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Bitget Research: Bitcoin Briefly Falls Below $58,000, Solana LST Protocol Sanctum Launches Airdrop

Jarseed & Aaron
2024/07/04
Bitget Research: Bitcoin Briefly Falls Below $58,000, Solana LST Protocol Sanctum Launches Airdrop
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

Bitcoin's price briefly fell below $58,000, causing overall panic in the crypto market. The Federal Reserve's meeting minutes released yesterday emphasized that inflation remains unresolved.
Sectors with strong wealth creation effect:
  • DePin (MOBILE and HONEY), ETH ecosystem (ENS and SSV).
  • Top searched tokens and topics: Sentient, Astar Network, and TAO.
  • Potential airdrop opportunities: Linea Surge and Solayer.
Data collection time: July 4, 2024, 4:00 AM (UTC)

1. Market Environment

The crypto market saw a general decline yesterday, with Bitcoin's price momentarily dipping below $58,000, triggering a surge in overall market panic. Most mainstream cryptocurrencies have fallen below their daily bullish trend lines, indicating potential for further declines.
Yesterday's Federal Reserve meeting minutes suggested that additional confidence data is needed to support a rate cut, implying that the inflation target has not yet been met. In terms of Bitcoin ETFs, there was a net outflow of $20.5 million yesterday. Market rumors had previously anticipated the start of Ethereum ETF trading on July 4, but these expectations were not met, resulting in a significant drop in tokens associated with the Ethereum ecosystem.
The Solana LST protocol Sanctum announced details of its airdrop yesterday, allocating 10% of the token supply to the initial airdrop. Half of this allocation (5%) will be distributed based on Wonderland XP ratios, and the other half (5%) will be based on Earnestness requirements. Currently, Sanctum ranks fifth in total TVL on the Solana blockchain, achieving a total of $790 million.

2. Wealth Creation Sectors

2.1 Sector Movements – DePIN (MOBILE and HONEY)

Primary reasons:
Recently, some DePin projects have frequently announced positive developments. For example, Helium Mobile is set to launch a licensing program for its hotspot devices. Through this program, Helium Mobile earns licensing fees from hotspots manufactured elsewhere while developing its cellular network. Currently, Hivemapper covers 23% of the world's surface.
Gainers: MOBILE has risen 70% in the past 7 days, and HONEY has risen 48.8% in the same period.
Factors affecting future market conditions:
The future performance of DePin projects will largely be influenced by factors such as project progression, changes in incentive policies, and the number of global nodes. At its core, DePin aims to involve more globally distributed hardware in the incentive network to work and share profits. Therefore, the primary factor affecting the project will be the increased integration of devices. Investors should closely monitor project developments and data in this area to make informed investment decisions.

2.2 Sectors to Focus on Next – ETH Ecosystem (ENS and SSV)

Primary reasons:
  • The planned listing of the spot Ethereum ETF on July 4 did not materialize, leading to a decline in some tokens within the Ethereum ecosystem. However, there remains a chance for the ETF to launch in mid-July, presenting a potential rebound opportunity for these tokens due to an oversold bounce.
  • Nate Geraci, President of The ETF Store, has predicted the launch timing of the spot Ethereum ETF. He states that Bloomberg still forecasts a mid-July launch, with the revised S-1 forms expected to be submitted on July 8, and the final S-1 forms possibly submitted by July 12, potentially leading to a launch during the week of July 15.
  • Despite the news on June 29 indicating that the U.S. SEC considers Lido and Rocket Pool staking projects as securities, leading to a drop in LDO and RPL, it did not prevent the rise of ETH ecosystem tokens such as ENS and SSV during the market rebound, with ENS reaching a new high over the past 29 months.
Factors affecting future market conditions:
Two core factors will primarily influence the token prices of Ethereum ecosystem projects: 1. Whether the spot Ethereum ETF can be listed soon; 2. The regulatory stance of the U.S. SEC on certain projects. If the spot Ethereum ETF is approved and begins trading by mid-July, it would be significantly beneficial for all projects within the Ethereum ecosystem; otherwise, unmet expectations may lead to market sell-offs.

3. Top Searches

3.1 Popular DApps

Sentient
Sentient is an open-source artificial intelligence development platform. Sentient will initiate "promotions" for contributors, each defined by specific metrics used to evaluate contributions and distribute rewards. The project recently secured substantial funding, raising $85 million from leading firms such as Pantera Capital, Framework Ventures, Hash VC, and Foresight Ventures. Given its potential, Sentient could become a focal project in the AI sector, and it is advisable to stay updated on its progress.

3.2 X (former Twitter)

Astar Network (ASTR) – Astar Network launched its token in 2022 and has been listed on mainstream exchanges. Despite a significant market downturn last week, Astar Network managed an early rebound, sparking interest among traders. The token is listed on Bitget, and it is advisable to keep track of its performance. If the broader market recovers, Astar Network could potentially create a significant wealth effect.

3.3 Google Search (Global and Regional)

Global focus:
Why is down today:
The crypto market continues its downtrend, with Bitcoin probing the $58,000 level, facing significant support pressure. As the expectation for interest rate cuts in the second half of the year was priced in, accompanied by a drop in the 10-year US Treasury yield, the USD index may weaken. Interest rate cuts would benefit crypto assets, making it advisable to consider positioning for the second half of the year in advance.
TAO:
Yesterday, Bittensor was impacted by an attack originating from a stolen private key, resulting in the theft of 32,000 TAO tokens valued at approximately $8 million. As a result, Bittensor (TAO) fell below 240 USDT, temporarily trading at 237 USDT, marking a 24-hour drop of over 10%. The significant drop in the token's value due to this theft has drawn considerable market attention.
Regional focus:
(1) Asia: The phrases "why crypto is down today" and "greed and fear index" are trending in several parts of Asia, indicating that investors are highly concerned about the reasons behind the market downturn.
(2) Europe and the Americas: There are no significant trends. The tokens and terms on the top trending lists vary from country to country. For example, Italian traders are following TAO, NOT, and SOL, while German users are focusing on SOL and LDO, and UK users are interested in ETH and TAO.

4. Potential Airdrop Opportunities

Linea Surge
Following the Linea Park, the Linea Voyage: The Surge promotion has officially begun. It is important to use a referral code to activate on the Linea website before beginning to collect LXP-L points. The Whales Market has recently introduced a trading market for Linea points, indicating potential future airdrop opportunities.
Despite market skepticism about Linea reaching a TVL of $3 billion, Linea's TVL has already reached $700 million. With upcoming token launches from major projects like zkSync and LayerZero, significant funds could flow into Linea, potentially reaching the $3 billion mark and concluding the promotion early.
How to participate: 1. Activate your Linea account via the referral link; 2. Deposit assets supported by The Surge promotion such as ETH, DAI into the Linea network; 3. Deposit these assets into DEXs or lending protocols like SyncSwap, Mendi Finance, SushiSwap to earn LXP-L points. Linea supports over 20 protocols, and you can check them here: https://www.openblocklabs.com/app/linea/dashboard.
Solayer
Solayer serves a similar role within the Solana ecosystem as Eigenlayer does for Ethereum, utilizing decentralized cloud infrastructure to ensure data security and rapid transaction verification.
The project recently completed a funding round, attracting investments from notable individuals and entities such as Anatoly Yakovenko, Sandeep Nailwal, Joseph Delong, Joe Lallouz, Rooter, Richard Wu, Ansem, and DCF GOD. Anatoly Yakovenko is the founder of Solana, and Sandeep Nailwal is a co-founder of Polygon, highlighting Solayer's high-profile backing which suggests a high future valuation and promising wealth effects from potential airdrops.
How to participate: 1. Visit the official website and enter an invitation link; 2. Deposit SOL, mSOL, Jitosol, or bSOL on the website.
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