Web3 Research Weekly | The encryption market has fluctuated significantly in the past week; the tokenization of the US bond market has exceeded 2 billion US dollars; Stable CoinMarket Cap has risen for 11 consecutive months

Weekly Overview

Within this week, the overall market situation of encryption has shown a noticeable fluctuation trend. Most Mainstream Tokens have experienced a rise and then a fall, but driven by institutions, the prices of several key Mainstream Tokens have reached recent highs. However, subsequent price declines are more common. Overall, this is a regular Fluctuation cycle after the recent market entered the recovery phase. Most of the major currencies have generally fallen from the opening prices within a week, and the overall Market Cap has slightly decreased. This week, there is clear information about the possibility of the Federal Reserve raising interest rates, which has had a positive impact on the encryption market expectations. However, the impact of the arrest of the founder of Telegram has been relatively unfavorable for the market. Currently, the overall market of encryption remains above $20,000, and the overall market situation within the week is mainly characterized by widespread price declines, maintaining a Fluctuation cycle. The overall Market Cap of the encryption market has slightly decreased compared to the same period last week, reaching around $2.09 trillion, with a 0.25% decline within 24 hours. Market sentiment remains at around 46. The trend of key Mainstream Tokens this week has experienced relatively large declines, and a new round of price warming is expected to occur at the end of the week.

Compared with last week, the performance of the Cryptocurrency market this week is basically a significant price decline after a significant pump in the closing period last weekend. Currently, the market as a whole still maintains a fluctuating state, although several key currencies have reached recent highs this week, the overall situation is difficult to maintain. The rise and fall ratio of Mainstream Tokens in a week is 2:8, and most Mainstream Token species show a slight decline. The price of BTC has approached $65,000 in a week, but subsequently fell rapidly due to the overall market impact, with a weekly decline of about 1.7%, and the current price is maintained around $59,557. The weekly decline of ETH is about 3.6%, and it is currently maintained around $2,530.

The overall market performance this week is mainly downward, with small weekly gains in most Mainstream Tokens. POPCAT has a 7-day increase of about 16%, and the price curve continues to fluctuate. It has the highest increase among Mainstream Tokens this week, and the current price is maintained around $0.6728.

The probability of a overall warming trend in the Cryptocurrency market this weekend is relatively high, and it is expected to show obvious signals during the weekend period, but the overall amplitude will still be controlled within a small range.

encryption market

🔥DOGS official announced that users can now make on-chain withdrawals by going to the application. CEXs and on-chain transactions have been available since 8 p.m. Beijing time on Monday.

🔥Matrixport released a chart indicating that in the past 2-3 weeks, the stablecoin minting volume has been consistently strong, which is a key driver for the BTC rebound to 65,000. Although there have also been capital inflows into the BTC spot ETF, stablecoins, as the primary fiat on-ramp for cryptocurrencies, appear to be the main driving force with their stable minting.

🔥On August 25th, Vitalik stated on the X platform: As a field, we need to lead the construction of anti-fraud technology in a principled manner.

🔥The price of Bitcoin reached $65,000 for the first time in about three weeks this week, thanks to the market's recovery in demand for the BTCSpot ETF in the United States. There are signs that the Federal Reserve will ease monetary policy.

🔥According to the data from the RWA monitoring platform RWA.xyz, as of August 25th, the tokenization market of US Treasury bonds reached a scale of $2 billion. BlackRock's BUIDL fund has a scale of over $500 million, ranking first; followed by Franklin Templeton's FOBXX fund.

🔥DefiLlama data shows that the market capitalization of stablecoins has risen for 11 consecutive months, reaching a historical high of $1680 billion (currently about $1681 billion), surpassing the previous peak in March 2022 ($1670 billion).

🔥DeFiLlama data shows that the trading volume of DEX on the Ethereum blockchain on August 25th was $8.3822 billion, ranking first.

🔥Telegram issued a statement in response to the arrest of its CEO on its X platform official account on Telegram. The statement stated: 1. Telegram complies with EU laws, including the Digital Services Act - its review meets industry standards and continues to improve. 2. Telegram's CEO Pavel Durov did not go into hiding and often travels in Europe. 3. The claim that "a platform or platform owner should be responsible for abuse on the platform" is absurd. 4. Nearly one billion users worldwide use Telegram as a means of communication and an important source of information. 5. The team is waiting for a swift resolution of this situation.

🔥On August 27th, according to the official blog, Lido DAO has introduced the 'on-chain delegation and representative incentive plan' through Vote178 and Snapshot voting. The plan establishes a public representative platform, simplifies the governance process, and improves participation and decision transparency. The six-month pilot representative incentive plan will provide a total of 150,000 US dollars worth of LDO tokens to incentivize active representatives who meet the criteria.

🔥 On August 27th, according to Cointelegraph, EigenLayer's data availability solution EigenDA now supports native Token re-staking for Layer2 scaling networks in addition to Ethereum. The announcement states: 'The team can now re-stake their ERC-20 Tokens to ensure the custom minimum number of validators for their rollup, unlocking stronger security for rollup users and providing Token holders with Token rewards.'

🔥According to BitcoinMagazine, BlackRock has added 4,000 shares of spot Bitcoin ETF to its Strategic Global Bond Fund.

🔥Bitcoin Mining company Rhodium Enterprises has filed for voluntary bankruptcy under Chapter 11 of the Southern District of Texas Bankruptcy Court, with debts of up to $100 million.

🔥Optimism has revealed in an article on X that the revenue contributed by OP Chain in Superchain has exceeded 14,000 ETH. It is reported that each OP chain in Superchain operates under a standardized revenue sharing model, and each chain will return part of the revenue to OptimismCollective through the fee split followed by the network.

🔥On August 27th, according to CNBC, the number of global millionaires in the encryption world has soared by 95% in the past year, as BTCexchange trading funds and other encryption assets have risen, according to reports from New World Wealth and Henley & Partners.

🔥US-listed medical device manufacturer Semler Scientific announced that it has acquired an additional 83 BTC for $5.2 million (approximately 760 million Japanese yen), bringing the company's total holdings to 1,012 BTC. The acquisition price reached $68 million (approximately 9.2 billion Japanese yen).

🔥BTC mining company Marathon Digital recently sold $300 million in convertible notes to purchase 4,144 BTC, following MicroStrategy's strategy. This reflects the dilemma of the mining industry - mining profits have sharply declined, forcing mining companies to sustain operations through other means.

🔥South Korean video game developer Nexon's Block chain subsidiary NEXPAC announced the launch of Cryptocurrency to enhance user engagement and drive the development of its Web3 game ecosystem called MapleStory Universe.

🔥On August 28th, according to Cointelegraph, Ray Youssef, co-founder of the P2P encryption platform Paxful and CEO of Noones P2P platform, revealed that the encryption exchange Binance confiscated Cryptocurrency from Palestinian users at the request of Israel and handed it over to the Israeli Defense Forces (IDF).

🔥On August 28th, Sony Block Solution Laboratory (Sony BSL) launched the Soneium Minato public test network and Soneium Spark incubator. Soneium Spark will provide developers with a range of benefits, including up to $100,000 in investment and other financing opportunities provided by partners in the program.

🔥The EIGEN stake withdrawal latency of stake protocol EigenLayer has been reduced from 24 days to 7 days. EigenLayer stated that the reason for this adjustment is to effectively control the Liquidity risk of EIGEN stake once intersubjective slashing takes effect on the Mainnet, and to prepare for potential changes in the future.

🔥MakerDAO founder Rune Christensen responded to the discussion about the addition of freezing function to DAI, saying that the new protocol will not have a freezing function when it is launched, but only upgradeability.

🔥RWAprotocolOndo Finance announced that its yield stablecoin USDY is now available on Arbitrum. In addition, the Arbitrum STEP Committee has decided to distribute 6 million ARBs (approximately $3.16 million) from the Arbitrum DAO treasury to Ondo's USDY to support the development of Arbitrum's RWA.

🔥Aave contributor bgdlabs has detected a series of transactions across different networks that show attacks on certain Aave peripheral contracts (not part of the Aave protocol itself, only used in the app.aave.com user interface). The core Aave Smart Contract, which involves all pool dynamics, has not been affected and is unrelated to these transactions. The affected Smart Contracts only interact with the users and the contracts themselves that use them.

🔥A research report from Canaccord pointed out that the encryption asset industry has recovered from the consolidation phase after the collapse of FTX exchange in the past year and returned to the rise mode. The report mentioned that the BTC and ETH spot ETFs launched in the United States this year have become a positive driving force for the encryption market, promoting the wider adoption of digital assets by institutions.

🔥QCP Capital released a report stating, "In the period leading up to the release of the non-farm payrolls report next week, we expect market volatility to continue to decline as the market prepares for a potential Fed rate cut. In the absence of catalysts in the short term, we expect prices to continue to fluctuate within the range in September."

🔥According to Arkham data, BUIDL from Blackrock has transferred a total of 6.714 million USDC to the Ondo Finance Address in the past 4 days.

🔥According to official sources, Japanese Blockchain game development company double jump.tokyo Inc. announced the completion of over $10 million in Series D financing, with SBI Investment leading the investment, along with Sony Group, Taisu Ventures, Gate Ventures, TM Capital, Inc., Bing Ventures Ltd., and an undisclosed entity. The new funds will be used for further development and support of Blockchain games, Blockchain infrastructure and related services, as well as strengthening the company's organizational structure and talent base, while also promoting cooperation with game companies to develop Blockchain games, establish Blockchain infrastructure, and cultivate IP-based Non-fungible Token projects.

🔥According to official sources, Solana Labs has announced that the application for the second phase of the Solana Incubator incubator is now open, with the application deadline being October 4th. 4 to 6 high-quality teams will be selected to work directly with Solana Labs in New York City from January to April 2025 to meet their specific needs, including participation in Block chain development, design and product launch planning, fundraising support, and venture capital introduction.

🔥According to The Block, Liquidity is staking protocol Renzo Protocol announced the launch of its governance Token REZ on Solana to enhance its influence in the blockchain ecosystem and utilize the native Token transfer framework of Wormhole.

🔥The son of former US President Trump and Executive Vice President of the Trump Group, Eric Trump, officially launched the encryption project WLFI (@WorldLibertyFi) on X, stating that the "financial new era has arrived".

🔥According to The Block, based on the data from the DEX Screener and Etherscan blockchain data websites, a wallet connected to the genesis block of the ETH network seems to have launched a meme coin named “PHIL”.

Regulatory&Macroeconomic Policies

🔥Matrixport releases a chart stating that Fed Chairman Powell hinted at possible rate cuts, coupled with positive momentum in the US presidential election, which may create a favorable environment for BTC. Surprisingly, traders appear cautious and hesitant to increase their risk exposure before the release of next week's US employment data.

encryption market highlights

⭐️In the past week, the cryptocurrency market has experienced a continuous uptrend for two weeks. After a continuous pump last week, it has begun to show a more obvious decline this week due to external news and market fluctuation factors. Currently, the encryption market is mainly characterized by small fluctuations. Although the market has basically shown a clear recovery state, it is highly probable that there will be continued fluctuation in the short term. It is expected that the current market situation will see significant changes at the weekend closing period.

⭐️During this week, there have been fewer mainstream currencies that experienced significant pump, with most of them staying within a certain range. However, the currencies at the top of the increase rankings have actually shown limited actual increases. POPCAT has seen the largest increase this week, with a seven-day increase of about 16%, and the current price is around $0.67. The highest price of this currency in the week was near $0.7915, and it is currently in a more obvious downward trend, expected to maintain a small Fluctuation trend in the week to come. (Data Source: Coinmarketcap)

BTC& Ethereum Weekly Performance

BTC (BTC)

(Data Source: TradingView) Within this week, the overall price of BTC has pulled back from above $64,000 to around $60,000, and the price has been fluctuating around the key level of $60,000. It has mainly remained in the range of $59,000 to $61,000. Currently, the price of this cryptocurrency has returned to the price range of the same period last week, showing a continuous fluctuation trend. It is highly likely that the price of this cryptocurrency will continue to oscillate and rebound in the following week, with a low probability of a significant pump, but a relatively high probability of returning above the $60,000 level. The high point of BTC's price in the week is around $65,000, and the low point is around $57,800, similar to the same period last week.

Analysis shows that the price fluctuations of BTC this week have been influenced by various factors and generally follow the mainstream market trends. After reaching a recent high point this week, the market was heavily impacted by news factors, leading to a large-scale decline in a short period of time, which had a significant impact on the price of this currency. Although the actual price performance of BTC is still fluctuating, the scale of funds in the Spot ETF continues to expand, increasing the probability of a significant pump situation in the future.

Ethereum (ETH)

(Data Source: TradingView) ETH approached a high point of $2800 this week, maintaining a strong correlation with BTC and following the overall market trend. The price has been fluctuating around $2760 since last weekend, experiencing a noticeable decline this week, but within a relatively small range. ETH has dropped by approximately 3.8% this week. Currently, the currency is in a significant fluctuation phase, but the price continues to fluctuate around $25500.

Analysts believe that the performance of ETH coin price this week is affected by both the fundamental factors and the overall impact of market Fluctuation. Coupled with the poor performance of Spot ETF, the encryption market is showing a pullback trend. ETH basically follows the trend of the overall market, and the short-term price Fluctuation is likely to continue to be maintained in the range of $2500-2600.

Web3 Project Trends

The total Market Cap performance of seven categories of projects this week is uneven, and the market's recovery trend is obvious. Although the fluctuations in various tracks are different, the overall market is still in a stage of Fluctuation. It is expected that various sectors may usher in a new round of rebound market during the weekend.

| Project Category | Weekly Fall | Top Three Tokens with Weekly Increase | Overview | | ------------ | ------------ | ------------ | ------------ | | Layer 1 | -3.5% | HOOT,OAS,KCN | The Layer 1 track experienced a slight decline this week, with the actual magnitude remaining within a reasonable range. Similar to the overall market trend, the top-performing coins showed decent gains. | Layer 2 | -5.7% |ORDER,MERL,ZKB|The Layer 2 track has experienced a significant overall decline this week, with limited growth in top-performing coins. In the short term, there is a high probability of small Fluctuation in this track. | Decentralized Finance | -4.4% | BOR,ANY,UTYAB | The Decentralized Finance sector also experienced a certain degree of drop, with overall Liquidity decreasing this week, and the growth of leading currencies showing limited gains. | Non-fungible Token | 2.8% | ATR,HIP,DEXIO | The Non-fungible Token market has seen some pump this week, mainly driven by non-head projects, which are more influenced by recent market capital flow. | | MEME | 0.5% | BULL, PEDRO, MINKY | The MEME coin track remained basically unchanged this week, with a small pump, and the top growing currencies had a larger increase, mainly due to new listings. | Liquid Staking | -4.2% | SFLR,STLOS,LISTA | The overall performance of this track has shown a significant decline this week, with the overall market sentiment being poor due to the weak performance of mainstream tokens. | | AI | 3.2% | GSWIFT,DCD,PAI | This week, there is a certain rise in the AI track, but the rise of the head currencies is relatively limited, and the overall trend is mainly driven by individual currencies pumping.