TL;DR

• BTC faced short-term resistance, with its price dropping 0.62% over 24 hours; ETH’s price decreased by 0.83% in the same period.
• Altcoin prices declined over the past 24 hours in line with the broader market pullback, though several meme tokens saw notable gains against the trend.
• Bitcoin spot ETFs have experienced net inflows for seven consecutive days. BlackRock’s Ethereum ETF surpassed $1 billion in assets under management.
• In the past week, USDC circulation increased by approximately 700 million tokens, raising the total circulation to 36.2 billion tokens.
• After this week’s rebound, 68% of ETH addresses are now in a profitable position.
• Aevo announced a four-month token buyback plan, aiming to repurchase 1 million $AEVO tokens each month.
• The Fear & Greed Index slightly dropped from 64 yesterday to 63, but remains in “greed” territory.

Market Analysis

According to Gate.io market data, as of 04:00 (UTC+0) on September 29 [1]:

BTC — The price of BTC has dropped 0.62% in the past 24 hours, standing at approximately $65,775 as of 04:00 (UTC+0) on September 29. Over the past day, BTC has exhibited a pattern of consolidation and fluctuation. After hitting $66,500 on September 27, it encountered resistance and retraced. If BTC can break through the $66,500 resistance level, further upward momentum may follow [2].

ETH —— ETH’s price trend is similar to BTC, with a 0.83% decline over the past 24 hours. As of 04:00 (UTC+0) on September 29, the price is approximately $2,671. Over the past day, ETH surged from around $2,640 to $2,700 before pulling back. The current resistance level is near $2,700. If trading volume increases and the resistance is broken, further upward movement is possible; otherwise, ETH may face downside risks[3].

ETF — According to SoSoValue data, on September 27, U.S. Bitcoin spot ETFs had a total net inflow of $494.2 million, marking the seventh consecutive trading day of net inflows. U.S. Ethereum spot ETFs saw a total net inflow of $58.65 million [4][5].

Altcoins — Altcoin prices declined in the past 24 hours in line with BTC’s pullback. However, sectors like Elon Musk-Inspired, Frog-Themed Meme, and The Boy’s Club Meme performed relatively well [6].

U.S. Stock Market Indices — As of 04:00 (UTC+0) on September 29, the S&P 500 index fell by 0.13%, the Nasdaq index dropped by 0.39%, while the Dow Jones index rose by 0.33% [7].

Spot Gold — As of 04:00 (UTC+0) on September 29, the price of spot gold stood at $2,658.34 per ounce, reflecting a daily decline of 0.53% [8].

Fear & Greed Index — The Fear & Greed Index slightly dropped from 64 to 63, remaining in the “greed” zone. Despite the market pullback, investor confidence remains strong, with optimism about the short-term market outlook continuing [9].

Top Performers

According to Gate.io market data, based on the trading volume and price performance in the past 24 hours, the following altcoins are trending [1]:

KAI —— The daily increase is approximately 42.37%, with a circulating market cap of $18.4 million.

KardiaChain is a blockchain focused on interoperability and leads the blockchain adoption race in the Vietnamese market by providing hybrid blockchain solutions and architecture for large enterprises and government institutions. The project’s goal is to build a complete blockchain ecosystem for institutions by leveraging three main components: gateways, infrastructure, and services.

Recently, Kreaitor announced on its official Twitter account that it will attend the 2024 Global Blockchain Conference, which may have contributed to the recent price surge [10].

ETHW —— The daily increase is approximately 28.04%, with a circulating market cap of $348 million.
ETHW, or EthereumPoW, is a hard fork of the Ethereum blockchain that was created on September 15, 2022, when Ethereum transitioned from Proof of Work (PoW) to Proof of Stake (PoS). This fork continues to use the PoW consensus mechanism and is primarily supported by miners who prefer to keep mining through PoW. ETHW was created to maintain Ethereum’s original mining process, allowing miners to validate transactions by solving complex mathematical problems and earn newly minted ETHW as rewards.
Recently, ETH saw significant gains influenced by factors such as the Federal Reserve’s rate cuts, which may have contributed to ETHW’s substantial rise in the past 24 hours.

KITEAI —— The daily increase is approximately 23.01%, with a circulating market cap of $184 million.

KITEAI is an innovative AI-driven chatbot platform that leverages blockchain technology to create a decentralized, user-centric ecosystem. The platform aims to enhance user interaction and engagement, offering a seamless and secure experience where users can interact with AI, earn rewards, and participate in a dynamic community.

Recently, the KITEAI team announced on its official Twitter account that they have entered Seoul, South Korea, and will participate in a series of events, which is likely a key factor behind the price surge over the past day [11].

Data Highlights

USDC Circulation Increased by 700 Million Tokens Over the Past Week, Total Circulation Reaches 36.2 Billion Tokens
Circle, the issuer of USDC, is responsible for managing its issuance, redemption, and maintaining the reserve funds. As of 04:00 (UTC+0) on September 29, Circle issued approximately 2.5 billion USDC over the past 7 days, while redeeming approximately 1.8 billion USDC, resulting in a net circulation increase of around 700 million USDC.

The current total circulation of USDC stands at 36.2 billion tokens, with other reserve funds amounting to $36.5 billion. This includes approximately $4.8 billion in cash reserves held by banks, while Circle holds around $31.6 billion in reserve funds.

The increase in circulation and the adequacy of reserve funds are typically seen as indicators of market confidence in the stability of the USDC stablecoin [12].

After this week’s rebound, 68% of ETH addresses are now in a profitable position
As of 04:00 (UTC+0) on September 29, IntoTheBlock data shows that the recent rebound in ETH quickly pushed the percentage of profitable addresses from 59% to 68%. Currently, over 83% of ETH’s transaction volume is in a profitable state, indicating strong buying support for ETH at key levels [13].

Bitcoin ETFs Recorded a Net Inflow of $494.2 Million, Marking the Seventh Consecutive Day of Net Inflows
According to SoSoValue data, U.S. Bitcoin spot ETFs saw a single-day net inflow of $494.2 million on September 27, with a total daily trading volume of $1.86 billion. The cumulative net inflow has reached $18.80 billion, and the total value of BTC managed by these ETFs stands at $61.21 billion, accounting for 4.71% of Bitcoin’s total market capitalization [14].

Ethereum ETFs Recorded a Net Inflow of $58.65 Million
According to SoSoValue data, U.S. Ethereum spot ETFs saw a single-day net inflow of $58.65 million on September 27, with a total daily trading volume of $249 million. The cumulative net outflow stands at $523 million, while the total value of ETH managed by these ETFs is approximately $7.44 billion, accounting for 2.30% of Ethereum’s total market capitalization [15].

BlackRock’s Ethereum ETF Assets Surpass $1 Billion
Recently, Nate Geraci, president of The ETF Store, disclosed that BlackRock’s iShares Ethereum Trust (ETHA) has surpassed $1 billion in assets under management, achieving this milestone in just two months. This places it in the top 20% of over 3,700 ETFs in terms of market performance [16].

This achievement not only reflects market confidence in Ethereum but also highlights the growing integration between traditional finance and the cryptocurrency market. ETHA’s success is attributed to Ethereum’s technological advancements and widespread adoption, along with BlackRock’s influence as a leading global asset management firm. Despite the high volatility in the digital asset market, investor interest in participating in Ethereum through a traditional investment vehicle like an ETF remains strong.

Spotlight Analysis

Aevo Announces Four-Month Token Buyback Plan: 1 Million $AEVO Tokens to Be Repurchased Monthly
On September 28, the Aevo team announced the launch of a four-month buyback plan for AEVO tokens. On September 26, they repurchased 1 million AEVO tokens at an average price of $0.42 per token. The Aevo team has committed to repurchasing at least 1 million AEVO tokens per month, with the buyback plan running through December 2024 [17].

The buyback plan has garnered attention in the market. Buybacks are typically seen as a sign of a company’s confidence in its value, and they also help reduce the number of tokens in circulation. In the short term, the buyback had a positive impact on Aevo’s price, which surged by approximately 11% to a peak of $0.4451 on the day of the repurchase. However, the price made a slight correction afterward, and as of 04:00 (UTC+0) on September 29, the price of AEVO tokens was $0.4224 [18].

Cryptocurrency Trading Volume in Bolivia Surges Over 100% After Legalizing Digital Payment Channels
After new regulations in Bolivia legalized the use of digital payment channels, the country’s cryptocurrency trading volume has surged. According to a recent statement from the Central Bank of Bolivia, as of 00:00 (UTC+0) on September 29, the monthly trading volume of virtual assets increased from $7.6 million to $15.6 million, driven primarily by stablecoin trading and growing public interest[19]. The Central Bank attributes this growth to Resolution No. 082/2024 from the Executive Board, which came into effect in June, allowing the use of electronic payment channels for purchasing virtual assets. The number of virtual asset transactions also saw a significant rise, with over 1.1 million transactions recorded between July and September, compared to approximately 932,000 in the previous six months. Most of these transactions were conducted by individuals.

In addition, the Financial System Supervisory Authority (ASFI) reported that six financial institutions have started conducting business with virtual assets, further integrating these digital tools into Bolivia’s financial system. Data shows that from July to August, business activities at these institutions increased by 40% [20].

Vitalik Publishes New Article: “Making Ethereum Alignment Legible”
On September 28, Vitalik Buterin published an article titled “Making Ethereum Alignment Legible”, where he introduced the concept of “Ethereum alignment.” He emphasized the unification of values, technology, and economics to foster collaboration among Ethereum client teams, researchers, Layer 2 teams, application developers, and community groups, with the goal of building a unified Ethereum ecosystem. Vitalik believes that more entities, similar to L2BEAT, should track projects’ performance in meeting these alignment standards and encourage competition based on easily understandable criteria. He advocates for clear alignment standards and diverse monitoring tools that do not rely on a single overseer to improve fairness and inclusivity within the Ethereum ecosystem [21].

According to L2BEAT data, as of 04:00 (UTC+0) on September 29, 2024, the total value locked (TVL) in Ethereum Layer 2 solutions reached an impressive $38.6 billion, demonstrating the strong demand for Layer 2 solutions. Over the past seven days, TVL has grown by 5.42%, and over the past year, it has seen a staggering increase of 228.83%. This growth highlights the potential and advantages of Ethereum Layer 2 networks in terms of scaling and reducing transaction costs.

As of 04:00 (UTC+0) on September 29, 2024, Ethereum’s main scaling solutions include Optimistic Rollups, ZK Rollups, Optimiums, and Validiums. In terms of TVL, Optimistic Rollups dominate the market with an 80.35% share, followed by ZK Rollups at 10.96%, while Optimiums and Validiums hold 7.57% and 1.12%, respectively. These solutions employ different technological approaches to enhance Ethereum’s transaction processing capacity and reduce user fees. As technology continues to advance and the market matures, the Ethereum Layer 2 sector is expected to maintain its strong growth momentum [22].

Airdrop Opportunities

Shardeum
The third phase of Shardeum’s Atomium testnet will officially launch on October 1, 2024, and is expected to run for approximately 3 to 4 weeks. The testing will include P2P transfers, on-chain functionality, and the validator network, which will feature a penalty mechanism. This phase will allow users to to extensively test more on-chain activities and validator functions. After completing tasks, participants will have a chance to earn rewards such as SHM airdrops, experience points (XP), NFTs, and more [23].

Shardeum is an EVM-based smart contract platform with linear scalability, offering low Gas fees while maintaining decentralization and robust security through dynamic state sharding. In July of this year, Shardeum raised $5.4 million in strategic funding, following its $18.2 million seed round completed in October 2023.

How to Participate

Complete on-chain tasks:

1. Referral Program: After completing on-chain tasks, users can refer others to participate and increase their XP score.
2. Social Tasks: Complete tasks such as following Shardeum on Twitter, joining the Telegram group, and subscribing to the newsletter.
3. Unlock Referral Rewards Challenge: Completing this challenge will unlock rewards for the referral program.
4. Voting and Quiz Games: Participate in quiz-based voting games.
5. Wordle Game and Unlimited SHM Transfers: Test the network’s load.

Validator Tasks:
Validators need to run nodes and meet hardware and other requirements to earn rewards. This phase will include testing the penalty mechanism, where nodes that fail to operate as required will have their XP penalized.

• Validators must ensure stable node operation.
• The leaderboard will be updated every 24 hours, allowing users to view their daily XP and ranking. \

Reference：

1. Gate, https://www.gate.io/price
2. Gate, https://www.gate.io/trade/BTC_USDT
3. Gate, https://www.gate.io/trade/ETH_USDT
4. SoSoValue, https://sosovalue.xyz/assets/etf/us-btc-spot
5. SoSoValue, https://sosovalue.xyz/assets/etf/us-eth-spot
6. Coingecko,https://www.coingecko.com/en/categories
7. Investing, https://investing.com/currencies/xau-usd
8. Gate, https://www.gate.io/bigdata/homeindex
9. X, https://x.com/KardiaChain/status/1839601043979821208
10. X, https://x.com/KITEAIPRO/status/1839602939058688169
11. Circle, https://www.circle.com/en/transparency
12. IntoTheBlock, https://app.intotheblock.com/coin/ETH/deep-dive?group=financials&chart=inAndOut
13. SoSoValue, https://sosovalue.xyz/assets/etf/us-btc-spot
14. SoSoValue, https://sosovalue.xyz/assets/etf/us-eth-spot
15. X, https://x.com/NateGeraci/status/1840036803404800018
16. X, https://x.com/aevoxyz/status/1840033092343607665
17. Gate, https://www.gate.io/price/aevo-aevo
18. BCB, https://www.bcb.gob.bo/webdocs/10_notas_prensa/26sep24%20CP50%20ACTIVOS%20VIRTUALES.PDF
19. Cryptonews, https://cryptonews.com
20. Vitalik, https://vitalik.eth.limo/general/2024/09/28/alignment.html
21. L2beat, https://l2beat.com/scaling/summary
22. Shardeum，https://shardeum.org/blog/incentivized-testnet-stage-3/

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