Crypto Market Weekly Report: Meme Coin Popularity Remains High, L2 Ecosystem Competition Intensifies

Market Overview

This week, the crypto market performed relatively flat, showing some divergence from the movements of the US stock market. Despite the US stocks reaching new highs driven by leading tech companies, the cryptocurrency market has continued to experience fluctuations and consolidation. Bitcoin remains in a consolidation phase, while the activity level in the altcoin market has seen some improvement.

Market Highlights

1. Meme coins continue to be hot, with funds spreading from the Ethereum ecosystem to other public chains. The NOT from the TON ecosystem, DOG from the Bitcoin ecosystem, and the MAGA concept coin related to the U.S. elections have shown impressive performance.

2. Long-term investors have started to accumulate Bitcoin again, and selling pressure has eased. The funds flowing into the US spot ETF have shifted from net outflows to net inflows.

3. Institutional funds have seen a net inflow into the crypto market for three consecutive weeks, with a total inflow of about 15 billion dollars this year. The inflow of funds into Ethereum has reached a recent high, possibly related to market expectations regarding the approval of a spot ETH ETF in the U.S.

4. Competition in the L2 ecosystem intensifies, Linea performed outstandingly this week, with a total locked value (TVL) growth of 29%, nearing 600 million dollars.

Market Data

• Total market TVL: 106.8 billion USD, weekly increase of 0.5%
• Changes in TVL of mainstream public chains:
  • Ethereum: -5%
  • TRON：-7%
  • Arbitrum：-2%
  • Bitcoin: -4%
  • Avalanche: -6%
  • Polygon：-3%
  • Optimism：-4%
  • Merlin and Blast: +1%

• NFT Market:
  • The floor price of blue-chip projects has generally declined.
  • Trading volume has significantly increased, but the number of buyers has not shown a noticeable rebound.
  • Market sentiment is sluggish, at the bottom range.

Market Outlook

In the short term, Bitcoin may continue to fluctuate within a range. The market's main focus is on the development of meme coins and the L2 ecosystem. In the long term, the market expects the Federal Reserve to begin cutting interest rates later this year, injecting new liquidity into the crypto market.