Crypto Market Weekly Overview: MicroStrategy Increases Bitcoin Holdings, PumpSwap Volume Soars

Macroeconomic Environment and Market Overview

Recently, the US stock market has experienced one of the most severe adjustments since the pandemic. The easing of expectations for reciprocal tariffs has boosted market sentiment, and signs of a bottom in the US stock market have begun to appear, although they are not yet fully established. The crypto market has also rebounded following the fluctuations in the US stock market.

This week, Bitcoin experienced a volatile rebound, with MicroStrategy increasing its holdings of Bitcoin worth $600 million in the past week. The main focus of the market is on the BSC chain and SOL chain ecosystems.

Market Performance

The top five cryptocurrencies by this week's growth are ZETA (60%), LAYER (60%), FARTCOIN (50%), MEW (40%), and BEAM (40%). The ones with the largest declines include NTGL (-60%), PI (-30%), PLUME (-20%), SATS (-15%), and XCN (-10%).

It is worth noting that a well-known market maker in the SOL ecosystem has become active again, with a recent demand for large OTC transactions. On the BSC chain, FORM has gained attention as a meme token launch platform, which is related to the $100 million liquidity incentive program introduced on the BSC chain.

On the other hand, the liquidity pool of the on-chain exchange HYPE was attacked, suspected to be the work of a certain market maker. After HYPE took centralized delisting measures, it lost user trust, highlighting the risk of small token contracts being easily manipulated.

On-chain Data Analysis

The new demand for Bitcoin continues to weaken, and most short-term investors are currently in a state of loss. The supply from long-term holders has started to increase again. Currently, short-term holders hold 40% of the assets, down from a peak of 50% at the beginning of 2025. This proportion is still significantly lower than in previous bull market cycles, when new investors held 70-90% of the assets at the peak of the cycles. This difference may be related to large institutional investors investing through ETFs in this round.

The market value of stablecoins has significantly declined, reflecting a risk-averse sentiment among investors. However, institutional funds have begun to regain an optimistic outlook, breaking a trend of capital outflows that lasted for five consecutive weeks.

The MVRV-ZScore indicator shows that the current market is in a mid-range position, with an indicator value of 2.0. This indicator reflects the overall profitability of the market; a value greater than 6 indicates a top range, while a value less than 2 indicates a bottom range.

Derivatives Market

The long-short ratio in the futures market is 1.1, indicating that market sentiment is at a normal level. This week, the open interest in Bitcoin futures has slightly decreased, reflecting a lack of clear direction in the market. The futures funding rate remains at a low level of 0.01%, suggesting that the use of leverage in the market is relatively conservative.

Public Chain Ecosystem Development

Bitcoin ecosystem

A well-known technology company continues to increase its holdings of nearly 7,000 Bitcoins and has launched perpetual preferred shares traded on NASDAQ, demonstrating its strategic determination to maximize Bitcoin holdings.

Ethereum ecosystem

The Ethereum Pectra upgrade has successfully launched on the new Hoodi testnet. This upgrade introduces the EIP-7702 proposal, which will enable multi-coin payment of gas fees. In addition, the Celo network has successfully migrated to the Ethereum Layer 2 network, further expanding the Ethereum ecosystem.

TON ecosystem

The fully chain-compatible HiBit DEX joins the TON ecosystem and is expected to play an important role in connecting the TON ecosystem with other blockchain networks. HiBit DEX combines the advantages of centralized and decentralized exchanges, aiming to provide an efficient trading experience.

Solana ecosystem

Pump.fun launched its native DEX PumpSwap, which captured 21% of the Solana ecosystem DEX market share within just a week, with a volume of 1.5 billion dollars. This development poses strong competition to Raydium and may further squeeze its market space.