Cryptocurrency market performance this week
Currently, the total market value of cryptocurrencies is 1.34 trillion, with BTC accounting for 52.65%.
This week, due to the favorable impact of the net inflow of Bitcoin spot ETF and the approval of Ethereum spot ETF, the market showed an upward trend, with BTC reaching a high of $72,000. BTC traded sideways at a high of $67,000-$68,000 over the weekend.
This week, the net inflow of US Bitcoin spot ETF was US$1.057 billion, the net inflow of Hong Kong Bitcoin spot ETF was US$4.8238 million, and the total net inflow of Bitcoin spot ETF was US$1.061 billion.
This week, both copycat and MEME projects have seen some growth, including ENS, PEPE, PEOPLE, DOG, etc., which have performed well. It is worth mentioning that CEL, which we mentioned in our market insights in the previous two weeks, https://www.chaincatcher.com/article/2124562, rose in response to the official destruction of 94% of the total supply by Celsius Network, and rose by more than 150% within 24 hours from May 24th to 25th.
The "Fear & Greed Index" is 76, showing greed for all 7 days this week.
Understand now
Review of the week's major events
1. Grayscale: Chief Financial Officer Edward McGee will serve as interim CEO until August 15;
2. LayerZero Co-founder: The Sybil reporting process will be reopened in the next one or two days, the submission method will be changed and a "security deposit" system will be introduced;
3. Galaxy Research Director: SEC may recognize that ETH itself is not a security, but the pledged ETH is a security;
4. Fidelity submitted an updated version of its S-1 application for its spot Ethereum ETF;
5. Vitalik: I personally think that in 10 years all rollups will be ZK;
6. Bitget appoints Gracy Chen as CEO;
7. The total number of Farcaster users exceeded 380,000, and users posted an average of more than 1.24 million casts per day in the past 30 days;
8. Mocaverse announced the details of the MOCA token airdrop. Moca NFT allocates 10% of the total MOCA. The upper limit of the total airdrop amount is subject to the unlocking restrictions of the first two batches of network incentive allocations.
9. Jupiter's third round of LFG voting is now open, with three projects including Divvy Bet and deBridge;
10. Binance Megadrop Phase 2 will launch Lista (LISTA);
11. Telegram will launch in-app currency Telegram Stars to cope with Apple App Store payment restrictions;
12. Data: Ethereum’s pledge rate has reached 27.15%, and Lido’s market share has reached 28.54%;
13. Shenyu predicts the timeline and market impact of Ethereum spot ETF: S-1 may be passed in early June, and institutional investors may gradually enter the market after December.
Macroeconomics
1. On May 22, Uniswap Labs responded to the U.S. SEC Wells' notice: It is ready to fight and will continue to build;
2. On May 23, according to the Household Economics and Decision Making Survey (SHED) released by the Federal Reserve on the 21st, 7% of U.S. adults surveyed reported using cryptocurrencies in the 12 months ending October 2023, down from 10% in 2022 and 12% in 2021. Only 1% of adults said they used cryptocurrencies as a payment method or remittance, down by half from 2022, while 7% of adults bought or held cryptocurrencies as investments.
3. On May 22, according to CME's "Fed Watch" data, the probability of the Fed keeping interest rates unchanged in June is 96.3%, and the probability of a 25 basis point rate cut is 3.7%;
4. On May 24, the U.S. Securities and Exchange Commission approved the 19b-4 forms for multiple Ethereum spot ETFs, including those from BlackRock, Fidelity, and Grayscale. Although the form has been approved, ETF issuers need to make the S-1 registration statement effective before they can begin trading. The SEC has just begun discussing the S-1 form with issuers. It is unclear how long this process will take, but some analysts speculate that it may take weeks.
ETF
According to statistics, between May 20 and May 25, the net inflow of US Bitcoin spot ETFs was: US$1.057 billion;
As of May 25, GBTC had a total outflow of US$17.641 billion, US Bitcoin spot ETF had a total holding of US$13.687 billion, and Hong Kong Bitcoin spot ETF had a total holding of US$231 million.
Predicting the future
Upcoming Events
1. The decentralized cloud computing platform Akash Network held the "Akash Accelerate '24" summit in Austin, Texas on May 28, focusing on the field of decentralized artificial intelligence (AI);
2. Blockchain Week Rome will be held from May 28 to 31, 2024;
3. Consensus 2024 will be held from May 29 to May 31. It is a Web3 event hosted by CoinDesk that aims to gather developers, investors, and founders to solve industry challenges;
4. Bitcoin Seoul 2024 will be held in Seoul, South Korea from May 29 to 31 and will bring together the brightest minds in policy, finance, human rights and technology, with a focus on Bitcoin;
5. The U.S. Department of Justice will hold a seminar on competition investigations in the artificial intelligence industry at Stanford University on May 30, bringing together industry leaders, researchers and government officials. The event page shows that industry leaders speaking at the seminar include DeepLearning.AI founder Andrew Ng and U.S. and British government officials.
Project Progress
1. Dora Factory’s second Dora Vota incentive testnet was launched on May 27, and the application deadline for validators is May 24;
2. Solana mainnet v1.18 is expected to be released on May 27 to solve the mainnet congestion problem. It is recommended that all nodes upgrade to v1.18 at that time;
3. The U.S. Securities and Exchange Commission (SEC) postponed the listing and trading of Bitcoin spot ETF options to May 29;
4. The Ethereum re-staking protocol Renzo ezPoints Season 1 reward airdrop REZ will be available until May 30th. Unclaimed tokens will be added to the Season 2 airdrop;
5. The second season of io.net's Ignition reward program will last from May 1 to May 31, and a random snapshot will be taken on May 31, allocating 7.5 million IO to Workers. Workers must pass the PoW proof verification and must be active during the snapshot period to be eligible for the distribution.
important events
1. The London Stock Exchange will launch trading in Bitcoin and Ethereum cryptocurrency exchange-traded funds (ETNs) on May 28, 2024.
2. Ryan Salame, a former executive of FTX, will stand trial in a New York court on May 28 after pleading guilty to criminal charges. Salame's sentencing will begin at 11 a.m. Salame pleaded guilty to conspiracy to make illegal political contributions and conspiracy to operate an unlicensed money transmission business in September last year;
3. The UK has launched a consultation on its plans to implement the Organization for Economic Cooperation and Development (OECD) encryption reporting framework, which will end on May 29;
4. The U.S. Securities and Exchange Commission (SEC) will decide on May 30 whether to approve the spot Ethereum ETF application submitted by Hashdex;
5. The bankruptcy court verbally approved the global settlement agreement between Gemini, Genesis and other creditors in the Genesis bankruptcy case. Gemini and Genesis expect to distribute an initial distribution amount to Earn creditors at the end of May or early June, which is about 97% of the digital assets owed to users. The remaining distribution amount will be recovered from Digital Currency Group (DCG);
6. Those who have not applied for a virtual asset trading platform license in Hong Kong must end their Hong Kong business by the end of May.
Token Unlock
1. 4.66 million ACA tokens will be unlocked at 8:00 on May 25, worth approximately US$507,000, accounting for 0.48% of the circulation.
