Weekly Web3 Research | BTC Volatility Cycle May Be Coming Soon; EOS Has Obtained Regulatory Approval in Japan; US Court Rejects Class Action Litigation Against Uniswap

2023-09-01, 02:19

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![](https://gimg2.gateimg.com/image/article/1692587604touyanzhoubao.jpeg)
## Weekly Trend Overview
In the past week, the crypto market has remained volatile compared to last week, with little change in total market funds, at $1.1 trillion. The most significant event of this week was that Grayscale won the lawsuit against the SEC, which directly drove the rebound and rise of the entire crypto market. In addition, there is little adverse news, so the trend of the crypto market this week has curbed the previous volatile downward trend.

The Top 100 crypto projects showed nearly half of the ups and downs this week, although the decline accounted for 60%. However, many projects were affected by Grayscale cases and experienced a strong rebound and rise this week, especially for mainstream cryptocurrencies. However, the current trend has begun to fluctuate and decline. The growth of BTC and ETH has started to decline, currently at 1.2% and 0.9% respectively. Among the top-ranked cryptocurrency projects, TON saw a significant increase, with the positive news leading to a 21.3% increase in the coin due to the completion of related large-scale investment actions by the ecosystem this week.

In the first two weeks of market trends, the crypto market entered a short-term volatile state after a rapid decline in the overall market due to the selling of SpaceX and the subsequent impact of the entire network's position explosion event. This week, with the emergence of various positive news, the rebound has become the main tone. However, because the positive news is more limited to the outside of the market, there has been no significant change in the total amount of funds. After the short-term liquidity improvement, most cryptocurrency projects have fallen into the process of taking back, and the current downward trend is still continuing. It is expected to enter the oscillation cycle again next week.

Relatively speaking, the performance of the crypto market this week is already a good reflection of this month. Although the overall trend shows that the crypto market is still in a period of volatility and decline, it is expected to have a significant improvement in the last quarter of this year.

The price trend curves of BTC and ETH during this week are almost consistent, and the correlation is very strong. Of course, after experiencing a certain increase, both types of tokens are now showing a downward reset trend, and the situation of other mainstream currencies is also similar.

As of now, the global crypto market value has fallen to $1.11 trillion, with the entire market losing about 2.4% of its market value in a week, and liquidity remains insufficient. The BTC balance and ETH balance of various trading platforms have both reached new lows in the past five years.
## Crypto Market
🔥 Prime Trust, a coinage service provider, filed for bankruptcy protection last month, but the platform incident also involved issues such as irresponsible spending, misjudgment of the market, and loss of physical devices accessing its wallet. Currently, there is a balance of $45 million in old wallets that cannot be accessed.

🔥 PAULY stated that the PEPE team's coin-selling incident was due to market manipulation and insider trading, and the multi-signed coin sellers were current members of the PEPE team.

🔥 The President of Hong Kong Cyberport stated that over a hundred companies have entered the Cyberport and hopes that Hong Kong will launch a digital Hong Kong dollar wallet.

🔥 Friend.tech previously claimed that users using counterfeit app versions would have their existing points confiscated. However, the community has heavily criticized it, and the founder has decided to apologize for this matter publicly.

🔥 Grayscale wins a lawsuit against the SEC, which may mean progress in converting GBTC to ETF. The SEC now faces the next decision or will postpone the final decision and provide new reasons for rejection, or even acknowledge and approve the Grayscale ETF. If they choose to continue the lawsuit, they will choose to appeal; This event has caused a significant increase in most tokens in the crypto market in a short period of time.

🔥 X (Twitter) has obtained the necessary license to add crypto payments in Rhode Island, which may further promote cryptocurrency applications on the X (Twitter) platform.

🔥 MAGIC tycoons have accused the Treasury team of selling half-price tokens through OTC, resulting in a sharp drop in coin prices. The co-founders of Treasury have stated that OTC transactions do not come from the team, but rather from investors seeking a transition to a more liquid model.

🔥 The US court has rejected <a href="/ar/price/uniswap-uni" target="_blank" class="blog_inner_link">Uniswap</a>'s class action lawsuit for fraudulent tokens on the platform, and developers may not be held responsible for third-party misconduct. Consensys lawyers suggest this may set a precedent for DeFi platform-related cases. The court ruled that ETH is a commodity rather than a security, suggesting that WBTC is also a commodity.
## Regulatory Policies
🔥 Hong Kong implements a dual license system for virtual asset trading platforms, targeting both securities-based and non-securities-based tokens.

🔥 <a href="/ar/price/eos-eos" target="_blank" class="blog_inner_link">EOS</a> tokens have obtained regulatory approval in Japan and can trade with the Japanese yen on regulated exchanges.

🔥 The Financial Policy of the Japan Financial Agency mentions establishing a registration review system for stablecoin.
## Macro Economy
🔥 The Federal Reserve has strengthened its supervision of regional banks and called for strengthened liquidity planning.
## Crypto Market Highlights
⭐️In the past week, the crypto market has generally risen, directly due to the positive sentiment triggered by the win of the SEC case by Grayscale. However, the current market liquidity is still insufficient, and various tokens have started to take profits. In the short term, the price volatility will likely return to last week's volatile levels.

⭐️During this week, most mainstream currencies followed the overall market trend and quickly rose before resuming a downward trend. However, TON's prices were still bullish due to the impact of ecosystem investment landing, with a weekly increase of over 20%. The market and community sentiment were optimistic about it.
![](https://gimg2.gateimg.com/image/article/16935344591.png)
(Data Courtesy Of CoinGecko)

## BTC & ETH Weekly Performance
### Bitcoin (BTC)
![](https://gimg2.gateimg.com/image/article/16935344722.png)
(Data Courtesy Of TradingView)

BTC's peak this week was influenced by the news, rising by over 2000 points in a short period of time. However, this impact is mostly unsustainable. After reaching a high of $28,000, BTC quickly fell and took back, and has now returned to the $26,100 price range.

Impacted by various previous sell-offs in the market, BTC has a high probability of maintaining a support level of $25,800 and a resistance level of $26,200 in the next week despite the current lack of sufficient demand in the market.

Based on the situation of the week, the rapid rise and fall of BTC is more obvious this week, and the upward trend has stopped. From the market's own trend, the oscillation cycle is about to come.

### Ether (ETH)
![](https://gimg2.gateimg.com/image/article/16935344833.png)
(Data Courtesy Of TradingView)

The situation of ETH and BTC is consistent, both showing short-term ups and downs due to the impact of the news. ETH broke its key resistance level of $1,700, but the subsequent downward trend caused the price to return to the $1,650 range again.

The current price trend of ETH is relatively clear, and it is more obvious to maintain the trend before the rise this week. There will likely be a fluctuation cycle in the future, and investors should pay particular attention to market risks for short-term investments.
## Web3 Project Trend
Most of the seven categories of project changes this week showed a slight decline, and due to the positive news on the news side, the rise and fall cycles were relatively rapid. At present, the overall crypto market situation is not stable, and the fluctuation cycle of the overall market value will continue for a period of time.

| Project category  | Top 3 Gainers  | Top 3 Gainers  | Comment  |
| ------------ | ------------ | ------------ | ------------ |
| Layer 1 |  -1.2% | QANX, EMPIRE, CUDOS | The overall situation of the Layer 1 project is relatively stable, and the market changes this week have not brought significant changes to the track. |
| Layer 2  | -1.3%  | ZKS, DG, CWEB |The situation of Layer 2 is similar to that of Layer 1, and the range of negative declines is also similar. |
| DeFi  | -2.1%  | EQZ, JOE, UNFI | The DeFi track was accompanied by market fluctuations this week, with significant increases in top projects, especially JOE, which exceeded 30%, making it a typical example. |
| NFT  | -3.7% | SWFTC, 1MIL, MAG | The NFT market has been in an overall downward trend in the past two weeks, but the price increase of projects with the highest growth rankings this week is not small, so they can be bullish in the future. |
| MEME  | -2.2%  | SAITAMA,MIC,BABYFLOKI | The MEME sector is consistent with previous market performance, with the overall track declining, but the percentage increase in individual projects is exaggerated. |
| LSD  | 2.5% |MAG, WSTUSDT, DVT | The LSD sector is in relatively good condition. As a stable investment market, it belongs to a relatively stable investment category in the current crypto market with insufficient liquidity. |
| BRC-20  | -3.4% | MAXI, PIZA, NOOT |  The BRC-20 track has started to slow down its downward trend, and there is currently no more positive information available, so we can stay on the sidelines. |

<div class="blog-details-info">
<div>Author:**Charles T.**, Gate.io Researcher
<div>Translator:Joy Z.
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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