TL;DR

• This week, BTC and ETH demonstrated robust performance, with gains of 8.53% and 5.30%, respectively.
• The Hong Kong Monetary Authority has initiated a cross-border tokenization project in collaboration with the central banks of Brazil and Thailand.
• The New York Stock Exchange has submitted a Rule Change 8.800-E proposal and a listing application for the Grayscale Digital Large Cap Fund to the U.S. SEC.
• Lido V3’s lending volume surpassed the $1 billion milestone.
• sUSD saw enthusiastic adoption at launch, with deposits surpassing $10 million within the first hour.
• This week, 16 projects secured funding totaling $110 million across various sectors, including infrastructure, DeFi, and gaming.

Market Analysis

Review and Insights

• BTC Market —— BTC surged 8.53% over the past week, reaching $72,353 with a weekly peak of $73,609. The uptrend began on October 26, with significant volume increases from October 28 to 30, signaling strong bullish momentum. Currently consolidating between $71,000 and $73,600, a breakthrough above $73,600 could trigger further gains, while a drop below $71,000 might lead to a retracement.[1]

• ETH Market —— ETH climbed 5.30% in the past week, currently trading at $2,656 with a weekly high of $2,723. Following BTC’s lead, ETH may continue its upward trajectory. A successful break above $2,723 could lead to further gains. [2]

• Altcoins —— The past week saw notable growth in Elon Musk-Inspired (+21.3%), Wallets (+15.5%), and Restaking (+15%) sectors.
• Futures Market —— Bitcoin and Ethereum positions maintained mostly positive weighted funding rates last week, indicating strong bullish sentiment and investor optimism.[3][4]
• Macro Data —— Wednesday’s October ADP report revealed 233,000 new private sector jobs, the highest in over a year, and surpassing expectations by 114,000, highlighting robust labor demand.[5]
• Stablecoins —— Stablecoin market capitalization increased slightly by 0.69% to $173.265 billion, with continued off-exchange inflows suggesting growing market demand.[6]
• Gas Fees —— Weekend on-chain activity remained subdued, with gas fees staying below 5 gwei for extended periods, lower than the typical 5-20 gwei range.[7]

Trending Concepts

According to data from Gate.io and Coingecko, three sectors experienced significant gains this week: Elon Musk-Inspired, Wallets, and Restaking, with increases of approximately 21.3%, 15.5%, and 15%, respectively, over the past seven days. Here’s a breakdown of these trending concepts: [8]

Elon Musk-Inspired — Up approximately 21.3% in the last 7 days, with a circulating market cap of around $25 billion.
Elon Musk’s influence has sparked the creation of numerous meme coins. Notable performers include MELON, DOGE, and 69420, which have seen substantial weekly gains of 92.8%, 52.7%, and 35.4%, respectively, largely due to their association with Musk.

Wallets — Up approximately 15.5% in the last 7 days, with a circulating market cap of around $1.8 billion.
As the crypto market expands, digital asset wallets have become increasingly crucial. Recent standout performers in this sector include CTRL, TGT, and SAFE, which have seen impressive weekly gains of 29.6%, 23.6%, and 21.7%, respectively.

Restaking — Up approximately 15.0% in the last 7 days, with a circulating market cap of around $11.5 billion.
Restaking mechanisms enhance the value of staked tokens by offering users broader participation options and additional yields. This attractive proposition has drawn numerous users, consequently driving up the prices of related tokens. Examples include EGP, PUFFER, and PENDLE, which have seen increases of 12.5%, 9.2%, and 8.3%, respectively, over the past week.

Top Performers

According to Gate.io market data[9], the following altcoins have shown notable performance based on trading volume and price movements over the past 7 days:

VISTA — Up approximately 385.6% in the past 7 days, with a circulating market cap of $34.32 million.
VISTA, launched by Ethervista, is the first compounding value-deflationary token, serving as the native currency of EthervistaDEX, marking a new standard for decentralized exchanges, built specifically for Ethereum and its Layer 2 networks.

On October 28, Ethervista launched etherfun, which may have spurred a recovery in VISTA’s price, achieving a 5x increase from its recent low.[10]

TROY — Up approximately 152.9% in the past 7 days, with a circulating market cap of $33.76 million.
Troy Trade is a global crypto asset management and prime brokerage firm.

On October 29, TROY announced on X (formerly Twitter) that it received strategic liquidity investment from Unicornverse, followed by an October 30 post saying, “Troying is forever,” signaling further development and funding support. This announcement may have contributed to the TROY token’s price increase.[11]

VIRTUAL — Up approximately 73.3% in the past 7 days, with a circulating market cap of $349 million.
Virtual Protocol is a decentralized protocol focused on creating co-owned, human-curated plug-and-play AI agents for gaming. Virtual Protocol allows users to create AI characters that can interact across different virtual environments to generate earnings. Users can stake these AI characters to share in the earnings, with a governance mechanism allowing token holders to participate in decision-making.

On October 20, Virtuals launched its AI bot Luna Virtuals and issued the AI token $LUNA, with a market cap reaching $240 million at one point. The rise in $LUNA also boosted the price of the parent token $VIRTUAL.

Luna enables users to launch their own AI agent bots, a feature that likely contributed to a significant single-day price increase.

Weekly Spotlights

Hot Topic Review

Hong Kong Monetary Authority Collaborates with Brazilian and Thai Central Banks on Cross-Border Tokenization Projects
The Hong Kong Monetary Authority (HKMA) is pioneering cross-border tokenization through strategic partnerships with the central banks of Brazil and Thailand. This collaboration aims to interconnect their respective central bank digital currency (CBDC) experimental platforms, exploring digital currency applications for cross-border payment-versus-payment (PvP) and delivery-versus-payment (DvP) settlements. The initiative seeks to enhance efficiency and security in cross-border transactions, particularly in areas such as trade finance and carbon credits.

This groundbreaking effort by HKMA signifies a growing acceptance of digital assets within mainstream financial circles, potentially assuaging investor concerns about crypto assets. Beyond reinforcing Hong Kong’s position as a financial hub, this project injects fresh vitality into the global digital asset landscape. The collaboration is expected to accelerate worldwide CBDC research and implementation, with far-reaching implications for the traditional fiat currency system. Successful cross-border payment use cases could dramatically expand digital asset applications, revolutionizing the efficiency and cost-effectiveness of international transactions while posing significant challenges to conventional financial institutions. Moreover, the involvement of central banks is likely to foster compliant development of digital assets and establish a more robust regulatory framework for the industry.[12][13]

NYSE Files Rule Change 8.800-E and Grayscale Digital Large Cap Fund Listing Application with SEC
Recently, NYSE Arca, a subsidiary of the New York Stock Exchange (NYSE), submitted a rule change proposal 8.800-E to the SEC to support the listing of commodities and digital asset investment products, including Grayscale’s Digital Large Cap Fund. If approved, this fund would become a new type of cryptocurrency ETF, primarily holding Bitcoin and Ethereum, with SOL, XRP, and AVAX as supplementary assets, signaling the gradual integration of crypto assets into the mainstream financial market.

If Rule 8.800-E is approved and applied to the Grayscale Large Cap Fund’s ETF conversion, it could pave the way for other multi-asset crypto products. This development may not only enhance market liquidity but also boost recognition and stability across various crypto assets. For investors, this move could provide a broader range of investment portfolio options, meeting diverse allocation needs. The outcome of this approval process will have significant implications for the overall crypto market, particularly in enhancing the liquidity of smaller crypto assets.

Base Mainnet Introduces Fault Proof System for Permissionless Verification
On October 30, Base announced the mainnet launch of Fault Proofs, allowing any user to verify the Base state, submit permissionless proposals, and challenge false claims. Users have 3.5 days to challenge claims using open-source challenge software, with successful challengers receiving the deposit from invalid claims. This feature aims to reduce dependency on centralized entities and enhance network security. Going forward, Base plans to expand the audit community for smart contracts, forming a decentralized “security council” to achieve Phase 1 decentralization. Future plans include supporting multiple implementations of Fault Proofs to boost network compatibility.[14]

The Fault Proof feature introduced by Base enhances transparency and security, promoting decentralization and reducing reliance on centralized entities. This feature incentivizes users to expose false claims, thereby strengthening network security and effectively identifying and penalizing malicious actors. Additionally, the reward mechanism encourages community participation in governance, upholding network integrity. The open-source challenge tool enables technical users to participate easily in verification, setting a new industry benchmark.

Security Incident

SUNRAY Private Key Compromised, Attacker Steals $2.855 Million
According to CertiK Alert monitoring, SUNRAY.FINANCE experienced a private key compromise; the exploiter acquired ownership of SUN and ARC tokens and minted large sums before dumping them to drain liquidity from the DEX pairs. As of now, the attacker has stolen approximately $2.855 million.[15]

This incident highlights vulnerabilities in private key management, underscoring the need for more robust security measures from project teams. The exact amount of losses is pending further official updates.

Project Highlights

Nillion
Nillion is a decentralized network based on Nil Message Compute (NMC), using a non-blockchain node collaboration approach to provide Web3 with new features such as decentralized credit scoring, private NFTs, and secure storage. Aptos has announced integration with Nillion to support privacy-protected DeFi and social application development. Key features of the project include:[16]

• Use of NMC protocol: The Nil Message Compute (NMC) protocol allows for “blind computation” in a decentralized network, enabling the processing of sensitive information without revealing data content, laying the foundation for cross-industry private data applications.
• Adoption of secure Multi-Party Computation (MPC) and Homomorphic Encryption: Nillion can securely store and compute high-value data in a decentralized environment, suitable for scenarios such as healthcare, DeFi, and AI data markets.
• Privacy Integration for Decentralized Applications (dApps): Nillion supports privacy features in dApp integration, aiding the development of next-generation Web3 applications with enhanced user data privacy.
• Validator Node Mechanism: Through staking and computation tasks, validator nodes ensure data integrity and network security, increasing the level of decentralization within the network.

Recently, Nillion completed a $25 million funding round led by Hack VC, bringing its total funding to over $50 million. Previously, Nillion launched a community funding round on CoinList, which garnered widespread attention. Additionally, Nillion introduced a validator program, encouraging early validators to contribute to the mainnet launch by maintaining data integrity and security, and plans to introduce a token-based incentive mechanism to support long-term commitment from validators.

Data Highlights

Macro Funds

As of October 31 at 2:00 (UTC +0), the total net asset value of BTC ETFs stands at $72.04 billion, with cumulative net inflows exceeding $23.31 billion. This week, demand for U.S. spot Bitcoin ETFs reached a six-month high, with net inflows totaling 65,000 BTC over the past 30 days. Additionally, on October 31, cryptocurrency investment firm Canary Capital submitted a SOL ETF application to the U.S. SEC. If approved, the SOL ETF would represent institutional recognition of public chains beyond mainstream options, indicating strong market demand for diversified crypto assets and potentially triggering more public chain ETF applications, thus expanding investment choices.[17]

As of October 31 at 2:00 (UTC +0), the total net asset value of ETH ETFs is $7.33 billion, with cumulative net outflows amounting to $493.57 million. The current Ethereum spot ETF market shows a diverging trend. Grayscale’s ETHE continues to see net outflows, reflecting weakened appeal for its product, while ETFs from Fidelity and BlackRock have experienced significant inflows, totaling $509 million and $1.28 billion, respectively. This reflects a rising interest in spot ETFs, with institutional investors showing a growing demand for Ethereum allocations.[18]

Over the past seven days, the stablecoin market cap increased slightly by 0.69% to $173.265 billion, with further inflows of off-exchange funds. This week, the UK may introduce stablecoin legislation, and U.S. Federal Reserve officials have voiced support for tokenization, advancing stablecoin regulation and applications. Additionally, companies like Felix and Solayer are enhancing cross-border payments and asset backing through new stablecoin solutions, accelerating the mainstream adoption of stablecoins.[19]

Bitcoin Buy/Sell Ratio

In the Bitcoin perpetual market, sentiment has shifted dramatically over the past week. On October 28, the Bitcoin buy-sell ratio surpassed 1.1, signaling strong bullish sentiment. However, as of October 31 at 2:00 (UTC +0), liquidations in the last 24 hours alone exceeded $105 million, with significant losses on the long side—over $67.316 million in liquidated long contracts. The current Bitcoin buy-sell ratio stands at 0.88, likely influenced by recent U.S. election developments and geopolitical factors. Given the high volatility, investors should exercise caution.[20]

Weighted Funding Rate

As of October 31 at 2:00 (UTC +0), the weighted funding rate for Bitcoin positions is 0.0116%, and for Ethereum positions, it is 0.0107%. Over the past seven days, the weighted funding rates for both Bitcoin and Ethereum positions have remained positive, with the overall contract ratio favoring long positions across the network.[21]

Lido V3 Lending Volume Surpasses $1 Billion
On October 31, decentralized lending platform Aave reported that the Lido V3 market surpassed $1 billion in lending volume within just three months, demonstrating remarkable growth. Lido V3’s provision of liquidity for staked ETH has attracted numerous users to its lending services. This achievement highlights the increasing demand for efficient capital utilization in the DeFi ecosystem.[22]

sUSD Highly Sought After Upon Launch, Exceeding $10 Million in Deposits in the First Hour
sUSD, a synthetic stablecoin backed by real-world assets (RWA) and issued by Solayer—the first restaking platform on Solana—launched on October 30. Utilizing the Solana Token2022 standard and backed by U.S. Treasury RWA tokens, it quickly gained traction. The stablecoin attracted nearly 5,900 deposits, with the total exceeding $10 million within the first hour of launch. By October 31 at 9:30 (UTC+0), total deposits had reached $12.26 million.[23]

Market Opportunities

Project Airdrops

Airdrop project to watch this week: Mitosis

Mitosis is a liquidity protocol focused on the modular blockchain ecosystem, aiming to revolutionize the cross-chain liquidity provider (LP) experience. By issuing derivative tokens equivalent to locked assets, Mitosis allows LPs to engage in diverse DeFi applications on Ethereum L1 and L2 Rollups while retaining control over their original assets. This mechanism not only enhances the flexibility of cross-chain liquidity but also provides LPs with additional returns, significantly boosting the utilization and appeal of cross-chain assets. Mitosis completed a $7 million funding round in May.

How to Participate

1. Deposit $weETH: Begin earning marks by depositing $weETH on the Scroll network.
2. Withdraw $ETH to the ARB network, then transfer $ETH to the Blast network using the Owlto cross-chain tool.
3. Mint $weETH on the EtherFi platform and bridge it to the Scroll network using the Owlto bridging tool.
4. Complete a $weETH deposit on Mitosis.
5. Access the console, connect your X (formerly Twitter) and Discord accounts, and claim your unlocked free airdrop points.

Note:
The airdrop plan and participation methods may be updated at any time. Users are advised to follow Mitosis’s official channel for the latest information. At the same time, users should participate cautiously, be aware of risks, and conduct thorough research before participating. Gate.io does not guarantee the subsequent distribution of airdrop rewards.The airdrop plan and participation methods may be updated at any time. Users are advised to follow Mitosis’s official channel for the latest information. At the same time, users should participate cautiously, be aware of risks, and conduct thorough research before participating. Gate.io does not guarantee the subsequent distribution of airdrop rewards.

Weekly Fundraising Report

This week, multiple projects across infrastructure, DeFi, gaming, and other sectors successfully completed funding rounds. According to RootData, from October 25 to 31, a total of 16 projects announced funding, raising a combined $110 million. Here are the top 3 in terms of funding size:[24]

Nillion — Nillion is a decentralized public network providing secure, efficient data processing and storage solutions through a new cryptographic primitive called Nil Message Compute (NMC). This innovative technology allows Nillion to operate in a decentralized environment without a blockchain, unlocking various practical use cases within Web3, such as decentralized credit scoring, trusted execution environments, private NFTs, and secure storage services. This funding round raised $25 million, led by Hack VC.

Bluesky — Bluesky is a decentralized social media platform originally proposed by former Twitter CEO Jack Dorsey in 2019 to create an open social media ecosystem. Operating independently since 2021, Bluesky runs on its own AT Protocol, a communication protocol allowing interoperability between social networks. The platform recently completed a $15 million Series A funding round.

Gelato Network — Gelato Network is a decentralized blockchain project focused on simplifying smart contract execution. As a Web3 automation relay network, Gelato Network offers gas-free transactions, custom bots, cross-chain bridging, and cross-chain messaging protocols, enabling Web3 application developers to efficiently support various user or protocol transactions through a simple API. Gelato Network raised $11 million in an A+ funding round, led by Hack VC.

What to Watch Next Week

Token Unlock

According to Token Unlocks data, next week (Nov 1-7, 2024) will see several important token unlock events in the market. Here are the top 3 unlocks for this week:[25]

SUI: Approximately 64.19 million tokens are scheduled to unlock at 00:00 UTC on November 1, accounting for 2.32% of its circulating supply, with an estimated value of about $132 million.

IMX: About 32.47 million tokens are set to unlock at 00:00 UTC on November 1, representing 1.98% of its circulating supply, with an estimated value of around $43.83 million.

ZETA: Roughly 53.89 million tokens are planned to unlock at 00:00 UTC on November 1, accounting for 11.72% of its circulating supply, with an estimated value of about $38 million.

Crypto Calendar

Several key events are scheduled for the cryptocurrency industry in the coming week. On November 1, Oklahoma State will introduce legislation to protect citizens’ rights to self-custody digital assets, potentially strengthening cryptocurrency users’ rights. November 2 will see Ore, a Solana-based mining protocol, requiring ORE v1 token holders to upgrade to the new version, which may impact holders’ operations and asset security. Additionally, the MakerDAO community will hold a governance vote to determine the brand’s future direction.[26]

On the macroeconomic front, next week’s events could significantly influence global financial markets and economic stability. The Russian Central Bank will release its monetary policy report, potentially affecting monetary policy and interest rate expectations. The U.S. presidential election outcome will likely have far-reaching implications for global political and economic landscapes, particularly regarding trade policies and diplomatic relations. The Federal Reserve’s meeting stands out as the week’s most critical macro event, with its decisions expected to directly impact global financial market trends, especially concerning interest rates and monetary policy. These macroeconomic developments will play a crucial role in shaping the stability and growth prospects of the global economy.[27]


References:

1. Gate.io, https://www.gate.io/trade/BTC_USDT
2. Gate.io, https://www.gate.io/trade/ETH_USDT
3. Coinglass, https://www.coinglass.com/pro/AvgFunding/BTC
4. Coinglass, https://www.coinglass.com/pro/AvgFunding/ETH
5. Jin10, https://rili.jin10.com/day/2024-10-30
6. Defillama, https://defillama.com/stablecoins
7. Gasnow, https://gasnow.io/
8. CoinGecko, https://www.coingecko.com/en/categories
9. Gate.io, https://www.gate.io/price
10. X, https://x.com/ethervista/status/1850652161027588404
11. X, https://x.com/TROY_DAO/status/1850815059985092953
12. HK Gov, https://www.hkma.gov.hk/chi/news-and-media/press-releases/2024/10/20241028-4/
13. HK Gov, https://www.hkma.gov.hk/gb_chi/news-and-media/press-releases/2024/10/20241028-3/
14. Mirror, https://base.mirror.xyz/eOsedW4tm8MU5OhdGK107A9wsn-aU7MAb8f3edgX5Tk
15. X, https://x.com/CertiKAlert/status/1851816489286041885
16. Rootdata, https://www.rootdata.com/zh/Projects/detail/Nillion?k=NTk1Mw%3D%3D
17. Sosovalue, https://sosovalue.com/assets/etf/us-btc-spot
18. Sosovalue, https://sosovalue.com/assets/etf/us-eth-spot
19. Defillama, https://defillama.com/stablecoins
20. Cryptoquant, https://cryptoquant.com/asset/btc/chart/derivatives/taker-buy-sell-ratio
21. Coinglass, https://www.coinglass.com/zh/FundingRate
22. Aave, https://app.aave.com/markets/?marketName=proto_lido_v3
23. Solayer, https://app.solayer.org/dashboard
24. RootData, https://www.rootdata.com/zh/Fundraising
25. Token Unlocks, https://tokenomist.ai/
26. Calendar, https://www.panewslab.com/zh/calendar/index.html
27. Jinshi, https://rili.jin10.com

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