Crypto Market Weekly Review: Rise of Casual Gaming, Intensified Competition in Computing Power Projects

Market Perspective

macro liquidity

In May, the US CPI fell to a three-year low year-on-year, and monetary liquidity has improved. Although the Fed's dot plot indicates that there will only be one rate cut this year, which is somewhat hawkish, this approach of trading time for space may leave room for subsequent policy operations. Major US stock indices continue to reach new highs, while the crypto market shows broad fluctuations.

Market Overview

This week, Bitcoin has experienced wide fluctuations, while altcoins have generally declined. Bitcoin is still attracting fiat inflows from ETFs, and the limited new funds entering the crypto market have restricted the performance of altcoins. In fact, the altcoin season index has fallen back to the low levels of the first half of 2023. Over the past 90 days, only more than 20 of the top 100 altcoins have outperformed Bitcoin. Market hotspots are focused on Base chain memes, the Bitcoin ecosystem, and newly launched tokens.

Projects worth paying attention to include:

1. IO: A decentralized AI Computing Power project, which may launch a staking feature in the future.

2. BRETT: Base chain head Meme token, associated with PEPE.

3. PIZZA: The first Bitcoin five-character inscription, is the first Meme token of a certain wallet's Bitcoin L2 ecosystem.

Bitcoin market

1. On-chain data

The trading volume of Bitcoin inscriptions has decreased, while the trading volume of runes has surged to 60% of the daily trading volume, indicating that speculative behavior has shifted from the inscription market to the rune market.

The market value of stablecoins has increased by 1%, and the trend of capital inflow is overall positive. Institutional funds have net inflows for five consecutive weeks, reflecting the market's expectations for interest rate cuts in the US monetary policy.

The MVRV-Z Score indicator is currently at 2.4, which is in the middle stage, reflecting that the overall profit status of the market is at a neutral level.

2. Futures Market

The futures funding rate has slightly decreased this week. The futures open interest has slightly fallen. The long-short ratio for futures is 1.3, indicating a neutral market sentiment.

3. Spot Market

Bitcoin is experiencing wide fluctuations, and this volatile market is expected to last until the end of July. Market liquidity is insufficient, with fewer sector-specific opportunities, mainly focusing on individual stock performances.

Market Data

Total Locked Amount of Public Chains

This week's TVL is $111.6 billion, an increase of $1.8 billion, with a growth rate of 1.6%. Except for the TRON chain, the TVL of mainstream public chains has generally decreased. It is worth noting that the total TVL of the SOLANA chain has approached $6 billion, and with its significantly increased activity, surpassing the BSC chain and even the TRON chain seems to be just a matter of time.

NFT market data

This week, the floor prices of blue-chip projects in the NFT market fluctuated, with the overall market continuing to decline slightly. Well-known projects such as CryptoPunks, BAYC, and MAYC have all seen varying degrees of decline. A few projects like Pandora and Pudgy Penguins have experienced increases.

Overall trading volume has明显下降, and the number of first-time and repeat buyers has decreased accordingly. The NFT market has not shown any明显改善迹象.

Project Financing Status

This week, financing activities in the crypto industry have been quite active, involving multiple sectors such as infrastructure, Web3 games, and NFTs. It is worth noting that infrastructure and gaming projects remain investment hotspots.