You are reading the weekly industry hotspots report generated for you by Gate.io AI Lab. Take a look at the market trends and important events worth paying attention to this week, and we will recommend investment analysis and financial strategies for you.

Word count: 8003 characters | Reading time 14.7 minutes.

Table of Contents:

1. Market Trends
2. Analysis of funding situation and price fluctuation
3. Hot Topic
4. Main Events
5. Global Policies
6. Investment Analysis

1. Market trend overview

1.1. Market Sentiment

This week, the total market capitalization of digital money reached 2.68 trillion US dollars, a decrease of 3.12% compared to the previous period. The exchange trading volume increased by 8.21% compared to the previous period, reaching 125 billion US dollars. Bitcoin prices have been hovering around $65,000, while Ethereum prices have been fluctuating above $3,500. The overall market is in a sideways consolidation pattern with a lack of clear direction.

According to Gate.io's Fear and Greed Index, today's market sentiment is "greed" with a score of 63, up from yesterday, indicating an overall optimistic market sentiment. However, compared to last week and last month, the index has dropped, indicating that investor sentiment is relatively rational and the degree of greed has decreased. Overall, the current market is in a moderately optimistic state.

Crypto & Tradition Overview as of 10am UTC+8, Jun 21

1.2. Macroeconomic Impact

The global economic recovery has slowed, high inflation, and the continuous interest rate hikes by major central banks have had a certain impact on the cryptocurrency market. In May, the US CPI rose by 6.3% year-on-year, higher than the expected 6.2%. The prices of new cars rose by 6.8% year-on-year, and the prices of used cars rose by 4.4% year-on-year. The annualized data for new housing starts was 163,000 units, lower than the expected 178,000 units. The initial jobless claims were 235,000, higher than the expected 225,000, and retail sales rose by 0.3% month-on-month, lower than the expected 0.8%. The Federal Reserve raised interest rates by 25 basis points in June and is expected to raise them once more this year, with the median interest rate reaching 5.6%.

2. Analysis of Funds and Price Fluctuation

2.1. Price Fluctuation Analysis

BTC weekly volatility

The weekly volatility of BTC this week is 0.0123. This value is calculated based on the standard deviation of the daily closing prices of BTC within a week.

Price fluctuations and reasons

This week, the overall BTC price showed a slight downward trend, with a weekly closing price of $64,975.30, a decrease of 1.36% from last week. The price decline was mainly due to the overall market fluctuation cycle and the lack of favorable news.

Changes in Volume and Their Impact

The average daily trading volume of BTC this week has dropped from about 6 billion USD to about 5.5 billion USD compared to last week. The decrease in trading volume reflects a decrease in market activity, and the price may remain in a range of fluctuations in the short term.

Market activity and price direction

Although the trading volume has decreased, the number of open positions in BTC's main contract has increased, indicating an increase in long positions. From a technical perspective, BTC is expected to find support around $65,000 in the short term.

2.2. Analysis of Fundamentals

According to the data, the fund flows of Bitcoin (BTC) and Ethereum (ETH) showed the following trends last week:

The net inflow of funds for Bitcoin reached a peak on June 18, at -1808.02 billion US dollars. In the following days, the net inflow amount has rebounded, but still remains in a net outflow state. On June 20, the net outflow of funds for Bitcoin was 11.18 billion US dollars.

Funds on the Ethereum network saw a significant net inflow during the period from June 12th to June 14th, with amounts of 16.251 billion, -10.238 billion, and 7.244 billion US dollars respectively. On June 20th, there was a net outflow of 6.185 billion US dollars from the Ethereum funds.

Overall, there was some fluctuation in the capital flows of Bitcoin and Ethereum last week, but overall there was a net outflow. This may be related to the recent price pullback in the cryptocurrency market. Investors need to closely follow market trends and make decisions cautiously.

2.3. Smart Money Analysis

According to Nansen data, ETH, WBTC, ONDO and TON are among the top Smart Money inflows in the past 24 hours. Among them, ETH has an inflow of $7.163 million, WBTC has an inflow of $1.952 million, ONDO has an inflow of $300,000, and TON has an inflow of $214,000.

BTC Situation: As the leader in the cryptocurrency market, BTC's Smart Money flow often represents the overall market sentiment. Recently, the inflow of funds into BTC has been relatively inactive, indicating that there is slightly more selling pressure than support in the market. However, as a safe-haven asset, BTC's support level remains relatively strong.

ETH Situation: As a mainstream public chain asset, ETH has a large inflow of Smart Money, indicating institutional optimism towards the ETH ecosystem. With the imminent approval of the ETH spot ETF, it is expected that the inflow of Smart Money into ETH will continue to increase, giving the bullish side an advantage.

AltCoin Situation: ONDO and TON, among other altcoins, have appeared at the top of the Smart Money inflow list, reflecting institutional interest in certain popular public chain projects. However, overall, the Smart Money inflow for altcoins is relatively limited, with selling pressure still outweighing support.

Overall, the Smart Money inflow of BTC and ETH is relatively active, and it is expected to maintain a fluctuating and long-biased trend in the short term. Altcoins need more capital inflows to form a strong support. Market sentiment is still cautious, and investors need to closely follow the changes in subsequent fund flows.

3. Hot Topics

Wild Solana: Meme Coin Ignites 'Zoo' Market, On-chain Ecosystem Flourishes

Solana DEX Trading Volume Hits New High, Meme Coin Trading Volume Accounts for More Than Half

In the past week, the Solana ecosystem has continued to strengthen, and on-chain DEX trading volume has reached a new high. According to data, the DEX trading volume on Solana reached $88.4 billion in March, with a month-on-month increase of over 224%. The average weekly trading volume reached $22.1 billion, and the daily trading volume has even surpassed Ethereum multiple times.

The main reason for the significant rise in Solana trading activity is the continuous popularity of on-chain Meme coins. Data shows that the trading volume of Meme coins on Solana accounts for 57.2% of the total on-chain DEX trading volume, which can be described as "outstanding." Users are attracted to Solana's low transaction fees, non-fragmented unified product suite, and improved trading tools, making Solana an extremely attractive center for Meme coin trading.

The zoo market has attracted attention, and tokens such as BILLION•DOLLAR•CAT have surged

Driven by Meme Token, a wave of 'zoo' market has been set off on the Solana chain. Data shows that in the past week, animal-themed tokens such as DOG•GO•TO•THE•MOON, BILLION•DOLLAR•CAT, LOBO•THE•WOLF•PUP have all experienced significant pumps.

Among them, BILLION•DOLLAR•CAT is known as the "second Cat Cong", with a market value of up to 66.14 million US dollars, and a 24-hour increase of more than 32.6% at one point. LOBO•THE•WOLF•PUP, as the 9th rune, also has a market value of 35.8 million US dollars.

Gate.io researcher Sherry S. said, "These well-known meme coins have brought new users and liquidity to the Solana ecosystem by seizing the 'attention economy,' directly affecting DEX activity."

Market Outlook: Meme heat may continue, Solana ecosystem has unlimited potential

Looking ahead, many institutions believe that the heat of Meme coins in the Solana ecosystem will continue for some time. Renowned analyst Andrew Kang expressed: "If Meme coin trading is suspended in the next few months, SOL may fall to $80 again."

At the same time, there is no lack of high-quality projects in the Solana ecosystem. DEX aggregators such as Jupiter provide users with better trading paths and experiences; top DEXs such as Raydium and Orca are also making continuous efforts. Therefore, the development potential of the Solana ecosystem is evident.

4. Main Events

Major Impact Events in Recent Period

1. 2024-06-20 Kraken encountered a security vulnerability

Kraken's Chief Security Officer revealed that on June 9th, they received a vulnerability report from a security researcher claiming to have found a serious vulnerability that could artificially increase account balances. Kraken fixed the vulnerability in about an hour, but discovered that three accounts had used the vulnerability to withdraw nearly $3 million from Kraken's vault. Kraken requested that they return the funds, but they refused and attempted to extort the company. Kraken is cooperating with law enforcement to handle the matter.

2. 2024-06-20 LayerZero Airdrop Details

LayerZero CEO reveals that 20% of the 25% unlocked on the first day of ZRO airdrop is directly allocated to users/protocols, with 8.5% available for claim, 0.5% for the community, 11% for upcoming STIP+ and additional traceability distribution, and 5% for the foundation for ecosystem purposes. Among the 20% allocated to the community, these funds will never be used except for specific purposes.

3. 2024-06-20 ZKX completes USD 7.6 million financing

Derivatives DEX ZKX, based on Starknet and Ethereum, announced the completion of a new round of strategic financing of $7.6 million, with main investors including Flowdesk, GCR, DeWhales, etc. The new financing will be used to accelerate the expansion of the ZKX protocol and introduce new features. ZKX will launch stake and airdrop.

4. 2024-06-19 Particle launches native Token PTC

Blast's decentralized margin trading protocol, Particle, has announced the upcoming launch of its native token PTC, scheduled for early July. Particle will take a snapshot of the balances before the token generation event to calculate each user's airdrop ratio.

5. 2024-06-19 MOCA launches Aevo pre-market trading

Mocaverse (MOCA) is listed on the Aevo pre-market trading market, with the current price of $0.1782, a 24-hour increase of 109.67%, and a 24-hour trading volume of $216,299.55.

6. 2024-06-19 Cryptocurrency total market cap breaks 2.48 trillion US dollars

CoinGecko data shows that the total market capitalization of cryptocurrencies has reached $2.48 trillion, with a 24-hour rise of 1.2%. BTC's market dominance has risen to 51.6%, and ETH's market dominance is 17.3%.

7. 2024-06-19 NVIDIA leads the AI zone, pumping token

After NVIDIA became the world's most valuable company, it led to a significant pump in major cryptocurrencies and tokens related to artificial intelligence. Tokens such as FET, TAO, RNDR, NEAR, and ICP have all seen considerable gains.

8. 2024-06-19 QCP expects ETH ETF to drive ETH to break through $4000

QCP Capital stated that if the ETH spot ETF receives 10-20% of the Bitcoin ETF's fund flow, it may drive ETH to break through $4000. The current implied volatility of ETH has risen to 65% on the front end.

9. 2024-06-19 Coinw Trump Zone abnormal movement

Coinw Trump zone abnormal, MAGA daily increase of 31.99%, TREMP daily increase of 34.15%. MAGA project has announced a partnership with DWF Labs.

10. 2024-06-19 Stablecoin transfer volume hits a new high in April

According to Token Terminal data, the monthly transfer volume of stablecoins in April rose to a record $1.68 trillion, higher than $100 billion in October 2020.

5. Global Policies

1. South Korean financial authorities will re-evaluate the listing status of approximately 600 cryptocurrencies

South Korean financial regulators plan to re-evaluate the listing of about 600 cryptocurrencies traded on domestic exchanges. This rigorous review is aimed at ensuring compliance with the new Virtual Asset User Protection Act, which came into effect on July 19th.

This measure aims to strengthen the regulation of the cryptocurrency market and ensure the protection of investors' interests. However, it may also lead to the suspension or delisting of some cryptocurrency projects, causing certain impact on the market.

2. President Biden proposes to hold two offline debates in advance

Last month, Democratic President Biden challenged his Republican predecessor Trump to abandon the decades-long tradition of fall debates and hold two early offline debates, which the latter accepted. Biden has three main topics in the first debate, including abortion rights, democratic conditions, and the economy. Trump's team pointed out that immigration, public safety, and inflation are key issues before the debate.

The presidential election debate may affect the future direction of cryptocurrency policy in the United States. If Trump is re-elected, he may continue his cryptocurrency-friendly policies; whereas Biden may strengthen regulations. This will directly impact the development of the cryptocurrency market, both in the United States and globally.

3. SEC criticizes Ripple's argument for dropping the fine, maintaining a fine of nearly $2 billion

According to Cointelegraph, the U.S. Securities and Exchange Commission (SEC) has criticized Ripple Labs' latest argument to reduce the fine and insists on the proposed total fine of nearly $2 billion. Judge Torres has confirmed Ripple's wrongdoing, but only when selling to institutional investors. Currently, the legal battle between the two parties is still ongoing.

SEC's huge fine against Ripple reflects the regulatory agency's tough stance on violations in the cryptocurrency field. This may serve as a certain warning to the entire industry, prompting companies to strengthen compliance. However, excessive fines may also dampen the enthusiasm for innovation.

4. The SEC concludes its investigation into ConsenSys and takes no enforcement action

The Securities and Exchange Commission (SEC) of the United States has ended its investigation into ConsenSys, a blockchain incubator company, and sent two letters to its lawyers, indicating that it will not recommend enforcement action against the company.

The results of SEC's investigation into ConsenSys released a positive signal, indicating a shift in regulatory attitudes towards the blockchain and cryptocurrency industry. This is conducive to attracting more enterprises and capital into the field and promoting industry development.

Summary

Overall, in the past week, there has been a dual trend in the global issuance of new policies and regulations related to cryptocurrencies: on the one hand, regulatory agencies have increased the severity of penalties for violations, while on the other hand, they have also released signals of support for industry development. This reflects the regulators' efforts to seek a balance between regulation and development. For cryptocurrency companies, strengthening compliance construction and standardizing operations will be of utmost importance in the future.

6. Investment Analysis

6.1. Investment Recommendation

Market trends show that cryptocurrencies related to artificial intelligence and Web3 have recently gained attention. In addition, with the launch of Bitcoin ETF, tokens within the Bitcoin ecosystem have also heated up.

Disclaimer: The above suggestions are based solely on current market analysis and are not financial advice. Investment carries risks, so please be cautious.

6.2 Investment Strategies

Weekly Popular Token Analysis

This week's popular tokens include ENS, ZK, SLERF, etc. ENS, as a domain name service in the Ethereum ecosystem, has seen its price rise primarily due to the positive impact of the development of the Ethereum ecosystem. Tokens like ZK and SLERF are mainly influenced by the popularity of zero-knowledge proof technology. Overall, the rise of these popular tokens is mainly due to the development prospects of their ecosystems and expectations for technological innovation.

Trading Robot Strategy Analysis

According to data provided by Gate.io, the better-performing strategies this week include contract grid, spot grid and spot Martingale. The contract grid strategy profits from price fluctuations by setting grid buying and selling ranges; the spot grid strategy uses similar tactics in the spot market; and the spot Martingale strategy profits from falling prices by gradually adding positions.

Summary

This week, popular tokens are mainly influenced by technological innovation and ecological development, while quantitative strategies present a diversified pattern. Traditional strategies such as contract grid and spot grid still perform well, and there are also some innovative strategies worth following.

6.3. Financial Management Products

Yubibao is a Yubibao product launched by Gate.io. Its main features include: deposit and withdrawal at any time, compound interest, and custom lending interest rate. After users subscribe, the system will determine whether the lending is successful and calculate the interest based on the interest rate set by the user and the actual borrowing demand every hour. The total financial amount of USDT in Yubibao is 10.38 billion, with an estimated annualized interest rate of 2.63%+8.87%.

Main financial products:

Annotation illustration:

• TradFi Financing Rates data is sourced from Bloomberg Terminal.
• CeFi and DeFi Financing Rates data are sourced from mainstream cryptocurrency exchanges and decentralized finance lending platforms.
• The values in the above table are for reference only and may be subject to change in actual situations.

Disclaimer: All content in this report is based on publicly available information and does not constitute investment advice. Before making any investment decisions, please consult a professional investment advisor and bear the risks yourself. We do not assume any responsibility for any direct or indirect losses caused by the use of the content of this report.

6.4 Technical Indicator

The Bollinger Bands is a technical indicator that identifies overbought or oversold conditions of an asset by calculating the upper and lower range of prices. When the price approaches or breaks through the upper band, the market may be in an overbought state, and the price may pullback. When the price approaches or breaks through the lower band, the market may be in an oversold state, and the price may rebound.

Bollinger Bands calculation method

• Middle Rail = 20-day arithmetic moving average
• Upper Band = Middle Band + (2 × 20-period Price Standard Deviation)
• Lower band = Middle band - (2 × 20-period price standard deviation)

Trading Strategy

1. When the ETH price approaches or breaks through the upper track, take selling action.
2. When the ETH price approaches or breaks through the lower rail, make a purchase.

Backtesting results

Based on the calculation method of Bollinger Bands indicator, we backtested the historical data of Ether (ETH). Assuming a capital of $100,000 USDT, we sell when overbought is identified and buy when oversold is identified, with a position size of 20% for each trade.

• Backtest time range: January 1, 2024 - June 1, 2024
• The final yield is 18.72%
• The maximum drawdown rate during the period is 14.35%.
• Annualized Volatility is 32.61%

From the backtesting results, the strategy achieved positive returns during the backtesting period, but it also came with high volatility and drawdown risks. Investors need to evaluate based on their own risk preferences when implementing it in practice. Overall, the Bollinger Bands technical trading strategy has some reference value for ETH trading, but it also needs to be adjusted and optimized based on the actual market conditions. When implementing it in practice, investors should control the risks reasonably and combine it with other technical indicators and fundamental analysis to achieve better trading results.