Web3 Research Weekly Report｜This week, there may be new developments in the S-1 approval of the Ethereum spot ETF; the cryptocurrency market has experienced a general decline; ZKsync airdrop process issues have been frequent.

Weekly Overview

Within this week, the overall trend of the cryptocurrency market has shown a significant downward trend. Due to the impact of news factors such as the security of top exchanges and the ZKsync airdrop issue, the market has basically presented a step-by-step downward trend after the opening period. There was a certain rebound in the market near the weekend closing period, but the amplitude was not large. Currently, the cryptocurrency market is still in a continuous adjustment cycle, lacking clear positive news factors for the week, so most mainstream currencies have shown a downward trend. The overall market capitalization of the cryptocurrency market has declined significantly compared to the same period last week, currently reaching around 2.43 trillion US dollars, a decrease of 2.21% in the past 24 hours. The market sentiment is maintained at around 58, which is significantly lower than last week, and the amplitude is large. The trend of key mainstream currencies this week is mainly downward, with many currencies falling more than 10% in a week. Overall, the cryptocurrency market is likely to continue with a volatile trend in the near term.

Compared to last week, the total market value of the cryptocurrency market has fallen significantly this week. Overall, the market is more affected by the news factors, and the impact of the fluctuation cycle of the plate itself is relatively low. The probability of continuous decline in the future is relatively small. It is expected that there will be a certain degree of market rebound during the weekend closing period. Specific needs to wait for the impact of subsequent news factors and market cycle changes. The rise and fall ratio of the top 100 cryptocurrency projects is 1:9 in a week, and most currencies have shown a significant downward trend. The trend of BTC price was mainly downward in the past week, and there was a certain rebound in the closing period of the weekend, but it is still in a downward trend currently. The currency price fell below $67,000 and is currently maintained above $66,600. The weekly decline is about 5.48%. ETH is currently maintained around $3,482, with a weekly decline of about 8.02%. The highest price in the week was $3,570 at the opening period.

This week, the overall performance of various currencies in the market was poor, with XMR taking the lead, with a 7-day increase of 7.88%, and the current price maintaining around $177.

The overall market situation of cryptocurrency this weekend still has the possibility of further fluctuations, and a new round of market fluctuations is expected to occur during the weekend.

Encryption Market

🔥Chiliz Chain, a sports and entertainment blockchain solution, announced that the Dragon8 hard fork will take place at 10:00 CEST on June 17th.

🔥Bankless co-founder David Hoffman announced on the X platform that two projects based on Uniswap and about to launch on the mainnet will introduce some innovative features, namely: Sorella Labs and InfinityPools.

🔥 DeFiLlama data shows that the past week's trading volume of Ethereum-based DEX is $18.085 billion, ranking first with a 7-day decrease of 50.25%. Solana-based DEX ranked second with a trading volume of $10.184 billion in the past week, with a 7-day increase of 31.85%; BSC-based DEX had a trading volume of $4.637 billion in the past week, with a 7-day increase of 28.55%; Base-based DEX had a trading volume of $3.628 billion in the past week, with a 7-day decrease of 4.66%; Arbitrum-based DEX had a trading volume of $2.728 billion in the past week, with a 7-day decrease of 25.91%.

🔥SSV Network announced on social media that the last round of incentive activities has ended, and more than 22,332 validators are eligible to receive a total of 12,936 SSV, worth approximately 48.5 million dollars.

🔥ETF Store President Nate Geraci tweeted that there may be new developments in the S-1 approval of the Ethereum spot ETF this week.

🔥Evgeny Gaevoy, CEO of digital asset market maker Wintermute, said that Ethereum leaders must choose between supporting a capitalist or socialist economic system, but cannot do both at the same time.

🔥Tokenization of RWA has become the best-performing sector in May, surpassing the growth of giants such as ETH and BTC.

🔥Ultrasound data shows that as of now, a total of 4,320,697.56 ETH has been burned on the Ethereum network.

🔥MetaMask has launched a staking service that allows users to stake ETH and earn rewards, but the service will initially not be available in the United States or the United Kingdom, and is currently only open to a small number of users.

🔥LayerZero Labs announced on social media that it has launched on Sei V2, providing parallel execution and EVM compatibility. Developers on other LayerZero-supported networks can now seamlessly deploy their applications on Sei V2.

🔥DeFi Technologies Inc. announced that it has adopted Bitcoin as its primary financial reserve asset and has purchased 110 bitcoins to kick off this strategy.

🔥The Hong Kong virtual asset spot ETF has been listed for over a month. It has not yet been listed by banks. Some issuers have admitted that banks and securities firms are subject to different regulatory authorities. Distribution in banks still needs to wait for the corresponding regulatory authority's permission, and internal bank evaluations may take time.

🔥According to Spot On Chain monitoring, in the past week, wallets associated with the Ethereum Foundation have been actively selling ETH.

The number of cryptocurrencies, blockchain, or Web 3.0 plans announced by the top 100 companies in terms of wealth has increased by 39% in the past 12 months and reached a historic high in the first quarter of 2024.

🔥The most popular wallet MetaMask of Ethereum will launch the 'Aggregated Staking' feature this week, which will make participating in the security of the blockchain network cheaper than running a full validation node. The new feature will allow users to participate in Ethereum staking—a popular cryptocurrency investment strategy that involves staking tokens at an address on the blockchain in exchange for rewards.

🔥Dune data shows that the total amount of ETH staked on the Ethereum Beacon Chain has exceeded 33 million ETH, reaching 33,019,764 ETH for the current period, with 1,031,868 validators. The staked ETH accounts for 27.55% of the total ETH supply.

🔥In response to the ongoing dominance of Meme coin narrative, Ethereum co-founder Vitalik Buterin has proposed several directions for expanding and improving the functionality and scope of cryptocurrencies: 1. zk reputation/identity/credentials; 2. p2p cross-border payments (lower fees and rapidly improving user experience in this cycle); 3. Decentralized social networking; 4. Prediction markets (actually available in this cycle); 5. Privacy; 6. Enterprise applications implemented through zk validiums; 7. zk+anti-censorship voting.

🔥The Terra Luna Classic community is voting on the modified LUNC burn tax allocation proposal. This Pay-Per-Job (PPJ) proposal, submitted by Frag, a developer at Genuine Labs, requires the approval of the community and validators to implement the modifications outlined in proposal number 12098 passed in April.

🔥Shengli Securities announced that its VictoryX trading application now provides access to stablecoin USDT and USDC, making it the first securities firm in Hong Kong to offer this service. The feature is currently only available to professional investors.

🔥According to the Sapshot governance page, the 1inch community initiated a proposal to fund the launch of a crowdfunding and beta testing platform, which aims to launch beta.1inch.io, a platform designed to test Web3 projects, aiming to ensure the quality of projects and the growth of participant skills, and rewarding their work.

🔥Bloomberg ETF analyst said everyone thinks tokenization is important, but it may not be a substitute for ETF. Bitcoin ETFs are expected to exceed $500 billion in the US and possibly more globally within five years. People plan to position it as a "productive tech stock" and "ultimate app store", which is a completely different promotion from Bitcoin.

🔥PeckShield monitoring shows that the address labeled as Curve founder Michael Egorov has been liquidated for about 20.2 million CRV tokens on the UwU Lend platform. The executor of this liquidation is the address labeled as sifuvision.eth. According to UwU Lend's official tweet, UwU Lend has repaid all bad debts in the wETH market, totaling 481.36 wETH, worth about $1,734,042.

🔥According to the official announcement of Berachain, Berachain has been upgraded to Berachain V2 version. This upgrade introduces the BeaconKit framework, greatly improving the architecture and consensus mechanism, providing a better experience for EVM smart contract development.

🔥According to The Block, stablecoin issuer Paxos has laid off about 20%, or 65 people. Paxos co-founder and CEO Charles ‘Chad’ Cascarilla stated in an internal email that the company is in good financial condition, with over $500 million on the balance sheet. The layoffs are to focus resources more on tokenization and stablecoins.

🔥Cryptocurrency derivatives trader Gordon Grant said that the appeal of spot Ethereum ETFs to institutional players will weaken until staking is possible, and many may wait for staking to be approved before allocating funds to such funds.

🔥According to Deribit data, there will be BTC options and ETH options expiring tomorrow with a total notional value of approximately $1.99 billion.

🔥ZKsync airdrop process issues have been frequent, not meeting earlier user expectations, and there have been rat trading and witching issues, which have been opposed by multiple project parties.

Regulation & Macroeconomic Policies

🔥Former US President Trump expressed on social media that he hopes all remaining Bitcoin will be mined in the US as a new round of attack on President Biden.

🔥According to The Block, Terraform Labs has reached a settlement with the Securities and Exchange Commission (SEC), agreeing to pay a fine of $4.47 billion to the SEC.

🔥Following the recent approval of the Ethereum ETF 19b-4 application by the U.S. Securities and Exchange Commission (SEC), the Korean regulatory agency is facing increasing pressure to approve cryptocurrency ETFs.

Encryption Market Highlights

⭐️ In the past week, the overall cryptocurrency market has experienced a significant decline. It was mainly affected by the news, and the market has been on a downward trend since the opening. In fact, it is due to the lack of overall upward support. In the short term, the stimulation brought by the listing of ETH spot ETF is likely to promote the overall recovery of the market.

⭐️There is a lack of popular mainstream currencies in the market this week, and most of the currencies that have seen an increase in price have also seen relatively small fluctuations, overall in a state of pullback and decline. Currently, the currency with the highest price increase in the encryption market this week is XMR, with a price increase of about 6.82% in a week, and the current price is around $176. The highest price of this currency in a week is $181, and it has not been affected too much by the market's downward fluctuations.

(Data Source: Coinmarketcap)

Bitcoin& Ethereum Weekly Performance

Bitcoin (BTC)

(Data Source: TradingView)

This week, the price of BTC has mainly fluctuated downwards, with the price falling below $67,000 from above $68,000. The price of BTC has shown a certain degree of decline this week, affected by the fluctuation of the overall market and news factors, resulting in a relatively small fluctuation in the BTC price. Currently, the currency is basically maintaining a continuous fluctuation near $66,600, showing a relatively significant decline compared to the opening price. The high point of BTC price for the week is near $70,150, and the low point is around $66,600.

Analysis believes that the price fluctuation of BTC this week is greatly influenced by the overall downward trend of the market. Among the mainstream currencies, the price of BTC fluctuates more frequently, but still maintains good price support. It is expected that during the weekend, the price of this currency will likely continue to maintain a small fluctuation, and the trend of rise and fall needs to be comprehensively judged in combination with the market dynamics and the factors of the news.

Ethereum (ETH)

(Data Source: TradingView)

The high point of ETH's price within this week is around $3720, and the price trend for the week is similar to BTC, but the amplitude is relatively gentle. It mainly maintains continuous fluctuations within the range of $3400-3700, with the short-term long wick candle even once falling below $3400. Although there was a round of price warming near the weekend closing period, it still showed a continuous downward trend afterwards. The low point of the price for this coin is around $3380 for the week.

Analysts believe that the performance of ETH prices this week follows the overall trend of the market, with relatively gentle fluctuations in the candlestick charts and a significant short-term price drop. Currently, the subsequent major market changes of this currency depend more on the impact of the news, but there is a high probability of a certain warming trend during the weekend closing period. Combined with the overall market's cyclical fluctuations, a small upward push is expected.

Web3 Project Trends

The total market capitalization of seven types of projects fluctuated differently this week. Due to the changes in the market cycle and the impact of external news, different tracks also have different performances. At present, there is still a high probability of substantial fluctuations in the market trend. It is possible that various sectors will usher in relatively clear signals of rise and fall during the weekend.

Author: Charles T. This article represents only the views of the author and does not constitute any trading advice. This article is original, and the copyright belongs to Gate.io. If you need to reprint, please indicate the author and source, otherwise legal liability will be pursued.