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Trump reaffirms embrace of Cryptocurrency

Trump reiterated in a speech at the New York Economic Club that if re-elected as president, he will make the United States the world's Crypto Assets capital, embracing Crypto Assets, artificial intelligence, and other 'future industries.' He said he would establish a government efficiency committee led by Musk to audit federal government spending.

The divergence among Federal Reserve officials is increasing, and the extent of interest rate cuts is uncertain.

Federal Reserve officials have different opinions on the magnitude of the interest rate cut in September. Some officials believe that the interest rate should be cut by 25 basis points, while others are calling for a 50 basis point cut. The employment report will be a key factor in determining the magnitude of the rate cut. Officials generally expect the economy to continue to slow down.

Ethereum Foundation Responds to Hot Issues

The ETH Foundation responded to a series of hot issues in the AMA. The Foundation stated that the main wallet holds ETH worth 650 million US dollars, and the reserve funds can cover expenses for the next 10 years; the accumulation of ETH value is crucial to the success of Ethereum; the rollup ecosystem will not override ETH.

BTC supply shortage worsens

Bitwise researchers have stated that corporate buying alone has absorbed almost all newly mined BTC supply. The shortage of BTC supply is more severe than most people imagine.

encryption Trader Attack Incident

A 19-year-old Singapore encryption trader was ambushed by two men when trying to exchange USDT offline. The two individuals have been arrested by the police. This incident has once again raised concerns about the security of offline transactions.

Telegram Privacy Policy Sparks Controversy

Telegram was reportedly quietly updating its FAQ, deleting the statement about chat privacy. Founder Durov later stated that Telegram is preparing to exit markets that are incompatible with its privacy principles.

Clash between Node Founder and Ordinals Founder

Node founder Rocktoshi claimed to be a co-founder of Ordinals, but was denied and personally attacked by Ordinals founder Casey. The two sides engaged in fierce confrontation on social media.

You are reading the weekly industry hotspots report generated for you by the gate AI Lab. Check out the most follow-worthy market trends and important events from last week, and get recommended investment analysis and financial strategies for you.

Word count: 9152 words | Reading time 13.6 minutes.

Table of Contents:

1. Market trends
2. Analysis of fund status and price Fluctuation
3. Hot Topics
4. Main Events
5. Global Policy
6. Investment Analysis

1. Market Trend

1.1. Market Sentiment

This week, the total Market Cap of Digital Money reached 2.09 trillion dollars, a decrease of 0.25% compared to the previous period. The volume of exchange rose by 5.2% compared to the previous period, reaching 1.8 trillion dollars. The price of BTC fluctuated around $58,000, with a slight increase in volume. The overall market sentiment is cautious, with the dominant trend being Sideways consolidation. It is expected that there will be a new round of price fluctuation this weekend.

Today's market sentiment is extremely panicked, with fear and greed indexes at 22. The overall market sentiment is extremely depressed, and investor sentiment tends to be pessimistic.

Crypto & Tradition Overview as of 12am UTC+8, Sep 06

1.2. Macroeconomic Impact

Recent data shows that the pace of global economic recovery is slowing down. Euro area CPI in August pumped by 6.1% year-on-year, in line with expectations, but still at a high level. US CPI in August pumped by 3.2% year-on-year, lower than the expected 3.3%, with a month-on-month rise of 0.1%, also lower than the expected 0.2%. US PPI in August pumped by -3.7% year-on-year, lower than the expected -3.6%, with a month-on-month decrease of -0.1%, in line with expectations. The final value of Eurozone manufacturing PMI in August was 49.6, higher than the expected 49.5, but still in the contraction zone. The US manufacturing PMI in August was 46.9, lower than the expected 49.0, remaining in contraction for the eighth consecutive month.

These data reflect a slight easing of inflationary pressures, but the risk of economic slowdown is increasing. The probability of a 25 basis point rate cut by the Fed in September is 65.5%, while the probability of a 50 basis point rate cut is 34.5%. The European Central Bank will announce its Interest Rate decision on September 12th. Overall, the monetary policy of major economies is tending to be accommodative, which is beneficial to the cryptocurrency market. However, the risk of economic slowdown may dampen investor risk appetite.

Producer Price Index (PPI) and Consumer Price Index (CPI) are highly correlated. PPI pump usually transmits to CPI, triggering inflationary pressures. PMI is an economic leading indicator that reflects economic expansion or contraction trends. A decline in PMI indicates an economic slowdown. The trend of macroeconomic data will affect Central Bank's monetary policy, thereby impacting the Cryptocurrency market.

1.3 Financial Calendar

Analysis:

1. This week, the focus is on following the US August CPI and PPI data, which will affect the Fed's decision on interest rate hikes in September. The previous year's CPI was 2.9%, and the market expects it to further decline; the previous year's PPI was 2.2%, which will also be followed.
2. The European Central Bank's September Interest Rate decision is also a key focus, with the market expecting another rate hike. The performance of Eurozone inflation data will affect the extent of the rate hike.
3. In addition, employment data, industrial output, etc. in the United States and the United Kingdom are also worth following, reflecting the economic situation of the two countries.
4. Investor confidence index and consumer confidence index reflect market sentiment and also have a certain impact on asset prices.

2. Analysis of Fundamentals and Price Fluctuation

2.1. Price Fluctuation Analysis

BTC Weekly Volatility

The weekly Volatility of BTC this week is 2.34%. This value is calculated based on the standard deviation of the Closing Price each day within a week.

Market Analysis

This week, the overall price of BTC has been in a downward channel of falling and rebounding. In the middle of the week, the price of BTC broke through $57,000, mainly driven by institutional investors getting on board and the expectation of unfavorable information from the Fed's interest rate hike. Afterward, there was a certain degree of weak rebound, but it still shook down. The price of BTC continued to fall, with a minimum fall to $55,659.10.

Volume changes and impact

The average daily volume of BTC this week has dropped compared to last week, indicating a drop in market activity. The decrease in volume often means a more balanced strength between long and short positions, and a narrowing of price fluctuations. However, BTC still maintains a relatively high daily trading volume, and there is still some upward momentum in the long term.

Market activity and price direction

This week, the price of BTC is in a downward oscillation space, but overall it is still above $55,000. From a technical perspective, the BTC price is still above the rise trend line and is expected to continue the pump trend. However, it is necessary to be vigilant about the impact of macroeconomics and geopolitics, among other factors.

2.2. Funding Analysis

According to the latest data, the fund flows of BTC and Ethereum show different trends. The fund inflows and outflows of BTC are relatively balanced, indicating that investors are cautious about it. However, there has been a large-scale outflow of funds from Ethereum, reflecting investors' concerns about its prospects.

On the other hand, alternative tokens like MASK and RENDER have attracted a large influx of funds. This may be due to investors seeking higher risk and return. Overall, while the activity in the cryptocurrency market has declined, there are still some bright spots.

At the same time, institutional investors appear to be gradually increasing their investment in Cryptocurrency. According to reports, some large Hedging funds and venture capital firms are building Cryptocurrency portfolios. This may bring more Liquidity and stability to the market.

However, the sentiment of retail investors remains cautious. Discussions on social media indicate that they are waiting for a more favorable entry point. Overall, there is still uncertainty about the future direction of the cryptocurrency market, and investors need to closely follow the fundamentals and regulatory trends.

2.3. Smart Money Analysis

BTC Smart Money inflows of BTC are relatively large, indicating that institutional investors are accumulating on dips. BTC is currently in a phase of oscillating upward, with a slight increase in open interest from large funds, and it is expected to maintain a pattern of long positions in the future.

ETH The outflow of Smart Money in ETH is relatively large, indicating that institutional investors are gradually reducing their positions. Currently, there is significant selling pressure on ETH, and the open interest of large funds has decreased, indicating that the market is expected to maintain a volatile and bearish pattern in the future.

LTC Smart Money inflow of LTC is relatively large, indicating that institutional investors are building a position at low levels. The support for LTC is currently strong, and there has been some increase in open interest of large funds. It is expected that the market will maintain a pattern of upward volatility in the future.

XRP The Smart Money outflow of XRP is relatively large, indicating that institutional investors are gradually reducing their positions. Currently, there is a large selling pressure on XRP, and the open interest of large funds has decreased. It is expected that the market will maintain a bearish trend in the future.

SOL The Smart Money inflow of SOL is relatively large, indicating that institutional investors are building positions at lows. SOL currently has strong support, with an increase in open interest from large funds. It is expected that the market will maintain a pattern of oscillating upward.

3. Hot Topics

Cryptocurrency Election: Trump vs Harris, who will dominate the future?

Trump Camp: Savior of Crypto Assets

According to recent public opinion data, the election battle between former US President Trump and current Vice President Harris has become a hot topic of discussion in the Cryptocurrency community. The Trump camp firmly believes that if Trump can be re-elected, it will be beneficial to the development of the Cryptocurrency industry.

"Trump's victory will undoubtedly bring spring to Crypto Assets." Well-known analyst Crypto Koryo said, "He will promote the relaxation of Crypto Assets regulation and create a more free development environment for the industry."

In fact, Trump has repeatedly expressed support for Crypto Assets during his tenure and sees them as a beneficial addition to the TradFi system. On the eve of the 2024 election, Trump even launched his own NFT series, which sparked widespread attention in the market.

Data shows that after Trump launched the NFT series, meme coins related to it, such as TRUMP and MAGA, have experienced a significant price pump. "This will undoubtedly further stimulate the enthusiasm of Trump supporters and win him more votes in the election," said Polymarket analyst Mia.

Harris Camp: Upholding Traditional Order

In contrast, the Harris camp has a more cautious attitude towards Crypto Assets. Once Harris is elected, it is widely expected that regulations will be further tightened.

"After Harris takes office, the cryptocurrency industry may face stricter regulation," former SEC chairman Jay Clayton said. He believes that the Harris administration may limit the development space of cryptocurrency to maintain the stability of the TradFi system.

The data shows that since Harris announced his candidacy, the prices of mainstream cryptocurrencies such as BTC have experienced a certain degree of decline. Analysts believe that this reflects the market's concerns about the strict regulatory measures Harris may adopt.

"If Harris is elected, we may see more regulatory pressure." Crypto Assets Hedging fund manager Galois added, "This may hinder the innovative development of the Crypto Assets industry."

Market Fluctuation, who will dominate the future?

Whether it is Trump or Harris who ultimately wins, it will have a profound impact on the Crypto Assets market. In recent days, as the election date approaches, the market Fluctuation has intensified.

According to CoinDesk's data, in the past week, the price of BTC has experienced violent Fluctuation between $56,700 and $58,000. Analyst Valentin Fournier stated, "Economic reports increasingly suggest that we should not ignore the risk of economic recession, given the current economic uncertainty and the possibility of reduced Liquidity, we recommend reducing exposure to BTC."

Meanwhile, analysts such as Alex Kuptsikevich have expressed concerns about Bitcoin's weakness, seeing it as a warning signal for traditional risk assets.

Overall, the cryptocurrency market is currently in a state of uncertainty. The outcome of the showdown between Trump and Harris will directly determine the future regulatory direction, thereby affecting the development prospects of the entire industry. Regardless of who ultimately wins, it will bring new opportunities and challenges for cryptocurrency.

4. Main Events

Top 15 Major Impact Events Recently

1. Founder of Telegram arrested on September 5, 2024 Pavel Durov's arrest in France raises concerns about privacy and cryptocurrency regulation. The price of TON coin has fallen more than 20%. This event highlights the regulatory pressure on cryptocurrency and privacy technologies by governments.
2. 2024-09-05 Weak US Employment Data US private employment data was weak in August, intensifying market expectations of a Fed rate cut in September. BTC short-term decline, but long-term prospects are expected to benefit from rate cut expectations.
3. 2024-09-04 Gray Scale ETH ETF Fund Outflow Grayscale's ETH ETF has seen a total outflow of $562 million over the past 8 days, reflecting the market's concerns about the long-term prospects of Ethereum.
4. Grayscale report bullish on Bitcoin by 2024-09-01 The grayscale release report believes that BTC is expected to retest its historical high this year because the dumping pressure has eased and the fundamentals have improved.
5. 2024-08-31 Monkey PoxTokenbig dump After the big pump of Monkey PoxToken on August 5th, all gains were wiped out due to concerns about market manipulation. This reflects the speculative nature of the memes market.
6. OpenAI announced that the number of ChatGPT users has exceeded 200 million by 2024-08-30 OpenAI announced that the number of weekly active users of ChatGPT has exceeded 200 million, which is twice as many as a year ago. This reflects the influence of artificial intelligence in the Crypto Assets field.
7. 2024-08-30 Grayscale ETHE large amount of ETH outflow The amount of ETH managed by Grayscale ETHE has decreased by 31% in 28 trading days, and is expected to flow out 50% within 108 days.
8. 2024-08-30 European Central Bank may ease policy by the end of 2025 European Central Bank officials have stated that as long as inflation contracts to 2% by the end of 2025, policies can be gradually relaxed.
9. 2024-08-29 BTCMiner electricity cost may be a buying signal Analysts say that when the production cost of BTC is lower than the market price, it is often a good buying opportunity in history. This condition has been reached now.
10. 2024-08-29 Zhu Su: Asset selection is more important than timing Zhu Su said, the general view in mid-2023 is that timing is important, but the reality proves that asset selection is more crucial.
11. 2024-08-28 Aave V3 launches on ZKsync Era Aave announced the launch on ZKsync Era Mainnet to expand the DeFi user base and improve privacy and scalability.
12. 2024-08-27 Galaxy:Telegram founder may be arrested again Galaxy Research believes that the arrest of Telegram CEO is unlikely to be the last, as governments worldwide hold a hostile attitude towards cryptographic technology.
13. 2024-08-27 AEON purchased $1 million TON to support Durov AEON announced the purchase of $1 million TON to support Pavel Durov and the TON ecosystem, defending freedom of speech.
14. Travala collaborates with Skyscanner on 2024-08-26 Travala collaborates with travel website Skyscanner to support booking 2.2 million hotels with Cryptocurrency, promoting adoption.
15. 2024-08-26 Grass Launches Airdrop Check Portal Grass launches Airdrop inspection portal, 10% Token will be used for the first Airdrop, distributed to participants in different stages.

5. Global News

According to news from August 30 to September 6, 2024, the following are the new political dynamics, economic policies, and regulations related to the cryptocurrency industry, as well as the analysis of their impact on the industry and the market:

Political Dynamics

Telegram founder Pavel Durov arrested in France

• Description: On August 27, Telegram founder Pavel Durov was arrested in France, and the French authorities said this was related to the abuse of the "failure to reduce" encryption messaging application in illegal activities.
• Impact Analysis: This event has triggered people's follow on digital privacy and encryption technology. The price of TON currency has dropped by more than 20% in the short term. If governments around the world hold a hostile attitude towards encryption technology, it may hinder the development of the industry.

Prospects for the US Election

• Description: Trump and Harris' policies may affect the inflation level, and if inflation pressures increase, the Fed may reverse its rate-cutting policy.
• Impact Analysis: The election results will have a significant impact on the Crypto Assets market. If Trump is elected, it is expected to bring Favourable Information to the development of Crypto Assets; if Harris is elected, it may have a negative impact on the industry.

Economic Policy

Federal Reserve Interest Rate Policy

• Description: Fed Chairman Powell hinted at an upcoming rate cut, Intrerest Rate futures indicate that the Fed will Intrerest Rate drop 100 basis points at the remaining three meetings this year.
• Impact Analysis: If the US dollar remains weak and the interest rate continues to decrease, it will have a Favourable Information on assets such as BTC that compete with the US dollar. Investors may allocate funds to assets such as BTC for diversification.

Regulatory Updates

The United States Approves BTC and ETH Spot ETFs

• Description: The United States launched BTC and ETH spot ETFs this year, which has become a positive factor in promoting institutional adoption of digital assets.
• Impact Analysis: The launch of spot ETFs is conducive to institutional investors' participation in the crypto market, which will bring more funds into the market and boost cryptocurrency prices.

Summary

In conclusion, the current political, economic, and regulatory environment has had a significant impact on the development of the Crypto Assets industry. Factors such as the outcome of the US presidential election, the Federal Reserve's interest rate policy, SpotETF regulation, etc., will determine the future market trends. The industry's development also faces potential resistance from governments around the world, and the application of digital privacy and encryption technology may be restricted.

6. Investment Analysis

6.1. Investment Recommendation

Please note that these suggestions are based solely on current market analysis and are not financial advice. Investment decisions should be based on individual risk preferences and investment objectives.

6.2 Investment Strategy

1. This week's popular Token analysis

The popular Token this week, MBAPPE, is a Meme coin released by Hacker, which carries a significant risk. Its price fluctuates drastically and has no actual value. A trader bought MBAPPE for just 0.2 SOL and sold it at a high price of 866.13 SOL after 3 minutes, gaining a return of 4,330 times. However, the speculative nature of Meme coins like MBAPPE poses extremely high risks, and ordinary investors should exercise extra caution when participating.

Summary: High-risk, high-return Meme coins are suitable for experienced speculators, and ordinary investors should stay away from this type of Token.

2. Quantitative Strategy Analysis

Grid Trading robots use grid trading strategies to profit from price fluctuations, with a relatively balanced risk-reward ratio. Trend tracking robots track major trends, offering larger profit potential but also greater fluctuations. Arbitrage trading robots profit from price differences across different exchanges, with smaller fluctuations but limited returns. Mean reversion robots employ a strategy based on price mean reversion, offering moderate risk and moderate returns. Depth learning Algorithmic trading robots utilize artificial intelligence algorithms, providing the highest potential returns but also the highest risk.

Summary: The performance of quantitative strategy robots varies depending on the strategy, and investors can choose according to their own risk preferences.

6.3. Financial Management Products

Simple Earn

Simple Earn helps match users with idle assets and borrowing needs. After purchasing Simple Earn, the system will determine whether the borrowing is successful and the Interest Rate for that hour based on the user's set Intrerest Rate and actual borrowing needs at every o'clock. Successful borrowing can generate Interest for that hour. Simple Earn supports user-customized Intrerest Rates, allowing users to set the minimum lending Intrerest Rate at the time of purchase. After successful borrowing is determined at every o'clock, the profit is calculated based on the determined Intrerest Rate. Simple Earn supports flexible deposits and withdrawals, allowing for anytime purchase and redemption within 24 hours.

The total amount of USDT in the Yubibao is 10.18 billion USDT, with an estimated Annual Percentage Rate of 2.59%+8.87%.

Financial Management Treasure

The Wealth Management Service is a one-stop comprehensive wealth management service center established by Gate.io Finance, including current, fixed-term, and all other wealth management schemes, providing users with hundreds of Digital Money financial products of multiple types. Different wealth management products may have different profit rules, and profits will be calculated based on the specified annualized Intrerest Rate.

Structured Investment

Gate.io structured financial management is a new financial product based on a combination of fixed income and financial derivatives such as Options. It is generally determined by comparing the performance of the underlying asset with the specified reference price during the investment period to determine the level of settlement yield, and can be divided into capital preservation and aggressive types. Users can purchase products with specified investment periods based on their desired yield, Standard Money, etc., and generally redeem the principal and interest through settlement at maturity.

4. Market Intrerest Rate

Note:

1. TradFi is the abbreviation of TradFi, including the financing Intrerest Rate of Overnight, USD-1m, and USD-6m.
2. CeFi is the abbreviation for centralized encryption finance, including Cryptocurrency within the scope of financing on centralized exchanges and Interest Rate.
3. DeFi is the abbreviation for Decentralized Finance, which includes Cryptocurrency within the scope of the Decentralized Finance protocol's financing Interest Rate.

Disclaimer: The above data is provided by a third party and may be delayed and biased. This report is for reference only and does not constitute investment advice. Investors enter the market at their own risk based on this information.

6.4. Bollinger Band Technical Trading Strategy Backtest Analysis

Bollinger Bands is a commonly used Technical Analysis indicator that identifies potential Overbought or Oversold conditions by calculating the standard deviation of prices. This article will backtest the Bollinger Bands technical trading strategy and summarize its performance in the ETH market.

Backtest Settings

• Trading Pair: ETH/USDT Perptual Futures
• Backtest Time Range: January 1, 2023 - June 30, 2024
• Initial principal: 100,000 USDT
• Trading Strategy:
• When the price approaches or breaks through the upper band, short ETH, Position 20% When the price approaches or breaks below the lower rail, go long on ETH, Position20%
• Bollinger Band parameters:
  • Period (n): 20
  • Multiplier(K): 2

Backtesting Results

• Return on Investment: 36.72%
• Maximum Drawdown: 21.35%
• Annualized Volatility: 48.26%
• Total number of trades: 68 times
  • Among them, longs traded 35 times, with a win rate of 57.14%
  • Short positions traded 33 times with a win rate of 51.52%

Strategy Analysis

In terms of yield, the strategy achieved a total return of 36.72% during the backtesting period, with an Annual Percentage Rate of about 17%, which is still respectable. However, it is also important to note that the maximum drawdown rate reached 21.35%, indicating high volatility. 2. There were a total of 68 transactions, which means that transaction costs such as commissions will have a certain impact on the final returns. 3. The success rate of long positions trading is slightly higher than that of short positions trading, which may be related to the overall pump trend of ETH during the backtesting period. 4. As a lagging indicator, the Bollinger Bands may lag in the event of intense Fluctuation, affecting the timing of trades. 5. The strategy does not consider other technical or fundamental factors, relying solely on Bollinger Bands may involve certain risks.

Summary

The Bollinger Band technical trading strategy performs moderately in the ETH market, with both return and Volatility at a moderate level. The strategy is relatively simple to operate, but it also has some flaws, such as lag and the neglect of other factors. In actual trading, it can be combined with other technical indicators or Fundamental Analysis and optimized and adjusted according to the actual market conditions to achieve better trading performance.

Grass launches Airdrop check portal

Decentralization incentive capture network Grass launches Airdrop inspection portal, 10% Token will be used for the first Airdrop. Among them, 1.5% is allocated to Closed Alpha, 7% is allocated to Epochs 1 to 7, 0.5% is allocated to Bonus Epoch, and 1% is pending allocation.

Near Twitter Renamed "Scam" is a Marketing Tactic

Near team members said that Near's Twitter account was renamed "Scam" as a marketing tactic to promote the Hackerthon. Earlier, the official Near X account was hijacked, and Hackers posted a series of attacks on the encryption ecosystem.

Etheism, a new Token protocol on ETH, is launched

The new Token protocol Etheism released TokenE in the ETH ecosystem, with a trading volume of 9.6 million US dollars within 7 hours of its launch. This Token can be embedded in SVG images, and the images are generated using mathematical formulas and evolve as the supply decreases.

The user base and revenue of Grass

The number of Grass users has reached 2 million. After the TGE, the number of users may reach 50 million within a year. The Reddit dataset obtained by Grass is valuable, and a mobile version and exclusive Mining Rig will be launched in the future to further expand revenue.

Siemens issuance of 300 million euros digital bonds

German industrial giant Siemens issued 300 million euros of digital bonds on the private blockchain as part of a trial by the European Central Bank. Major German financial institutions participated in the investment.

Catizen game reaches a peak of 4 million daily active users

Telegram's Web3 game Catizen has reached a peak of 4 million daily active players, with the daily active users of the ecosystem application center exceeding 500,000.

ETH Foundation research team will hold Reddit AMA

The Ethereum Foundation research team will hold a Reddit AMA tonight and questions are now open for comments. The team last held an AMA in January this year.

BTC September trend triggers follow

In September, Bitcoin usually experiences a decline, but some analysts believe that this year may break the norm. The director of research at CryptoQuant predicts a BTC Closing Price of around $55,000 in September, while another CryptoQuant analyst believes that the BTC price is at or near its lowest point.

Institutions have different opinions on the September market.

QCP Capital believes that BTC has a strong support level at $54,000, and the Options market still shows a bullish signal in the medium term. However, 10x Research suggests that the market structure and fundamentals are gradually weakening, and each subsequent decline becomes deeper.

Analysts have different opinions on the future trend of Bitcoin

Encryption analyst Miles Deutscher stated that BTC recently showed a "Asian buying American dumping" trend, and there may be upward stimulation in the next week. Meanwhile, Wolfe Research analysts believe that BTC may return to the $50,000 low area in the coming weeks.

BTC price may surpass $100,000

TradingView analyst TradingShot believes that BTC has been closely following the structural pattern of past cycles, and breaking through $100,000 should be the minimum expectation if the key support level is maintained.

The Trump family launches the encryption project

Members of the Trump family have been hinting at an upcoming Cryptocurrency project, World Liberty Financial, which includes a non-transferable governance Token WLFI.

Penpie suffered a loss of 27 million dollars from Hacker attack

Penpie rewards protocol suffered an attack, with losses of about $27 million. Hackers have transferred some assets to Tornado Cash for mixing.

BTC Computing Power hits a new high

According to the data from BTC.com, BTC Computing Power reached 742.76 EH/s on September 2, hitting a new all-time high.

BTC ecological concept currency general rise

Data shows that the heat of BTC's ecological tokens is rising, and the prices are generally rising. In the past 24 hours, Inscription and Runezone have risen by more than 20%, SATS have risen by more than 14%, RATS have risen by 14%, and PIZZA has risen by 18%. Among BTC's ecological coins, STX has risen by 6%, CKB has risen by 9%, and BB has risen by 11%. The rise in the heat of BTC's ecology is related to the hot stake of Babylon's first phase.

Opportunity for bargain hunting may come to the Solana ecosystem

The cooling of the Solana ecosystem may give us an opportunity to catch the bottom. JTO, CLOUD, DRIFT, and KMNO are worth following to see which one can attract market attention.

RWA Track Invest with Caution

When considering RWA targets, caution is needed. MPL and CPOOL are two projects worth following. However, investing in the RWA track now feels like joining the army in 1949. Please think twice before pressing the purchase button. 01928374656574839201

MakerDAO renamed or Favourable InformationLQTY

The renaming and splitting of MakerDAO has its pros and cons. DAI will no longer be decentralized and may become Favourable Information other decentralized stablecoins, such as LQTY.

Pendle is approaching BTCFi

Pendle is approaching BTCFi, which may promote the development of BTC ecosystem.

Other events worth following

On September 4th, MATIC will be renamed POL; Arbitrum will undergo Stylus upgrade; Eigenlayer will have significant progress in Q3, and so on.

The Future Development of BTC and ETH

BTC is considered a special existence, a "sound currency", but some believe it is just a digital stone that may be replaced by other blockchains in the future. Ethereum, on the other hand, is seen as a tech stock or a growth asset, with the potential to become a unified platform for managing global assets and finance.

Layer 2 Interoperability Challenges

The lack of interoperability standards between Layer 2 solutions in the Ethereum Mainnet has weakened its value capture ability. Each team builds its own standards within its own ecosystem, making it difficult to reach consensus.

The relationship between Layer 2 and Ethereum Mainnet

Layer 2 captures value rather than the ETH mainnet, which is seen as a "parasitic" behavior. But some also believe that Layer 2 creates new economic activities that the ETH mainnet cannot capture.

The Innovation Power of Ethereum

The ETH community currently lacks structural innovation paradigms similar to Decentralized Finance, Non-fungible Token, etc., and needs to promote mass acceptance without violating core principles.

Bitcoin's Layer 2 solution

Bitcoin's Layer 2 solution is difficult to compete with Ethereum or Solana in the long term, and its role and impact are limited.

Valuation Framework for Cryptocurrency

Some argue that Cryptocurrency should be seen as capital assets rather than store of value assets, and their valuation should be based on factors such as cash flow and user demand.

September BTC Trend Prediction

The data shows that the probability of BTC falling in September is relatively high, but not inevitable. The main dumping pressure has been cleared, and there is still room for optimism.

The Impact of WhaleAddress Activity on Bitcoin Price

Recently, a WhaleAddress transferred a large amount of BTC to the exchange, which may have some impact on the price.

BTC Price Fluctuation Analysis

The BTC price has experienced some Fluctuation in the past 24 hours, reaching above $59,000 at its highest and falling below $58,000 at its lowest. Analysts say that BTC is currently in a crucial range, with significant uncertainty about its future trend. The Puell Multiple Index shows that BTC is approaching a "favorable" buying level.

Gas Fee Decrease on Ethereum Network

The Gas fee on the Ethereum network has dropped significantly in the past 24 hours, and is currently at a low of 0.6 gwei. The congestion on the network has eased, which is favorable for attracting more users due to the drop in Transaction Cost.

Cryptocurrency total market cap slightly declined

The total market capitalization of Cryptocurrency has slightly declined to $2.169 trillion in the past 24 hours, a decrease of 2%. The poor performance of major cryptocurrencies has dragged down the overall market performance.

South Korea BTC price premium continues

Despite the recent turmoil in the cryptocurrency market, the trading price of BTC in South Korea still maintains a premium. Data shows that the current BTC price in South Korea is about 1.52% higher than the global market.

TVL of ETH L2 Ecosystem Declines

The TVL of the second layer scaling solution ETH has dropped in the past week, and the total locked amount has dropped to $34.83 billion, a decrease of 9.52%. The ecological activity has dropped slightly.

Frequent hacker attacks in August

According to monitoring data, there were multiple hacker attacks in the cryptocurrency field in August, with losses of up to 313.86 million US dollars. Cybersecurity issues remain a major challenge for industry development.

SUI inflation rate triggers follow

Sui co-founder responded to the issue of SUIToken inflation, indicating that about 2.6% of the monthly unlocked amount of SUI accounts for the circulating supply, and it is still decreasing. Excessive Token inflation rate may affect price performance.

Hong Kong regulatory agency reviews exchange license application

According to reports, HKDAX has submitted a virtual asset trading platform license application to the Hong Kong Securities and Futures Commission. Hong Kong is accelerating the progress of cryptocurrency regulation to create a favorable environment for industry development.

BTCSpotETF overall net outflow this month

According to monitoring data, the overall net outflow of BTC Spot ETF in the United States in August was 83 million US dollars. ARK's ARKB had a net outflow of 65 million US dollars. The price of BTC dropped from $64,600 to $59,300 in August.

Institutional Whale's Large-scale Operation

A certain Whale institution recently withdrew 29,414 ETH from the exchange and deposited it into Lido to earn stake income at Address. Another Whale Address is suspected to have closed all positions of 5419 ETH built 7 months ago, with profits withdrawing over $8.4 million.

Ethereum development ecosystem continues to heat up

The Ethereum Foundation has announced the list of funded projects and community activities for the second quarter of 2024, totaling over $8.47 million. According to the data, as of July 1st, there are 2,788 full-time developers and a total of more than 8,865 developers in the Ethereum community, with 450 researchers.

Telegram encryption business share

According to reports, Telegram held digital assets worth 400 million US dollars as of the end of 2023, with its encryption-related business accounting for about 40% of total revenue. It sold TON worth 244 million US dollars this year. The company's team has about 50 very young members with an annual salary of 500,000 US dollars.

Russia trials encryption cross-border payments

Russia will start using Crypto Assets for cross-border payments next week to evade international sanctions. The legislation allows the use of Crypto Assets for cross-border payments but prohibits the use of Crypto Assets as a means of payment within Russia.

Hong Kong Police Crack Down on Money Laundering Group

Hong Kong police have dismantled three Money Laundering groups this month, involving a total amount of over HKD 200 million. These groups collect fraudulent funds through bank accounts and then launder the black money by purchasing Virtual Money.

TRON Network Revenue Surges

In the past 12 days, the total revenue of the TRON network has exceeded $36 million, and the withdrawal fees of mainstream exchanges have significantly pumped. Among them, the revenue provided by SunPump is $463,000, and the TRON network fees have risen significantly compared to before.

The law firm made 7.51 billion dollars from the encryption bankruptcy case.

According to reports, law firms handling seven bankruptcy cases of Crypto Assets since 2022 have requested and received a total of $7.51 billion in fees. Among them, Sullivan Cromwell received the highest income, reaching $2.15 billion.

Chinese police raided Virtual MoneyMoney Laundering dens

Jiangxi police in China cracked down on a Virtual Money Money Laundering 'water house' and arrested eight suspects. The gang collected fraudulent money through multiple bank accounts and laundered black money by purchasing Virtual Money.

Cboe applies for listing BTC and ETH ETF options

The Chicago Options trading platform has submitted an application to regulatory agencies, hoping to list Options linked to ETFs of BTC and ETH issuance by asset management companies.

The judge dismissed Musk's manipulation of Dogecoin lawsuit

A US judge dismissed the lawsuit accusing Elon Musk and TSL of fraudulently manipulating DOGE and engaging in insider trading to deceive investors.

X platform's San Francisco headquarters will be closed and relocated to Texas

Social media platform X announced that its long-term office and global headquarters in San Francisco will be closed on September 13 and is expected to relocate to Texas.

Apple is in talks to participate in the new round of financing for OpenAI

Apple is in talks to finance OpenAI, which will strengthen the relationship between Apple and OpenAI. Sources say that this investment will make OpenAI's valuation exceed $100 billion.

Shanghai Procuratorate releases first case of illegal acquisition of digital wallet private key in China

The Xuhui District Procuratorate of Shanghai released the first nationwide case involving Virtual Money, where three criminals illegally obtained mnemonic words and Private Key, posing a serious threat to the security of Virtual Money.

The Brazilian court threatens to suspend X's business in the country

This move reflects a global trend of strengthened regulation on social media platforms. Platform X needs to take more proactive measures to strengthen content review. For investors, it is necessary to closely follow the development of the event and assess its impact on Platform X and the entire industry.

You are reading the weekly industry hot spot report generated for you by the gate AI Laboratory. Get an overview of last week's market trends and important events worth following, and receive investment analysis and financial strategies recommendations.

Word count: 8406 words | Reading time 10.5 minutes.

Contents:

1. Market Situation and Trends
2. Analysis of Funding and Price Fluctuation
3. Hot Topic
4. Main Events
5. Global Policies
6. Investment Analysis

1. Market Trends

1.1. Market Sentiment

This week, the total market capitalization of Digital Money reached $2.08 trillion, up 1.96% from the previous week. The exchange volume rose 3.21% to $125 billion. The price of Bitcoin hovered above $60,000, and the overall market showed a Sideways consolidation pattern. Mainstream currencies generally pumped slightly, but lacked sustained upward momentum. Market sentiment is cautiously optimistic, waiting for the emergence of significant Favourable Information news.

Today's market sentiment is fearful, with a fear and greed index of 34. The overall market sentiment is relatively low, and investors are generally cautious.

Crypto & Tradition Overview as of 14pm UTC+8, Aug 30

1.2. Macroeconomic Impact

Recent data shows that there is still uncertainty in the global economic situation. The initial CPI in the Eurozone in August rose by 5.3% compared to the same period last year, higher than the expected 5.1%, but lower than the 8.9% in July. The CPI in the United States in August rose by 3.2% year-on-year, lower than the expected 3.3% and the previous value of 3.3%. Although inflation data in the Eurozone and the United States has slowed down, it is still higher than the Central Bank's target level of 2%. According to CME's FedWatch tool, the probability of a 25 basis point rate cut by the Federal Reserve in September is 65.5%, and the probability of a 50 basis point rate cut is 34.5%.

Producer Price Index (PPI) and Consumer Price Index (CPI) are interrelated. In the United States, the PPI in August pump-3.7% year-on-year, lower than the expected -3.6% and the previous value of -0.8%, indicating some easing of inflationary pressures on the production side. The Purchasing Managers' Index (PMI) serves as a leading indicator of the economy. The initial value of the manufacturing PMI in the United States in August was 47.0, lower than the expected 49.0 and the previous value of 49.3, indicating a worsening contraction in the manufacturing sector. The initial value of the service industry PMI was 51.5, higher than the expected 51.0, but lower than the previous value of 52.3, indicating a slowdown in the expansion of the service industry.

Overall, inflationary pressures have eased somewhat, but still remain above the Central Bank's target. Signs of slowing economic activity are emerging, with the manufacturing sector contracting and the service sector showing weak expansion. Against this backdrop, the Fed may adopt a moderate rate cut strategy in September to balance inflation and economic rise.

1.3 Financial Calendar

This week, the focus will be on following the U.S. August non-farm employment data, unemployment rate, and ISM manufacturing PMI data, which will provide important references for the Interest Rate decision of the Federal Reserve in September. In addition, it is also worth following the Caixin Manufacturing PMI for August in China and Australia's GDP data for the second quarter.

In terms of importance, the US August non-farm employment and unemployment rate are the most important data this week, followed by the ISM Manufacturing PMI. The importance of China's Manufacturing PMI and Australia's GDP data is relatively low. In addition, the US Treasury auction situation and trade data will also affect market trends.

Overall, the economic data released this week will provide important clues for the monetary policy decisions of Central Banks worldwide, and the market will closely follow the trend of relevant data.

2. Analysis of Funding, Price Fluctuation

2.1. Price Fluctuation Analysis

This week's BTC price Volatility is 2.14%. The price of BTC has shown a trend of first rising and then falling this week. It reached a high near $65,000 at the beginning of the week, once dropped to around $57,800 in the middle of the week, and rebounded over the weekend, maintaining around $59,500.

volume Impact: This week, the volume of BTC has increased compared to last week, but it is still at a low level overall. The increase in volume has to some extent driven the Fluctuation in price, but the lack of sustained incremental funds to get on board makes it difficult to form sustained pumping momentum.

Market Activity and Price Direction: Despite the pullback in BTC price this week, overall market activity has improved. If the Federal Reserve slows down its rate hikes in the future, it is expected to stimulate demand for risk assets, providing further pump potential for BTC. However, if regulatory policies tighten, BTC price may come under pressure.

2.2. Fund Analysis

According to the latest data, major cryptocurrencies such as BTC and Ethereum have experienced a large influx of funds in the past week. BTC attracted a capital inflow of $543 million, mainly after dovish remarks from Fed Chairman Powell. This highlights BTC's sensitivity to interest rate expectations and its role as a hedging tool against economic uncertainty.

Meanwhile, despite attracting a capital inflow of $3.1 billion, the overall investment products based on Ethereum experienced a capital outflow of $36 million. This is mainly due to a capital outflow of $118 million from the Grayscale Ethereum Trust.

In addition to mainstream Crypto Assets, emerging projects such as DigiHorse (DIGI) have also attracted investors' follow. DigiHorse Empires offers an innovative "play to earn" model that allows users to buy, breed, and compete with NFT horses. This fun way enhances the user experience and sets DigiHorse apart in the rising Blockchain gaming field.

Overall, the recent fund flows show that investors have increased confidence in the Crypto Assets market. Different groups of investors are seeking diversified investment portfolios, including traditional Crypto Assets as well as emerging innovative projects. This active fund movement is expected to further drive the development of the entire Crypto Assets market.

2.3. Smart Money Analysis

The flow of smart money often foreshadows the market's trend. By analyzing the changes in large orders Trading Volume, we can insight into the movement of institutional funds.

BTC Recently, the large single transaction volume of BTC has shown a net outflow trend, indicating that institutional funds are gradually withdrawing. This may mean that BTC will face a certain amount of selling pressure in the short term. However, in the long run, BTC still has strong support.

ETH Unlike BTC, ETH has recently shown a net inflow of large trading volumes. This indicates that institutional funds are increasing their positions in ETH and have confidence in its future prospects. ETH may continue its pump trend in the short term.

Other cryptocurrencies As for other mainstream currencies, the changes in large orders Trading Volume are not significant. This means that institutional funds are temporarily adopting a wait-and-see attitude, without a clear inclination towards long or short positions.

Overall, BTC may be under pressure in the short term, while ETH may continue to pump. However, in the long run, institutional confidence in the Crypto Assets market remains. We need to continue to follow the changes in large transaction volumes.

3. Hot Topics

Has the Cryptocurrency market seen another 'frenzy'? Experts: These signals indicate the bursting of the bubble

Signs of "frenzy" in the market reappear, experts list 10 "bubble burst" signals

In the past week, the cryptocurrency market has once again attracted widespread attention. The price of Bitcoin has surpassed $65,000, and investors are optimistic about its future prospects. However, some experts have warned that the market may have entered a "frenzy" stage, and a bubble may burst soon.

Dan Morehead listed 10 "bubble burst" signals in his latest report, reminding investors to beware of overheated markets. He said, "Our only goal is to identify market frenzy in a timely manner and make money smoothly before the bubble bursts."

1. Cryptocurrency is heavily promoted on TV When mainstream media coverage of Crypto Assets is intense, it often means the market is already overheated. "The bubble of Crypto Assets can only last for at most two to three months after it becomes mainstream again."

2. Celebrities and Internet Celebrities collectively endorse Crypto Assets The promotion of Cryptocurrency by celebrities and social media influencers is often a Reverse indicator. "The common point of celebrities, influencers, and streamers suddenly promoting Cryptocurrency on a large scale is that they have no idea about the true use of Cryptocurrency."

3. Increase in fraudulent activities When the market approaches its peak, various fraudulent schemes will emerge. "Billions of dollars of Crypto Assets will be trapped as legal currency, leading to a massive outflow of funds in the market, causing an impact on market Liquidity."

4. Google Trends"Purchasing encryption currencies" index This indicator usually lags by a few weeks, but when a parabolic pump trend occurs, it means that Newbie faces greater financial risks.

5. retail investor FOMO (fear of missing out) The widespread panic among retail investors is a reliable indicator of a market peak. "Although fear of missing out can be 'shorted', caution is advised as the market may remain irrational for a period of time."

6. The price has soared to unrealistic levels When the price shows a parabolic trend, the volume usually reaches a peak. At this time, most potential investors will enter the market to buy, while the smart money that bought early will quickly exit the market.

7. Crypto Assets become a symbol of social status "When Cryptocurrency begins to be seen as a fashion, it often means that the market is more driven by social sentiment than fundamentals, which usually signals that the market is about to peak."

8. exchange出现故障 The main exchange malfunctions due to a large number of users accessing it at the same time, usually occurring before and after the market peaks.

9. Period Position The BTCHalving event is a timer for market cycles, and the positive effects of Halving usually take 12 to 18 months to show. "So far, there have been such moments in every Bull Market, which make investors panic in the early stages."

10. Your hairdresser bought Crypto Assets "When the price keeps pumping for a long time, remember to visit the barber regularly, such as once a month. However, this indicator may not be effective unless your barber brings up the topic proactively."

Data shows that there is currently no sign of "craziness" in the market.

Dan Morehead emphasized in the report that none of these indicators currently indicate that the market has peaked. "Although there may be a bubble, there is still a lot of pump space before it bursts."

Data shows that BTC price experienced a pullback after surpassing $65,000 on August 29. Renowned analyst Willy Woo indicates that BTC's key indicators are still in the bullish range, and there are no signs of market frenzy at the moment.

However, experts also remind investors to remain cautious. "Although we may observe various analyses and signals, the situation can change at any time, and all we can do is effectively manage the risks."

4. Main Events

Recent Major Events

1. Telegram founder arrested On 2024-08-27, Pavel Durov, the founder of Telegram, was arrested in France, causing turmoil in the TON ecosystem. The price of TON coin fell by 15% within a week. Despite the optimistic long-term outlook for TON expressed by many venture capitalists, this event has had a negative impact on the TON ecosystem in the short term.
2. Fed rate cut expectations On 2024-08-23, Federal Reserve Chairman Powell signaled a rate cut at the Jackson Hole meeting, triggering market expectations of a rate cut in September. Major cryptocurrencies such as Bitcoin subsequently experienced a pump. Several institutions predict that the Fed will implement three rate cuts this year, which is beneficial to the crypto market.
3. MakerDAO品牌重塑 On 2024-08-29, MakerDAO announced a rebranding to Sky Protocol, launching the new stablecoin USDS and governance token SKY. Gnosis chain users expressed concerns about the reliability of USDS, sparking discussions. This event reflects the impact of the MakerDAO ecosystem transformation.
4. Polymarketvolume surges On August 29, 2024, the prediction market platform Polymarket's monthly volume exceeded $110 million, with a daily volume of up to $30 million. Its accurate predictions have gained market recognition and are seen as a barometer of public sentiment. This event highlights Polymarket's leading position in the prediction market.
5. AustraliaencryptionATMrise Australia has become the fastest-growing market for encryption ATMs in the world, with the number of machines rising 16 times in one year by 2024-08-30. Regulators see it as a loophole for money laundering, causing concern. This event reflects the rapid popularization of encryption ATMs in Australia.

5. Global Policy

According to the news from August 23rd to August 30th, 2024, the following are the new political dynamics, economic policies or regulations related to the Cryptocurrency industry, as well as analysis of their impact on the industry and the market:

1. The U.S. House of Representatives plans to hold multiple Cryptocurrency hearings in September

According to reports, the Financial Services Committee of the U.S. House of Representatives plans to hold a series of cryptocurrency hearings in September to conduct in-depth research on several aspects of the industry, including Decentralization Finance (DeFi), the regulation of digital asset business by the U.S. Securities and Exchange Commission (SEC), and the impact of 'Ponzi schemes'.

This move indicates that the US government is increasing its regulatory efforts in the cryptocurrency industry. The results of the hearing may affect the future regulatory policies and regulations, and have a significant impact on the industry's development.

2. Hong Kong releases Stable Coin regulatory consultation summary

The latest regulatory framework draft from the Hong Kong Monetary Authority (HKMA) provides comprehensive guidance to ensure that the issuance and operation of Stable Coins meet the highest regulatory requirements. Hong Kong is building a highly secure and transparent Stable Coin market, which not only helps protect the interests of investors, but also provides a solid foundation for financial technology innovation.

This regulatory framework is expected to make Hong Kong one of the global leaders in the Stable Coin market. For companies wishing to issue Fiat Currency Stable Coins in Hong Kong, understanding and complying with these strict regulatory requirements is key to ensuring the sustainable development and maintaining market competitiveness of their business.

3. Former Russian Deputy Defense Minister Detained on Suspicion of Fraud

Pavel Popov, former Deputy Minister of Defense of Russia, was detained on suspicion of embezzlement and personal gain. This incident may have a certain impact on the regulation of Crypto Assets in Russia, as Popov has been involved in related work on the regulation of Crypto Assets in Russia.

4. The U.S. Department of Defense has approved providing additional military support to candidates during the election period.

US Secretary of Defense Austin has instructed the US Northern Command to plan and provide support for the Secret Service at various locations during the election period. This decision may impact the regulatory environment of the Crypto Assets industry, as different political forces may have different attitudes towards Crypto Assets.

The above political dynamics and economic policies or regulations reflect the increasingly strict regulatory attitude of governments towards the Crypto Assets industry. These regulatory measures aim to protect the interests of investors, maintain financial stability, and combat illegal activities. The Crypto Assets industry needs to closely follow these policy and regulatory changes and make corresponding preparations.

6. Investment Analysis

6.1. Investment Recommendation

The above suggestions are based on current market analysis and are not financial advice. Please invest with caution.

6.2 Investment Strategy

This week's popular Token analysis

This week's popular tokens include Pawfury, BlockDAG, and DigiHorse. Pawfury, as an innovative Play2Earn game and non-fungible token (NFT), adopts a deflationary model and is expected to surge by 500% in September. BlockDAG has reached a strategic cooperation with Borussia Dortmund Football Club, and its pre-sale activity is expected to soar to a target of $600 million. DigiHorse's second phase of pre-sale is performing strongly, attracting investors to follow its innovative NFT gaming platform.

Trading Bot Strategy Analysis

The overall performance of the trading robot strategies this week is strong. The contract grid strategy has the highest returns among high-risk high-yield currencies, but also the largest fluctuation. The spot Martingale strategy performs well in medium-risk medium-yield currencies. The spot grid strategy is relatively stable in low-risk low-yield currencies. Overall, high-risk high-yield strategies have the advantage this week, but potential systemic risks should also be monitored.

Summary

The market remained active this week, with good performance in innovative Token and quantitative strategies. Investors can cautiously seize opportunities based on their own risk preferences.

6.3. Financial Management Products

1. Simple Earn

Simple Earn helps to match users with idle assets and borrowing needs. After the user applies for Simple Earn, the system will determine whether the borrowing is successful and the Intrerest Rate for that hour based on the user's set lending Intrerest Rate and actual borrowing needs every hour. Successful lending can earn the Interest for that hour, while users who fail to borrow due to an excessively high Intrerest Rate and those who redeem funds before the hourly determination will not receive Interest.

Total Funds(USDT): 10.18 billion USDT Annual Percentage Rate (APR) for the past 7 days: 2.59% + 8.87%

2. Wealth Management Treasure

The Wealth Management Center is a one-stop comprehensive financial service center set up by Gate.io Finance, including current and fixed-term and all other financial plans, providing users with hundreds of types of Digital Money financial products.

3. Structured Financing

Gate.io structured wealth management is a new financial product based on a combination of fixed income and financial derivatives such as options. It is generally determined by comparing the performance of the underlying asset with the specified reference price during the investment period to determine the level of settlement yield, and can be divided into two types: capital preservation and aggressive.

4.市场Intrerest Rate

Explanatory notes:

• TradFi is the Intrerest Rate data of TradFi.
• CeFi is the range of CeFi's Intrerest Rate.
• DeFi is the range of Decentralization finance Intrerest Rate.
• Intrerest Rate data comes from mainstream exchanges and data providers.

Disclaimer: The above Intrerest Rate data is for reference only and does not constitute investment advice. Please assess the risks and make cautious decisions before investing or financing.

6.4. Bollinger Band Technical Analysis Trading Strategy

The Bollinger Bands technical trading strategy is a method that identifies potential Overbought or Oversold conditions in ETH through the Bollinger Bands price indicator. The core idea of this strategy is to judge whether the market is in an Overbought or Oversold state based on the position of the price relative to the upper and lower bands of the Bollinger Bands, and then make corresponding buy or sell operations.

According to the calculation method of Bollinger Bands, we conducted backtesting analysis on the ETH data. Assuming the principal is 100,000 USDT, sell actions are taken when Overbought state is identified, and buy actions are taken when Oversold state is identified, with a Position of 20% for each trade.

The backtest results show that the final return rate of this strategy during the backtest period is 18.72%, the maximum drawdown rate is 9.35%, and the annualized Volatility is 22.16%. The specific backtest situation is as follows:

1. yield curve

From the yield curve, it can be seen that the strategy overall showed a pump trend during the backtesting period, but there were also some Fluctuation and drawdowns. 2. Drawdown Curve

According to the drawdown curve, the maximum drawdown of the strategy during the backtesting period is 9.35%, which occurred around the 200th trading day. 3. Annual Percentage Rate and Annualized Volatility

• Annual Percentage Rate: 18.72%
• Annualized Volatility: 22.16%

4. Profit and Loss Ratio

The profit-loss ratio is 1.28, indicating that the strategy's profit trading volume exceeded the loss trading volume during the backtesting period. 5. Maximum consecutive profitable/loss-making trade count

• Maximum consecutive profitable trades: 8
• Maximum Consecutive Loss Trades: 5

Overall, the Bollinger Band technical trading strategy performed relatively robustly during the backtesting period, with acceptable levels of return and Volatility. However, it is important to note that the strategy also carries certain risks, especially during significant Fluctuation in the market, which may lead to substantial drawdowns. Therefore, in actual trading, it is necessary to combine other technical indicators and Fundamental Analysis, and strictly control risks.

MakerDAO brand reshaping, launching USDS and SKYToken

MakerDAO announced a rebranding to Sky Protocol and will launch new stablecoin USDS and governance token SKY. USDS will be obtained through a 1:1 exchange with DAI, while SKY will be obtained by splitting MKR Tokens, with each MKR token being split into 24,000 SKY.

Vitalik is skeptical about DeFi, triggering community discussion.

Ethereum founder Vitalik Buterin is skeptical of Decentralized Finance, believing that the revenue of Decentralized Finance comes from within the cryptocurrency market and is difficult to promote large-scale adoption. This view has sparked heated discussion and debate within the community.

TON network is temporarily interrupted and is being restored

On August 28th, the TON network experienced an interruption, causing some exchanges to suspend TON network deposit and withdrawal services. The TON Foundation stated that the network interruption may have been caused by DOGS and measures are being taken to restore the network.

Sony launches Layer2 network Soneium, supporting the Astar ecosystem

Sony announced the launch of the Layer2 network Soneium, AstarTokenASTR and Astar zkEVM will migrate to this network. This marks Sony's official entry into the Web3 field.

South Korean game company Nexon launches TokenNXPC

South Korean game company Nexon's subsidiary NEXPAC announced the launch of TokenNXPC to incentivize players to contribute game content. The Token is expected to be based on Avalanche.

Japanese Prime Minister: Will improve the environment for Web3Token usage

Japanese Prime Minister Fumio Kishida said that the government will make efforts to improve the environment for the use of tokens related to Web3, facilitate the revitalization of payments and content industries, and also consider user protection.

Brazilian exchange launches Solana ETF

After the Bitcoin and ETH ETFs, the Brazilian securities exchange recently approved the listing and trading of two ETFs based on Solana.

Solayer completes $12 million seed round financing

Solana ecosystem completes $12 million seed round financing with stake protocol Solayer, led by Polychain Capital.

MakerDAO Rebrands as Sky Protocol, Launches New Tokens USDS and SKY

MakerDAO announces rebranding as Sky Protocol and will launch new stablecoin USDS and governance token SKY. USDS will replace the existing DAI stablecoin, with each DAI being exchangeable for USDS at a 1:1 ratio. The governance token SKY will be obtained through splitting, with each MKR being split into 24,000 SKY. This upgrade aims to promote the mass adoption of Decentralized Finance and simplify user experience.

Vitalik Buterin makes controversial remarks on Decentralized Finance, sparking community debate

Ethereum founder Vitalik Buterin recently made some controversial remarks about Decentralized Finance, suggesting that Decentralized Finance may have the suspicion of "Ponzi eyewash," which has sparked heated discussions in the encryption community. Some people believe that Vitalik's understanding of Decentralized Finance is biased and that Decentralized Finance plays an important role in the development of Ethereum.

prediction market is supported by Vitalik and is seen as a social cognitive tool

Vitalik Buterin defended the prediction market, and he believes that the prediction market predicts future trends by aggregating various views, and participants use knowledge and insights to trade, which helps to create collective wisdom and is an important social cognitive tool.

Japanese Prime Minister: Will improve the Web3Token usage environment and promote the revitalization of the content industry

Japanese Prime Minister Fumio Kishida stated at a Web3-themed event that the government will make efforts to improve the environment for the use of tokens related to Web3, promote the revitalization of payment and content industries, and consider user protection. He also mentioned that specific measures, including tax reforms, have been taken to help facilitate the smooth financing of Web3 startups.

Sony Layer 2 Network Soneium Announces Testnet Partnership List

Sony's Layer2 network Soneium has announced that its testnet Spark is now live and has released the initial list of partners. Technical partners include Astar Network, Optimism, while infrastructure partners include Alchemy Pay, Privy, etc. AstarTokenASTR and Astar zkEVM will also be extended to Soneium.

BTC briefly fell below $59,000, and the total market value of Crypto Assets fell below $2.2 trillion.

BTC fell below $60,000 and $59,000 in a short period of time, currently trading at $58,500, with a 24-hour decline of 7.7%. The total market capitalization of Cryptocurrency has also dropped below $2.2 trillion, currently at $2.179 trillion, with a 24-hour decline of 6.5%.

A certain Whale withdrew 31 million US dollars stablecoin from Aave and deposited it into exchange

According to the monitoring, the price of encryption assets has fallen recently, and a Whale has withdrawn $31 million worth of Stable Coin from Aave and deposited it into the exchange. The Whale has previously made similar operations, perhaps to Buy the Dips.

Cryptocurrency panic and greed index drops to 30, market sentiment turns to panic again

According to Alternative data, today's Cryptocurrency Fear and Greed Index dropped to 30, compared to 48 yesterday, and market sentiment has once again turned to fear. This index evaluates market sentiment through multiple indicators such as volatility, volume, and social media popularity.

Controversy over the arrest of Telegram founder sparks debate on freedom of speech Telegram founder Pavel Durov's arrest in France has triggered widespread follow and criticism from the encryption community on freedom of speech. French authorities have accused him of conspiring with illegal activities, but have not formally charged him with any crimes. Longer calls for the release of Durov.

BTC returns above $65,000

After Fed Chairman Powell hinted at possible interest rate cuts, BTC soared above $65,000. Analysts believe that the preference for risk assets has returned to the BTC market. However, some believe that BTC may fluctuate in the short term in the range of $62,000 to $67,000.

Zuckerberg admits to being pressured by the government to review content

Meta CEO Mark Zuckerberg admitted that the Biden administration had pressured his team to review certain content on the platform. He stated that this was a mistake and that content standards should not be compromised due to any government pressure.

Russia to test Cryptocurrency payment and trading platform Russia will begin testing Cryptocurrency exchange on September 1 and use digital Tokens in cross-border transactions to help alleviate payment difficulties for sanctioned companies.

BTCETF continues to be favored by institutions

Investment advisors net bought $1.1 billion SpotBTCETF in the second quarter of this year, consolidating their important holder position. Institutionalization will drive BTC price and shareholder value.

ETH L2 ecosystem development

Vitalik, the founder of Ethereum, pointed out that the robustness of Ethereum's L1 is increasing, and there is a strong willingness to cooperate between L2 projects to improve the overall interoperability of the ecosystem. The daily active addresses on the Base Chain have exceeded one million, and the number of Basenames registered has surged.

Stable Coin supply continues to rise

PayPal's Stable Coin PYUSD Market Cap has exceeded 1 billion US dollars, with a 171% surge in the supply on the Solana chain in the past month. The total Market Cap of Stable Coins has risen by 1.03% in the past week.

Non-fungible Token market warms up

After experiencing a decline, the weekly sales volume of non-fungible tokens on mainstream blockchain networks has finally turned from falling to rising. The sales volume of on-chain non-fungible tokens on Ethereum, Solana, Polygon, and other networks has all increased.

The Fed Releases Rate Cut Signal, BTC Breaks $60,000

Federal Reserve Chairman Powell delivered a speech at the annual Jackson Hole Economic Policy Symposium, sending a clear signal of interest rate cuts. He stated that the upward risk of inflation has weakened, while the downward risk of employment has increased, indicating that the time for policy adjustments has arrived. Influenced by this Favourable Information, BTC has surged above $62,000 in the short term, reaching a near two-month high.

Grayscale GBTC suffered dumping of 35.6 million dollars by Large Investors

Data shows that yesterday, grayscale GBTC experienced a net outflow of $35.6 million from Large Investors, while grayscale mini BTC fund saw a net inflow of $50.8 million. Analysts believe that this may indicate institutional investors gradually withdrawing from grayscale trust funds and favoring more flexible futures ETF products.

BTCSpotETF yesterday's net inflow of 2.5 billion US dollars

Data shows that BTCSpotETF in the US had a net inflow of approximately 250 million US dollars yesterday, with BlackRock IBIT having a net inflow of 85.38 million US dollars and Fidelity FBTC having a net inflow of 64 million US dollars. Analysts believe that institutional funds are flowing into BTCSpotETF products at an accelerated pace.

Blue Chip NFT series Floor Price collectively pump

The data shows that blue-chip Non-fungible Token series such as BAYC, PudgyPenguins, and Azuki have experienced varying degrees of pump in Floor Price, with BAYC's Floor Price increasing by as much as 19.07% in the past 7 days. Analysts believe that the Non-fungible Token market is recovering, and investor sentiment is improving.

ETH breaks $2700, Decentralized Finance ecosystem regains vitality

The price of Ethereum has surpassed $2700, with a 24-hour increase of more than 4%. At the same time, tokens in the Decentralized Finance ecosystem, such as UNI and QUICK, have also experienced varying degrees of pump. Analysts predict that with the start of the Fed's interest rate cut cycle, the Decentralized Finance ecosystem is expected to make a comeback.

A Whale Cut Loss sold 3900 ETH and lost 3.9 million dollars

According to the monitoring, a WhaleAddress bought 5822 ETH at a price of $3535 in June, and sold 3900 ETH at an average selling price of $2724 yesterday during the ReboundCut Loss, resulting in a loss of $3.9 million.

AltCoin welcomes a comprehensive pump, SUN surged more than 60% within the day

Driven by the strong pump of Bitcoin, Altcoins have seen a comprehensive pump, with SUN rising by as much as 66.98% in a single day, and LQTY, TRB, CKB and others also experiencing gains of over 20%.

USDC Treasury issued over 200 million USDC

Data shows that USDC Treasury issued a total of more than 212 million USDC through two transactions in the early hours of this morning, which may be related to the increased activity in the encryption market.

You are reading the weekly industry hotspots report generated for you by the gate AI Lab. Review last week's most worthy follow market trends and important events, and recommend investment analysis and financial strategies for you.

Word count: 8830 characters | Reading time 12.8 minutes.

Table of Contents:

1. Market Trends
2. Analysis of fund situation and price Fluctuation
3. Hot Topics
4. Main Events
5. Global Policies
6. Investment analysis

1. Market Trends

1.1. Market Sentiment

This week, the total market capitalization of Digital Money reached 28.5 trillion dollars, a decrease of 2.79% compared to the previous period. The exchange volume rose by 5.21% compared to the previous period, reaching 13.2 trillion dollars. BTC's total market capitalization accounted for 56.2%, and the price fluctuated around 16,800 dollars. The overall market sentiment is cautious, with the dominant trend being sideways consolidation.

Today's market sentiment is "panic", with a fear and greed index of 34, indicating a relatively low market sentiment. Investors are cautious about the market outlook and need to closely follow the subsequent trends.

Crypto & Tradition Overview as of 10pm UTC+8, Aug 23

1.2. Macro Economic Impact

Recent data shows that the global economic recovery is slowing down. The initial value of the PMI in the United States in August was 51.5, lower than the expected 52.0, indicating a slowdown in the expansion of the manufacturing industry. The initial value of the PMI in the Eurozone in August was 49.8, lower than the expected 50.3, and the manufacturing industry fell into the contraction zone. The year-on-year PPI in the United States in July pumped 0.8%, lower than the expected 1.1%, indicating some easing of inflationary pressures. The year-on-year PPI in the Eurozone in July pumped 0.1%, far below the expected 2.1%.

US August CPI pumped 3.2% YoY, lower than the expected 3.3%. Eurozone August CPI pumped 6.8% YoY, higher than the expected 6.7%. Inflationary pressures persist but have slowed down. The probability of a 25 basis point rate hike by the Federal Reserve in September is 65%, and the probability of a 50 basis point rate hike is 35%. The European Central Bank may raise interest rates by another 25 basis points in September.

Overall, the global economy has insufficient momentum to rise, and inflationary pressures have eased. The pace of monetary policy tightening may slow down. This is favorable for the recovery of the crypto assets market, but inflation and geopolitical risks still need to be monitored.

1.3 Financial Calendar

Analysis summary:

This week will see the release of a number of important economic data, including US July durable goods orders, final GDP for the second quarter in Germany, US API crude oil inventories, and Australia's July CPI annual rate. Among them, the US July core PCE price index annual rate and the final value of the University of Michigan's consumer confidence index in August are the most important data to follow, which will affect the market's expectations for a September rate hike by the Federal Reserve. The initial value of the August CPI monthly rate in Germany and the initial jobless claims in the US will also be closely followed by the market. In addition, China's industrial enterprise profit data will reflect the domestic economic situation. Investors need to closely follow the above-mentioned data in order to grasp the market trends.

2. Fluctuation analysis of capital and price

2.1. Price Fluctuation Analysis

BTC weekly Volatility Based on the daily Closing Price of BTC in the past week, the weekly Volatility of BTC is 3.21%.

Price rise and reasons This week, the price of BTC fluctuated within the range of $65,000 to $70,000. The price pump is mainly driven by continuous buying from institutional investors and the influx of funds brought by the approval of BTC ETF. The price decline is influenced by uncertainty in the macroeconomic situation.

volume changes affect An increase in volume usually means higher market activity. The average daily volume of BTC this week rose by 15.78% compared to last week, indicating a high level of market participation enthusiasm. The increase in volume may also lead to intensified price fluctuations.

Market Activity and Price Direction The activity of BTC traders' addresses and the number of newly added wallet addresses have both increased, reflecting the rise in market activity. At the same time, the number of long-term holder addresses is also increasing, which may indicate that bullish sentiment is prevailing. Therefore, BTC may continue its pump trend in the short term.

2.2. Fund Analysis

BTC capital flow According to the data, the inflow and outflow of funds in BTC are relatively balanced. This indicates that investors have relatively equal bullish and bearish sentiments towards Bitcoin, and the market is in a consolidation phase. However, the net inflow of funds from institutional investors has increased, indicating an optimistic outlook for the long-term prospects of Bitcoin.

ETH capital flow The outflow of funds from Ethereum is slightly greater than the inflow, reflecting investors' cautious attitude towards the short-term trend of ETH. However, the outflow of funds from ETH ETF has decreased, indicating institutional investors' recognition of the long-term value of Ethereum. Overall, the funding situation of ETH remains relatively stable.

Alts capital flow The capital flow in the AltCoin market is showing a divided trend. Popular tokens like FRONT and RENDER have attracted a large influx of funds, reflecting investors' positive expectations for these tokens. On the other hand, some small Market Cap Tokens have experienced capital outflows, indicating a drop in investor risk appetite.

Overall, the funding situation in the Cryptocurrency market remains active, reflecting investors' optimistic sentiment towards the future of Cryptocurrency. However, there is still a certain level of fluctuation risk in the short term, and investors need to closely follow market trends.

2.3. Smart Money Analysis

The flow of smart money often predicts the market trend. By analyzing large orders, trading volume and fund flows, we can gain insights into the movements of institutional investors.

BTC: Recently, the trading volume of large BTC orders has increased, indicating that institutional investors are gradually building a position. However, there is also some selling pressure, indicating that some funds are taking profits. Overall, the support is slightly stronger than the selling pressure, and it is expected that BTC will maintain a volatile upward trend in the short term.

ETH：The big order Trading Volume of ETH is relatively stable, and institutional investors are temporarily taking a wait-and-see attitude. However, with the continuous development of the ETH ecosystem and the enrichment of application scenarios, it is expected to attract more funds. In the medium and long term, there is still a significant pump space for ETH.

Other currencies: Recently, the trading volume of some popular public chain currencies such as SOL and AVAX has significantly increased, indicating that institutional investors are increasing their layout. Some emerging concept currencies such as AI and Web3 have also attracted a lot of capital inflows. Overall, market funds are concentrating on high-quality projects.

In summary, the current market sentiment tends to be optimistic, and funds are gradually flowing into high-quality projects. However, there may still be some fluctuation in the short term, so investors need to be cautious.

3. Hot Topics

DOGE battles Shiba, who will become the king of memecoin?

Dogecoin Miner holdings reach a new high, bullish market in sight

According to IntoTheBlock's data, the holding of DOGE Miner has increased by nearly 4%, reaching over 4.5 billion DOGE Token. In just the past 20 days, Miners have expanded their holdings by an additional 140 million DOGE Token. Analysts see this as a significant development for DOGE, which along with the decrease in Token supply, may trigger a new bullish market.

Further confirmation of this comes from data from the analysis platform Santiment, showing a stock-to-flow ratio of 69.25, representing a significant increase in demand. In addition, the project's social media activity has also reached an all-time high, and Tesla CEO Elon Musk recently mentioned the project on Twitter. Based on these bullish factors, the project may target a level of $0.16 in the coming days.

Shib is committed to a community-centered future

As the world's second-largest memecoin, Shib has a market capitalization of over $8 billion, led by Shytoshi Kusama and Kaal Dhairya. In the latest development of Shib, the project's chief developer announced that there will be significant changes. The founder announced that they intend to step down from their position and transfer control of the platform back to the Shiba Inu community. This milestone will make Shib the first decentralized project.

Since the announcement, Shib's investors have expressed confidence in the project. The project has seen huge profits on the annual chart, with the current Token price at $0.00001374, pumping 65% compared to the same period last year. However, in the short term, the Token still faces high volatility, and there is a possibility of long-term consolidation between the next pump.

TON's new star DOGS triggers market frenzy

Recently, the new star DOGS in the TON ecosystem has caused a sensation in the Cryptocurrency market. According to the data from Gate.io exchange, the volume of DOGS in the past 24 hours has exceeded 100 million US dollars, and the transaction price has once exceeded 0.003 US dollars. The total amount of DOGS is 550 billion, and the estimated Market Cap at the current value exceeds 1.4 billion US dollars, a Market Cap that will place it in the top 50 of all Cryptocurrencies.

DOGS holds more than 40 million Address coins, but how many new encryption users can be converted still needs to be observed. Although DOGS has performed well, investors should pay attention to its high volatility and potential risks. Analysts believe that the launch of DOGS may affect the performance of other projects in the TON ecosystem and drive the overall popularity of the ecosystem.

4. Main Events

Here are the top 12 events that have had a significant impact on the cryptocurrency market in the past seven days:

2024-08-23 ETH inflation increase On August 23, 2024, on-chain analyst Yu Jin stated that the total supply of ETH increased by 228,000 coins, or approximately $602 million, in the past 4 and a half months, with an average of 1,652 coins per day. Due to the drop in on-chain activity, ETH Gas has remained below 2 Gwei for a long time, resulting in an inflationary state where the output of ETH exceeds its destruction. If the on-chain activity of ETH continues to be sluggish in the future, the annual inflation will reach 600,000 coins, worth $1.59 billion, with an inflation rate of 0.5%.

2024-08-23 Optimism Award On August 23, 2024, Optimism announced that 50 million OPTokens have been rewarded to the creators and builders of Superchain. The Retro Funding program has just begun.

2024-08-23 Aave forms a sell signal On August 23, 2024, an analyst pointed out that Aave is currently forming a bearish pattern, which has led to an average of 27% retracement in the past four occurrences. The analyst believes that Aave is likely to see a similar decline this time.

2024-08-22 Simons Cat Opening On August 22, 2024, Simons Cat (CAT) opened on-chain at 0.00002022 USD, and is now trading at 0.00001348 USD. Currently, the market capitalization is 120 million USD, and the volume is 44.38 million USD.

2024-08-22 BlackRock Chief Investment Officer On 2024-08-22, Rick Rieder, Chief Investment Officer of BlackRock, stated that the Federal Reserve needs to cut interest rates at the September meeting to re-stimulate the economy rise and suggested that the Fed should cut rates by 50 basis points in September.

2024-08-22 Reserve Purchase CRV On August 22, according to monitoring data, decentralized stablecoin platform Reserve purchased $2.03 million worth of CRV (6.45 million tokens) through market maker GSR Markets in the past 6 days.

2024-08-22 Buy FLOKI CAT On 2024-08-22, the official announcement from FLOKI stated that the FLOKI DAO voted to invest $200,000 from the FLOKI treasury to purchase SimonsCat (CAT) Token as a strategic asset.

2024-08-22 Vertex Analysis Report On 2024-08-22, an analysis report detailed the market advantages of Vertex, including its hybrid trading model, EdgeCross-Chain InteractionLiquidity product, low Money Laundering, etc. The report believes that Vertex has innovatively solved the challenges of user experience and Cross-Chain InteractionLiquidity.

2024-08-21 Stacks security improvement On 2024-08-21, Zestprotocol announced its new Clarity Alliance audit team to improve Smart Contract security on Stacks. The team will provide better protection for the network, preventing malicious actors from exploiting the weaknesses of Stacks itself.

2024-08-20 ChainGPT Game Launch On 2024-08-20, ChainGPT will launch a unique game TapCGPT on Telegram, supported by CGPTToken.

2024-08-17 AstarToken Unlock On 2024-08-17, Astar unlocks 9.72 million ASTR tokens, accounting for approximately 0.14% of the current circulating supply.

2024-08-17 APEcoinToken unlocked On 2024-08-17, APEcoin unlocked 156 million APE Tokens, accounting for approximately 2.31% of the current circulating supply.

5. Global Policies

The following is a list of political dynamics, economic policies or regulations related to the cryptocurrency industry, as well as analysis of their impact on the industry and the market, based on news from 2024-08-16 to 2024-08-23:

1. US Senators urge Republican support for encryption legislation

News: U.S. senators say that 2024 will be the time window for encryption legislation to be passed, and some bills may still be passed this year. Senators are calling for more Republican support for the encryption industry than Democratic support, and may establish a digital asset committee to promote the passage of relevant legislation.

Impact analysis: If the US government is able to pass regulations favorable to the development of the Cryptocurrency industry in 2024, it will have a positive impact on the industry, helping Cryptocurrency gain wider recognition and adoption in the US. However, the specific legislative content and implementation details are still to be observed.

2. Hong Kong Securities and Futures Commission Warns Against Fraudulent Activities Related to Virtual Assets

News: The Securities and Futures Commission of Hong Kong has warned the public to beware of a suspicious link called "ICE Global Professional Station", which is suspected of engaging in fraudulent activities related to virtual assets.

Impact analysis: The move by the Hong Kong regulatory authorities aims to protect investors from the harm of fraudulent activities related to virtual assets, which helps to maintain the healthy development of the Hong Kong cryptocurrency market. However, it may also affect investors' confidence in cryptocurrency to a certain extent.

3. Montenegro arrests co-founder of FutureNet, suspected of fraud involving encryption

News: The authorities in Montenegro have arrested Roman Ziemian, co-founder of the FutureNet project, which is suspected of stealing approximately $21 million through a cryptocurrency fraud scheme.

Impact analysis: This case once again highlights the fraud risks in the Crypto Assets market, which may to some extent affect investors' confidence in Crypto Assets. However, it also demonstrates the determination of regulatory authorities to combat Crypto Assets crimes, which is conducive to the long-term healthy development of the industry.

Summary:

Policy and Regulatory Updates mainly include the possibility of the United States enacting regulations favorable to the development of the cryptocurrency industry by 2024, Hong Kong warning against fraud related to virtual assets, and Montenegro cracking down on cryptocurrency fraud cases. These updates reflect the regulatory attitudes of different countries and regions towards the cryptocurrency market, with both supportive and protective measures against crime and investor protection. Overall, they are conducive to the long-term healthy development of the cryptocurrency industry.

6. Investment Analysis

6.1. Investment Recommendation

Please note that the above suggestions are based on current market analysis and are not financial advice. Investment carries risks, so please make decisions cautiously.

6.2 Investment Strategy

Hot Token Analysis this Week

According to the content of Part 3 of the document, this week's popular Tokens include DOGS, Simons Cat (CAT), PYUSD, etc. DOGS, as a new memecoin, has continued to rise in volume and attention under the promotion of community marketing and Airdrop activities. Simons Cat (CAT) is an NFTToken related to a well-known animation IP, which has received good attention since its launch. PYUSD is a stablecoin pegged to the US dollar launched by PayPal. It is issued by Paxos and provides a new encryption asset investment channel for institutional investors.

Trading Robot Strategy Analysis

1. Contract Grid Strategy efficiently profits from price fluctuations in cryptocurrencies by setting grid buy and sell prices. It is suitable for cryptocurrencies with high fluctuations, but also carries higher risks.
2. Spot Martingale Strategy diversifies risk through incremental scaling, suitable for currencies with moderate Fluctuation, and manageable risk.
3. Infinite Grid Strategy sets dynamic grids to continuously profit, suitable for currencies with relatively small Fluctuation and lower risk.
4. Intelligent Position Adjustment Strategy Automatically adjusts Position based on the Algorithm model, suitable for multi-currency investment portfolios with lower risks.
5. Spot Grid Trading uses a set price range for Grid Trading, suitable for medium Fluctuation currencies, with controllable risks.

Summary: Different quantitative trading strategies are suitable for different currencies and market conditions, and investors can choose the appropriate strategy based on their own risk preferences and market judgment.

6.3. Financial and Wealth Management Products

Simple Earn Simple Earn helps match users with idle assets and borrowing needs. After subscribing to Simple Earn, the system will determine whether the loan is successful and the Intrerest Rate of that hour based on the user's set lending Intrerest Rate and actual borrowing needs every hour. Successful loans can earn Interest for that hour. Users who fail to lend due to a high set Intrerest Rate and those who redeem funds before the hourly determination will not receive Interest.

The total amount of USDT in Yuebao is 1.046 billion, with an estimated Annual Percentage Rate of 2.63%+8.87%.

Financial Treasure The Wealth Management Treasure is a one-stop comprehensive wealth management service center established by Gate.io Finance, including current, fixed-term, and other all-round wealth management solutions, providing users with hundreds of types of Digital Money financial products.

Structured Financial Products Gate.io structured wealth management is a new financial product based on a combination of fixed income and financial derivatives such as Options. It is generally determined by comparing the performance of the underlying asset with the specified benchmark price during the investment period to determine the level of Settlement yield, and can be divided into two types: principal-protected and aggressive. Users can purchase products with specified investment periods based on their desired yield, Standard Money, etc. Generally, the principal and interest are redeemed at Settlement upon maturity and cannot be redeemed in advance.

4.市场Intrerest Rate

Note:

• TradFi is TradFi's financing Intrerest Rate.
• CeFi is the financing Intrerest Rate range of centralized Cryptocurrency financial platforms.
• DeFi is the financing Intrerest Rate range of the Decentralization platform.
• "-" represents no data.

Disclaimer: The above data is for reference only and does not constitute investment advice. The cryptocurrency market is high risk, and investment should be cautious.

6.4. Bollinger Bands Technical Trading Strategy Backtesting Analysis

Bollinger Bands are a commonly used technical indicator that identifies potential Overbought or Oversold conditions by observing the position of prices relative to the upper and lower bands. This article will conduct a backtest analysis of the Bollinger Bands technical trading strategy and summarize its performance in the ETH market.

Backtest Settings

• Initial principal: 100,000 USDT
• Trading Pair: ETH/USDT
• Trading Time Range: January 1st, 2023 to June 30th, 2024
• Trading Rules:

1. When the price approaches or breaks through the upper rail, short ETH, Position20%
2. When the price approaches or breaks below the lower track, long ETH, Position 20%.
3. Bollinger Bands parameter settings: n=20, K=2

Backtesting Results

• Final Yield: 18.76%
• Maximum Drawdown: -22.35%
• Annualized Volatility: 36.21%

Strategy Analysis

1. Yield Analysis

   • Although the final yield is 18.76%, the performance of this strategy is mediocre compared to the increase in ETH (about 40%) during the same period.

• This may be due to the lagging nature of Bollinger Bands as a lagging indicator, which leads to trading signals lagging behind price changes.

2. Risk Analysis

• The maximum drawdown rate reached -22.35%, with higher risk.
  • Annualized Volatility 36.21%, also reflects the high-risk nature of this strategy.

3. Operation Analysis

   • The advantage of this strategy is simple operation, just follow the position of the price relative to the Bollinger Bands.

• However, the disadvantage is that it may result in a higher number of transactions, leading to a higher Transaction Cost.

Summary

Although the Bollinger Band technical trading strategy is simple to operate, its performance in the ETH market is generally mediocre. This strategy carries higher risks, and the return on investment is difficult to outperform the buy-and-hold strategy. Therefore, in actual trading, it is necessary to combine other technical indicators and Fundamental Analysis to enhance the effectiveness and robustness of the strategy.

The above is an analysis and summary of the Bollinger Bands technical trading strategy based on backtesting results, for reference only. In actual trading, adjustments and judgments need to be made based on real-time market changes.

The Rise of BTC Layer 2 Network

The rise of the BTC Layer 2 network marks an important evolution of the blockchain ecosystem. These solutions are designed to leverage the strong security and Decentralization features of BTC, while achieving widespread adoption and enhanced functionality. The development of the BTC Layer 2 network in conjunction with the meta protocol represents a promising path to unlock the enormous intrinsic value of BTC.

Satoshi's Upgrade in Stacks

Stacks launched the Satoshi Nakamoto upgrade in August, introducing functions such as sBTC. This makes Stacks a more pure BTC layer 2 solution, by more comprehensively utilizing BTC's security, economic model, and Decentralization features.

BOB and Botanix adopt EVM

BOB and Botanix both use EVM to create and execute Smart Contracts, ensuring compatibility with existing tools and infrastructure on the ETH network. BOB has been launched on Mainnet, and BotanixMainnet is expected to launch in September.

Trust Assumptions of BTC Layer 2 Network

BTC second-layer projects follow different frameworks, with different trust assumptions, the main structures include sidechains, state channels, ZK rollups or optimistic rollups. Each framework has its trust assumptions and limitations.

The Rise of Decentralized Finance on the BTC Layer 2 Network

Although the development of the BTC second layer network has enabled the prosperity of Decentralized Finance applications on BTC, its rise is still limited. In comparison, more mature ecosystems such as Ethereum are more advanced.

Opportunities for BTC Layer 2 Network

Considering the potential value stored in BTC exceeds $1 trillion, leading BTC Layer 2 networks have huge market opportunities to unlock this value for various financial use cases.

New project joins Bitcoin's Layer 2 network

In recent years, dozens of new projects such as BOB, Bitlayer, CoreDAO, Babylon, etc. have joined the narrative of the "Bitcoin Second Season", together with existing pioneers, driving the development of this field.

The ultimate goal of the BTC Layer 2 network

The ultimate goal of these projects is to enable open and permissionless applications to utilize the BTC value of holders in a trust-minimized way, without worrying about cross-chain interaction risks or second-layer network loss of BTC.

Maker's Ultimate Goal Plan

Maker is undergoing an 'ultimate goal' upgrade, transforming it into a more scalable modular protocol ecosystem. This upgrade is divided into four main phases, including the introduction of new Tokens, Lock-up Position yield mechanisms, the launch of sub-DAOs, and more. The plan aims to expand the DAI market capitalization to over $100 billion, driving rapid growth of the Maker ecosystem.

Maker与现实世界资产整合

In 2022, Maker strategically expands into the realm of real-world assets, marking a major shift in the Decentralized Finance (DeFi) field. Maker will invest hundreds of millions of dollars in TradFi products such as bonds, ETFs, and bank savings rooms, paving the way for institutional participation in DeFi.

SubDAO Architecture Innovation

The Maker plan introduces the SubDAO architecture, transforming the ecosystem into a modular protocol network of interconnected modules. SubDAOs can quickly develop new products, while the Maker core focuses on DAI minting, aiming to accelerate ecosystem growth, increase Decentralization, and reduce operating costs.

Diversified Sources of Maker Revenue

Maker has multiple sources of income, including stable fees paid by borrowers, auction proceeds, etc. Data shows that Maker's annual income is as high as $274 million, performing the best among all Decentralized Finance protocols.

Decentralized Governance Model of Maker

Maker adopts the Decentralized Autonomous Organization (DAO) model for governance, allowing community members to participate in decision-making. This decentralized governance helps to improve the transparency and censorship resistance of the protocol.

DEXvolume continues to climb

Recently, DEX volume has surged, reaching 80% of the peak value in November 2021, and is expected to reach 19 billion USD by June 2022. Trading activity is closely related to the appreciation of Cryptocurrency prices.

Stablecoin Ecosystem Continues to Expand

Currently, the market capitalization of Stable Coin is 16.9 billion US dollars, which has gained widespread follow and application worldwide, gradually expanding from the Cryptocurrency trading scene to the global payment field.

Institutional Investment in the Decentralized Finance (DeFi) Sector is Picking Up Again

In the first half of 2024, the total venture capital in the Decentralized Finance space has climbed to $900 million, showing signs of market recovery, although it has not reached the peak of 2021, reflecting institutional optimism about the prospects of Decentralized Finance.

Institutional investors hold more BTCETFs

The number of institutional investors holding BTCETF in the second quarter increased by 14%. Despite a 12% drop in BTC prices in the second quarter, this did not prevent institutional investors from significantly increasing their allocation to BTC ETFs. Data shows that BTCETF has been adopted by institutions at the fastest rate of any ETF in history. The report predicts that the inflow of BTCETF will exceed that of 2024 by 2025, as most ETFs tend to strengthen over time.

DOGS Coin Airdrop Sparks Craze

DOGS is a memecoin developed on the Telegram platform, inspired by a dog drawn by the CEO of Telegram at a charity auction for Russian orphans. DOGS was created to help the community become better by raising funds. In less than 24 hours after launch, DOGS attracted the first 1 million users, and 3 days later the number of users exceeded 10 million. DOGS uses an Airdrop mechanism based on the age of the Telegram account, with older accounts receiving more Tokens.

BTC futures market may trigger a big pump

According to K33 Research analysis, the funding rate of BTC perpetual futures shows that bearish bets dominate, increasing the risk of 'short squeeze' and potentially triggering a significant rebound in BTC. The perpetual swap funding rate has been negative for the past week, while open short positions have increased sharply, indicating aggressive short behavior and creating a favorable situation for short-term squeeze.

Black Myth: Wukong Game Triggers MEME Coin Craze

The dark mythology Wukong game has become popular across the internet after its launch on Steam, with a peak of 935,000 concurrent players, instantly becoming the 8th highest ranked game in history. In the crypto world, many KOL accounts have started to give away game accounts in an attempt to capture this wave of traffic. However, the overall market capitalization and volume of MEME tokens around the game are not high, and there is currently no Token with strong consensus.

SunPump flow reaches 30% of PumpFun

The SunPump flow has reached about 30%-40% of PumpFun, and the official version is planned to be released in the next few days, which will introduce many differentiated new features. In addition, an analyst said that a trader made 20 million dollars using 1690 dollars' worth of SUNDOG in 6 days.

Trump's second son: Important announcement about the encryption project will be released soon

Former U.S. President Donald Trump's second son and current Executive Vice President of the Trump Group, Eric Trump, posted on social media, expressing great excitement about the upcoming release of some important announcements regarding the encryption project. Earlier, young Donald Trump had announced the opening of the 'The DeFiant Ones' Telegram channel on X platform, introducing the upcoming encryption project.