Gate Research Institute: The encryption market is warming up, and the Stable CoinMarket Cap continues to rise, with Base network TVL reaching a new high

Gate Research Institute Weekly Report, BTC has risen this week, reaching a high of $64,812 and then falling back, following the resistance level of $64,800. This week, BTC ETF saw a net inflow of $352 million, while ETH ETF saw a net outflow of $69.76 million. The overall market capitalization of Stable Coins has risen by 0.65%, with further inflows of off-exchange incremental funds. Hamster Kombat has announced its roadmap: it plans to launch a dedicated advertising network, with the revenue used for token buybacks. PayPal will allow U.S. business customers to buy, hold, and sell cryptocurrency. Base Network's TVL has surpassed $1.9 billion, reaching a new all-time high. Truflation suffered a hacker attack, resulting in a loss of approximately $5 million.

Market Interpretation

Market Review

BTC ⸺ Over the past 7 days, BTC has been on a rising trend, increasing from around $60,000 to the current $63,660. After reaching a high of 64,812 in the short term, there was a slight pullback, but the market has not broken the rising trend. In the short term, it is necessary to follow the breakthrough situation of the resistance level of $64,800. If successful, BTC may continue to rise; otherwise, it may consolidate in the range of $63,000 to $64,500.
ETH ⸺ In the past 7 days, ETH has experienced a round of pump, rising from $2,296 to a high of $2,703 on September 23. During this period, the long positions on the moving averages were arranged, the volume was active, and the market's bullish sentiment rose. After reaching the interim high point of $2,700, the price began to pull back and is currently oscillating and consolidating in the range of $2,600 to $2,700, with the trading volume decreasing and the short-term market activity weakening.
AltCoin ⸺ In the past 7 days, the total market capitalization and trading volume of AltCoin have both seen a pump. As of now, the total market capitalization is 1.07 trillion US dollars, and the cryptocurrency market is recovering due to the impact of interest rate cuts. Among them, zones such as Cat-Themed, Artificial Intelligence, and Data Availability have shown significant increases.
Macroeconomic Data ⸺ On September 19th, the Federal Reserve announced a cut in the Federal Fund Interest Rate to 5%, the first rate cut since March 2020. At the same time, according to CME's 'FedWatch' data, the probability of a 25 basis point rate cut by the Fed in November is 38.9%, while the probability of a 50 basis point rate cut is 61.1%.
Stable Coin ⸺ Over the past seven days, Stable CoinMarket Caprise has increased by 0.65% to $172.3 billion. USDT continues to dominate, with a market share of 69.23%. Compared to last week, USDT Market Cap has risen slightly by 0.25%, and USDC Market Cap has increased by 1.24%. Overall, the Stable Coin market has remained stable and pumped after the interest rate cut this week.
Gas Fee ⸺ Recently, the overall activity on the Ethereum blockchain has shown signs of recovery. The gas price has mostly been in double digits over the past week, with a peak of 37.7 on September 24th and a minimum of 5 at other times.

Since 2020, PayPal has been offering consumers the ability to directly buy, hold, and sell cryptocurrencies. Last year, PayPal launched the PayPal USD (PYUSD), a stablecoin pegged to the US dollar, with a market capitalization of $700 million as of September 26. With 400 million active users, PayPal's move could expand its market share and play a significant role in promoting the adoption of cryptocurrencies.

The TVL of the Base network's Decentralized Finance has exceeded $1.9 billion, reaching a new historical high According to DefiLlama data, the TVL of Base network surpassed $2 billion on September 26, reaching $2.03 billion, a new historical high. Base ranks second in TVL among Layer 2 networks on Ethereum, second only to Arbitrum, and surpassing Optimism. Currently, the top three protocols in terms of TVL on this network are DEX protocol Aerodrome, Uniswap, and Extra Finance.

The rapid rise of TVL is attributed to the prosperity of its Decentralized Finance ecosystem. The Base network has attracted many Decentralized Finance protocols to join due to its rapidly rising user base and trading volume. Major participants in the Decentralized Finance projects include Uniswap, Aerodrome, Morpho Labs, Radiant Capital, etc. In addition, Base has obtained governance approval from Optimism and will receive a grant of 3 million OP Tokens (equivalent to approximately 5 million USD) to incentivize Decentralized Finance developers to increase the Total Value Locked (TVL) of ETH and BTC on Base.

The TVL of the Base network's Decentralized Finance has exceeded $1.9 billion, reaching a new historical high According to DefiLlama data, the TVL of the Base network exceeded 2 billion USD on September 26, reaching 20.03 billion USD, a historical high. Base ranks second in TVL on the Layer 2 network of ETH, second only to Arbitrum, and surpasses Optimism. Currently, the top three protocols in terms of TVL on the network are DEX protocol Aerodrome, Uniswap, and Extra Finance. [14]

Popular Concepts

According to the data from gate and Coingecko, Cat-Themed, Artificial Intelligence, and Data Availability zones saw significant pumps this week, with increases of approximately 33.3%, 33.2%, and 30.8% respectively over the past seven days. The popular concepts are as follows: [7]

Cat-Themed —— The 7-day increase is about 33.3%, with a circulating market capitalization of about 32.56 billion US dollars.

The Cat-Themed project mainly revolves around the meme coin with a cat theme, attracting many cat lovers or speculators to follow. As the popularity of cat culture continues to expand, it is driving market heat rise. POPCAT, MEW, and MOG have pumped 43.7%, 41.6%, and 35.7% respectively in the past week, showing strong rising potential. However, meme coin's volatility is high, and investors need to be cautious about related risks when investing.

Artificial Intelligence - The price has increased by about 33.2% in the past 7 days, with a circulating market capitalization of approximately 30.84 billion US dollars.

The Artificial Intelligence zone is committed to combining artificial intelligence with blockchain technology, aiming to provide automation services for decentralized applications. With the popularity of AI applications, this field has gradually become an investment hotspot. Especially FET, ICP, and NEAR have pumped 26.5%, 18.3%, and 18.1% respectively in the past week, reflecting the strong interest of the market in AI projects.

Data Availability —— In the past 7 days, the increase is about 18.1%, and the circulating market cap is about 79 billion US dollars.

Ensure that Block participants can verify the transaction data of the Block to guarantee Decentralization and the scalability of the network. The pump in this area may be driven by the rise in demand for Block scalability and Decentralization. As the scale of the Block network expands, ensuring data availability has become an important issue to ensure the security and scalability of the Block. Recently, more and more projects have focused on optimizing the on-chain data availability of the Block, attracting more market funds and technological follow, especially CXT, NEAR, and KEX, which have risen by 23.0%, 18.1%, and 17.8% respectively in the past week.

Hot Currencies

According to gate data, among the projects with large gains and large market capitalization, the following hot currencies in the past 7 days are:

TAO - Up about 64.4% in the past 7 days, with a circulating market capitalization of $3.97 billion.

Bittensor is a decentralized machine learning network that enables models to collaborate and train, and rewards TAO based on the value of information through blockchain technology. Its goal is to build an open market for artificial intelligence, promote open access and global computing power.

Recently, AI Depin's narrative has been hot, and Grayscale has also mentioned Bittensor, which may have driven the pump in Token prices.

SEI —— The price has increased by about 33.0% in the past 7 days, with a circulating market capitalization of $1.63 billion.

SEI is a high-performance Layer 1 public chain designed for Decentralized Finance (DeFi) applications, aiming to provide fast and secure transaction experience. Recently, SEI has attracted multiple DeFi projects' attention by optimizing Smart Contracts and reducing transaction fees.

Over the past seven days, SEI on-chain TVL has pumped about 26%, reaching $195 million, with increased on-chain activity being an important factor driving its Token price pump.

SUI - The price has increased by approximately 24.7% in the past 7 days, with a circulating market capitalization of 4.73 billion USD.

SUI is an innovative Layer 1 centered around objects and using the Move programming language, designed specifically to address inefficiencies in current blockchain frameworks.

SUI's TVL has risen by 110% in the past month, surpassing $714 million. The increase in user activity on the SUI network has led to a higher demand for SUI Token, which may drive up the token price. The Mysticeti upgrade has significantly improved the network's transaction efficiency, and the Grayscale SUI Trust Fund launched by Grayscale has also provided support for SUI's market performance.

This week's focus

Hot Spot Review

Hamster Kombat Announces Roadmap: Planned Launch of Dedicated Advertising Network, Revenue Used for Token Buyback On September 25th, Telegram's click game Hamster Kombat released its development plan for the end of 2024 and 2025. The main focus is on launching a Web3 game platform to expand its game products. According to the latest roadmap, the key goals for 2024 include integrating external payment systems, launching new games, and integrating Non-fungible Tokens as in-game assets. Previously, on September 23rd, the Hamster team announced the Airdrop distribution. Among the current 300 million users, approximately 131 million users are eligible for the Airdrop.

In addition, Hamster Kombat plans to launch a dedicated advertising network for games in its ecosystem. This initiative is expected to be released in December 2024, and the revenue generated by the advertising network will be used to repurchase Tokens and distribute them as rewards to community members. This strategy not only helps to enhance user engagement but also helps to increase the value of Tokens.

According to the development plan of Hamster Kombat, integrating external payment systems will significantly increase the Liquidity and drop participation threshold in the game, thereby expanding the user base. In addition, the launch of new games is expected to further consolidate Hamster's position in the Telegram platform and the entire Tap-To-Earn game field, while solving the challenges faced by traditional clicker games, such as short lifecycle and player churn.

PayPal will allow US business customers to buy, hold, and sell Crypto Assets On September 26, PayPal will allow its US business customers to directly purchase, hold, and sell Cryptocurrency through their account. Jose Fernandez da Ponte, Senior Vice President of Blockchain, Cryptocurrency, and Digital Money at PayPal, said, 'Businesses are increasingly looking for the same Cryptocurrency features as individual consumers.' In addition, PayPal also plans to allow US merchants to transfer Cryptocurrency on-chain to 'eligible' third-party Wallets. However, this service will not be available to businesses in New York in the initial stage.

Solana Breakpoint 2024 conference ends, many projects announce important progress and plans At the Solana Breakpoint 2024 conference from September 20th to 21st, many project parties announced important developments and plans, further promoting the development of the Solana ecosystem. In terms of infrastructure, the Firedancer project announced its next-generation validators architecture, aimed at improving the performance and processing power of the Solana network, especially effectively dropping latency under high loads, and improving the overall user experience. Jupiter Exchange launched a new Liquidity aggregation tool, which can intelligently integrate Liquidity from multiple Decentralization exchanges to help users obtain the best trading prices and lower Slippage, significantly improving the efficiency of cross-platform transactions and optimizing users' trading experience.

In the PayFi field, Sanctum has introduced its latest development of "Creator Coins", allowing creators to create their own Token with a threshold of 1 SOL, simplifying interaction between creators and supporters. This tokenization allows creators to directly receive financial support from supporters and conduct more efficient marketing. Fuse wallet collaborates with Bridge and Squads Protocol to launch virtual Visa cards, allowing users to directly use Stable Coin for payment on Solana through their Fuse Wallet, enhancing the application of Stable Coin in daily transactions.

In the field of Decentralized Finance (DeFi), deBridge Finance has announced the optimization of its Cross-Chain Interaction transfer protocol, allowing users to seamlessly transfer assets between different blockchains, reducing the cost of Cross-Chain Interaction transactions and improving transaction efficiency. Squads Protocol has released its new multi-signature Wallet feature, enabling teams and projects to manage funds more securely. This multi-signature mechanism ensures the transparency and security of funds, enhancing user trust in DeFi projects. Tensor has showcased its solution for Non-fungible Tokens (NFTs) and data sharing, promoting the Liquidity of on-chain assets and enabling users to trade and leverage their digital assets more conveniently.

Security Incident

Truflation suffers Hacker attack, losing approximately $5 million On September 26th, the encryption project Truflation was attacked by hackers, and the treasury multi-signature wallet and personal wallet were stolen for about $5 million. Truflation is an on-chain Oracle Machine that mainly aggregates real-time on-chain data through its DRPp protocol, providing accurate and accessible data indices for various financial markets and tools in the Web3 industry.

The recent Hacker attacks targeted the multi-signature Wallets of vaults across multiple chains and users' personal Wallets, mainly using malware for the attacks. Currently, Truflation is closely monitoring the situation and taking swift measures to protect user assets and stake funds. Truflation also added that staking operations are currently unavailable, and the Liquidity of the Decentralization exchange is also limited. The team will continue to provide users with the latest information and reward any white hat Hackers who provide assistance. As a result of this news, the TRUF Token has dropped by 10.43% in the past 24 hours.

Project follow

Hemi Network ranks first in Rootdata's popularity ranking After announcing financing and launching the incentive test network, Hemi Network's popularity index on platforms such as Rootdata remains high. Hemi is a second-layer blockchain network built on BTC and ETH, introducing the Hemi Virtual Machine (hVM) that allows developers to create Smart Contracts interacting with the BTC state. As a single blockchain, Hemi Network serves as a second-layer solution for both BTC and ETH, aiming to combine the strengths of the two networks, integrating the security of BTC with the liquidity and programmability of ETH.

On September 18th, Hemi Labs announced the completion of a $15 million financing. Hemi Labs will use this funding to develop and launch Hemi Network. The Hemi Network incentive testnet is now live, and the company plans to launch the Mainnet in the fourth quarter. Investors can follow Hemi Network closely for updates on Airdrops, Mainnet launches, and other information.

Neiro announces partnership with DWF Labs On September 24th, Neiro officially announced a partnership with DWF Labs, and the two will work together to make Neiro one of the most successful Meme coin projects in the cryptocurrency field. The total supply of Neiro Tokens is 420.69 billion, and it is completely fair issuance. Currently, Neiro's total Market Cap is $4.93 billion, and the addition of DWF Labs is expected to further drive the project's development. Neiro is a Meme Token project based on the Ethereum and Solana blockchains, inspired by the new pet 'Neiro' of Kabosu, the owner of the Doge prototype. Neiro Token quickly attracted a large amount of funds, with a significant increase in volume and price pump. After the team's departure, the project was community-led, and token management and operations were taken over by the community. The community has shown a high level of enthusiasm for Neiro, with a rapid rise in the number of social media followers, demonstrating a strong community base and influence.

The price of Neiro Token has experienced significant Fluctuation in a short period of time, reflecting the high risk and volatility of the Cryptocurrency market, especially Meme coin. Investors should exercise caution and fully understand the related risks when considering investing in such Tokens.

Aave community proposed to temporarily drop WBTC risk Aave community member LlamaRisk has proposed a motion suggesting more stringent restrictions on the use of Wrapped Bitcoin (wBTC) on the platform to drop potential risks. The proposal suggests dropping the loan-to-value ratio (LTV) of wBTC in all V3 versions to 0, meaning users will no longer be able to use wBTC as Collateral to borrow more funds. At the same time, the proposal also suggests dropping the supply and borrowing limits to 5-10% above the current utilization rate to limit additional risks of wBTC, while retaining flexibility for users to adjust their positions.

This proposal has sparked controversy within the community. Marc Zeller, the founder of the Aave Chan Initiative (ACI), and some community representatives oppose the proposal, believing that a more cautious and balanced approach should be taken in response to the current uncertainty. Aave co-founder Stani Kulechov also made it clear that this proposal does not mean that Aave will completely phase out WBTC, but rather it is due to considerations of Risk Management.

Some members of the community pointed out that concerns about wBTC were exaggerated, as wBTC has been running well for a long time and is an important part of the Aave community. These members believe that the relevant parties should be given due respect, and that the treatment of wBTC custodians in other communities is unfair.

Earlier, digital asset custody company BitGo announced that it would transfer the control of its wBTC product to a joint venture with Hong Kong-based BiT Global. As the details of the joint venture, the specifics of the transfer, and the audit information of the related companies were not disclosed in this transaction, the transparency and centralization of wBTC's subsequent permission management were questioned by the public.

Highlight Data

US ETF Spot Market Data From 21 September to 24 September at 4:00 (UTC+0), the total net asset value of the BTC ETF was $58.6 billion, accounting for 4.62% of the BTC Market Cap, with a cumulative net inflow of $17.83 billion. The BTC ETF market showed a net inflow this week, with a $136 million inflow on 24 September. The Fed's interest rate cut strategy stimulated the Cryptocurrency and US stock market rebound, resulting in increased inflow for the BTC ETF.

From 21st September to 24th September at 4:00 (UTC+0), the net asset value of the Ethereum ETF was $7.20 billion, accounting for 2.26% of the total market capitalization of Ethereum. The cumulative net outflow was $634 million. On 24th September, there was a net inflow of approximately $62.51 million, the largest inflow since 7th August.

Stable CoinMarket Cap changes According to DefiLlama data, as of 0:00 on September 26th (UTC+0), in the past seven days, the Stable CoinMarket Cap rose by 0.65% to $172.3 billion, reaching a new high since May 2022. USDT continues to dominate with a market share of 69.19%. Compared to last week, USDT Market Cap rose slightly by 0.25%, and USDC Market Cap increased by 1.24%. Overall, the top three Stable Coins by Market Cap are USDT, USDC, DAI, all of which saw a rise in Market Cap.

Ethereum GAS Fee rebounded and then fell Gas fees on the Ethereum network showed a significant rise trend from September 18th to 24th, and fell after the 25th. Due to the rise in on-chain cryptocurrency trading activity, a total of 12,807 ETH were burned this week, with an annualized inflation rate of 0.24%. Among them, Uniswap burned 1,641.42 ETH in the past 7 days, and ETH transfer burned 856 ETH.

funding rate Over the past week, the funding rate for BTC and ETH has remained positive, reflecting a bullish sentiment and dominance of long positions in the market. Both tokens have shown significant fluctuations in price movement, and the frequent changes in the funding rate may reflect the high level of leverage trading activity, especially during multiple periods of intense competition between long and short positions. However, the price has not fully aligned with the fluctuation of the funding rate, especially during sideways price fluctuations, where the drastic changes in the funding rate indicate the fluctuating sentiment of market participants and the uncertainty about future price action.

Market Opportunities

Project Airdrop

The Airdrop project that can be followed this week is: BOB BOB is a BTC EVM rollup network, which recently launched its third season points activity, also the final season of the project. BOB aims to combine the security of BTC and the flexibility of ETH's Smart Contracts, supporting the BTC ecosystem including Ordinals, Lightning, and Nostr to enhance the practicality and expand the functionality of BTC. BOB allows BTC miners to support the BOB network at no additional cost through merged mining technology, enhancing the security of the network. BOB also secured a $10 million seed round of financing led by Castle Island Ventures, with investors including Mechanism Ventures, Bankless Ventures, CMS Ventures, and UTXO Management.

How to participate:

stake: BTC
Voting: The newly added community voting feature allows users to vote for their favorite projects, and the winning project will receive additional rewards.
Invitations: The referral program offers direct invitations with a 15% Spice reward and second-level invitations with a 7% reward.
Complete tasks: Participate in specific tasks and activities in the BOB ecosystem to earn Spice.

Participate in the early bird event and the Spice obtained before the Decentralized Finance TVL of BOB reaches 75 million USD will be doubled. Multiple BOB ecological projects have also launched point plans, and users can simultaneously obtain multiple rewards.

Tip: Airdrop plans and participation methods may be updated at any time. It is recommended that users follow BOB's official channels to get the latest information. At the same time, users should participate cautiously, pay attention to risks, and conduct sufficient research before participating. gate does not guarantee the subsequent Airdrop rewards.

Financing Weekly Report

Several projects successfully completed financing this week, involving a wide range of applications in public chains, gaming, AI, and other fields. According to RootData statistics, from September 20th to September 26th, a total of 10 projects announced financing, totaling $140 million. Here are the top three financing amounts:

Celestia - On September 23, modular blockchain network service provider Celestia announced the completion of a $100 million Series B financing round led by Bain Capital Crypto, with participation from Syncracy Capital, 1kx, Robot Ventures, Placeholder, and others. Celestia's total funding has reached $155 million. Celestia provides the industry's first dedicated modular Consensus and data network, allowing developers to deploy Rollup chains.

On September 25th, Block chain project Initia announced the completion of a $14 million Series A funding round with a valuation of $350 million. The round was led by Theory Ventures, with participation from Delphi Ventures and Hack VC, among others. Initia is a network designed for interwoven optimistic rollups, aimed at completely restructuring the operation of multi-chain systems, integrating first-layer Block chains and second-layer infrastructure to create a tightly connected modular network ecosystem, with the goal of building multi-chain systems. Its Mainnet and Token are expected to go live in the next two months.

Smolbound - On September 23, blockchain game developer Darkbright Studios announced the completion of a $6 million seed round of financing, led by Bitkraft Ventures, with participation from Treasure, Play Ventures, Anthos Capital, King River Capital, and others. The company's first work is the life simulation game Smolbound, which seamlessly integrates Web3 technology and is planned to be launched in 2025.

Next week follow

Token Unlock

According to the data of Token Unlocks, there will be several important Token unlocking events in the market next week (2024.9.27-10.03). Among them, the top 3 unlocking situations before this week are as follows:

SUI - Approximately 53.96 million tokens will be unlocked at 12:00 on October 1st (UTC+0), accounting for 2.4% of the current circulation ratio, with a value of approximately $100 million. The token price may experience significant fluctuations before and after the unlocking.

OP - About 31.34 million Tokens will be unlocked at 12:00 on September 30 (UTC+0), accounting for about 2.64% of the current circulation, worth about $52.65 million;

Among them, Core Contributors unlocked 16.54 million Tokens, accounting for 52% of the Tokens unlocked this time. Investors unlocked 14.8 million Tokens, accounting for 48% of the Tokens unlocked this time.

ZETA - Approximately 53.89 million tokens will be unlocked at 12:00 on October 1st (UTC+0), accounting for 13.43% of the current circulation, with a value of approximately $36.82 million; among them, Core Contributors will unlock 26.25 million tokens, accounting for 48.7% of the tokens unlocked this time.

encryption calendar

In the coming week (2024.9.27-10.03), the Blockchain and Crypto Assets industry will witness several key events. On September 27th, Layer 1 Blockchain Vega Protocol, which focuses on derivatives trading, decided to phase out the Vega Blockchain and its VEGA Token. The Vega chain will stop running as early as today. CME Group plans to launch Bitcoin Friday Futures (BFF) on September 30th, with each contract representing 1/50 of a bitcoin, making trading more efficient.

The release of some important macro-level data also has a significant impact on the industry. It is worth noting that on October 1st, Federal Reserve Chairman Powell delivered a speech at the National Business Economic Association. This speech covers key areas such as economic rise, inflation, and the job market, which are important foundations for understanding the future direction of monetary policy.

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