Weekly Web3 Research | Crypto Market Saw Significant Fluctuations; ETH ETF Approval Drove New Highs in PEPE and MOG; The First ETH Leveraged ETF in US Will be Listed

2024-05-31, 02:10

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## Weekly Trend Overview
This week, the overall trend of the crypto market showed a slowdown in volatility. Last week, the market experienced a clear upward trend due to the approval of ETH spot ETFs. At present, the top mainstream currencies are basically maintaining their price range during the closing period of last weekend, and there is a certain upward trend approaching the weekend. The overall crypto market value growth has increased compared to the same period last week, currently reaching around $2.54 trillion, an increase of 0.77% within 24 hours. The market sentiment remains around 61, with a slight decline compared to the mid-week market performance but the magnitude is not significant. This week, the trend of key mainstream currencies is mainly characterized by slight fluctuations, with some currencies showing more obvious horizontal movements. Overall, the crypto market is likely to maintain a relatively small range of market changes in the near future, and we still need to wait for news factors, such as the official listing of ETH spot ETFs, to have an impact on the market.

Compared to last week, the total volume of the crypto market has increased this week. Overall, the market is in a period of volatility before the next phase of increase. Maintaining the current price range is a highly likely event and we need to wait for the impact of subsequent news factors. The top 100 crypto projects have a rise and fall ratio of 3:7 within a week, with most currencies experiencing a slight correction in price. Short term fluctuations are more frequent, but the magnitude is relatively small. The price of BTC rose first and then fell within a week, returning to above $70,000. Currently, it has fallen back above the $68,000 price range, with a weekly increase of about 0.85%. ETH has currently fallen below $3,800, with a weekly decline of around 1.66%, and is currently maintaining a continuous fluctuation around $3,750.

The top performing currency in the market this week was NOT, with a 7-day increase of 165.11%. The currency price is currently maintained around $0.01288.

There is still a possibility of significant fluctuations in the overall crypto market over the weekend.A new round of upward trend is expected during the weekend period, but the magnitude will be relatively controlled within a moderate range.

## Crypto Market
🔥The trading volume of DEX on the Arbitrum chain exceeded $539 million yesterday, ranking third again. According to DeFiLlama data, the transaction volume of DEX on the <a href="/pt-br/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> chain on May 26 was $2.088 billion, ranking first. In addition, the transaction volume of <a href="/pt-br/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a>'s DEX on the chain was $835.15 million yesterday, ranking second; The trading volume of DEX on the Arbitrum chain was $539.86 million yesterday, ranking third.

🔥The approval of Ethereum ETF in the United States is driving new highs in PEPE and MOG. With the push for approval of key Ethereum (ETH) exchange traded fund (ETF) applications last week, some traders began to see meme tokens as beta bets. The PEPE with frog theme and MOG with cat theme have increased by 11% and 45% respectively in the past 24 hours, and there is no sign of slowing down the narrative of beta bets.

🔥<a href="/pt-br/price/optimism-op" target="_blank" class="blog_inner_link">Optimism</a> has opened its fourth round of retrospective financing applications, called Onchain Builders. This round of financing will be directed towards OP Stack (including Base The builders of the contract deployed on the Mode, Redstone, and Zora chains are allocated 10 million OP tokens).

🔥Chris Dixon, a partner of a16z, said in an interview with CoinDesk that he hoped that blockchain would become synonymous with Internet innovation. If we compare it to the Internet in the 1990s, in an ideal situation, there will be billions of dollars of specific funds focusing on DeFi or blockchain social networking.

🔥Polymarket will end its forecast market issues for Ethereum ETF approval before May 31. The resolution was made after the controversy surrounding the approval of multiple 19b-4 filings for spot ETH ETFs by the US Securities and Exchange Commission, but the necessary S-1 form filings required for the exchange have not yet been approved.

🔥After the co-founder (pseudonym Racer) of the Web3 social network friend.tech protocol posted an intention to move the protocol out of Base, the native token FRIEND of the protocol plummeted significantly, with a 24-hour drop of 32.2%.

🔥The defense team of Roman Storm, co-founder of Tornado Cash, has submitted a series of new documents attempting to dismiss Storm before the trial begins, claiming that prosecutors exceeded their authority in their final pre-trial motion.

🔥The Solana validator has approved the Solana Improvement Document (SIMD) -0096, which proposes to send all transaction priority fees to the validator for the production of blocks.

🔥According to the screenshot shared by Cointelgraph on the X platform, Mt.Gox confirmed that multiple transactions were made in preparation for repayment before the creditor repayment deadline on October 31.

🔥The position gap between BlackRock and Grayscale <a href="/pt-br/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> has further narrowed, currently narrowing to less than 2,000 BTCs. According to official data, the difference between the two is only 1,872.7857 BTCs, and the market value difference has narrowed to about $200 million.

🔥In response to the community discussion about a hunter submitting a witch report containing 480,000 addresses, LayerZero co-founder, Bryan Pellegrino, responded on social media that anyone can write anything they want in the report, but not every report is valid.

🔥A recent survey conducted by Harris Poll among potential US voters shows that one-third of them consider political candidates' stance on cryptocurrency before making a voting decision, and 77% of voters believe that US presidential candidates should be aware of cryptocurrency.

🔥<a href="/pt-br/price/polygon-matic" target="_blank" class="blog_inner_link">Polygon</a> tweeted that the Ethereum side chain Polygon PoS will propose a technical proposal to integrate the blockchain aggregation layer AggLayer and migrate from the PoS architecture to the zkEVMvalidity architecture.

🔥Gala released a post release report on the unauthorized issuance of 5 billion GALAs, stating that all internal processes have been fixed, including the removal of unauthorized users, the return of ETH obtained through the sale of GALAs by hackers, which have been used for repurchasing and burning tokens, and 5 billion GALAs will be burnt.

🔥Among Soros's top stocks as of Q1 2024, perhaps the most noteworthy is MicroStrategy (NASDAQ stock code: MSTR), with a value of approximately $135 million.

🔥The latest survey by Bitcoin Gray shows that American voters, driven by macroeconomic development and its maturity as an asset, are increasingly attracted to Bitcoin. Approximately 47% of American voters hope to include cryptocurrency as part of their investment portfolio, highlighting the importance of this topic in the upcoming November election.

🔥Jesse Pollak, the creator and core contributor of Base, stated that the Gas target for Base has been raised to 6.25Mgas/s, resulting in a 25% increase in overall capacity and a significant decrease in costs.

🔥 BlackRock has become the world's largest Bitcoin fund. BlackRock's iShares Bitcoin Trust has become the world's largest Bitcoin fund, accumulating nearly $20 billion in total assets since its listing in the United States earlier this year.

🔥According to documents submitted to the US Securities and Exchange Commission (SEC), two funds managed by BlackRock purchased the company's Bitcoin spot Bitcoin ETF (IBIT) in the first quarter of this year.

🔥The Sei Foundation announced that the second airdrop will distribute 27,421,200 SEIs to 43,052 independent addresses to reward active users since the launch of the Sei mainnet.

🔥 The United States will launch its first leveraged ETF based on Ethereum - the Volatile Shares 2x Ethereum Strategy ETF (ETHU), and the company has announced on its website that trading will begin on June 4.

🔥Bitcoin's computing power has rebounded and surpassed the historical high before the fourth halving of rewards event. On May 8, the 7-day Simple Moving Average (SMA) showed that the network's computing power had dropped to a low of 582 EH/s.

🔥<a href="/pt-br/price/gnosis-gno" target="_blank" class="blog_inner_link">Gnosis</a> Pay announced a new partnership with global digital payment leader Visa to help expand the application of digital currencies in daily payment environments.

🔥BlackRock IBIT became the fastest ETF with assets reaching $20 billion in just 137 days, shaking Wall Street. The previous record holder was the JEPI actively managed fund issued by JPMorgan Chase, which reached $20 billion and took 985 days.

🔥At this year's ETHPerlin event, Ethereum co-founder Vitalik Buterin described some of his regrets regarding the initial design of Ethereum. Vitalik stated that he has a series of things he could have done differently.

🔥The Arbitrum community has reached the required number of votes (Quorum) for the proposal of the "200 million ARB game catalyst plan" to take effect, with a current support rate of over 98%.

🔥LayerZero Labs announced onthe X platform that LayerZero has launched Solana. LayerZero Endpoint on Solana has been released in the Mainnet Beta, supporting full chain messaging across 8 chains.

🔥According to data provided by Morningstar, since the beginning of this year, Bitcoin ETPs registered in Europe have had a net outflow of $506 million, while other crypto ETPs have attracted a small net inflow of $42 million.

🔥According to Dune data, the total amount of staked Ethereum beacon chains has rebounded to above 32.6 million ETHs, currently at 32604536 ETHs, with staked ETHs accounting for 27.2% of the total ETH supply.

🔥The Solana ecosystem Meme coin issuance platform, pump.fun, has a monthly revenue exceeding <a href="/pt-br/price/uniswap-uni" target="_blank" class="blog_inner_link">Uniswap</a> Labs, reaching $14.12 million, ranking fourth among all blockchain networks.

## Regulatory & Macro Policies
🔥 Trump changed his stance and posted in support of cryptocurrencies on Truth Social.

🔥Trump's speech at the Liberal Party National Congress: Ensuring the future of cryptocurrencies and BTCs in the United States, rather than being expelled overseas.

🔥Trump promised amnesty to the founders of the Silk Road upon his election; Trump said he will consider pardoning the founder of WikiLeaks if elected.

🔥The Hong Kong Securities Regulatory Commission has issued a statement regarding the virtual asset trading platform's compliance with the end of the period.

🔥The Hong Kong government has communicated with the Hong Kong Securities Regulatory Commission to process all applications for virtual asset platforms as soon as possible.

🔥The Hong Kong Securities Regulatory Commission has clearly stated that STO and RWA investments may be open to retail investors.

🔥Brian Nelson, Deputy Secretary of the Treasury for Terrorism and Financial Intelligence, stated that the Treasury has no intention of banning crypto mixer services. Nelson explained that the Financial Crime Enforcement Network (FinCEN) proposal for 2023 aims to list mixers as a "major money laundering issue" and requires virtual asset service providers (VASPs) to report crypto transactions involving mixing to promote transparency, rather than banning mixers.

## Crypto Market Highlights  
⭐Last week, the overall crypto market rose, mainly due to the positive news of ETH spot ETF approval. At the same time, due to the approaching US election, various political forces have promoted favorable policies for the crypto market. In the short term, the external news is positive in the second half of the year, and the crypto market itself is expected to experience rapid growth in various applications. Under multiple factors, it is inevitable that the crypto market will further rise, but there is a high probability that there will not be a particularly large increase in the Q2 Q3 quarter.

⭐️This week, there were still rapid increases in certain coins in the market, without showing the largest increase. As a newly launched coin, it has been affected by market changes and official dynamics, with a weekly increase of about 165%. Currently, the price is around $0.0128. The high point of the coin's weekly price once exceeded $0.013, while the low point appeared at around $0.048 during the opening period, ranking among the top 1 in weekly gains.
![](https://gimg2.gateimg.com/image/article/17171211831.jpeg)
(Data Courtesy Of Coinmarketcap)

## BTC & ETH Weekly Performance
### Bitcoin (BTC)
![](https://gimg2.gateimg.com/image/article/171712120922.jpeg)
(Data Courtesy Of TradingView)

The overall price of BTC this week has been dominated by regular fluctuations, mainly maintaining a sustained range of $67,000 - $70,000. After being driven up by news last week, BTC prices have shown more repeated ups and downs after a pullback and decline this week. There was a rapid short-term upward trend during the week, but the coin failed to maintain its price above $70,000. As we entered the closing period near the weekend, the coin showed an upward trend, with a more obvious exposure. Presently, the coin is maintaining a continuous fluctuation above $68,000, similar to the opening price. The high point of BTC's weekly price is $70,575, while the low point is within the range of $67,100.

Analysis suggests that the price of BTC this week is similar to the overall trend of the market. As a leading mainstream coin, the price of BTC has maintained a small range of continuous fluctuations, with fluctuations occurring within a relatively stable price range. As the weekend approaches, the coin is likely to continue to maintain its market volatility for a week. It is expected that there will be a certain price increase during the weekend, but the magnitude is relatively small.

### Ether (ETH)
![](https://gimg2.gateimg.com/image/article/171712122923.jpeg)
(Data Courtesy Of TradingView)

The price of ETH has not yet broken through the $4,000 level this week, and the trend of change is basically the price correction and repeated fluctuations that occurred after the rapid rise in the previous week. Looking at the time dimension of one week, the price trend of ETH mainly shows relatively stable price changes, and currently the price is in the same price range as the opening price. The probability of ETH prices continuing to rise again in the future is relatively high, but it will need to wait until the spot ETF is launched in June. The high point of the coin within a week is around $3,970, while the low point is around $3,700.

Analysis suggests that the performance of ETH prices this week is relatively routine and cannot be compared to the significant increase in the market last week. Currently, it seems that the subsequent major market changes of the coin still need to wait for the hot trends of the Ethereum ecosystem itself and the large inflow of funds brought about by the listing of external spot ETFs.

## Web3 Project Trend
The total market value of the seven categories of projects has fluctuated this week. Due to changes in market cycles and external news, different tracks have also shown different performances. There is still a probability of significant changes in the overall market trend, and various sectors may receive clear signals of ups and downs during the weekend.

| Project category  | 7d Change  | Top 3 Gainers |Comment  |
| ------------ | ------------ | ------------ | ------------ |
| Layer 1 | -1.7% | DUSK,AR,CPH | The Layer 1 track experienced a certain decline this week, and the upward trend of top growth coins was basically controlled within 10%. The trend this week was mainly affected by the overall market correction.|
| Layer 2  | -1.5%  |BVM,TOR,LAI |The overall change of Layer 2 sector this week is similar to L1, with the growth rate of the top projects remaining within a small range, and the overall change is not significant.|
| DeFi  | 2.4%  | ANY,ICE,STG | The DeFi track has seen a certain increase, and the growth rate of the top growth projects is very considerable. The liquidity has increased correspondingly with the overall market situation in a week.|
| NFT  | -5.2% | KNDX,RBLS,IOI | The NFT market has seen a significant decline this week, and since the beginning of this year,  the overall situation continues to be uncertain. However, the growth rate of the top growing coins is still quite considerable.|
| MEME  | 6.1%  | JUNGLE,NORMIE,SPACEAPE | The MEME coin track is showing a relatively hot state, influenced by the market's recent positive expectations, and the growth rate of top growing coins is very exaggerated.|
| BRC-20  | 11.3% | NEWU,ZBIT,GRUM | The BRC-20 sector is showing an upward trend, and the top growth coins have seen significant increases, mainly due to the recent BTC ecosystem, especially the rune craze.|
| AI  | 11.2%  | NEURA,OLM,SPEC | The AI track experienced another significant upward trend this week, mainly due to news factors, especially the positive developments related to OpenAI.|

<div class="blog-details-info">
<div>Author:**Charles T.**, 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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