Bitget Research: Mt.Gox States No Repayments in the Short Term, Crypto Market Stabilizes with Narrow Fluctuations

Bitget Research2024/05/29 08:08

By:Victoria & John

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In the past 24 hours, many new popular tokens and topics have emerged in the market, which are likely to be the next wealth creation opportunities.

Overview

The market saw a slight pullback influenced by consecutive actions from Mt. Gox, with BTC briefly dipping below $68000 early this morning. Certain sectors demonstrated a wealth creation effect. The highlights are as follows:

Sectors with strong wealth creation effects: RWA sector and Ethereum Layer 2 sector.
Top searched tokens and topics: Particle network, Atomicals Protocol, and Celestia.
Potential airdrop opportunities: Espresso and Morph.

Data collection time: May 29, 2024, 4:00 AM (UTC)

1. Market Environment

Yesterday, an official announcement from Mt. Gox stated that no Bitcoins were sold; the transfer was in preparation for the October 31 deadline for creditor repayment. Influenced by Mt.Gox's consecutive actions, the market experienced a slight pullback, with BTC briefly dipping below $68000. This week, the ETH/BTC trading pair exchange rate rose significantly, currently at 0.056, a 25% increase from mid-month at 0.045. This indicates that ETH is undervalued relative to BTC, suggesting a larger potential for future increases.

On the macroeconomic front, yesterday's U.S. Bitcoin ETFs added 694 bitcoins valued at approximately $47 million, with BlackRock's spot Bitcoin ETF, IBIT, surpassing Grayscale's GBTC in holdings. The Crypto Fear and Greed Index stood at 72, down from 74 the previous day, indicating a sustained increase in market sentiment.

2. Wealth Creation Sectors

2.1 Sector Movements – RWA Sector (ONDO, TRU, and POLYX)

Primary reason: This bull market is mainly fueled by traditional market investments driven by ETFs. RWA, serving as a bridge to traditional financial markets, has continuous product updates and funding. Recently, the RWA Layer 2 network Plume Network completed a $10 million seed round funding.

Gainers: Today, ONDO increased by 10%, TRU by over 20%, and POLYX by 5%.

Factors affecting future market conditions:

Changes in macroeconomic monetary policy: From a macroeconomic perspective, the rise in U.S. 10-Year Treasury Bond Yields supports the fundamentals of the RWA sector. It is essential to monitor subsequent changes in the dollar index, treasury yields, and the cryptocurrency market to adjust trading strategies dynamically.
TVL changes in projects: RWA sector projects are generally supported by TVL, making it essential to monitor the changes in this metric. If a project's TVL rises continuously or suddenly, it is usually a signal to buy.

2.2 Sector Movements – Ethereum Layer 2 Sector (ARB, OP, and STRK)

Primary reason: Influenced by the potential approval of the Ethereum ETF, Ethereum Layer 2 tokens have generally risen. The market perceives the approval of the Ethereum ETF as a positive development for Layer 2 tokens. Thus, while watching the ETF developments, investors are also advised to keep an eye on investment opportunities in related Layer 2 tokens.

Gainers: ARB has increased by 19.3% over the last four days, OP by 8.5%, and STRK by 16.6%.

Factors affecting future market conditions:

Approval of Ethereum ETFs: The market has largely priced in the approval of the Ethereum ETF. Should there be unexpected developments in the ETF approval tomorrow morning, a trend reversal might occur.
Development of Layer 2 projects: As a widely used chain ecosystem, the future development of Layer 2 depends on its collaboration with projects and user growth.

2.3 Sectors to Focus on Next — AI Sector

Primary reasons: Recent positive developments in AI from major tech companies have spurred interest in both the U.S. stock market's AI segment and the crypto AI sector:

OpenAI launched its flagship AI model, capable of real-time audio, visual, and text reasoning processing. The release of the text-to-video model Sora by OpenAI in February drove up valuations across the sector. The launch of GPT-4o highlights the importance of maintaining focus on the AI sector.
According to Cointelgraph, tech giant Microsoft is closely monitoring the crypto industry, including ways blockchain technology and artificial intelligence might support each other.

Specific tokens:

TAO: Bittensor is an open-source protocol that powers a blockchain-based machine learning network. Machine learning models train collaboratively and are rewarded in TAO according to the informational value they offer the collective.
NEAR: Recently, many AI projects within the NEAR ecosystem are in the development or funding stage, positioning NEAR to potentially become a future AI Hub.

3. Top Searches

3.1 Popular DApps

Particle Network: A Web3 development platform aimed at enhancing developer efficiency and accelerating the widespread adoption of Web3. Its core product, based on MPC-TSS technology, offers a login and wallet middleware that eliminates the need for end-users to remember mnemonic phrases and use gas fees, significantly lowering the barriers to Web3 adoption. Particle Network has completed three funding rounds, totaling $8.5 million in investments Participation options are currently limited, so it is advisable for users to stay informed and watch for updates.

3.2 X (former Twitter)

Bitget Research: Mt.Gox States No Repayments in the Short Term, Crypto Market Stabilizes with Narrow Fluctuations image 0

Atomicals Protocol: Yesterday, Atomicals Protocol released the whitepaper for the Atomicals Virtual Machine (AVM), detailing a phased software launch, starting with the interpreter operation followed by modifications to the indexer nodes. The positive news impacted Atomicals assets, with ATOM rising 11.09% and QUARK increasing 13.33% over 24 hours. As the AVM is progressively perfected, further capital inflow is anticipated into related assets.

3.3 Google Search (Global and Regional)

Bitget Research: Mt.Gox States No Repayments in the Short Term, Crypto Market Stabilizes with Narrow Fluctuations image 1

Global focus:

Celestia:

Last night, Celestia's founder, Mustafa Al-Bassam, posted an article on the official forum about sovereign blockchains, discussing how blockchain technology empowers communities to achieve sovereignty through self-organization and collective action. This technological innovation enables new social and economic models to emerge and further lowers the barriers to achieving community sovereignty, making it easier to deploy sovereign chains. Celestia's native token TIA rose from $9 to nearly $12, currently at $11.49, marking an increase of over 20%.

Regional focus:

(1) Europe, the USA, and the Middle East: Memecoins are trending once again, with PEPE, FLOKI, and SHIB appearing in hot searches frequently.

(2) There were no significant or distinctive hot search terms in various regions of Asia yesterday.

4. Potential Airdrop Opportunities

Espresso

Espresso is a shared sequencer market project utilizing ZK-Rollups to address consensus and interoperability issues across Layer 2 solutions. At the core of Espresso's strategy are privacy and decentralization, with the project's core team comprising members of the Stanford University Applied Cryptography Group.

The project recently announced the completion of its Series B financing round, raising $28 million led by A16Z, with participation from Polychain, Coinbase Ventures, Sequoia, and others, boasting an impressive lineup of investors.

How to participate: The project is currently in its early stages. Users can get involved by participating as validator nodes, potentially qualifying for early airdrops. For detailed instructions, refer to the official documentation: https://docs.espressosys.com/sequencer/guides/running-a-sequencer-node.

Morph

Morph is a consumer-grade blockchain that meets users' daily blockchain needs through zkEVM and responsive technology. It aims to provide project founders with one-stop development tools and solutions, built on three key technologies: decentralized sequencers, Optimistic zkEVM integration, and modular design.

Morph announced a $19 million seed round funding led by Dragonfly Capital, with participation from Pantera Capital and others.

How to participate: Visit the Morph website and log in. Add the testnet RPC to your wallet, claim test ETH from the official faucet, and bridge it to the Morph testnet where you can engage with projects.

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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