Bitget Daily Digest | Fed cuts rates by 25 basis points as ETH/BTC pair sees strong rebound (November 8)

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远山洞见2024/11/08 11:24

By:远山洞见

Bitget Daily Digest | Fed cuts rates by 25 basis points as ETH/BTC pair sees strong rebound (November 8) image 0

Market highlights

1. Fed cuts rate: As expected, the Fed's 25 basis point rate cut has fueled a rebound in ETH/BTC. Investors are advised to watch for potential gains in the ETH ecosystem and leading tokens across sectors.

Bitget Daily Digest | Fed cuts rates by 25 basis points as ETH/BTC pair sees strong rebound (November 8) image 1

2. Popular memecoins: Bitget Wallet data indicates that popular memecoins include $PNUT (Squirrel Peanut), $GOAT (an AI meme token), and $SMR (BOME artist concept token). Investors are advised to follow fund movements to uncover promising projects.

Bitget Daily Digest | Fed cuts rates by 25 basis points as ETH/BTC pair sees strong rebound (November 8) image 2

3. Layer1 tokens on the rise: The Layer1 token $SUI is gaining momentum, with its ecosystem projects now listed on top exchanges and memecoins launching on the Turbos.Fun. Similarly, $APT shows strong performance, ranking high in staking rates and TVL growth. Investors are advised to explore opportunities within these tokens and their ecosystems.

Bitget Daily Digest | Fed cuts rates by 25 basis points as ETH/BTC pair sees strong rebound (November 8) image 3

4. Hyperliquid's growing market share: Hyperliquid's trading volume on Perp DEX has steadily rising since May, reaching a peak in October. Memecoins like $SYLVI and $YEETI are showing promising returns. Investors are advised to keep an eye on trending memecoins on Hyperliquid.

Bitget Daily Digest | Fed cuts rates by 25 basis points as ETH/BTC pair sees strong rebound (November 8) image 4

Market overview

1. BTC is stabling at a high level, ETH is climbing, and market sentiment is strong. The new coin $GRASS has shown impressive performance.

Bitget Daily Digest | Fed cuts rates by 25 basis points as ETH/BTC pair sees strong rebound (November 8) image 5

2. S&P 500 and Nasdaq reached new highs as U.S. Treasury securities rebounded. Offshore RMB rose by 550 points and broke past the 7.15 barrier, while gold also saw a surge.

Bitget Daily Digest | Fed cuts rates by 25 basis points as ETH/BTC pair sees strong rebound (November 8) image 6

3. Currently at 76,084 USDT, BTC faces significant liquidation risks. If BTC drops by 1000 points to around 75,084 USDT, cumulative long position liquidations will exceed $800 million. Conversely, if BTC rises to around 77,084 USDT, cumulative short position liquidations will exceed $680 million.Both long and short positions should exercise caution and manage leverage prudently to avoid large-scale liquidations.

Bitget Daily Digest | Fed cuts rates by 25 basis points as ETH/BTC pair sees strong rebound (November 8) image 7

4. In the past day, BTC saw $3.93 billion in inflows and $3.81 billion in outflows, resulting in a net inflow of $120 million.

Bitget Daily Digest | Fed cuts rates by 25 basis points as ETH/BTC pair sees strong rebound (November 8) image 8

5. Over the last 24 hours, $SOL, $ENA, $ADA, $PEPE, and $DOT led in futures trading net inflows, signaling potential trading opportunities.

Highlights on X

1. @Rocky shares insights on Web3 growth cycles and leading blockchains, bullish on APT

@Rocky offered his investment insights on Web3 growth based on traditional financial cycles, applying these principles to analyze Web3 projects. He explored the growth of Web3 projects from a cyclical perspective, emphasizing how user and revenue data can be used to assess a project's growth stage and analyzed the performance of major public blockchains.

Core insights

Growth curve and investment strategy: Web3 projects have growth cycles similar to listed companies, progressing through phases of growth, maturation, and decline. Early-stage projects are often more attractive for investors, offering the potential for excess returns, also known as "alpha returns".

Narrative analysis: The main narratives of the current cycle include #AI, #RWA, #DePin, #MEME, and #GameFi. Investors should assess how deeply a project is involved in these sectors to gauge its future competitive advantage.

Blockchain performance analysis:

New chains:

SUI: It is focusing on finance payments and GameFi.

APT: With a focus on RWA and AI, APT has partnered with Microsoft and integrated USDT, leading to substantial growth.

SEI: While it is supported by the narrative, its parallel EVM ecosystem is still under development.

Established chains:

SOL (Solana): Amid the AI and DePIN boom, Solana has emerged as a key platform for AI projects like RNDR, driving a positive cycle of user and revenue growth.

NEAR: Although its token price has been modest, NEAR is making moves in the AI and DA sectors, staying aligned with trending narratives.

ETH (Ethereum): As the industry leader, ETH faces challenges in maintaining a focused direction due to the spread of activity across various Layer2 solutions. While RWA offers a growth opportunity, its scalability is limited by performance constraints.

Investment preferences

Rocky believes that the four major U.S.-based blockchains—#SOL, #NEAR, #SUI, and #APT—have well-defined business strategies and high growth potential, making them ideal for long-term investment. He is especially optimistic about APT, highlighting that its recent partnership with USDT has driven substantial growth in TVL and active users. APT's performance in October was remarkable, showcasing a robust growth trend and making it a notable asset to watch.

X post: https://x.com/Rocky_Bitcoin/status/1854485038009921858

2. @Altcoin Sherpa identifies $EIGEN as new trading target

@Altcoin Sherpa views $EIGEN as a promising token at the moment and shares several key insights:

Reasons to watch:

Potential ETH season: $EIGEN could benefit if the market shifts into an ETH season.

High-potential new coins: $EIGEN has previously gained significant market attention. With its current FDV at $5.5 billion, it now appears undervalued compared to past highs.

Emerging technology: As an emerging technology project, $EIGEN is likely to draw increased interest.

Strong performance: Amid market uptrends, $EIGEN has shown particularly strong momentum, making it worth watching closely.

Bitget Daily Digest | Fed cuts rates by 25 basis points as ETH/BTC pair sees strong rebound (November 8) image 10

X post: https://x.com/AltcoinSherpa/status/1854585030351147098

3. @Fiona explores market potential of $COW and CoW Swap

@Fiona provided an analysis of CoW Swap's batch auction system and investment potential:

Project overview

CoW Swap is a decentralized exchange (DEX) known for its unique Batch Auction mechanism.

Batch auctions: Orders are matched and executed in batches within a specific time period, reducing transaction sniping and improving security.

Anti-sniping: By processing orders in batches, CoW Swap prevents early trading manipulation by miners or bots, improving transaction security

Low cost: Batch trading reduces the impact of Maximal Extractable Value (MEV) extraction and lowers transaction costs.

Low transaction fees:

Users on CoW Swap can submit trade intentions with no gas fees, with fees only charged upon successful transactions. This helps lower both trading risks and costs, benefitting ETH chain users who often experience transaction failures.

Valuation and recommendations

In comparison with Uniswap and 1inch, CoW Swap's valuation appears to be lower:

Market cap:

CoW Swap: FDV of about $500 million, with a market cap around $250 million.

Uniswap: FDV of about $15 billion, with a market cap around $10 billion.

1inch: FDV of about $2 billion, with a market cap around $1 billion.

Daily transaction fee:

CoW Swap: $500,000

Uniswap: $5 million

1inch: $1 million

Market outlook:

Overall, CoW Swap, as a new coin, is currently undervalued in the market, offering potential for speculative growth. @Fiona advised starting with a small position and observing the project's progress and market response.

Market outlook:

@Fiona pointed out that CoW Swap's innovation and market attention make it a promising short-term investment. Investors might consider a small initial position while keeping an eye on future developments.

X post: https://x.com/nft_hu/status/1854495677059137570

4. @Sleeping in the Rain observes TVL growth in leading blockchains

@Sleep in the Rain analyzed chains that have seen higher TVL growth than Ethereum over the past month, offering some investment insights:

Chains leading in TVL growth:

Solana ($SOL): Continues to perform strongly, with significant TVL growth.

Base: Attracting sustained liquidity, with rapid ecosystem development.

Aptos ($APT): Notably high TVL growth, with a 12.54% increase in the past 24 hours.

Hyperliquid ($PURR): Gaining market attention with strong growth potential.

Opportunities:

Liquidity mining: Mining opportunities on Aptos are worth exploring, as liquidity mining could yield substantial returns.

Memecoin: Memecoin opportunities on Aptos and Hyperliquid should not be overlooked. Hyperliquid, in particular, may see the rise of "golden dog" projects with explosive growth potential.

X post: https://x.com/0xSleepinRain/status/1854511835862720955