TL;DR

• Bitcoin briefly surged past $70,000 before retreating to around $66,500, while Ethereum showed volatility, stabilizing around $3,300.
• The altcoin sector saw a slight decline, though Solana’s ecosystem notably grew, surpassing Ethereum in weekly on-chain fee revenues for the first time.
• In a significant transaction, the U.S. government transferred 29,799.99 BTC, valued at approximately $2.02 billion, and still holds an estimated 183,439 BTC, worth about $12.35 billion.
• Both Bitcoin and Ethereum ETFs experienced net outflows, with Grayscale’s Ethereum ETF being particularly affected.
• Total holdings in Bitcoin contracts across networks have reached a new high of $39.46 billion, surpassing the previous record of $39.03 billion set in late March 2024.

Market Analysis

BTC —— According to the latest market data from Gate.io [1], Bitcoin’s price reached a daily high of $70,109.5 before retracting to approximately $66,500, where it currently stabilizes at $66,498, marking a 5.15% decrease for the day. This marks the fifth attempt in recent sessions where Bitcoin has tested the $70,000 level. Despite not sustaining above this level, each test strengthens the potential for a future breakthrough. The daily candlestick closed with a long upper shadow and a medium-sized bearish candle, indicating that $71,000 is a strong resistance level. A direct breakthrough of $71,000 is unlikely, and a fallback at this position is normal. As the number of tests increases, the likelihood of a future breakthrough rises.

ETH —— At the one-hour mark today(12 PM), Ethereum closed at $3,317.86, experiencing a modest intraday decrease of 2.8%. Ethereum’s price movements generally align with those of Bitcoin, though its gains were less significant compared to Bitcoin and Solana. Despite a recent pullback, the short-term upward trend for Ethereum remains intact. The $3,260 level serves as a minor support on the four-hour chart.

Altcoins —— Following the trends of Bitcoin and Ethereum, several altcoins saw slight declines. However, some sectors continued to exhibit positive growth. Notably, tokens within the Solana ecosystem experienced significant gains, with Solana itself breaking past the $190 mark and nearing its monthly high. Additionally, the launch of Neiro, a new meme coin concept on the Solana blockchain, has sparked a surge in interest and activity in meme coins within this ecosystem.

ETF —— Both Bitcoin and Ethereum ETFs experienced net outflows yesterday, with $81.49 million and $156 million outflows respectively. [2]

U.S. Stock Market Indices —— The S&P 500 index rose by 0.08%, the Nasdaq index fell by 0.32%, and the Dow Jones index dropped by 0.12%.

Spot Gold —— Currently priced at $2,382.68 per ounce, down 0.4% for the day (as of 11 AM on the 30th).

Macroeconomics —— On July 30th, according to CME “FedWatch” [3]: The probability of the Federal Reserve maintaining the interest rate unchanged in August is 95.9%, with a 4.1% probability of a 25 basis point rate cut. By September, the probability of the Fed keeping the interest rate unchanged is 0%, with an 88.7% probability of a cumulative 25 basis point rate cut, an 11% probability of a cumulative 50 basis point rate cut, and a 0.3% probability of a cumulative 75 basis point rate cut.

Top Performers

According to the trending search rankings on the Gate.io platform [4], the tokens with daily gains exceeding 100% are NEIRO and FTR.

NEIRO - NEIRO is a meme coin on Solana that quickly gained popularity on social media due to its connection with Neiro, the new puppy adopted by Atsuko Sato, the founder of DOGE. Since its launch on the Solana chain, NEIRO’s first-day trading volume nearly reached $600 million. Its significant wealth effect and the widespread attention from the DOGE community have brought new vitality to the market. On the Gate.io platform, NEIRO’s price once reached $0.078, with a daily increase of over 160%, and its market cap soared to $73 million. However, given the extremely high volatility of the Meme coin market and the confusion caused by multiple projects with the same name, investors should cautiously assess the risks and observe subsequent trends.

Neiro spot trading link: https://www.gate.io/zh/trade/NEIRO_USDT

FTR - Fautor (Fautor) is a blockchain project by Fantrie, a South Korean creator-fan platform dedicated to revolutionizing the economic relationship between creators and fans through blockchain technology. All top Korean streamers, creators, and idols use Fantrie to establish their fan circles. The FTR token is the native governance token of the Fautor project. It saw a daily increase of over 445%, is currently priced at $0.55, with a market cap of approximately $48.93 million.

Spotlight Analysis

The U.S. Government Transfers Approximately 29,800 BTC, Currently Holds 183,000 BTC
On July 29, a Bitcoin address identified as belonging to the “U.S. Government” transferred approximately 29,800 bitcoins, worth about $2 billion. This fund was distributed to two new addresses, with 10,000 bitcoins transferred to Coinbase Prime’s institutional custody service, consistent with previous actions by the U.S. Department of Justice. Currently, the government’s Bitcoin address holds 183,439 bitcoins, totaling about $12.32 billion in value. The U.S. government’s choice to use institutional custody services to manage its crypto assets reflects a standardized and professional approach to cryptocurrency management. This move may boost market confidence in cryptocurrencies. However, if these bitcoins eventually enter the market, it could increase the supply of bitcoins in the market and potentially exert some downward pressure on Bitcoin prices in the short term. [5]

Solana Surpasses Ethereum in Weekly Fee Revenue for the First Time
According to Blockworks Research, Solana’s revenue for the week of July 22 was approximately $25 million, surpassing Ethereum’s $21 million. Blockworks analyst Dan Smith noted [6] that Solana’s revenue includes all types of validator income, such as tips and maximum extractable value (MEV). Of this revenue, 58% came from MEV tips, and 37% from priority transaction fees. On July 28, Solana’s daily network revenue reached $5.5 million, the highest in three months, indicating increased user engagement and growth in the Solana network.

The surge in Solana’s transaction fees is mainly attributed to increased activity on its network, particularly driven by memecoin trading platforms like Pump.fun and Moonshot. These platforms have fueled a memecoin trading frenzy, significantly boosting Solana’s market position. Since the end of 2022, platforms like Pump.fun have enabled anyone to “mint tokens with one click,” with some issued tokens generating substantial wealth effects, leading to a sharp increase in memecoin trading. However, most of these tokens tend to lose much or all of their value within weeks of launch.

Data Highlights

Bitcoin and Ethereum ETF Data

Bitcoin Spot ETF Fund Data:** There was a net outflow of $124 million, with a cumulative net inflow of $17.71 billion. The daily trading volume is $2.68 billion. The total value of BTC managed by the ETF is now $61.73 billion, accounting for 4.64% of Bitcoin’s total market value.

Ethereum Spot ETF Fund Data: There was a net outflow of $98.29 million, primarily driven by Grayscale’s Ethereum Trust (ETHE), which had an outflow of approximately $210 million. The cumulative net outflow now totals $439 million, with a daily trading volume of $773 million. The total value of ETH managed by the ETF is now $9.24 billion, accounting for 2.31% of Ethereum’s total market value.

Contract Open Interest
According to data from Coinglass, the open interest in Bitcoin futures contracts across the network has risen to $39.46 billion, surpassing the $39.03 billion recorded on March 29, 2024. This indicates a significant increase in market interest and engagement with Bitcoin, reflecting active investor participation in the cryptocurrency market. However, such high open interest also suggests that the market might experience greater volatility. In the short term, Bitcoin prices could see sharp fluctuations as a result. [7]

Fear and Greed Index (FGI)
The Fear and Greed Index has dropped from 74 to 67. Although market enthusiasm was dampened by yesterday’s pullback, the current market sentiment remains in the greed range. This value reflects investors’ optimistic outlook on the recent market trend.

Altcoin Season Index
The Altcoin Season Index stands at 16, indicating that only 8 out of the top 50 tokens by market cap are performing better than Bitcoin. This suggests that the market is currently dominated by Bitcoin.

The Altcoin Index measures the profit potential of cryptocurrencies (altcoins) other than Bitcoin relative to Bitcoin. In the cryptocurrency market, “altcoins” refer to all cryptocurrencies other than Bitcoin. This index calculates the performance of the top 50 altcoins relative to Bitcoin over approximately 90 days, providing a long-term and stable market observation perspective.

The index indicates that when 75% of the top altcoins outperform Bitcoin, it is considered altcoin season. This typically means that market attention and investment interest in these altcoins are increasing.

Market Opportunities

Project Funding
According to data from RootData, three projects raised multi-million-dollar funding yesterday. The projects encompass AI infrastructure, account management tools, and DeFi protocols.

Swan Chain Seed Round Funding: $3 Million
Swan Chain, formerly known as FilSwan, raised $3 million in its seed round. The company leverages OP Stack technology to provide a comprehensive solution for storage, computing, bandwidth, and payment, integrating Web3 technology with AI. This funding round was led by Binance Labs and SNZ, with participation from Chainlink Labs, Gate.io, and other institutions. The funds will be used to expand the team and further develop its AI blockchain infrastructure.

One-Stop Account Management Platform Agent Funding: $1 Million
Agent, a one-stop account management platform, aims to provide Web3 users with convenient services for creating, managing, earning, and trading sub-accounts using the user-friendly ERC-6551 standard. In its latest funding round, Agent secured $1 million in investment from notable investors, including The Block CEO Larry Cermak, BRC20 founder Domo, and Web3 developer Cygaar. This funding will aid in the platform’s further development and enhancement of its services.

Liquorice Pre-Seed Round Funding: $1.2 Million
Liquorice, an innovative DeFi protocol focused on providing auction-based price discovery and unilateral liquidity pools, aims to offer efficient capital management solutions for professional trading firms. In its recent pre-seed round, Liquorice successfully raised $1.2 million, led by Greenfield Capital, with participation from L2 Iterative Ventures, Polymorphic Capital, and other institutions. The funds will be used to advance product development and enhance its competitiveness in the DeFi sector.

Airdrop Opportunities
Stride is a leading liquid staking protocol within the Cosmos ecosystem, aimed at enhancing the security of decentralized networks by supporting cross-chain asset staking. Recently, Stride launched the liquid staking token stTIA for Celestia and will distribute over 5% of STRD tokens to early stTIA holders. [8]

Catizen is a cat-themed game on Telegram where players can collect, breed, and upgrade cat characters to increase their earnings. According to the project’s roadmap, Catizen planned a token airdrop in Q2 to reward early participants. However, on July 30th, Catizen announced a delay in the airdrop, stating that they are making every effort to achieve the best airdrop results for the community while also considering the long-term development and sustainability of the CATI token. [9]

Currently, Catizen tokens are available for pre-market trading on Gate.io: https://www.gate.io/zh/pre-market

Reference：

1. Gate.io, https://www.gate.io/trade/;
2. CoinGlass, https://www.coinglass.com/bitcoin-etf
3. CME Group, https://www.cmegroup.com/content/cmegroup//markets/
4. Gate.io, https://www.gate.io/bigdata/estimate
5. Arkham, https://platform.arkhamintelligence.com/explorer/entity/usg
6. Cryptoslate, https://cryptoslate.com/solana-overtakes-ethereum-in-weekly-fee-revenue-for-the-first-time/
7. CoinGlass, https://www.coinglass.com/pro/dashboard/bitcoin
8. Stride, https://www.stride.zone/
9. X, https://x.com/CatizenAI/status/1817985435454624191

Disclaimer
Investing in the cryptocurrency market involves high risk, and it is recommended that users conduct independent research and fully understand the nature of the assets and products they are purchasing before making any investment decisions. Gate.io is not responsible for any losses or damages caused by such investment decisions.