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Bitget Research: BTC Briefly Breaks $68,000, Solana Ecosystem Shows Significant Wealth Effect

Tommy & Jarseed
2024/07/22
Bitget Research: BTC Briefly Breaks $68,000, Solana Ecosystem Shows Significant Wealth Effect
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 briefly surged past $68,000, showing an increase of 0.8% over the last 24 hours. If the spot Ethereum ETF is approved on July 23, it would signify a new shift in the U.S. crypto regulation. Currently, the wealth effect in the market is primarily concentrated in:
  • Sectors with strong wealth creation effect: Blue chip blockchains, Ethereum Layer 2 sector, and ETH ecosystem projects.
  • Top searched tokens and topics: Particle Network and Helium.
  • Potential airdrop opportunities: Particle Network and Movement.
Data collection time: July 22, 2024, 4:00 AM (UTC)

1. Market Environment

BTC briefly surged past $68,000, showing an increase of 0.8% over the last 24 hours. The U.S. spot Bitcoin ETFs saw a net inflow of $1.196 billion last week, marking its third consecutive week of net inflows. Specifically, on Monday, Tuesday, and Friday of last week, inflows were $300.9 million, $422.5 million, and $383.6 million respectively. Year-to-date, net inflows into these ETFs reached $17 billion for the first time since their launch six months ago. Currently, BlackRock's Bitcoin ETF, IBIT, has a trading volume nearing $1.2 billion, and Fidelity's FBTC exceeds $410 million in daily trading volume. These figures indicate a growing confidence and recognition among investors in spot Bitcoin ETFs, reflecting genuine demand rather than mere market hype.
During BTC's influence on the broader market rebound, no sectors have shown strong resilience. Previously well-performing sectors such as AI, Solana ecosystem, and other chain sectors have shown some rebound strength recently. With the likely approval of the spot Ethereum ETF tomorrow, signaling a new shift in crypto regulation, the performance of Ethereum-led Layer 2 sectors is particularly promising.

2. Wealth Creation Sectors

2.1 Sector Movements – Blue Chip Blockchains (AVAX, APT, and SOL)

Primary reasons:
With BTC returning to the $68,000 mark, the wealth effect from the market has extended to major chain tokens, with some Layer 1 and Layer 2 projects experiencing positive developments. This wealth effect circulates within their ecosystems, creating potential buying demand for these chain assets.
Gainers: APT increased by over 5% in the last 24 hours; AVAX saw a 12% gain in the same period; SOL also rose by over 5%.
Factors affecting future market conditions:
  • Continued increase in TVL: According to DeFiLlama, Solana's TVL has reached $5.15 billion, ranking just behind Ethereum and Tron, with a 7-day growth rate of 13.7%. Over the past 24 hours, NFT sales on the Solana chain neared $6 million, surpassing Ethereum to rank first. During this period, Solana's NFT sales reached $5,821,706, an increase of 55.7%, while Ethereum's were $3,666,892, a decrease of 21.53%. Bitcoin ranked third, with sales of approximately $2.902 million, a decrease of 19.89%. Avalanche's TVL stands at $710 million; its NFT sales exceeded $28.3 million, a tenfold increase year-over-year. The total market cap of stablecoins reached $1.6 billion, with USDT and USDC increasing by 10.1% and 4.4%, respectively, year-over-year.
  • Ongoing ecosystem development: In the second quarter, although Solana's DeFi TVL in USD terms decreased by 9% to $4.5 billion, ranking fourth in the network, its DeFi TVL measured in SOL increased by 26%. This indicates that capital confidence in Solana remained strong during the second quarter, without significant outflows. Additionally, the introduction of Blinks functionality at the end of the second quarter signifies ongoing efforts to expand the Solana ecosystem.

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

Primary reasons:
The anticipation of the Ethereum ETF set to trade on July 23 has positively impacted Ethereum Layer 2 tokens, leading to a general rise in their values. The market perceives the potential 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 8% over the last seven days, OP by 8.5%, and STRK by 7%.
Factors affecting future market conditions:
  • Successful listing of the ETH ETF: The market has largely priced in the Ethereum ETF. Should there be unexpected developments in the ETF listing tomorrow, 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 – ETH Ecosystem Projects (UNI and LDO)

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 president of ETF Store stated that the SEC's approval of the Ethereum spot ETF would strongly suggest that ETH is considered a commodity rather than a security. This marks a milestone moment, indicating that crypto assets can transition from being classified as securities to commodities over time.
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. It has a TVL of $29.6 billion but is relatively undervalued at just under $1.8 billion.

3. Top Searches

3.1 Popular DApps

Particle Network
Particle Network, a modular blockchain project, has raised $15 million in Series A funding co-led by Spartan Group and Gumi Cryptos Capital, with participation from SevenX Ventures, Morningstar Ventures, Flow Traders, HashKey Capital, and others. This funding round brings Particle's total funding to $25 million.

3.2 X (former Twitter)

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Helium:
Helium is a decentralized wireless network project designed to provide low-power Internet of Things (IoT) device connectivity through a distributed network. Leveraging blockchain technology and a token-based incentive mechanism, Helium has built a community-operated wireless network comprised of devices known as "Hotspots," which provide both wireless coverage and blockchain mining functionalities. Owners of Hotspot devices earn Helium Tokens (HNT) as a reward for providing network coverage. With the recent popularity of the DePin concept, Helium has also attracted significant investor attention.

3.3 Google Search (Global and Regional)

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Global focus:
Tapswap:
TapSwap, a Tap-to-earn Telegram mini app, was recently launched on the TON blockchain. Since its launch on February 15, 2024, TapSwap allows users to earn in-game tokens by tapping and completing tasks. The app now boasts over 50 million users globally, with nearly one million active online users. Yesterday, TapSwap announced on X that it will hold an AMA event in collaboration with OKX Wallet. This news, along with numerous users participating in the USDT/USDC swap promotion on TapSwap, created a buzz on X, boosting its search popularity.
Regional focus:
(1) There are no significant trends to note in Google Trends search data for Asian countries. However, DOGE and RWAs, showing strong wealth effects, have become focal points in the market. Additionally, assets such as BTC and ETHFI have also made it to the top searches in those countries.
(2) Hot search terms include Tapswap and Blum in the CIS region, while Europe and the Americas predominantly feature terms such as MAGA, AI-related tokens, and SOL.

4. Potential Airdrop Opportunities

Particle Network
Particle Network is a development platform that connects multiple blockchains, such as Bitcoin, EVM, and IBC, through a unified account system. It offers modular interfaces to enhance wallet connectivity and transaction execution capabilities. The platform focuses on chain abstraction, wallet abstraction, liquidity abstraction, and gas abstraction, aiming to simplify the development and deployment process for Web3 applications.
Particle Network has raised $15 million in Series A funding co-led by Spartan Group and Gumi Cryptos Capital, with participation from SevenX Ventures, Morningstar Ventures, Flow Traders, HashKey Capital, and others. This funding round brings Particle's total funding to $25 million.
How to participate: Visit https://pioneer.particle.network/, bind your social media accounts, and claim test tokens. Sign in daily and complete related tasks. Use Universal Gas for transactions, interacting between Metamask testnet tokens and the Particle Network wallet.
Movement
Founded in 2022, Movement Labs secured $3.4 million in seed round funding in September 2023. In addition to its flagship product, Movement L2, Movement Labs will also launch Move Stack—an execution-layer framework compatible with rollup frameworks including Optimism, Polygon, and Arbitrum.
Recently, Movement Labs raised $38 million in a Series A funding round led by Polychain Capital, with participation from Hack VC, Foresight Ventures, Placeholder, and other prominent institutions.
To participate, enter the Movement Zealy task interface (Note: social tasks have a time period and continuously updated tasks), interact with the DEX with a few tests, and await further actions from the official site.
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