Crypto Market Weekly Report: Casual Gaming Projects are Booming, Computing Power Competition is Fierce

Macroeconomic Environment

The US May CPI fell to a three-year low year-on-year, but the Fed's dot plot still indicates only one rate cut this year, appearing slightly hawkish. The Fed's strategy of trading time for space may be the best choice, leaving room for subsequent policy operations. The US stock market continues to hit new highs, while the crypto market shows a wide range of fluctuations.

Market Trends

This week, Bitcoin has experienced wide fluctuations, while altcoins have generally declined. Bitcoin continues to attract ETF inflows, but the limited new funds have restricted altcoin performance. The altcoin season index has fallen back to the low levels of the first half of 2023, with only over 20 of the top 100 altcoins outperforming Bitcoin in the last 90 days. The market focus is on Base chain meme coins, Bitcoin ecosystem, and newly launched tokens.

Projects worth paying attention to:

1. IO: A decentralized AI Computing Power project that may launch staking in the future.
2. BRETT: The Base chain's head Meme coin, related to PEPE.
3. PIZZA: The first five-character inscription of Bitcoin, it is the first Meme coin on the Unisat wallet BTC L2.

Bitcoin Analysis

1. On-chain data:
   • The trading volume of inscriptions has decreased, while the proportion of rune trading has risen to 60%.
   • The market value of stablecoins has increased by 1%, with a positive trend in capital inflow.
   • Institutional funds have seen a net inflow for 5 consecutive weeks.
   • The MVRV-Z Score is 2.3, which is in the middle stage.

2. Futures Market:
   • The funding rate has slightly decreased.
   • The trading volume has slightly declined.
   • The long-short ratio is 1.3, indicating a neutral market sentiment.

3. Spot Market: Bitcoin is experiencing wide fluctuations, which are expected to continue until the end of July. Market liquidity is insufficient, and there are fewer opportunities in the sectors, mainly focusing on individual stock opportunities.

Public Chain TVL Analysis

This week's TVL is $111.6 billion, up 1.6%. The TVL of major public chains generally declined except for TRON. The total TVL of the SOLANA chain is close to $6 billion, with a noticeable increase in activity, and is expected to surpass BSC and TRON.

NFT Market

The overall trading volume of the NFT market has clearly declined, leading to a decrease in the number of buyers. The floor prices of blue-chip projects are fluctuating, while the market continues to experience a slight decline. Notably, Pandora surged by 66%, and DeFrogs increased by 44%. Overall, the NFT market has yet to show significant improvement.

Project Financing

This week, multiple projects secured funding, involving fields such as gaming, infrastructure, and DeFi. Among them, Mysten Labs raised $100 million, and Xternity raised $5.75 million.