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Bitget Research: SEC Ends Investigation into ETH 2.0, ETH Ecosystem Tokens Rebound

Victoria & John
2024/06/19
Bitget Research: SEC Ends Investigation into ETH 2.0, ETH Ecosystem Tokens 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

In the past 24 hours, Bitcoin briefly fell below the $65,000 support level, and several major altcoins dropped by over 10%. Meanwhile, the SEC ended its investigation into ETH 2.0, leading to a rebound in ETH ecosystem tokens. The highlights are as follows:
  • Sectors with strong wealth creation effects: ETH ecosystem blue-chip projects and Curve-related tokens.
  • Top searched tokens and topics: Renzo, Particle Network, and DJT.
  • Potential airdrop opportunities: Skate and Sanctum.
Data collection time: June 19, 2024, 4:00 AM (UTC)

1. Market Environment

On Tuesday, the crypto market saw a broad pullback with Bitcoin briefly falling below the $65,000 support level. Several major altcoins experienced double-digit percentage drops. As of now, Bitcoin's trading price has recovered to $65,056, a 2.36% drop over 24 hours. CoinGlass data shows that in the last 24 hours, approximately $372 million in long leveraged positions were liquidated, while short liquidations amounted to $61.8 million. The market shows a significant spot premium, indicating reduced speculative activity among market participants. Earlier, the BTC order book showed concentrated buying around $65,000, now down to around $64,000. Bitcoin remains below the 50-day moving average, putting pressure on the mid-term trend; investors need to stay patient.
In the US stock market, Nvidia surpassed Microsoft to become the highest market cap company globally. At the close, the S&P 500 and Dow Jones indices rose by 0.25% and 0.15%, respectively, while the Nasdaq remained flat. Moving forward, it will be important to monitor the correlation between the Nasdaq and BTC. If this correlation becomes positive but the Nasdaq starts to decline, it could significantly impact the crypto market.

2. Wealth Creation Sectors

2.1 Sector Movements – Blue-Chip Projects in the ETH Ecosystem

Primary reasons:
Bitwise has submitted an amended spot Ethereum ETF S-1 filing to the SEC, which includes changes following the first round of SEC feedback. It is unclear if additional rounds of feedback will be required, and product fees have not been disclosed. According to this document, the SEC's investigation into ETH 2.0 has ended, leading to significant rebound in blue-chip tokens within the ETH ecosystem that performed well in the last bull market cycle. This sector is expected to outperform others in the future, but overall market conditions remain weak, so caution is advised in trading.
Gainers:
Over the past 24 hours, ENS, LDO, and RPL rose by 16%, 20%, and 17%, respectively.
Factors affecting future market conditions:
It is likely that the spot Ethereum ETF will be approved and begin trading within a few weeks to a few months. Until then and following the approval, the ETH/BTC exchange rate may continue to rise. ETH is expected to break a new high in the coming months, which will significantly boost the market cap of altcoins. As traders on the Ethereum chain increase their leverage and trading activities, blue-chip projects, especially those with actual earnings in the DeFi sector, are expected to continue rising and kick off an altcoin season.

2.2 Sector Movements – Curve-Related Tokens (CRV and CVX)

Primary reasons:
Bitwise submitted an amended spot Ethereum ETF S-1 filing, and the SEC ended its ETH 2.0 investigation, affirming that ETH is not a security. Influenced by these news, ETH ecosystem assets CRV and CVX also saw significant increases.
Gainers:
Over the past 24 hours, CRV and CVX rose by 17% and 36%, respectively.
Factors affecting future market conditions:
Curve remains one of the prime venues for stablecoin block trading and continues to maintain decent real profits. The main issue is that its narrative is somewhat outdated, lacking exciting new products or operations to stimulate the market. Additionally, recent incidents and liquidation have unavoidably raised concerns about its stability. However, considering that several whales bought CRV over-the-counter at prices above $0.30, the price of CRV remains attractive.

2.3 Sectors to Focus on Next — AI Sector

Primary reasons:
  • Binance recently announced support for the merger of FET, AGIX, and OCEAN into ASI, causing a buzz in Europe and the USA and garnering high community interest.
  • Arweave AO announced the launch of AO token minting; AR holders can acquire AO through a fair distribution process. Arweave specializes in data-layer operations.
Specific tokens:
  • TAO: Bittensor is an open-source protocol that powers a blockchain-based machine learning network. Machine learning models train collaboratively and are rewarded in TAO according to the informational value they offer the collective.
  • NEAR: Recently, many AI projects within the NEAR ecosystem are in the development or funding stage, positioning NEAR to potentially become a future AI Hub.
  • ASI: Post-merger token of FET, AGIX, and OCEAN, likely to experience significant volatility with potential for hype.
  • AR: Arweave’s new token AO is about to be launched, backed by solid technology fundamentals and a promising sector.

3. Top Searches

3.1 Popular DApps

Renzo, a liquid restaking protocol, raised $17 million in two funding rounds, the first led by Galaxy Ventures and the second led by Abu Dhabi-based Nova Fund – BH Digital. Following the positive news, the REZ token saw a brief 3.74% increase. Despite a significant price drop, Renzo still maintains a TVL of $3.8 billion, with minimal user attrition.

3.2 X (former Twitter)

Particle Network: Positioned as a modular Layer 1 enabling chain abstraction, the project is currently in the first phase of its testnet. Particle Network's universal account operates in the unique high-performance EVM execution environment of Particle L1, linking Ethereum, BNB Chain, Polygon, BTC Layer 2s, and other major Layer 1 and Layer 2 chains. With over one million on-chain accounts already, Particle Network is highly popular, and there may be potential airdrops in the future, making it advisable for users to get involved.

3.3 Google Search (Global and Regional)

Global focus:
DJT: U.S. media outlet Pirate Wires posted on the X platform about rumors of Trump launching an official token on Solana—$DJT. This led to a surge in interest in the DJT token. Arkham Intelligence announced a $150,000 bounty for anyone who can confirm the identity of the issuer of the Trump-themed Solana token DJT. However, the price subsequently fell, dropping over 57% in the past 24 hours. Due to high volatility and uncertainty, it is advised not to monitor this token.
Regional focus:
(1) Asia: There is a lack of unified themes in this region, with each country focusing on different areas. There is little interest in specific projects or hot topics.
(2) Europe and the Americas: These regions show significant differences from Asia. English-speaking regions display a concentrated interest in memecoins, such as BODEN, PEPE, TRUMP, and FLOKI, which are particularly popular in the USA. The UK, on the other hand, shows more interest in blockchain projects, with Monad, ICP, and Hedra consistently trending.

4. Potential Airdrop Opportunities

Skate
Skate aims to integrate all chain application layers, breaking the isolation of DApps. This means DApps can run on multiple blockchains with a unified state. New blockchains can also connect to Skate, allowing users and developers to interact solely with Skate for instant access to various networks while maintaining unified liquidity. The project will airdrop 8% of the tokens.
Skate originated from the on-chain asset management protocol Range Protocol, which secured $3.75 million in seed round funding in September last year, co-led by HashKey Capital and Nomad Capital.
Specific actions include: Currently, completing simple tasks can earn 600 Ollies points and an early bird NFT. Connect your wallet and complete simple social media tasks like retweeting posts to mint an early bird NFT free of gas fees. Inviting friends can earn more points.
Sanctum
Sanctum, a Solana ecosystem LST protocol, officially announced the launch of its loyalty program, Sanctum Wonderland. Sanctum Wonderland aims to fully utilize SOL for profit through a gamified experience. Users can stake SOL to collect pets and earn experience points (EXP) to level up, earning EXP through their pets.
Previously, Sanctum, a liquid staking service protocol in the Solana ecosystem, completed an extended seed round of funding led by Dragonfly, with participation from Solana Ventures, CMS Holdings, DeFiance Capital, Genblock Capital, Jump Capital, and Marin Digital Ventures. The total funding has now reached $6.1 million.
How to participate: Open the link, connect your wallet, and enter the invitation code. Exchange SOL for Infinity and deposit at least 0.122 SOL, plus the 0.05 SOL transaction fee. Your wallet should have at least 0.172 SOL. Deposit at least 0.11 SOL for the pet to automatically grow and earn EXP. If the LST balance falls below 0.1 SOL, the pet will enter hibernation and stop earning EXP. It is recommended to deposit more than 1 SOL to earn 10 EXP per minute per SOL. You can withdraw at any time with very low gas fees.
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