Crypto Market Weekly Report: Casual Games Erupt, Competition in Computing Power Projects Intensifies

Macroeconomic Environment

The US May CPI fell to a three-year low year-on-year, but the Federal Reserve's dot plot indicates that a rate cut may only occur once this year, which is slightly hawkish. This strategy from the Federal Reserve may be the optimal choice, reserving space for subsequent policy operations. Major US stock indices continue to hit new highs, while the crypto market shows a wide-ranging volatile trend.

Market Overview

This week, Bitcoin experienced wide fluctuations, while altcoins generally declined. As Bitcoin continues to attract fiat inflows related to ETFs, the overall crypto market has limited new capital, which has constrained the performance of altcoins. In fact, the altcoin season index has fallen back to the lows of the first half of 2023, with only about 20 out of the top 100 altcoins outperforming Bitcoin in the last 90 days. Market hotspots are mainly focused on Meme coins on the Base chain, Bitcoin ecosystem projects, and newly launched tokens.

Projects worth paying attention to include:

1. IO: Decentralized AI Computing Power project, which may introduce a staking mechanism in the future.
2. BRETT: Top Meme coin on Base chain.
3. PIZZA: The first Bitcoin five-character inscription, is the first Meme token of a certain BTC L2 wallet.

Bitcoin Market Analysis

on-chain data

• The trading volume of Bitcoin inscriptions has decreased, but the trading volume of runes has surged, accounting for 60% of daily trading volume, indicating a shift in speculative interest from the inscription market to the rune market.
• The market capitalization of stablecoins increased slightly by 1%, showing a positive overall trend in capital inflow.
• Institutional funds have seen a net inflow for 5 consecutive weeks, reflecting the market's expectation for a rate cut in US monetary policy.
• The MVRV-Z Score indicator is at 2.4, which is at a medium level, showing a neutral overall profit state in the market.

Futures Market

• The funding rate has slightly decreased but remains in positive territory, indicating that the bulls have a slight advantage.
• The open interest of Bitcoin futures has slightly decreased.
• The futures long-short ratio is 1.3, and the market sentiment is neutral.

spot market

Bitcoin prices are fluctuating widely, and this volatility may continue until the end of July. Currently, there is insufficient market liquidity, and there are few sector-specific opportunities, mainly consisting of investment opportunities in individual projects.

Public Chain Ecosystem

Total Locked Amount ( TVL ) Situation

This week, the TVL reached $111.6 billion, an increase of $1.8 billion, with a growth rate of 1.6%. Except for the TRON chain, the TVL of mainstream public chains generally declined. It is worth noting that the TVL of the Solana chain is close to $6 billion, with a significant increase in activity, potentially surpassing BSC and TRON chains.

Main Chain TVL Changes

• ETH, Solana, and Arbitrum chains have all dropped by 7%.
• BSC and Optimism chains dropped by 11%
• BLAST fell by 9%
• BASE chain fell by 6%
• MERLIN chain dropped 4%
• Bitcoin and Polygon chain dropped by 5%

NFT market

• NFT-500 Index continues to decline
• Blue chip project floor prices fluctuate, and the overall market continues to decline slightly.
• Trading volume has significantly decreased, resulting in a decline in the number of first-time and repeat buyers.
• Some projects performed impressively, such as Pandora soaring by 66% and DeFrogs rising by 44%.

Overall, the NFT market has not shown any significant improvement and remains in a wait-and-see phase.

Project Financing

This week, financing activities in the crypto market have been relatively active, with several projects completing funding, covering areas such as infrastructure, DeFi, GameFi, etc. Specific funding amounts and investor information can be referenced from the original data.