TL;DR

• This week, BTC and ETH demonstrated robust performance, each climbing approximately 7%. Both cryptocurrencies are currently trading at high levels, repeatedly testing upward resistance.
• Bitcoin spot ETFs attracted significant interest, with net inflows reaching $926 million this week. Ethereum spot ETFs also maintained positive net inflows.
• World Liberty Financial’s token sale has generated $12.51 million in revenue to date.
• Horizon forged a partnership with CMB International Securities (Hong Kong) to deliver market-making solutions for crypto asset ETFs.
• Symbiotic collaborates with Avail to spearhead innovation in the unified Web3 framework.
• Radiant Capital suspends its lending market following a vulnerability exploit, with estimated losses of around $58 million.
• GOAT, an AI-themed memecoin, experienced a staggering 3,000-fold increase within a week of its launch.

Market Analysis

Review and Insights

• BTC Market ⸺ In the past 7 days, BTC rose 7.54%, showing an upward trend, climbing from around $58,937 to $68,411 before pulling back below $68,000. The price is currently fluctuating at a high level, with significant space near the lower boundary of the ascending channel. Overall, the trend remains strong. The key resistance level to watch is $68,000. If BTC breaks through, further upside is possible.[1]

• ETH Market ⸺ In the past 7 days, ETH rose from approximately $2,331 to $2,688, a 6.94% increase. The price is currently fluctuating near the high level, with room remaining to the lower edge of the ascending channel. The next key resistance to watch is $2,650, which has been tested several times. If ETH breaks through this resistance, further price increases may follow.[2]

• Altcoins ⸺ In the last 7 days, the Pump.fun ecosystem, DePIN, and infrastructure sectors saw substantial gains, rising approximately 36.9%, 27.3%, and 25.6%, respectively.
• Futures Market ⸺ The past 7 days saw a bullish sentiment dominate the futures market. The weighted funding rates for Bitcoin and Ethereum futures remained positive, indicating growing optimism among investors toward these two major cryptocurrencies.
• Macroeconomic Data ⸺ U.S. manufacturing data showed significant weakness, with the actual value plummeting to -11.9, far below the forecast of 3.85 and in stark contrast to the previous month’s robust 11.5. This downturn indicates a renewed contraction in manufacturing activity. As a result, the likelihood of a 25-basis-point rate cut in the U.S. for November has surged to 92%.[3][4]
• Stablecoins ⸺ Over the past seven days, the total stablecoin market cap rose slightly by 0.11% to $172.82 billion, with more capital flowing in from over-the-counter sources. The continued increase in stablecoin market cap over multiple weeks suggests sustained capital inflows. Meanwhile, PayPal’s stablecoin PYUSD saw its market cap drop to $618 million, a 40% decline from its August peak.[5]
• Gas Fees ⸺ Compared to the previous week, activity on the Ethereum network remained high and relatively stable, with average fees hovering around 10 gwei, occasionally spiking above 20 gwei during increased trading. On October 13, gas fees surged to 62.7, likely due to a sharp rise in meme coin transactions. These coins often trigger a flurry of trades within a short period due to their speculative nature and widespread market attention, driving up on-chain transaction costs.[6]

Trending Concepts

According to data from Gate.io and CoinGecko, three sectors showed significant growth this week: the Pump.fun ecosystem, DePIN, and Infrastructure. These sectors saw increases of approximately 36.9%, 27.3%, and 25.6%, respectively, over the past 7 days. Here are the trending concepts: [7]

Pump.fun Ecosystem — Approximately 36.9% surge over the last 7 days, with a circulating market cap of around $1.6 billion
The Pump.fun ecosystem consists of tokens launched through Pump.fun, where users can easily create and trade these tokens. This streamlined process has attracted numerous developers and investors, driving rapid platform growth.

The recent price surge may be linked to community activities and new feature releases, which have drawn in more users and increased token demand. Notably, PONK, SCHIZO, and SDOGE posted impressive gains of 474%, 432%, and 196%, respectively, over the past week.

DePIN — About 27.3% increase over the past 7 days, with a circulating market cap of approximately $23.4 billion.
DePIN leverages blockchain and token incentives to build real-world infrastructure in areas such as wireless networks, storage, geolocation, transportation, and energy. This emerging infrastructure network not only improves resource utilization efficiency but also enhances network security and reliability through decentralization.

The recent uptick may be due to increased market demand for decentralized infrastructure, with investors showing keen interest in projects offering practical solutions. As technology evolves and use cases expand, DePIN’s potential is gaining market recognition, attracting more capital inflow. Particularly, STORJ, XNET, and CLORE posted gains of 48.6%, 39.6%, and 37.7%, respectively, over the past week.

Infrastructure — Approximately 25.6% increase over the past 7 days, with a circulating market cap of about $30.4 billion.
Infrastructure refers to the fundamental systems and networks that support technological operations and development. These systems are crucial for the adoption and application of blockchain technology, providing essential support and services to ensure the smooth implementation and operation of various blockchain projects.

The recent price increase may be related to the growing market focus on infrastructure investment, especially as blockchain technology matures and demand for supportive technologies and systems rises. As more projects prioritize infrastructure development, related tokens have seen positive market reactions. Notably, UBT, KARRAT, and AXL have surged by 59.6%, 39.3%, and 34.8%, respectively, over the past week.

Top Performers

According to Gate.io market data [8], the top-performing altcoins over the past 7 days based on trading volume and price performance are:

XBG —— Approximately 170.9% gain over the past 7 days, with a circulating market cap of $54.69 million.

XBG is a token designed for blockchain gaming. XBorg aims to enhance online experiences through its player identity protocol, enabling users to own and manage their data. The protocol’s primary goal is to grant users more autonomy and ensure data interoperability on the blockchain, optimizing future internet experiences.

The recent surge in XBG’s price is likely tied to new project developments. According to the latest XBorg proposal, the team plans to sell 10 million XBG tokens via OTC to institutional and angel investors, using the proceeds for token buybacks. This strategy aims to attract more investors and strengthen XBG’s position ahead of the next bull market, potentially driving its price higher.[9]

MATH —— Approximately 88.2% gain over the past 7 days, with a circulating market cap of $67.84 million.

MATH is an all-in-one crypto solutions platform that includes MathWallet, MATH VPOS Pool, MathDEX, MATH dApp Store, MATH Stake, MATH Pay, and MATH Chain.

On October 11, MATH completed its latest token buyback and burn, using 20% of its revenue from July 1 to September 30, 2024, to repurchase and burn 112,363 $MATH tokens. This process is publicly recorded on the blockchain. The buyback and burn initiative likely fueled the recent price surge. [10]

VOLT —— Approximately 80.5% gain over the past 7 days, with a circulating market cap of $32.09 million

Volt is a hyper-deflationary token built on TitanX, featuring a unique auction system. It distributes all tokens within the first 10 days, followed by aggressive deflation measures. The system uses 80% of its value for token buybacks and 8% to enhance bonded liquidity.

On October 16, the official team announced that 22% of the tokens had been burned, a key factor driving the recent price surge. These continuous token burns increase scarcity and accelerate the deflationary process.[11]

Weekly Spotlights

Hot Topic Review

World Liberty Financial’s Current Sales Reach $12.51 Million
The Trump family project, World Liberty Financial, has sold approximately 833.55 million WLFI tokens in its public sale, with 19.16 billion tokens remaining. At $0.015 per token, sales have reached about $12.51 million.[12] This represents only 4% of their $300 million target.[13] On-chain analysis reveals that token buyers currently hold less than 1% of the total supply. This situation could potentially impact market stability, as the concentration of tokens may lead to increased selling pressure in the future.

The WLFI token sale by World Liberty Financial demonstrates that the cryptocurrency market still has the potential to attract investors despite regulatory challenges and market volatility. Although projects associated with high-profile figures (like the Trump family) typically generate public interest, WLFI’s performance has been modest. This indicates that while brand effect is important, genuine market demand and investor confidence are equally crucial. A strong community atmosphere remains essential for projects to stand out in this highly competitive market.

Horizon Partners with China Merchants Securities (HK) to Provide Market-Making Solutions for Crypto Asset ETFs
On October 16, Horizon announced a partnership with China Merchants Securities (Hong Kong) to launch market-making solutions for crypto asset ETFs. This collaboration aims to provide investors with more efficient market operations for spot crypto asset ETFs.[14]

Previously, in April of this year, the Hong Kong Stock Exchange introduced its first spot crypto asset ETFs, offering investment opportunities in Bitcoin and Ethereum, regulated by the Securities and Futures Commission (SFC) of Hong Kong. This initiative provided investors with a safer and more transparent channel to enter the crypto asset market.

This partnership marks a further improvement in the infrastructure of the crypto asset market, particularly in terms of ETF liquidity and pricing efficiency. As the demand for crypto asset investments grows, the role of market makers becomes increasingly important. The collaboration between Horizon and China Merchants Securities (Hong Kong) is expected not only to enhance the market depth and trading efficiency of ETFs but also to potentially promote the popularization and development of crypto asset ETFs in the Hong Kong market, attracting more institutional investors to participate.

Symbiotic Partners with Avail to Drive Innovation in Web3 Unified Framework
Symbiotic and Avail have forged a strategic alliance to drive innovation and integration in the blockchain ecosystem. Avail is constructing a modular unified layer to tackle fragmentation in the crypto space through three key components: data availability (Avail DA), validation (Avail Nexus), and security (Avail Fusion). Symbiotic’s shared security framework dovetails with this vision, streamlining the integration of diverse protocols and allowing them to swiftly harness shared security.

The integration of Avail DA further reduces traditional operational costs, providing a solid foundation for emerging applications and services, including validation networks, insurance engines, and strategy engines. By combining with the Symbiotic framework, developers can not only enjoy enhanced crypto security but also build more secure and economically viable blockchain applications based on multiple asset types such as ETH.

Symbiotic’s modular architecture also makes the Avail Fusion security layer more flexible, allowing it to dynamically adapt to market conditions and ensure the network always operates at optimal security levels. This collaboration demonstrates how Symbiotic can be utilized to strengthen network security and lay the groundwork for future innovations. Both parties look forward to addressing the fragmentation challenges in the crypto space through this partnership, driving further unification of the Web3 ecosystem.[15]

Security Incident

Radiant Capital Suspends Lending Market After $58 Million Vulnerability Exploit
On October 17, Radiant Capital, in collaboration with two cybersecurity firms, disclosed a major security breach on the BNB Chain and Arbitrum networks, leading to the suspension of Radiant Capital’s lending markets. The attack resulted in losses exceeding $50 million. Currently, the hacker has converted the stolen assets from the Arbitrum chain to ETH and the BSC chain assets to BNB, storing them in two on-chain addresses.[16]

In this incident, the attacker gained control of multiple smart contracts by compromising the private keys of several signatories in a multi-signature wallet. Subsequently, they exploited the “transferFrom” function on the BSC and Arbitrum chains to attack Radiant Capital’s smart contracts, stealing user funds including USDC, WBNB, and ETH. The total amount stolen in this event is approximately $58 million.

Radiant Capital announced on the X platform that they have confirmed issues with their lending markets on BNB Chain and Arbitrum. They are working with security teams including SEAL911, Hypernative, ZeroShadow, and Chainalysis to address the situation. To prevent further losses, markets on Base and the mainnet have been suspended until further notice.

This incident demonstrates that the attacker not only exploited vulnerabilities in on-chain contract functions but also fundamentally breached the security barrier of the multi-signature mechanism by controlling the private keys of key signatories. This indicates that even security measures centered around multi-signature wallets are not foolproof against attacks targeting private key control. It highlights the necessity in DeFi to strengthen private key management and improve multi-signature mechanisms. The Radiant Capital incident also serves as a reminder to the entire DeFi ecosystem that, beyond smart contract code security, protecting key signatories is equally crucial.[17]

Project Highlights

GOAT（Goatseus Maximus）
The origin of the GOAT token can be traced back to the promotion of Truth Terminal [18]. Truth Terminal is an AI-driven semi-autonomous bot, with human administrators responsible for approving content publication and managing interactions. Since its launch in June, it has rapidly garnered public attention, even securing a $50,000 Bitcoin investment from a16z founder Marc Andreessen [19]. According to its founder, Andy Ayrey, Truth Terminal is not a crypto project, but rather a study on meme propagation and the potential risks of large language models (LLMs) in the creative era. This meme propagation effect has further fueled market interest in several related tokens [20].

GOAT, short for “Goatseus Maximus,” combines the acronym for “Greatest Of All Time” with the Latin “Maximus,” symbolizing its dominant position in meme culture. Although Truth Terminal was not directly involved in issuing the GOAT token, its promotion accelerated GOAT’s rapid rise to popularity, making it one of the most notable meme coins in the market. For a detailed release history of Truth Terminal, refer to the relevant article compiled by community members [21].

As of October 17, 2024, at 09:00 (UTC+0), Gate.io has officially listed GOAT for trading, allowing users to participate in transactions involving this token. However, as GOAT is a meme coin, its price volatility is considerable, and investors should exercise caution when trading [22].

Data Highlights

Macro Funds

U.S. Spot ETF Market Data
From October 11 to October 15 at 4:00 UTC, Bitcoin ETFs’ total net asset value reached $63.69 billion, representing 4.8% of BTC’s market capitalization, with a cumulative net inflow of $19.8 billion. This week, the BTC spot ETF market saw an overall net inflow of $926 million. The largest single-day inflow of $555 million occurred on October 14, while October 11 witnessed a significant inflow exceeding $200 million. In contrast, October 8-10 experienced minor outflows. Notably, among Bitcoin spot ETFs, only Grayscale’s GBTC recorded a net outflow of $31.5 million.[23]

As of October 17, 2:00 UTC, the total net asset value of ETH ETFs was $7.17 billion, with a cumulative total outflow of $542 million. ETH ETFs continued to maintain net inflows this week. This week, the United States and South Korea postponed and re-evaluated cryptocurrency ETFs, respectively. Additionally, Canary Capital submitted a spot XRP ETF application to the SEC. The impact of these policy developments on the crypto market remains to be seen.

Changes in Stablecoin Market Capitalization
Over the past seven days, stablecoin market capitalization slightly increased by 0.11% to $172.82 billion, indicating further inflow of off-market incremental funds. Overall, the continuous growth in stablecoin market capitalization over several weeks suggests ongoing external capital inflows. Notably, PayPal’s stablecoin PYUSD market cap fell to $618 million, down 40% from its August peak. USDS performed exceptionally well this week, possibly influenced by the positive news of Pendle and Sky’s collaboration to add sUSDS markets. Previously, on October 3, USDS was listed on Ethereum mainnet’s Aave v3 and Lido liquidity pools.[24]

Bitcoin Buy/Sell Ratio

As of October 17, 2:00 UTC, over $128 million in contracts were liquidated across the network in the past 24 hours, with long contract liquidations exceeding $73.3187 million. On October 15, Bitcoin’s price rapidly increased by 2.81%, approaching $68,000 for the first time since July. However, at 14:00, it quickly retraced all gains, dropping 3.36%, before resuming an upward trend with fluctuations. This week, Bitcoin’s buy/sell ratio may have been affected by the price increase, with the sell ratio rising significantly on the 14th and falling below 0.996 on the 17th.[25]

Weighted Funding Rates

As of October 17, 2:00 UTC, the weighted funding rate for Bitcoin positions was 0.0113%, while for Ethereum positions it was 0.0087%. Over the past seven days, Bitcoin’s weighted funding rate has been positive. The network-wide Bitcoin/Ethereum contract long-short ratio favors short positions.[26]

Ondo Finance’s USDY Surpasses $100 Million TVL on Solana, Growing Over 100% in 30 Days
USDY, the yield-bearing stablecoin from RWA protocol Ondo, has seen its Total Value Locked (TVL) exceed $100 million on Solana, doubling in just 30 days. This achievement positions USDY as Solana’s fourth-largest USD-denominated store of value, trailing only behind non-yield-bearing stablecoins. USDY’s rise offers Solana ecosystem participants a novel payment solution that not only enables everyday transactions but also generates automatic yields, injecting enhanced liquidity and innovation into the market.[27] [28]

Ondo is a DeFi protocol that specializes in Real World Asset (RWA) based products, with a focus on yield-bearing stablecoins. Their flagship product, USDY, is backed by U.S. Treasury bonds, offering both stability and returns to holders. Since its Solana debut in December 2023, Ondo has broadened USDY’s utility through partnerships with various dApps and payment platforms. Ondo’s innovative products aim to provide a more efficient and secure way to store and grow funds, addressing the yield gap left by conventional stablecoins.

Market Opportunties

Project Airdrops

Airdrop project to watch this week: deBridge

deBridge is a cross-chain asset transfer protocol enabling decentralized transmission of arbitrary messages and values between different blockchains. A network of independent validators, elected by and working for deBridge governance, performs cross-chain transaction verification. These validators maintain the blockchain infrastructure, with each running a deBridge node to sign all transactions through deBridge smart contracts on various blockchains. [29] The protocol’s main advantage is its speed—deBridge typically completes transfers in just one minute or less, compared to the 20-minute average of other protocols. deBridge has announced that the DBR airdrop will launch on October 17, 2024. [30]

deBridge Finance raised $5.5 million in seed funding led by ParaFi Capital in September 2021, with investors including Animoca Brands, GSR, and IOSG Ventures. The project was submitted during the Chainlink Global Hackathon in summer 2021 and won first place among over 150 teams globally.

How to Check Airdrop Eligibility

1. Go to the official website https://app.debridge.finance/r/17610
2. Connect your wallet. The top section is for outgoing chains, assets, and amounts, while the bottom is for incoming chains, assets, and amounts. After selection, click “confirm trade” below and confirm in your wallet. Each cross-chain fee paid to the platform is the source of points, with 1U = 100 points.
3. After waiting for a while, the cross-chain transfer is completed, and the total points are displayed at the top of the page.

Note:
The airdrop plan and participation methods may be updated at any time. Users are advised to follow deBridge’s official channels 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, several projects successfully secured funding across various sectors, including infrastructure and gaming. According to RootData, from October 11 to October 17, 2024, a total of 10 projects announced funding rounds, amounting to $895 million. Here are the top three funding rounds:[31]

Praxis——Praxis, an internet-native alliance aimed at accelerating technological progress and revitalizing Western civilization, has over 14,000 Praxians across 82 countries. The companies founded by these members are valued at over $400 billion. One of Praxis’s core objectives is to build a new city. On October 16, Praxis announced a $525 million funding round, with participants including Arch Lending, GEM Digital, and Manifold Trading. This capital will be used to accelerate and enhance transactions with governments and landowners to build a cutting-edge technology city.[32]

Blockstream——On October 15, Bitcoin infrastructure company Blockstream announced the successful completion of a $210 million convertible note financing round, led by investment firm Fulgur Ventures. Blockstream’s Layer 2 (L2) solutions aim to address Bitcoin’s scalability issues, enabling faster and more efficient transactions. The funds will accelerate the adoption and development of Blockstream’s L2 technologies, such as the Lightning Network and Liquid. This financing will also support the expansion of the company’s Bitcoin (BTC) mining operations and increase its BTC inventory.[33]

Azra Games——On October 15, blockchain game developer Azra Games announced the completion of a $42 million Series A funding round led by Pantera Capital. This brings the company’s total funding to $68.3 million. Azra plans to use this latest investment to develop their ambitious world-class game, ‘Project Legends’. The studio’s first title, Project Arcanas, features NFT collectibles and combat elements.[34]

What to Watch Next Week

Token Unlock

According to Token Unlocks data, next week (Oct 18-24, 2024) will see token unlocks for 4 projects, with a total unlock value of $17.25 million. Here are the details for the top 3 unlocks:[35]

ADA: Scheduled to unlock approximately 18.53 million tokens on Oct 22 at 12:00 AM UTC, representing 0.05% of its circulating supply, valued at about $6.54 million. All tokens being unlocked are from staking rewards.

ENA: Scheduled to unlock about 12.86 million tokens on Oct 23 at 7:00 AM UTC, accounting for 0.47% of its circulating supply, with an estimated value of $5.18 million. All tokens are designated for ecosystem development.

EIGEN: Scheduled to unlock roughly 1.29 million tokens on Oct 22 at 7:00 PM UTC, comprising 0.69% of its circulating supply, valued at approximately $4.57 million. All of these are community unlocks.

Crypto Calendar

In the coming week, the blockchain and cryptocurrency industry will see several key events. ETHGlobal San Francisco kicks off on October 18, followed by Cosmoverse 2024 on October 21, Blockchain Life 2024 on October 22, and the Solana Hacker House conference on October 24. In addition, Scroll, an Ethereum Layer 2 network, will distribute its SCR tokens through an airdrop on October 19.[36]

At the macroeconomic level, several key announcements are poised to significantly impact the industry. Federal Reserve Governor Waller will deliver a speech on October 19. The AIM Summit—a gathering of fund managers, institutional investors, family offices, sovereign wealth funds, and financial associations—will convene in Dubai on October 21. On October 24, the Federal Reserve will release its Beige Book, offering crucial insights into economic growth, inflation, and the labor market. These factors are instrumental in shaping the outlook for future monetary policy.[37]

References

1. Gate.io, https://www.gate.io/trade/BTC_USDT
2. Gate.io, https://www.gate.io/trade/ETH_USDT
3. New York Fed, https://www.newyorkfed.org/survey/empire/empiresurvey_overview
4. CME Group, https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html
5. Defillama, https://defillama.com/stablecoins
6. Gasnow, https://gasnow.io/
7. CoinGecko， https://www.coingecko.com/en/categories
8. Gate.io, https://www.gate.io/price
9. Medium, https://medium.com/xborg-official/xip-18-liquid-fund-otc-strategy-f3b132d21994
10. X, https://x.com/MathWallet/status/1844682916141441148
11. Volt, https://app.volt.win/buyandburn
12. World Liberty Financial, https://www.worldlibertyfinancial.com/intl/token-sale
13. CoinDesk, https://www.coindesk.com/markets/2024/10/16/donald-trump-supported-world-liberty-financial-raises-just-4-of-token-sale-target-on-first-day/
14. News, https://financefeeds.com/horizon-to-power-chinese-bank-cms-market-making-of-bitcoin-and-ether-etfs-on-hkex/
15. Symbiotic, https://blog.symbiotic.fi/avail-symbiotic/
16. Radiant, https://x.com/RDNTCapital/status/1846634050100039881
17. X，https://x.com/SlowMist_Team/status/1846762596365750466
18. X, https://x.com/truth_terminal
19. X, https://x.com/pmarca/status/1846374466101944629
20. X, https://x.com/AndyAyrey/status/1839115497847271659
21. X, https://x.com/redphonecrypto/status/1846783570523967594
22. Gate.io, https://www.gate.io/zh-tw/announcements/article/39966
23. SoSoValue，https://sosovalue.xyz/zh/assets/etf/us-eth-spot
24. Defillama，https://defillama.com/stablecoins
25. Coinglass，https://www.coinglass.com/zh/BitcoinOpenInterest
26. Coinglass，https://www.coinglass.com/zh/FundingRate
27. X, https://x.com/OndoFinance/status/1846567079199019053
28. DefiLlama, https://defillama.com/stablecoin/ondo-us-dollar-yield
29. Rootdata, https://www.rootdata.com/zh/Projects/detail/deBridge?k=NDgyMg%3D%3D
30. X, https://x.com/deBridgeFdn/status/1837416027271188597
31. Rootdata， https://www.rootdata.com/zh/Fundraising
32. AIcoin, https://www.aicoin.com/en/article/424181
33. Bitcoin.com, https://news.bitcoin.com/zh/blockstream-wancheng-2-1-yi-mei-yuan-ke-zhuan-huan-dai-kuan-rong-zi-lun/
34. TradingView, https://cn.tradingview.com/news/panews:0dc4c7104e3f9:0/
35. Token Unlocks, https://token.unlocks.app/
36. PANews, https://www.panewslab.com/zh/calendar/index.html
37. Jin10, https://rili.jin10.com/day/2024-10-18

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