims.

🔥 On June 18th, Ethena Labs announced that they have updated the ENA token economics and will launch the ENA universal staking feature, using a universal re-staking pool to stake ENA. The first use case is to rely on the LayerZero DVN cross chain messaging to provide economic security for USDe’s cross-chain transfer. This is the Layer 1 of the multi-layered infrastructure related to the financial applications built on the upcoming Ethena Chain.

🔥 According to Arkham data, the wallet address marked as the German Government BKA sold approximately 6,500 BTCs today. It is reported that the crypto wallet has held nearly 50,000 BTCs since February 2024, which were seized from the pirated movie website operator Movie2k. Currently, it still holds 43,359 BTCs worth $2.83 billion.

🔥 The official governance page shows that the Aave community has initiated the “GHO Cross Chain - Part One” proposal, and on-chain voting has now begun, as of June 22.

🔥 LayerZero Labs CEO Bryan Pellegrino stated in X that there are 1.28 million qualified addresses, with early interactive tx enjoying triple weight and low value tx reducing weight by 80%.

🔥 The Sui mainnet has been upgraded to version 1.27.2, and the Sui protocol has been upgraded to version 49. The upgrade points include: adding a new protocol version, enabling Move enumeration on the development network, adding support for Move enumeration values in the returned JSON-RPC results, adding support for Move enumeration values and types, adding the ability to write Move unit tests using randomly generated raw Move type test inputs, and disabling the Accum v2 testnet cp.

🔥 Potential spot Ethereum ETF issuers are responding to comments received from the US SEC last week regarding the S-1 form and plan to submit a response before this Friday. Analysts predict that the traffic of Ethereum ETFs may reach 20% of Bitcoin ETFs.

🔥 Polkadot co-founder Rob Habermeier proposed the Plaza chain, which aims to integrate parallel chain functionality and improve network scalability. Plaza will integrate functions such as asset issuance, smart contracts, staking, cross-chain bridging, and near-zero fees into one chain, simplifying operations for users and developers.

🔥 According to the data tracked by Tagus Capital, stablecoin issuers hold more than 120 billion US treasury bonds. This makes them the 18 largest holders of US Treasury bonds globally, surpassing major current account surplus countries such as Germany and South Korea.

🔥 MicroStrategy acquired an additional 11,931 BTCs worth approximately $786 million at a price of approximately $65,883 per Bitcoin, using convertible notes and excess cash proceeds. As of June 20, 2024, MSTR holds 226,331 BTCs with an average price of $36,798 per Bitcoin, valued at approximately $8.33 billion.

🔥 According to official data, as of June 18, Grayscale GBTC holds 280,321.8147 BTCs, while BlackRock IBIT holds 305,591.5969 Bitcoins. The gap between Grayscale and BlackRock’s Bitcoin holdings has widened to 25,269.7822 BTCs.

🔥 According to a post by on-chain data researcher @Noah_nftn, there are six market makers in LayerZero, namely GSR (11 million ZRO received from LayerZero), Wintermute (6.5 million ZRO received from LayerZero), Amber Group (5.69 million ZRO received from LayerZero), Auros (360,000 ZRO received from LayerZero), Animoca Brands (800,000 ZRO received from LayerZero), and an unknown institution (500,000 ZRO received from LayerZero).

🔥 BlackRock, the largest issuer of Bitcoin ETFs, has warned that an unprecedented situation is happening that could hit Bitcoin prices and the crypto market. BlackRock analysts say that central banks around the world are forced to keep interest rates above pre-pandemic levels to cope with sustained inflationary pressures.

🔥 According to The Block data, Bitcoin’s market dominance surged to 52.92% over the weekend, reaching a new high since April 2021. This growth is mainly driven by the approval of spot ETFs, despite the overall market volatility.

🔥 The Eigen Foundation announced on the X platform that the second phase of the first quarter of EIGEN staking airdrops has been officially launched. The addition of the second phase has led to a total allocation of approximately 113 million EIGEN in the first quarter, which accounts for 6.7% of the 15% of the total supply of EIGEN reserved for staking airdrops.

🔥 The President of The ETF Store, Nate Geraci, posted on social media that there will be many spot ETH ETF S-1 amendments today and tomorrow, and according to Bitwise documents, there seems to be nothing worth noting/commenting on by the SEC.

Regulatory & Macro Policies

🔥 The South Korean financial authorities plan to reassess the online status of approximately 600 cryptocurrencies traded on domestic exchanges. This strict review aims to ensure compliance with the new Virtual Asset User Protection Law regulations which came into effect on July 19th.

🔥 Last month, Democratic Party President Biden gave a farewell letter to his Republican predecessor, Trump, proposing to abandon decades of autumn debate tradition and hold two offline debates ahead of schedule. The latter took over. Biden had three themes in the first debate, including abortion rights, democratic conditions, and the economy. Trump’s team pointed out that immigration, public safety, and inflation were key issues before the debate.

🔥 According to Cointelgraph, the US SEC has criticized Ripple Labs’ latest argument for reducing fines and insists that the total amount of fines it proposes is nearly $2 billion. Judge Torres has confirmed Ripple’s illegal behavior, but only when selling to institutional investors. At present, the legal struggle between the two sides is still ongoing.

🔥 In the criminal case against former FTX CEO Sam Bankman Fried, different groups have filed competing claims for some or all of the assets involved, and Sam Bankman-Fried is currently serving 25 years in federal prison.

🔥 The US SEC has concluded its investigation into the blockchain incubator company Consensys. It has sent two letters to its lawyers, stating that it will not recommend enforcement action against the company.

Crypto Market Highlights

⭐️The crypto market as a whole has continued to fluctuate and decline from last week. The overall market volatility has recently been within the same cycle, and the overall market trend has been experiencing frequent intraday fluctuations since the opening. In reality, there is still a lack of positive news and clear support signals from the external economic environment. In the short term, it is highly likely that the subsequent stimulation brought by the listing of ETH spot ETFs will drive the overall recovery of the market, but the specific time will still depend on the exact dynamics of the US SEC.

⭐️The mainstream coins that experienced a significant increase in the market this week are mainly influenced by the dynamics of related projects and market news, and the overall increase is relatively large compared to last week. The coin with the highest weekly price increase in the crypto market is ENS, with a weekly increase of about 29.72%. The current price is around $25. The weekly high point of the coin is $27.42, which is largely influenced by news factors.

(Data Courtesy Of Coinmarketcap)

BTC & ETH Weekly Performance

Bitcoin (BTC)

(Data Courtesy Of TradingView)

The overall price of BTC has been fluctuating downward this week, but the magnitude is relatively small, with the coin price rising from above $67,000 to around $65,000. This week, the BTC price has shown a certain degree of decline, continuing the overall market trend of last week. Due to the impact of fluctuation cycles and news factors, BTC prices have shown a slight fluctuation trend. BTC has maintained a continuous fluctuation around $65,000, with a relatively small decrease compared to the opening price. The high point of BTC’s weekly price is around $67,200, while the low point is around $64,000.

Analysis suggests that BTC’s price changes this week are greatly affected by the market’s continuous and fluctuating trend. However, compared to last week, the BTC price changes this week have been relatively gentle, and the price support is relatively strong. It is expected that BTC will continue to maintain a slight market fluctuation during the weekend, with a higher probability of recovery.

Ether (ETH)

(Data Courtesy Of TradingView)

ETH’s high point this week was at $3,650, with a weekly price trend similar to BTC, but with a larger rebound in coin prices near the weekend closing period. Compared to last week, the ETH price has remained stable within the range of $3,350-$3,600 this week, with continuous fluctuations. Although there was a round of price recovery near the weekend closing period, there was still a trend of rapid intraday decline.

Analysis suggests that the ETH coin price has followed the overall market trend this week, with a smoother price fluctuation compared to last week, and a smaller short-term price decline. At present, the subsequent major market changes of ETH still rely more on the influence of news factors. However, there is a high probability of a certain rebound in the weekend closing period. Considering the market’s cyclical fluctuations, there is expected to be a small round of upward momentum.

Web3 Project Trend

The total market cap of the seven project categories has fluctuated this week. Due to changes in market cycles and external news, different tracks have also shown different performances. Currently, there is still a probability of significant changes in the overall market trend, and various sectors may receive clear signals of ups and downs during the weekend.