Crypto Market Weekly Report: Popularity of Casual Games Rises, Competition among Computing Power Projects Intensifies

Market Overview

Macro Liquidity

The liquidity of the currency has improved. In May, the US CPI fell to a three-year low year-on-year, but the Fed's dot plot still indicates that there will only be one rate cut this year, which is slightly hawkish. The Fed's approach of trading time for space may be the best choice to reserve space for subsequent policy operations. Major US stock indices continue to set new highs, while the crypto market shows a wide range of fluctuations.

All Market Trends

This week, Bitcoin experienced wide fluctuations, while altcoins generally declined. As Bitcoin continues to attract ETF inflows, the overall crypto market has limited new funds available, constraining the performance of altcoins. In fact, the altcoin season index has fallen back to the low levels of the first half of 2023, with only about 20 of the top 100 altcoins outperforming Bitcoin in the past 90 days. Market hotspots are concentrated in Base ecosystem Meme tokens, Bitcoin ecosystem, and newly launched tokens.

1. IO: A decentralized AI Computing Power project that may offer staking in the future. The market cap of RNDR is $4.5 billion, and the market cap of AKT is $1 billion.

2. BRETT: Base chain's top Meme coin, closely related to PEPE. A new wallet from a trading platform brings more traffic to the Base chain.

3. PIZZA: The first five-word inscription of Bitcoin, it is the first Meme coin of a certain Bitcoin L2 wallet. The competition among Bitcoin ecosystem projects is relatively mild.

Bitcoin market analysis

1. On-chain data

The trading volume of Bitcoin inscriptions has decreased. After the halving in April, the number of inscriptions sharply declined. The trading volume of runes surged, accounting for 60% of daily trading volume, indicating that speculative interest has shifted from the inscription market to the rune market.

The market value of stablecoins has increased by 1%, and the overall trend of capital inflow is positive.

Institutional funds have seen a net inflow for 5 consecutive weeks, and the market expects the U.S. monetary policy to implement interest rate cuts.

The MVRV-ZScore indicator is currently at 2.3, entering the middle stage. A value greater than 6 indicates the top range, while a value less than 2 indicates the bottom range. If MVRV falls below 1, it indicates that holders are generally in a state of loss.

2. Futures Market

• Funding rate: Slight decrease this week.
• Open Interest: This week, the open interest of Bitcoin has slightly decreased.
• Long-Short Ratio: 1.3, market sentiment is neutral.

3. Spot Market

Bitcoin is experiencing wide fluctuations, and the volatility is expected to last until the end of July. The market lacks liquidity, and there are fewer sector-specific opportunities, mainly focusing on individual stock performance.

Market Data

Total Locked Amount of Public Chain

This week's TVL is $111.6 billion, up $1.8 billion, an increase of 1.6%. The TVL of mainstream public chains, except for TRON, has declined across the board. Ethereum, Solana, and Arbitrum chains all fell by 7%, BSC and Optimism chains dropped by 11%, Blast chain decreased by 9%, Base chain went down by 6%, Merlin chain fell by 4%, and Bitcoin and Polygon chains declined by 5%. Notably, the total TVL of the Solana chain has approached $6 billion, and with the recent significant increase in activity, surpassing BSC and even TRON chain seems to be just a matter of time.

NFT market data

This week, the floor prices of blue-chip projects in the NFT market fluctuated, while the overall market continued to decline slightly. CryptoPunks decreased by 12%, BAYC dropped by 8%, MAYC fell by 10%, Azuki went down by 2%, Milady declined by 3%, and Doodles decreased by 16%. On the other hand, Pandora surged by 66%, Pudgy Penguins increased by 5%, Ringers rose by 24%, DeFrogs jumped by 44%, and LilPudgys went up by 8%.

The overall trading volume of the NFT market has significantly declined, and the number of first-time buyers and repeat buyers has also decreased. Overall, the NFT market has not shown any significant improvement and is still waiting for a breakthrough.