Gate Research Institute: The US SEC delays the decision on the SUI ETF application | Falcon stablecoin supply exceeds 500 million USD

Summary

• BTC attempted to break through $111,000 but failed, continuing to oscillate at high levels.
• Altcoins are adjusting at high levels, with previously popular sectors such as AI Agents, Meme, and DeFi generally retreating.
• The Ethereum Foundation has announced a new financial policy, aiming to reduce the annual operating expenditure ratio to 5% over the next five years.
• The US SEC has postponed its decision on the Canary spot SUI ETF application.
• Projects such as Rails, Avantis, and 3Jane completed funding ranging from millions to tens of millions of dollars this week.
• Gate Launchpool launches SOPH new token offering, with a total airdrop of 24 million SOPH.

Market Interpretation

Market Commentary

BTC Quotes – BTC price action has continued to fluctuate in a narrow range recently, hitting the key resistance level of $111,000 several times without success. Even though ETFs continued to have net inflows, they had limited momentum for price gains, and the market retreated after several attempts to break up, showing obvious signs of consolidation at high levels. The pressure level is focused on the $111,000 level, and the lower support is focused on the $104,500~$107,000 range. On the whole, due to the disturbance of ETF flow and short-term selling pressure, BTC may continue to maintain range-bound volatility in the short term, and the market has insufficient upward momentum and is cautious. ETH Quotes – ETH has been relatively strong recently, trying to break through the $2,700 mark several times but pulling back under pressure and oscillating within the $2,300 to $2,700 range. The ETH/BTC exchange rate has fluctuated slightly in recent days, trading around 0.025, with a market share of around 9.4%. ETH ETF funds have maintained a continuous large net inflow, with a cumulative inflow of $744 million in the past two weeks, which has supported the market, but has not yet brought trend breakthrough momentum. If the market can stabilize at $2,700, it is expected to recover further, but it is still treated as a shock for now. Altcoin – The altcoin market is volatile, up and down, and lacks a strong collective narrative overall. The Altcoin Season Index has recently fallen from its highs and is currently in the 20~25 range, indicating that the current sector heat has weakened. Some concept coins such as HYPE once led the rally, but generally faced short-term correction pressure. The market sentiment is rational, and the short-term or continued high-level differentiation adjustment.

• **Futures Market —— **After experiencing net outflows for the BTC ETF (especially with the end of 10 consecutive days of net inflows at the end of May), there was a net inflow again this week, but it has limited support for the price. The ETH ETF has seen significant net inflows for several consecutive days, which constitutes a positive factor for its market, but the main theme of the market has yet to be established.
• **Macroeconomic Data —— **Affected by trade policies in the US and Europe, market sentiment oscillates between caution and optimism. Gold fluctuates slightly. Global macro uncertainty persists, with increased frequency of capital rotation, and short-term financial market volatility is expected to remain.
• Stablecoin —— The total market value of stablecoins increased by 1.01% to $249.7 billion, with additional off-exchange funds flowing in.
• Gas Fee - With the overall market recovery, trading activity on the Ethereum chain has become significantly more active in recent days. As of June 5, the average gas fee for the day was 0.723 Gwei.

Popular Concepts

This week, Bitcoin is in a high range, altcoins are mixed, and there are many falling currencies. According to Coingecko data, the popular AI Agents, Meme, DeFi and other sectors in the early stage showed a significant pullback, falling by about 13.7%, 8.7% and 5.4% respectively in seven days. The retracement of these sectors reflects signs of market correction after an earlier rally, suggesting that market sentiment is becoming more cautious and investors have a clear tendency to take profits at high levels.

AI Agents

The AI Agents segment is a fast-rising area of innovation in the cryptocurrency market, focusing on combining AI technology with blockchain to optimize market participants' decision-making and operational efficiency through intelligent algorithms, data analysis, and automation. This section covers applications such as AI-driven market forecasting, risk management, arbitrage trading, and automated governance of decentralized finance (DeFi) protocols. With its high-speed execution and massive data processing capabilities, AI Agents has demonstrated a competitive advantage in a highly volatile market, attracting a wide range of attention from institutional and retail investors. - The sector has fallen by 13.7% in the past 7 days, but GIZA, VIVI, GLORIA and others have outperformed in the sector.

Meme

The meme sector is one of the most dynamic and topical areas in the cryptocurrency market, featuring its humor, cultural drive, and high community engagement. By combining internet meme culture with blockchain technology, the sector creates tokens that are both entertaining and have the potential to be invested. Meme coins often go viral through social media and community drives, attracting a large number of retail investors and attracting a lot of attention due to their high volatility and speculation. - The sector has fallen 8.7% in the past seven days, but BOB, CAR, KEKIUS and others have outperformed

DeFi

The DeFi (decentralized finance) sector is one of the most innovative and influential areas in the cryptocurrency market, building a financial service ecosystem without traditional intermediaries through blockchain technology. DeFi projects use smart contracts to provide financial functions such as lending, trading, liquidity mining, and derivatives, aiming to achieve decentralization, transparency, and inclusiveness of finance. The sector has attracted a lot of attention from global institutional and retail investors due to its high yield potential, openness and flexibility. ——In the past 7 days, the sector has fallen by 5.4%, and the popular CRV, BERA, COW, etc. have seen significant retracement.

This Week's Focus

The US SEC has delayed its decision on the Canary spot SUI ETF application.

On April 8, 2025, Canary Capital filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) for the purpose of launching a spot ETF that tracks the price of SUI, the native token of the Sui blockchain. The move is intended to provide institutional and retail investors with a compliant, direct access to SUI. The ETF plans to hold SUI tokens directly and use the SUI price benchmark provided by CoinDesk Indices, Inc. as a reference for its Net Asset Value (NAV). However, according to the latest report on June 5, 2025, the SEC has decided to postpone the resolution on Canary Capital's Canary SUI spot ETF application. The initial response date scheduled for June 5, 2025, was postponed, and the SEC has until January 18, 2026, the upper limit of the 240-day review period, to make a final decision.

The SEC's decision to postpone the Canary SUI spot ETF application echoes previous cases in which Litecoin and Ethereum spot ETF applications were delayed, suggesting that the SEC will need to take longer to conduct risk assessments and market impact considerations when approving such products. For SUI, while it has strong ecosystem support as the native token of the Sui network, which provides good fundamental support for the approval of its future application, the delay also serves as a reminder to the market that the approval path for an altcoin spot ETF can be longer and more complex than that of a Bitcoin spot ETF. The postponement may bring some wait-and-see sentiment to the SUI market in the short term, but in the long term, if it is finally approved, it will bring in a significant amount of compliance funding for SUI, which will have a positive impact on its liquidity and market acceptance.

The Ethereum Foundation has announced its fiscal policy, planning to reduce operational expenditures to 5% of the long-term benchmark within five years.

On June 5, 2025, the Ethereum Foundation (EF) released the latest financial policy statement on its official blog, reaffirming its core mission to strengthen the Ethereum ecosystem and adhering to the long-term goal of "applications running completely as intended, with no possibility of downtime, censorship, fraud, or third-party interference."

The Ethereum Foundation has announced that it will gradually reduce its stewardship responsibilities, with plans to spend about 15% of its treasury funds in 2025 and maintain a fiat buffer for 2.5 years of operation. Annual spending will be gradually reduced to 5% over the next five years. The Foundation will dynamically adjust assets based on market conditions and sell ETH as needed, and the current strategy also includes staking, borrowing, and using stablecoins to increase yields.

EF optimizes returns by dynamically adjusting asset allocation, while promising to enhance transparency to maintain community trust, and the policy will support the technological innovation and community development of the Ethereum ecosystem, but it needs to be wary of market pressure and regulatory uncertainty caused by the sale of ETH. Communities and developers can keep an eye out for EF's quarterly treasury reports and grant programs to capitalize on long-term opportunities in the Ethereum ecosystem.

Circle prices IPO at $31 per share, with a valuation of $6.9 billion.

Stablecoin issuer Circle Internet Group has successfully completed its initial public offering (IPO) on the New York Stock Exchange (NYSE) under the ticker symbol CRCL on June 4, 2025, according to multiple media reports, including CoinDesk. The IPO went beyond the original pricing range ($24-26) and ultimately raised $1.1 billion, valuing the company at $6.2 billion, with shares set to begin trading on Thursday. Originally planned to issue 24 million shares, the final offering size was expanded to more than 34 million shares due to strong market demand.

Circle is a global leading blockchain financial company, known for issuing the USDC stablecoin. USDC is a stablecoin pegged 1:1 to the US dollar, backed by cash and low-risk assets such as short-term U.S. Treasury bills, and is widely used in cryptocurrency trading, decentralized finance (DeFi), cross-border payments, and other fields.

Circle's IPO is a milestone in the convergence of the crypto industry with traditional finance, marking the transformation of stablecoins from marginal assets to mainstream financial instruments. Its $6.9 billion valuation far exceeds that of many traditional fintech companies, highlighting the potential of blockchain finance. It is expected that in the future, Circle will continue to promote the expansion of USDC through technology upgrades, headquarters relocation, and regulatory benefits.

Highlight Data

Falcon Finance stablecoin supply exceeds 500 million USD

It's official, synthetic dollar protocol Falcon Finance has announced that its total supply of synthetic dollar USDf has exceeded $500 million. As the full open beta of Falcon approaches, demand for this versatile asset continues to grow. According to Falcon Finance's official website, the total supply of USDf pegged to the US dollar has exceeded $529 million, and TVL is currently provisionally trading at $589 million.

Falcon Finance has demonstrated strong growth momentum and a clear value proposition. Users can overcollateralize BTC, ETH and stablecoins to generate USDf, and further pledge them as interest-bearing tokens sUSDf, with an annualized yield of nearly 10% at a current annualized rate of return, including funding rate arbitrage and cross-exchange spread arbitrage. In addition, according to market news, Falcon Finance may launch a governance token in the future, which is expected to incentivize more market users to participate deeply.

Falcon's yield model relies on market arbitrage opportunities, which can lead to narrower profit margins if market volatility weakens or similar protocols increase. At the same time, the current global stablecoin regulatory rules have not yet been fully implemented, and concentrating reserve assets in Treasury bonds, as proposed by the United States, may limit Falcon's current advantageous strategy of emphasizing collateral diversity. In summary, Falcon is expected to expand its user base in the public beta phase in the short term due to its high-yield and compliant operation advantages. In the medium and long term, the success or failure of its development will depend on the impact of regulatory policies on the mortgage model, and whether the multi-chain deployment can effectively expand its market territory.

publicly traded company Treasure Global launches a $100 million digital asset reserve plan

On June 5, Nasdaq-listed e-commerce platform operator Treasure Global (TGL) announced the launch of a digital asset reserve fund plan totaling $100 million as part of its digital infrastructure strategy. The funding for this plan comes from two sources: $50 million from existing equity financing agreements and another $50 million from new investment commitments from strategic partner institutions.

The company plans to acquire blockchain-native assets in phases, including Bitcoin (BTC), Ethereum (ETH), and regulated stablecoins, depending on the pace of fund utilization and market conditions. Although the entire amount has not yet been utilized, the company may submit supplementary registration statements as needed to support subsequent fund withdrawals and asset allocation.

Treasure Global's US$100 million digital asset fund reserve plan is an ambitious strategy that demonstrates the company's forward-looking footprint in the AI and blockchain space, trying to seize the digital economy opportunities in Southeast Asia through technology convergence. Investing in BTC, ETH and stablecoins at the same time is a more forward-looking asset allocation strategy, similar to MicroStrategy, because the long-term growth of Bitcoin investment is expected to drive stock price and valuation growth, and then attract speculative funds, driving stock prices up in the short term, I believe that more traditional companies will join the team of allocating cryptocurrencies in the future.

Pump.fun over 60% of users incur losses, plans to raise 1 billion USD to challenge unicorn valuation

Dune data shows that among approximately 4.257 million addresses that conducted more than 10 token transactions on the meme coin issuance platform pump.fun in the past 6 months, over 60% of the addresses are in a state of loss. However, there are also some users who have achieved significant profits. Among the addresses that are in profit, the number of addresses with profit amounts in the range of $0 to $1,000 is the highest, reaching 916,500 (accounting for 21.5% of the total trading addresses).

Meanwhile, as a significant driver of the Meme coin craze over the past year, Pump.fun plans to raise $1 billion through a token sale, with a valuation potentially reaching $4 billion. If the valuation is accurate, it would place it among the ranks of crypto unicorns. It is said that the token may be launched in the next two weeks, available for public and private investors, but the official party has not yet responded to this news.

The trading data from Pump.fun reveals the inherent nature of the Meme coin market, which is characterized by high risks and high returns. As a key platform in the issuance of Meme coins, Pump.fun's token issuance plan itself possesses strong market appeal and topicality. If this news ultimately materializes, especially in the current environment of heightened market speculation, it is very likely to trigger a significant "pump and dump effect."

Market Opportunities

Gate IPO

The new project to watch this week is: Sophon Network

Sophon Network is a high-performance Layer 2 blockchain platform built on ZK Stack technology, focusing on creating an efficient and user-friendly ecosystem for entertainment applications. Its name is inspired by the "Sophon" from the science fiction novel "The Three-Body Problem," symbolizing the provision of a seamless experience to users through invisible yet powerful technological capabilities.

SOPH is the native token (ERC-20 standard) of the Sophon Network, with a total supply of 10 billion, and is the core economic driver of the ecosystem. SOPH has multiple functions in the network and is designed to support transactions, decentralization, security, and ecological development.

Sophon Network achieves high-throughput, low-latency, and low-cost transaction processing through Zero-Knowledge Proof technology, making complex blockchain technology "invisible" and allowing ordinary users to easily participate without understanding the underlying technology. Its core goal is to provide a scalable blockchain infrastructure for the entertainment sector, such as gaming, NFTs, virtual worlds, and social platforms, to support large-scale user interactions and high-frequency trading scenarios.

Preliminary Preparation

• Gate account: Register and complete user authentication;
• Recharge Assets: This Launchpool only supports BTC, GT, SOPH.

Participate in staking

• Time window: Until June 8, 20:00 Beijing time
• Steps: First, log in to Gate and enter the [Launchpool] page; Second, select the SOPH project and click [Participate Now]. Finally, enter the pledge amount, and you can participate after confirmation.
• Total airdrop amount: 24 million SOPH

Financing Weekly Report

This week, a number of projects have successfully completed financing, involving a wide range of applications in various fields such as infrastructure and developer platforms. According to RootData, a total of 6 projects have announced funding so far this week. Here are some excerpts from popular projects:

Rails

Completed a $12 million financing on June 4, led by Slow Ventures, with participation from Kraken, CMCC Global, Quantstamp, and Round13 Capital.

Rails is an innovative self-custody cryptocurrency exchange that combines the advantages of a centralized order book and decentralized blockchain technology to provide an efficient, secure, and transparent trading experience. The platform enables fast and accurate transaction matching through a centralized order book, ensuring that users can execute trades at the best price. At the same time, Rails leverages a self-custody decentralized solution on the blockchain, giving users full control over their funds and avoiding the custody risks of traditional centralized exchanges. All transactions and fund storage are open, transparent and verifiable on the blockchain, further enhancing user trust.

Avantis

On June 3, completed a $8 million Series A financing, led jointly by Peter Thiel's Founders Fund and Pantera Capital, with participation from Symbolic Capital, SALT Fund, and Flowdesk.

Avantis is an oracle-based decentralized synthetic derivatives protocol designed to provide users with a flexible and efficient trading and investment experience. Users can trade multiple assets, including cryptocurrencies and real-world assets (such as stocks, commodities, indices, etc.) with up to 100x leverage, without the need to hold the underlying assets, greatly improving capital efficiency and market participation. Avantis leverages high-performance oracles, such as Chainlink, to ensure that price data is accurate and up-to-date, ensuring fair and reliable transactions

3Jane

Completed $5.2 million financing on June 4, led by Paradigm.

3Jane is an innovative crypto-native derivatives protocol focused on expanding the possibilities of new derivative yields through restaking and instant settlement mechanisms, providing users with efficient and diverse investment opportunities. The protocol allows users to collateralize shared security from any Proof-of-Stake system within financial derivatives contracts, utilizing restaking platforms like EigenLayer and Babylon to generate real ETH and BTC yields. 3Jane achieves instant settlement through smart contracts, significantly reducing transaction latency, improving capital efficiency, and ensuring transparency and security in transactions.

Focus Next Week

Token Unlock

According to data from Tokenomist, important tokens will experience significant unlocks in the market over the next 7 days (2025.6.09-2025.6.15). The top 3 unlocks are as follows:

• APT will unlock approximately $56 million worth of tokens in a linear manner over the next 7 days, accounting for 1.8% of the circulating supply. The allocation will include the foundation, community, core contributors, and investors.
• STRK will unlock approximately $17 million worth of tokens in the next 7 antennas, representing nearly 4% of the total market capitalization, which is mainly aimed at investors and early contributors, and may have some impact on market liquidity and token prices.
• IMX will unlock approximately $13.52 million in value in the next 7 days, which accounts for about 1.85% of the current circulating supply, mainly for project development and ecosystem construction, or may create short-term selling pressure on the market.
  Reference Source

• X, https://x.com/Grayscale/status/1927463971335909625
• defillama, https://defillama.com/stablecoins
• Gate, https://www.gate.com/zh/launchpool/ELDE?pid=307
• EF, https://blog.ethereum.org/2025/06/04/ef-treasury-policy
• DESK, https://www.coindesk.com/markets/2025/06/04/circle-debuts-on-nyse-at-31-per-share-valuing-stablecoin-issuer-at-62-billion

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