TL;DR

• BTC price dropped by 5.85% to $59,355, with trading volume surging in the early morning, indicating panic selling pressure in the market.
• Altcoins experienced a general decline in the past 24 hours, with the steepest drops observed in the BTC inscriptions, modular blockchain, LST, and LRT sectors.
• The TON network experienced downtime, leading some centralized exchanges to suspend related deposit and withdrawal services.
• MakerDAO has rebranded as “Sky,” launching the USDS stablecoin and SKY governance token to advance governance reforms and protocol upgrades.
• The U.S. Bitcoin spot ETF saw a net outflow of $127 million yesterday, while the Ethereum spot ETF had a total net outflow of $34.5 million yesterday.
• On August 28, seven projects secured financing, raising a combined $52.57 million, covering sectors such as DeFi, AI, and zero-knowledge proofs.
• Story announced the launch of its first public testnet, Iliad, and Fractal Bitcoin unveiled its tokenomics plan.

Market Analysis

According to Gate.io Market Data, as of August 28, 4:00 AM (UTC+0)[1]：

• BTC —— Over the past 24 hours, BTC experienced a sharp decline, with prices plunging around 9:00 PM (UTC+0) on August 28. The lowest point reached $58,034.01, amid a significant increase in trading volume, indicating strong selling pressure. Although BTC found some support near $58,000 and briefly rebounded to $59,236.63, resistance remains strong, suggesting potential continued volatility at lower levels in the short term. As of 4:00 AM on August 28, BTC was trading at $59,355.01, down approximately 5.85% in 24 hours.[2]
• ETH —— ETH mirrored BTC’s downward trend, with prices falling from around $2,677.92 to a low of $2,393.08. Support levels were tested multiple times without a substantial rebound, indicating a pessimistic market sentiment. As of 4:00 AM on August 28, ETH was trading at $2,463.95, reflecting an 8.83% drop over the past 24 hours.[3]
• Altcoins —— Following BTC’s decline, altcoins also saw broad-based losses in the last 24 hours, with notable drops in BTC inscriptions, modular blockchains, and Ethereum staking and re-staking sectors.
• ETF —— U.S. Bitcoin spot ETFs experienced a net outflow of $127 million yesterday, while Ethereum spot ETFs saw a total net outflow of $34.5 million.[4]
• U.S. Stock Indices —— The S&P 500 and Nasdaq indices both rose by 0.16%, while the Dow Jones index edged up by 0.02%.[5]
• Spot Gold —— Spot gold prices fell to $2,521.40 per ounce, down 0.11% on the day.[5]
• Fear & Greed Index dropped from 48 to 30 —— entering the “fear” zone, reflecting diminished enthusiasm in the cryptocurrency market and waning investor confidence in Bitcoin’s future trajectory.[6]

Top Performers

According to Gate.io, as of 4:00 UTC on August 28, the following cryptocurrencies have shown notable performance in the past 24 hours based on trading volume and price changes[1]:

SAI——Sharpe AI surged approximately 1,708.83% in a single day and is currently trading at $0.039, with a 24-hour trading volume of $2.6653 million and a fully diluted market cap of $39.71 million. Sharpe AI is an AI-driven cryptocurrency super app designed specifically for professional traders, offering a unified platform that integrates intelligence, investment, and automation. Following a request from the Sharpe AI team, the SAI token was officially listed on Gate.io on August 27, 2024, at 21:00 (UTC+8), which has significantly driven up the SAI token price[7].

IDEX——IDEX surged approximately 26.82% in a single day, with a circulating market cap of $40.9432 million. IDEX is a hybrid liquidity decentralized exchange (DEX) that combines the high-performance order book of centralized exchanges with the benefits of the automated market maker (AMM) model. Recently, IDEX announced on social media that the platform successfully passed its testnet phase on August 22, with the mainnet launch expected soon. Looking ahead, IDEX plans to integrate with Polkadot[8].

BICITY——BiCity has seen a single-day gain of approximately 15.2%, with a circulating market cap of $26.7449 million. BiCity is a digital content creation platform that integrates blockchain and AI technologies, aiming to revolutionize the content creation industry. The platform leverages AI to generate high-quality visual and textual content while using blockchain technology to ensure the secure storage of user data. Recently, on August 21, the company announced the upcoming launch of its mobile app[9].

OAS——Oasys experienced a daily increase of approximately 12.46%, with a market cap reaching $70.0685 million. Oasys is a blockchain project designed specifically for gaming, addressing challenges in traditional blockchain-based game development such as high transaction fees, slow speeds, and scalability issues. Oasys employs a unique dual-layer architecture, consisting of a highly scalable Layer 1 (Hub Layer) and a Layer 2 (Verse Layer) tailored for gaming applications, enabling fast, gas-free transactions. The project has garnered support from gaming industry giants like SEGA and Ubisoft[10].

Data Highlights

Bitcoin ETFs recorded a net outflow of $127 million yesterday
According to SoSoValue data, U.S. Bitcoin spot ETFs saw a single-day net outflow of $127 million on August 27, with a total trading volume of $1.2 billion. The cumulative net inflow stands at $17.95 billion, with the total value of BTC managed by ETFs now at $57.08 billion, representing 4.67% of Bitcoin’s total market capitalization.[11]

Ethereum ETFs recorded a net outflow of $34.5 million yesterday
According to SoSoValue data, U.S. Ethereum spot ETFs experienced a single-day net outflow of $34.5 million on August 27, with a total trading volume of $129 million. The cumulative net outflow now has reached $481.3 million, with the total value of ETH managed by ETFs at approximately $7.18 billion, representing 2.31% of Ethereum’s total market capitalization.[12]

Contract Liquidations, Funding Rates, and Long/Short Ratio
According to CoinGlass data[13], as of 4:00 UTC on August 28, the total liquidation volume of BTC contracts across the network was approximately $96.17 million, with long positions accounting for around $85.14 million and short positions for $11.02 million. For ETH, the total contract liquidation volume was about $102 million, with $93 million in long and $9.45 million in short positions.

The weighted funding rate for Bitcoin positions was -0.0049%, while for Ethereum, it was -0.0050%.

Over the past 24 hours, the BTC contract long/short ratio remained generally balanced. Despite a slight improvement in bullish sentiment, the market overall continued to show signs of weakness, reflecting investor uncertainty about future trends. The consistently negative funding rates indicate a pessimistic outlook on short-term price movements.

ETH Long-Term Holders Record Daily Inflow of 450,000 ETH, Reaching All-Time High
According to CryptoQuant data, as of August 26, long-term holder addresses for ETH saw a daily inflow of approximately 450,000 ETH, valued at around $1.1 billion. This figure surpasses the previous record of 350,000 ETH set on August 23, indicating a significant increase in demand for Ethereum. Despite ongoing price fluctuations, interest and confidence among long-term investors in the crypto market continue to grow, with steady accumulation of ETH. These long-term holders include custodial wallets but exclude exchanges and miners.[14]

Spotlight Analysis

TON Ecosystem Update: “Resistance Dog” Gains Widespread Support, Network Disrupted by DOGS Surge
On August 24, 2024, Telegram founder Pavel Durov was arrested in France, drawing significant attention across the market. Although Telegram quickly issued an official statement denying the allegations, the incident prompted widespread support within the TON community and among crypto influencers, who rallied behind Durov. In response to Durov’s arrest, the TON Foundation launched a protest movement named “Resistance Dog.” The character, a “dog wearing a black hat,” was drawn and named by Durov himself in 2018, symbolizing the fight for personal privacy, information security, and freedom through digital resistance. The event also had a notable impact on the TON ecosystem’s MEME coin, REDO, which saw a significant price surge. Data shows that REDO has gained 90.7% in the past seven days. This support is evident not only in price action but also in the community’s enthusiasm and engagement, with the number of followers on platform X rapidly surpassing 35K.[15]

In addition to the surge in REDO, the meme token DOGS on the TON chain has also started to see on-chain withdrawals in recent days. According to a TON Foundation member, the massive trading volume of $DOGS caused network congestion and overloaded the garbage collection function, leading to a temporary loss of consensus among several validator nodes. As a result, the TON network experienced an outage from 10:11 AM to 2:00 PM (UTC+8) on August 27. This outage prompted several centralized exchanges to suspend deposit and withdrawal services for TON-related assets[17]. Possibly due to this incident and the broader market downturn, Toncoin’s price has been volatile, repeatedly testing the critical support level of $5.13. Additionally, trading volume for TON ecosystem tokens plummeted by 54.4% over the past 24 hours, reflecting a significant decline in market confidence. Investors are currently adopting a wait-and-see approach, with market sentiment leaning towards caution[18].

The detailed cause and recovery process of this outage still pending further disclosure. However, this incident has already highlighted potential technical risks within the TON ecosystem. If the TON team fails to provide a reasonable explanation and solution, it could further dampen the enthusiasm of TON developers and contributors. Additionally, Pavel Durov’s legal issues have emerged as a potential risk to the ongoing development of the Ton ecosystem. Gate Research will continue to monitor these developments of the TON ecosystem.

MakerDAO Rebrands as Sky: New Tokens and Features Unveiled
On August 27, the renowned decentralized lending protocol MakerDAO announced its rebranding to “Sky”[19] and introduced a new stablecoin, USDS, along with the SKY governance token. These new tokens will replace DAI and MKR, respectively. Users can now participate in the early Sky Savings Rate rewards program via the official website, which will run until September 18. This rebranding is a key part of the “Endgame Plan,” aimed at enhancing the protocol’s resilience and scalability within the decentralized finance sector through governance reforms and structural adjustments.

The USDS stablecoin will be exchanged at a 1:1 ratio with the original DAI tokens, while each MKR token can be converted into 24,000 SKY tokens. Users have the option to exchange, but even if they choose not to, DAI and MKR tokens will continue to exist. The rebranding from MakerDAO to Sky Ecosystem has generated significant buzz and reflects the project’s ambitions for expansion. However, MakerDAO’s established brand as a pioneer in DeFi is deeply ingrained, and some community holders are skeptical about the impact of this rebranding.

Moreover, during the token exchange process, MakerDAO has implemented a reward mechanism where users who complete the conversion during the testing phase will receive 1.25 times the assets. This reward effectively acts as another form of inflation. Given that the tokenomics for the SKY governance token have yet to be released, and with 890,000 MKR already in full circulation and the treasury holding 5%[20], the treasury’s control of governance tokens could lead to price increases through early incentives. However, this may also result in a one-time dilution of governance power for existing MKR holders. The final outcome will depend on the full disclosure of tokenomics.

Lastly, an examination of the USDS code reveals that it already includes a freeze function. Although the official stance is that this feature will not be activated at launch, it could be enabled later depending on governance decisions[21]. This move from a fully decentralized stablecoin to a more controlled one can be seen as MakerDAO’s attempt to align with regulatory compliance. While better regulatory alignment might facilitate the expansion of DAI’s scale, the reduced level of decentralization has sparked criticism within the community, with some arguing that it goes against the core principles of decentralization.

Celsius Bankruptcy Administrator Has Paid $2.53 Billion to Creditors
On August 26, 2024, Celsius’ bankruptcy administrator submitted the first status report on payments to creditors. The report revealed that Celsius has distributed over $2.53 billion in assets to more than 251,000 creditors, covering approximately two-thirds of eligible creditors and accounting for 93% of the total eligible asset value. However, 121,000 creditors have yet to claim their distributions. The Celsius bankruptcy case involves distributing over $3 billion in assets to approximately 375,000 creditors from 165 countries, including liquid cryptocurrencies, cash, and common stock of the new company, MiningCo. Due to Celsius’ failure to fully comply with regulatory requirements before its bankruptcy, regulatory bodies have initiated enforcement actions, adding complexity to the distribution process.

As a significant cautionary tale in the crypto market, the Celsius bankruptcy case highlights the immense challenges of credit risk management in a market environment lacking the mature management mechanisms of traditional financial systems. These risks are easily amplified in the highly volatile crypto market, potentially causing severe harm to creditors’ interests. It serves as a warning to crypto industry participants that while driving technological innovation, regulation and risk management must not be overlooked.

On the practical side, although the bankruptcy administrator has distributed the majority of funds, some smaller creditors may ultimately not receive the compensation they are entitled to. Reportedly, 121,000 eligible creditors have yet to successfully claim an average distribution of around $1,500 each. While decentralized technology is supposed to enhance transparency and efficiency, cumbersome procedures and information asymmetry have hindered the progress of users in claiming their funds. Additionally, from a legal perspective, the distribution of crypto assets involves complex cross-border legal and tax issues, which are made inefficient by differing regulatory standards across countries. To address these challenges, collaborative efforts and the establishment of unified standards among international regulatory bodies are becoming increasingly important[22]. Gate Research also reminds creditors to claim their compensation on the official claim website within the valid time frame.

Funding News

According to RootData[23], from August 27 to 28, seven projects announced their funding rounds, with the largest amount being $20 million. Altogether, they raised $52.57 million, covering sectors such as DeFi, AI, and zero-knowledge proofs. Details of the top three projects by funding amount are as follows:

Space and Time
On August 27, Space and Time announced the completion of a $20 million Series A funding round, with participation from prominent institutions like Framework Ventures. Space and Time (SxT) is a decentralized data platform that ensures the security and immutability of queries and data processing through its unique zero-knowledge proof technology, “Proof of SQL.” Space and Time aims to provide developers with an efficient data warehouse for both on-chain and off-chain data, enabling smart contracts and decentralized applications to leverage verified and accurate data. The project also supports multi-chain operations and integrates with several major blockchains, offering support to financial institutions, enterprises, and Web3 applications.

Solayer
On August 27, Solayer announced the completion of a $12 million seed funding round, reaching a valuation of $80 million, with investments from Polychain and Binance Labs among others. Solayer is a re-staking network on Solana, designed to provide application developers with more secure decentralized cloud infrastructure. Through this network, developers can customize how their applications handle transactions and data more flexibly, enhancing system reliability and efficiency.

Gameplay Galaxy
On August 28, Gameplay Galaxy announced the completion of an extended seed round, raising $11.17 million at a valuation of $71 million, led by Blockchain Capital. Gameplay Galaxy is a decentralized competitive gaming platform created by the developers of the popular Web2 game series Trial Xtreme. The platform allows players to own, buy, and sell vehicles, tracks, characters, studios, and other in-game items as NFTs in a straightforward manner.

Additionally, on August 27, Nectar AI announced it had secured $3.9 million in funding. Nectar AI is a platform that integrates blockchain with generative AI to offer a multimodal AI companion experience. On the same day, Legion announced the completion of a $3.9 million funding round. Legion is an on-chain project financing platform aimed at revolutionizing the ICO and token sale processes. The new funds will be used to further develop its reputation and accountability system to comply with the latest MiCA regulations. Echelon Market also announced the completion of a $3.5 million seed round. Echelon is a decentralized financial marketplace built on the Move programming language, enabling users to borrow and lend assets through non-custodial pools.

Airdrop Opportunities

Story
Story Protocol is a blockchain-based on-chain IP ecosystem designed to manage and monetize intellectual property (IP) in a decentralized way. It enables creators to program IP assets, automating royalty payments and license management while supporting innovative applications like AI-generated content and dynamic remixing of digital works. On August 21, Story Protocol completed an $80 million Series B funding round, with participation from prominent institutions and individuals, including a16z and Polychain, bringing the total funding to $140 million.

On August 27, Story Protocol announced the launch of its first public testnet, Iliad. Participants can mint an intellectual property asset by completing tasks within the first 48 hours of the launch. Detailed participation steps are as follows[24].

1. Access the event homepage through the provided link.
2. Follow Story Protocol on Twitter, like the event post, and join the Story Discord and Telegram channels.
3. Claim test tokens and mint your IP asset.

Fractal Bitcoin
Fractal Bitcoin, developed by UniSat, is an extension solution built on Bitcoin’s core code. Its multi-layered recursive system allows the network to dynamically scale during peak periods, ensuring efficient processing of large volumes of transactions. On August 27, Fractal Bitcoin revealed its tokenomics plan, with a total supply of 210 million tokens. Of this, 50% will be allocated to mining nodes, 15% reserved for the ecosystem treasury, 5% allocated to pre-sale, 5% to project advisors, 10% to community grants, and the remaining 15% to core contributors[25].

Previously, on August 14, Fractal Bitcoin launched its public testnet. On August 19, UniSat announced that the BRC-20 inscription service on the Fractal Bitcoin testnet had officially begun, with the mainnet expected to go live in early September. At this stage, users can participate in the project by engaging in testnet ecosystem projects or setting up a testnet validator node. The steps to claim the airdrop are as follows[26]:

1. Download the UniSat wallet and claim test tokens on the testnet.
2. Open the Fractal link, connect your wallet, and select “inscribe.” Complete the BRC20, Files, and Text operations.
3. Open the Infinity website and click “Mint Directly.”
4. Link your official Twitter and Discord accounts, click “Create to Earn,” upload an image and a prompt, and finally click “Create Now” to complete the process.

Reference：

1. Gate.io, https://www.gate.io/price
2. Gate.io, https://www.gate.io/price/bitcoin-btc
3. Gate.io, https://www.gate.io/price/ethereum-eth
4. Gate.io, https://sosovalue.xyz/tc/assets/etf/us-btc-spot
5. yahoo finance, https://finance.yahoo.com/markets/
6. Gate.io, https://www.gate.io/zh/bigdata/homeindex
7. Gate.io, https://www.gate.io/price/sharpe-ai-sai
8. Gate.io, https://www.gate.io/trade/IDEX_USDT
9. Gate.io, https://www.gate.io/trade/BICITY_USDT
10. Gate.io, https://www.gate.io/trade/OAS_USDT
11. sosovalue, https://sosovalue.com/assets/etf/us-btc-spot
12. sosovalue, https://sosovalue.com/assets/etf/us-eth-spot
13. CoinGlass, https://www.coinglass.com/
14. Cryptoquant, https://cryptoquant.com/community/dashboard/664de19c21cb350988c26996
15. Coingecko, https://www.coingecko.com/en/coins/resistance-dog
16. X, https://x.com/maverickqe/status/1828632344497885678
17. Tonscan, https://tonscan.org/blocks?wc=-1
18. Coingecko, https://www.coingecko.com/en/chains/ton
19. X, https://x.com/SkyEcosystem/status/1828405625828843710
20. Dune, https://dune.com/ketcher/mkr
21. X, https://x.com/RuneKek/status/1828463426085027945
22. Coindesk, https://www.coindesk.com/business/2024/08/27/celsius-bankruptcy-plan-administrator-pays-out-over-25b/
23. Rootdata, https://www.rootdata.com/Fundraising
24. StoryProtocol, https://x.com/StoryProtocol/status/1828455573513482607
25. Fractal bitcoin, https://x.com/fractal_bitcoin/status/1828108796474147156
26. Medium, https://medium.com

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