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Market volatility declines, next week's unemployment rate data is worth paying attention to

BlockBeatsBlockBeats2024/08/30 11:07
By:BlockBeats

Telegram founder arrested, Vitalik questions DeFi, is there good news at the end of bad news?

Original title: "Frontier Lab Crypto Market Weekly Report|W35"
Original source: Frontier Lab


BTC and ETH Weekly Overview


Market Performance



This week, the overall cryptocurrency market showed a volatile downward trend:


Bitcoin:This week, Bitcoin showed an overall volatile downward trend. This trend was mainly affected by two major events: first, the arrest of Telegram's founder, and second, the market adjustment caused by the release of Nvidia's financial report. These events reflect the current weak purchasing power of the market and investors' concerns about future uncertainties.


Ethereum:This week, Ethereum followed Bitcoin and also showed a volatile downward trend. Ethereum co-founder Vitalik tweeted that he does not support Defi, which triggered opposition from Ethereum ecosystem project owners and users. There are more pessimistic voices in the market about the future development of Ethereum, so Ethereum performed relatively weakly this week.


Key Events


Telegram founder arrested


On August 26, Telegram founder Durov was arrested in France and was charged with multiple felonies by the court on August 28, restricting him from leaving France. This incident had a negative impact on the TON ecosystem and led to a decline in its market performance.


Vitalik tweeted that he does not support Defi


This week, Vitalik tweeted that he does not support DeFi, which triggered widespread opposition from project owners and users in the industry. The Ethereum ecosystem is based on its huge financial system, and on-chain gas fee data shows that Uniswap ranks first. If Ethereum does abandon its support for DeFi in the future, it may cause a large number of DeFi projects to migrate to other public chains, which will not only weaken Ethereum's competitiveness, but also promote the rapid development of public chains that receive these projects.


Nvidia releases financial report


On Thursday, Nvidia released a financial report showing that its second-quarter revenue scale far exceeded that of the first quarter and exceeded market expectations. However, the financial report failed to surprise the market, triggering a brief decline in the U.S. stock and crypto markets.


Altcoin Overview of the Week


Overall Performance


This week, the market sentiment index fell to 38%, a sharp drop from 90% last week. The profit-taking behavior after the rapid rebound caused the market sentiment to change from extreme greed to fear.


The Altcoin market was affected by multiple factors this week, including the arrest of Telegram founder Durov, Vitalik's statement on Twitter that he did not support DeFi, and the market decline caused by the release of Nvidia's financial report. In addition, this week, the Altcoin market lacked significant market hotspots except for the Meme coin project.


Overview of Public Chain TVL Increase


The top 5 public chains with the highest TVL increase in the past week (excluding public chains with smaller TVL).



Data source: Defilama


Sei:This week, Sei integrated Secret Network's confidential computing layer, adding a privacy layer to its L1. In addition, Sei issued a statement to clarify that the recent on-chain security incident was not an external hacker attack or intrusion, but may have been caused by insiders, in order to dispel users' concerns about Sei's security issues. Infrastructure developer Biconomy also announced its integration with Sei, enabling users to use account abstraction infrastructure stacks.


Merlin:With the launch of the Babylon mainnet, the BTC ecosystem has once again become the focus of market attention, and some attention and funds have flowed back to the BTC ecosystem.


Aptos:As Tron and Ethereum ecosystems gradually support Meme coin projects, Meme coin projects on various public chains have become active again. Pumpfun imitations also appeared on Aptos, which continuously released Meme projects to attract market attention.


Near: Recently, Near updated Nightshade 2.0, introducing stateless verification to reduce the burden of individual validators and improve on-chain efficiency. Due to the internal disagreements in the Ethereum ecosystem, the market re-discussed the chain abstraction track to solve the L2 liquidity split problem. As the leader of the chain abstraction track, Near has once again entered the public eye.


Sui: As a top-ranked public chain project, the Meme coin BLUB on the Sui chain has performed well in the recent rise of Meme coins. In addition, the Pumpfun imitation project was launched on the Sui chain, which drew on the strategy of continuously creating Meme coin projects on the Solana chain and attracted some capital inflows.


Overview of the Gain List


The top 5 market tokens with the highest gains in the past week (excluding tokens and meme coins with too small trading volumes).



Data source: Coinmarketcap

This week's gain list did not show the characteristics of "sector concentration", and the rising tokens belonged to the AI, LSDFi, cross-chain, L2 and oracle tracks.


FET:As the leader in the AI track, FET started to rise last weekend due to the positive expectations of Nvidia's financial report, and led the AI track. However, after the release of Nvidia's financial report on Thursday, although the performance increased compared with the first quarter, it did not meet market expectations, especially the decline in gross profit margin, which led to a decline in the US stock market and the Crypto market. The AI sector fell sharply. Due to the early rise of FET, it still ranked first in the list of gains this week.


PENDLE:This week, BTC asset eBTC was launched as EtherFi's Bitcoin LRT vault for Symbioticfi's re-staking. Pendle has expanded to BTC series assets, and the market is generally optimistic about its future business development potential.


ZRO:It has attracted attention due to the launch of the ERO/USDC trading pair on OKX and the landing of ENA and Ethena on the Solana chain through LayerZero cross-chain technology. Recently, the market has intensified its opposition to Ethereum L2, and the problem of liquidity fragmentation has become prominent. Cross-chain technology has regained attention, and LayerZero has gained market attention as the leading project in the cross-chain track.


IMX and TRB: There was no significant news or good news for the project this week.


The increase in the five tokens on the list of gainers this week was significantly lower than that of last week, mainly because the market has been falling since Monday, and the increase was concentrated in the weekend and early morning of Thursday this week. It is expected that the market will remain volatile before the release of the US employment rate in August next week.


Meme Token Gain List


Data source: coinmarketcap.com


This week, the Meme coin track rebounded significantly stronger than last week. In addition to Tron founder Justin Sun's public support for the Meme coin project to enter Tron last week, this week the Ethereum ecosystem gradually turned to support the development of the Meme project due to dissatisfaction with Vatalik's attitude towards the role of DeFi in its ecosystem. As the largest ecosystem in the Crypto ecosystem, this shift of Ethereum has brought a new round of growth momentum to the Meme coin project. The development focus of the Meme project has begun to shift to the Ethereum chain. Thanks to the huge scale of funds and users in the Ethereum ecosystem, the rapid development of the Meme coin project can be promoted in the short term.


Social Media Hotspots


According to the data of the top five daily growth in LunarCrush and the top five AI scores in Scopechat, the statistics for this week (August 24-August 30) are as follows:


The most frequently appearing theme is L1s, and the tokens on the list are as follows (tokens and meme coins with too small trading volume are not included):


Data source lunarcrush and Scopechat


According to data analysis, the Layer 1 blockchain projects with the highest social media attention this week generally showed a downward trend, which was mainly affected by the continuous downward trend of the overall market since Tuesday. In the case of market fluctuations and the lack of star projects or sector rotation, the performance of major public chains often outperforms other sectors. This phenomenon reflects that in the current market environment, investors have relatively stable confidence in infrastructure projects. However, we still need to pay close attention to macroeconomic factors and industry developments to assess the sustainability of this trend.


Theme Tracking


Data Source: SoSoValue


Based on weekly returns, GameFi performed best, while SocialFi performed the worst.


GameFi track:In the GameFi track, the IMX project occupies the largest market share, accounting for 31.76%. This week, the price of IMX rose by 18.04%, which to some extent promoted the growth of the entire GameFi track. However, despite the relatively good performance of the GameFi track this week, its cumulative increase is still negative. The performance of various projects is generally affected by recent events in the crypto market, including the arrest of Telegram founder Durov, Vitalik's public statement on Twitter that he does not support DeFi, and the market decline caused by Nvidia's financial report. These factors together led to the poor performance of the GameFi project this week.


SocialFi track:In the SocialFi track, TON is still the absolute main force, accounting for 92.91% of the market value of the track. Earlier this week, the founder of Telegram was arrested and subsequently charged with multiple felonies by the court. In addition, the TON public chain was down, which led to a sharp decline in TON this week. Although other tokens in the SocialFi track are showing an upward trend, due to the large proportion of TON in the track, the overall performance of the entire track is still poor this week.


Preview of major Crypto events next week


Monday (September 2) TON Asia


Tuesday (September 3) US August ISM Manufacturing PMI


Wednesday (September 4) Bitcoin Odyssey


Thursday (September 5) US August ADP employment; Meta Expo Dubai 2024


Friday (September 6) US August unemployment rate; US August seasonally adjusted non-farm payrolls


Outlook for next week


1. Bitcoin:Currently, Bitcoin lacks its own positive factors and is in a volatile state. Its price fluctuations are mainly affected by market news and macro data. Next week, a series of macro data will be released, especially the August unemployment rate in the United States, which has attracted much attention. The market generally believes that this data will affect the extent of the Fed's interest rate cut in September, which may cause drastic market fluctuations. According to the analysis of the downward revision of employment by the U.S. Department of Labor last week, it is expected that the unemployment rate next week may be higher than expected, so Bitcoin may show a fluctuating upward trend under the influence of macro data.


2. Ethereum:This week, Ethereum founder Vitalik tweeted that he was not inclined to support the development of DeFi within the Ethereum ecosystem, sparking widespread opposition in the market. In response to this situation, multiple projects and users within the ecosystem began to re-support the Meme project, pushing ETH to outperform BTC after Wednesday this week. Given the huge size of the Ethereum ecosystem and the support of the Meme project, ETH is expected to continue to outperform BTC next week.


3. Altcoin:Next week is the week for the release of U.S. macro data. The recent performance of the crypto market has been relatively weak. It is expected that Altcoin will mainly follow the fluctuations of macro data and it will be difficult to get out of the independent market. In addition, there is a lack of hot spots in various Altcoin tracks recently, and it is expected that it will continue to be closely related to the market trend next week.


This article comes from a contribution and does not represent the views of BlockBeats.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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