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Bitget Research: Ethereum ETF May Be Approved on July 23, Ethereum Ecosystem Shows Significant Rebound

Aaron & Tommy
2024/07/16
Bitget Research: Ethereum ETF May Be Approved on July 23, Ethereum Ecosystem Shows Significant Rebound
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

BTC drives a market rally, breaking through the $64,000 resistance level, resulting in a positive market wealth effect. The highlights are as follows:
  • Sectors with strong wealth creation effect: Memecoin sector, AI sector, and ETH ecosystem projects.
  • Top searched tokens and topics: UXLINK, ETH, and J.D. Vance.
  • Potential airdrop opportunities: Sonic and Solayer.
Data collection time: July 16, 2024, 4:00 AM (UTC)

1. Market Environment

Over the past 24 hours, BTC has seen a one-sided rise, climbing from $62,000 to its current level of $64,500. Spot BTC ETFs have seen net inflows for the seventh consecutive trading day, with a net inflow of $300 million yesterday, serving as a primary catalyst for the BTC rise. Bloomberg's renowned ETF analyst Balchunas stated on social media that the SEC has requested ETF issuers to submit their final S-1 forms by this Wednesday, indicating that the SEC may announce the approval results next Monday, potentially launching the related ETFs by next Tuesday.
On the news front, BlackRock CEO Larry Fink stated on CNBC that his view of Bitcoin from five years ago was incorrect and reaffirmed Bitcoin as "digital gold," recognizing it as a legitimate financial instrument. Dell's CEO reposted the interview video of BlackRock's CEO, expressing fascination with BTC. Trump has appointed the crypto-friendly J.D. Vance as his vice presidential candidate. With leading influencers in technology, finance, and politics endorsing BTC, market sentiment has shifted to optimism.

2. Wealth Creation Sectors

2.1 Sector Movements — Memecoin Sector (PEPE, WIF, and FLOKI)

Primary reasons:
  • Blue chip tokens such as ETH and SOL have started to rebound.
  • The market's focus on the memecoin sector has increased, presenting good speculative trading opportunities based on technical indicators.
Gainers: PEPE, WIF, and FLOKI have risen by 26.4%, 23.2%, and 23.1% respectively within 24 hours.
Factors affecting future market conditions:
Quote token trend: The price trend of ETH can affect the price of PEPE, as PEPE on DEXes is quoted in ETH. Keep an eye on the price trends of ETH and SOL. If ETH and SOL maintain their upward trend, holding meme assets in their ecosystems is advisable.
  • Open interest volume increase: Users can check the futures data on tv.coinglass to understand the movements of whales. Over the past 24 hours, the open interest volume of PEPE has surged by 30%, mainly due to the increase in net long positions. The long/short ratio (accounts) has dropped below 1, indicating whales are going long on PEPE through futures. Keep a close eye on subsequent changes in futures data.

2.2 Sector Movements – AI Sector (ARKM, TAO, and NEAR)

Primary reasons:
  • As the overall crypto market begins to recover, the AI sector is among the first to rebound, with mainstream AI tokens steadily rising and sectoral funds becoming more active.
  • With Dell featuring prominently in this round of active AI stocks in the U.S. market, the CEO's engagement and resharing of cryptocurrency-related tweets have kept the market focused on AI crypto assets.
Gainers: ARKM, TAO, and NEAR have risen by 10.5%, 5.5%, and 8.6% respectively within 24 hours.
Factors affecting future market conditions:
  • Significant funding in the primary market: The Ethereum Community Conference (EthCC) proceeded as scheduled in Brussels, with participating institutions closely monitoring developments in the AI sector. The AI model research project, Sentient, completed a financing of $85 million, drawing renewed market attention to the integration of AI with blockchain.
  • Traditional tech firms' moves: Product launches by OpenAI often lead to increases in the AI sector. This sector is still in its early stages and requires continuous news-driven stimuli to elevate secondary market valuations.

2.3 Sectors to Focus on Next – ETH Ecosystem Projects (UNI, LDO, PEPE)

Primary reasons: The spot Ethereum ETF is expected to officially debut on the U.S. capital market on July 23, presenting potential speculative trading opportunities for ETH ecosystem assets. The sector has recently experienced a significant pullback, falling out of expected levels.
Specific tokens:
  • UNI: The first DeFi Swap project on the blockchain, Uniswap, has generated an average daily revenue of around $1 million.
  • LDO: A leading LSD project within the ETH ecosystem, with a TVL of $29.6 billion and a valuation of just under $1.8 billion, indicating it is relatively undervalued.
  • PEPE: Currently the most hyped memecoin in the Ethereum ecosystem, PEPE boasts a strong community base. Its price is likely to follow ETH's upward trend.

3. Top Searches

3.1 Popular DApps

UXLINK:
The Web 3 social platform and infrastructure UXLINK announced it will be listed on eight exchanges including Bitget, OKX, Bybit, Gate.io, and KuCoin on July 18, 4:00 PM (UTC+8). According to information shared by UXLINK, the project currently has over 15 million registered users, covers 110,000 Telegram groups, and has 8 million users on-chain. The project is profitable and continues to invest profits back into the community and ecosystem.

3.2 X (former Twitter)

Bitget Research: Ethereum ETF May Be Approved on July 23, Ethereum Ecosystem Shows Significant Rebound image 0
ETH:
Three different sources indicate that the U.S. SEC has given preliminary approval to at least three out of eight asset management firms to launch Ethereum ETF trading. Final approval depends on the applicants submitting the final issuance documents to the regulators by the end of this week. Favorable news has significantly boosted ETH and its ecosystem tokens.

3.3 Google Search (Global and Regional)

Bitget Research: Ethereum ETF May Be Approved on July 23, Ethereum Ecosystem Shows Significant Rebound image 1
Global focus:
J.D. Vance:
Recent video leaks reveal that J.D. Vance, the Republican vice-presidential candidate, has fiercely criticized SEC Chairman Gary Gensler's cryptocurrency regulatory policies, describing them as "completely contrary to ideal policy." Market expectations suggest that if J.D. Vance is elected, it would favor the introduction of crypto-friendly policies.
Regional focus:
(1) Yesterday's hot searches across Asian regions showed no significant pattern. However, it's noteworthy that the Philippines has begun to pay special attention to leading U.S. stocks such as Tesla and Nvidia.
(2) In several European and North/South American countries, J.D. Vance has been trending in searches. Vance, the vice-presidential candidate for the U.S. Republican Party, is reported to own BTC and has criticized the U.S. SEC Chairman Gary Gensler's cryptocurrency regulatory policies.

4. Potential Airdrop Opportunities

Sonic – Zero-cost interaction testnet
Sonic is a gaming blockchain based on Solana, featuring the first scalability architecture called HyperGrid, which aids game developers in efficiently managing game states, logic, and events. Sonic is fully compatible with all EVM smart contracts and features a native game engine, providing comprehensive on-chain game development components for developers.
On June 18, 2024, Sonic raised $12 million in a Series A funding round at a valuation of $100 million, led by Bitkraft, with participation from Galaxy Interactive and Big Brain Holdings.
How to participate: 1. Activate developer mode in the Backpack wallet preferences and add the Sonic Devnet testnet; 2. Collect SOL test coins from https://faucet.sonic.game/; 3. Visit the Sonic Odyssey task page and follow the steps to bind social media accounts, check in daily, and interact with the trial games.
Solayer
Solayer is building a restaking network on Solana, utilizing its economic security and superior execution as decentralized cloud infrastructure to enable higher degrees of consensus and block space customization for application developers.
In July 2024, Solayer announced the completion of a builder’s funding round, though the specific investment amount was not disclosed. Investors include Solana Labs co-founder Anatoly Yakovenko, Solend founder Rooter, and Tensor co-founder Richard Wu.
How to participate: Stake SOL and supported SOL LST tokens such as jitoSOL, mSOL, bSOL, and INF to earn points for each episode. Note that withdrawing staked assets before maturity will result in reduced rewards.
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