Daily News | Meme Token WEN Led To A Record High Registration Volume for Solana; BTC May Perform Strongly in February; 7 Tokens Including DYDX Will Be Unlocked This Week

2024-01-29, 03:49

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## Crypto Daily Digest: Solana's registration volume has reached a new high, February may become a strong month for Bitcoin
Recently, with the new Meme token WEN airdropping to over one million users, the 7-day moving average for new addresses on <a href="/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a> has reached a historic high. The registration number of the Solana network in January this year has exceeded 10 million new addresses, and it is still increasing.

In addition, Dune data shows that 384.7 billion WEN token airdrops have been claimed, and 45% of the airdrops have not yet been claimed. There are currently approximately 322,700 holders of this token, and WEN's application window is expected to close at 23:00 Beijing time on January 29th, after which the remaining tokens will be destroyed.

WEN token is the first community coin based on fractional NFT and also the first NFT minted based on WNS NFT standards. The project team divided Meow's poem "A Love Letter to Wen Bros" into trillions of parts and traded them like regular Solana tokens. Each Wen token is equivalent to the proportional ownership in Meow's poetry. According to Coingecko data, after hitting a high of $0.0001633 in the early morning, the price of WEN tokens has now fallen back to $0.000153, with a 24-hour increase of 46.1%.

On January 28th, according to Bloomberg, FTX is selling crypto assets and hoarding cash to repay customer assets whose accounts have been frozen since the platform's collapse in 2022. According to the monthly operating report under Chapter 11 of the US Bankruptcy Code, FTX's four largest subsidiaries, including FTX Trading Ltd. and Alameda Research LLC, had almost doubled their cash reserves at the end of 2023, from approximately $2.3 billion at the end of October to $4.4 billion. If other subsidiaries are included, the company's total cash may be higher.

The company stated in a court document last month that as of December 8th, FTX had raised $1.8 billion by selling some of its digital assets. FTX also stated that it is conducting <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> derivative trading to hedge its risk exposure to Bitcoin and gain additional returns from its digital assets, while exploring the possibility of restarting the trading platform.

In terms of data, Dune's data shows that the cumulative revenue from the minting of Ordinals in_script_ions in the Bitcoin NFT protocol has reached 5,915.09 BTCs, equivalent to approximately $246 million. Currently, the total number of in_script_ions cast has exceeded 57,838,240.

In the past 7 days, the <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> on chain NFT transaction volume exceeded $75 million, ranking first, followed by Bitcoin ($57.15 million), Solana ($53.5 million), <a href="/price/polygon-matic" target="_blank" class="blog_inner_link">Polygon</a> ($14.93 million), and <a href="/price/avalanche-avax" target="_blank" class="blog_inner_link">Avalanche</a> ($7.72 million).

On January 28th, according to Ultrasound data, as of now, the Ethereum network has destroyed a total of 3,961,637.63 ETHs. Among them, OpenSea destroyed 230050.84 ETH, ETH transfers destroyed 326,300.91 ETH, and <a href="/price/uniswap-uni" target="_blank" class="blog_inner_link">Uniswap</a> V2 destroyed 215,207.04 ETH.

It is understood that since the upgrade of Ethereum London to EIP-1559, the Ethereum network will dynamically adjust the BaseFee for each transaction based on transaction demand and block size, and this part of the cost will be directly burned and destroyed.

Bitcoin may not have met market expectations in January, but market analysts believe that February will be more promising for top tier cryptocurrencies. Analyst Jelle wrote that Bitcoin seems to have continued the pattern it has been following since September last year, with four months of green and one month of red. If history continues to repeat itself, February should be very strong.

In addition, a research report by Deutsche Bank (including a survey conducted from January 15th to January 19th) shows that the majority of respondents expect Bitcoin prices to further decline.

The survey asked 2,000 people from the United States, United Kingdom, and Eurozone, with a focus on their views on the price and volatility of Bitcoin. A survey shows that over one-third of respondents believe that by January next year, the price of Bitcoin will fall below $20,000. Meanwhile, approximately 15% of survey participants expect the price of Bitcoin to be between $40,000 and $75,000 by the end of this year.

Deutsche Bank analysts Marion Labour and Cassidy Ainsworth Race explained in their report that spot Bitcoin ETFs are expected to expand the institutionalization of Bitcoin. However, they pointed out that the majority of ETF funds <a href="/price/flow-flow" target="_blank" class="blog_inner_link">Flow</a> from retail investors.

According to Token Unlocks data, tokens such as DYDX, OP, and SUI will experience a one-time large unlock this week, with a total release value of approximately $225 million. Among them:

At 0:00 am (UTC) on February 1st, Dydx (DYDX) unlocked 33.33 million tokens worth approximately $88.67 million, accounting for 10.6% of the circulating supply;

At 4:00 am (UTC) on January 30th, <a href="/price/optimism-op" target="_blank" class="blog_inner_link">Optimism</a> (OP) will unlock approximately 24.16 million tokens worth approximately $74.41 million, accounting for 2.52% of the circulating supply;

At 0:00 am (UTC) on January 31st, Sui (SUI) will unlock 4 million tokens worth approximately $5.56 million, accounting for 0.36% of the circulating supply;

At 7:00 am (UTC) on February 1st, Acala (ACA) will unlock approximately 27.43 million tokens worth approximately $2.31 million, accounting for 3.10% of the circulating supply;

At 0:00 am (UTC) on January 31st, Nym (NYM) will unlock 3.13 million tokens worth approximately $598,000, accounting for 0.49% of the circulating supply;

At 8:44 pm (UTC) on February 1st, Euler (EUL) will break down 104,500 tokens worth approximately $393,000, accounting for 0.56% of the circulating supply;

At 3:30 am (UTC) on February 1st, Tornado Cash (TORN) will break down 91,700 tokens worth approximately $150,000, accounting for 2.41% of the circulating supply.

## Macro: Inflation cooling down, it may be certain that the Federal Reserve will not cut interest rates
The strong economic data released last week, including retail sales, suggests that the Federal Reserve may not cut interest rates aggressively as expected by the market. At the same time, Federal Reserve officials have strongly countered speculation about rate cuts. Bostic urged decision-makers to act cautiously in relaxing policies, while Federal Reserve Director Waller seems to question the current demand for strong interest rate cuts.

Therefore, traders who were originally expected to cut interest rates six times in 2024 have now reduced their expectations to five, and their certainty about whether these rate cuts will start in March has greatly decreased.

However, after wavering at the beginning of the year, the S&P 500 index rose for the second consecutive week, driving the index to a new high, mainly driven by technology stocks. The Nasdaq 100 index set a record and rose nearly 3% this week. At the same time, the US treasury bond bonds, which ended last year with a historic rise, have suffered losses in the new year, and the yield of US bonds of various maturities has risen. The cumulative increase in 10-year US Treasury bonds this week is about 18 basis points, and the cumulative increase in 2-year US Treasury yields is about 24 basis points.

Under the suppression of interest rate cuts by Federal Reserve officials, the US dollar continued its cumulative rise since the beginning of the year, rising more than 0.8% last week. Gold achieved its worst weekly performance since early December. Oil prices have risen by about 1% this week, while oil prices have risen by 0.34%. The situation in the Red Sea and the Middle East continues to drive up oil prices. The US Department of Energy's release of last week's unexpected decline in crude oil inventories is also a major driver, and some economic data has raised concerns about the demand outlook in the oil market.

According to median estimates from Bloomberg surveys, economists expect the initial Q4 GDP of the United States to show an annualized growth of 2%. This will continue the growth of 4.9% in the third quarter and mark the strongest consecutive quarters of growth since 2021. On the same day, data is expected to show that the core PCE preferred by the Federal Reserve rose by 3% in the year ending December last year, marking the 11th consecutive month of annual price growth slowdown.

Bloomberg economists said, "Our forecast means that the US GDP will maintain strong growth for the full year of 2023, with an expected growth rate of 2.7%, a significant increase from 0.7% in 2022. However, considering concerns about the rapid cooling of the labor market, availability of credit, and sustainability of consumer demand, we believe that growth in the first half of this year will significantly slow down."

If both the upcoming initial PMI and actual personal expenditure indicators in the United States show resilience in the US economy, it may raise questions about the duration of high inflation, similar to recent non-farm employment reports and CPI data.

Regarding this, Nick Timiraos, the "Federal Reserve's mouthpiece," wrote that the Federal Reserve will not cut interest rates at this week's meeting because the economy has been steadily growing. Although the monthly inflation rate, excluding food and energy, has been at or below 2% for six out of the past seven months, the Federal Reserve hopes to ensure that this situation persists before lowering interest rates.

This week, Federal Reserve officials may take a symbolic and important step by no longer stating in policy statements that the likelihood of interest rate increases is greater than decreases. Normally, the Federal Reserve would cut interest rates due to a sharp slowdown in economic activity, but until the end of last year, economic growth remained unexpectedly strong. On the contrary, they are considering whether the weakening of inflation means that if no action is taken, real interest rates may impose excessive restrictions on economic activity.

<div class="blog-details-info">
<div>Author:**Byron B.**, Gate.io Researcher
<div>Translator:Joy Z.
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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