TL;DR

• BTC price dropped 2.40% over the past 24 hours, with current support at $66,500.
• Bitcoin network hash rate surpassed 840 EH/s, reaching a new all-time high.
• Gate Ventures and HackQuest co-hosted the Web3 Dev Huddle, promoting Web3 innovation in Southeast Asia.
• A GOAT caused a panic-driven correction, but it did not diminish the ongoing popularity of AI Meme derivative tokens.
• The European Union launched the Trusted Investors Network to support deep tech innovation and enhance global competitiveness.

Market Analysis

According to Gate.io market data, as of October 22, 4:00 (UTC+0)[1]:

BTC — The price of BTC has fallen 2.40% over the past 24 hours, currently at $67,376. Within this period, the highest price was $69,532, and the lowest was $66,853. After encountering resistance above the $69,500 level, the price retreated below $69,000. The current support level lies at $66,500. If the price stabilizes at this support level, a rebound may occur; however, if it breaks below this support, a further short-term decline could be expected[2].

ETH — ETH has dropped 2.94% over the past 24 hours, currently priced at $2,667. After encountering resistance above $2,770, the price fell back and broke through the previous support level of $2,650. Currently, $2,600 has become a new potential support level. If this support level fails to hold, the ETH price may decline further; however, if it holds, ETH might oscillate within this range. Investors should closely monitor market trends and adjust their investment strategies accordingly[3].

ETF — According to SoSoValue data, on October 21, the total net inflow for U.S. Bitcoin spot ETFs was $294 million[4], while U.S. Ethereum spot ETFs saw a total net outflow of $20.8 million[5].

Altcoins — Most altcoin prices have declined over the past 24 hours following BTC’s pullback. However, certain sectors like BTCFi, Wallets, and Elon Musk-Inspired tokens performed relatively well, with slight increases of 9.36%, 1.70%, and 1.34%, respectively[6].

U.S. Stock Market Indexes — The S&P 500 index fell by 0.18%, the Nasdaq index rose by 0.27%, and the Dow Jones index dropped by 0.80%[7].

Spot Gold — The price of spot gold reached $2,726 per ounce, rising 0.22% within the day[8].

Fear & Greed Index — The Fear & Greed Index fell from 72 yesterday to 70 today. Despite a weakening in greed sentiment, market sentiment remains optimistic, with continued capital inflows, and investors maintain a bullish outlook. However, the risk of an overheated market persists, and caution is advised for potential future volatility and pullbacks[9].

Top Performers

Based on Gate.io market data, considering the trading volume and price performance over the past 24 hours, the popular altcoins are as follows:[10]

VIRTUAL — Daily increase of approximately 34.1%, with a circulating market cap of $186 million.

Virtual Protocol is a decentralized protocol focused on creating co-owned, human-curated, plug-and-play AI agents for gaming. The project originated from Path DAO, aiming to address value flow issues in the gaming and AI sectors, ensuring that contributors are properly compensated. Virtual Protocol allows users to create various types of AI characters that interact in different virtual environments and generate revenue. Users can stake these AIs to share in the revenue. The protocol also includes governance mechanisms, enabling token holders to participate in decision-making process.

The AI bot Luna Virtuals, launched by Virtuals on October 20th, introduced its AI token $LUNA. As of 4:00 UTC on October 22nd, the market cap peaked at $75 million. The significant rise in the price of $LUNA appears to have positively impacted the parent company token $VIRTUAL’s price. The success of $LUNA has attracted attention from AI professionals outside the crypto space, increasing recognition and demand for the Virtuals project. Additionally, the Virtuals Protocol enables users to co-own and manage AI agents, further enhancing its application potential.[11]

XCN — Daily increase of approximately 23.7%, with a circulating market cap of $50.38 million.

Onyx Protocol is a DeFi platform on the Ethereum blockchain, specializing in secure and efficient lending and liquidity services. It supports ERC-20, ERC-721, and ERC-1155 tokens. Onyx’s key feature is its flexible credit lines, allowing users to access funds without monthly repayments or maturity dates, given they maintain sufficient collateral. The native token, XCN, plays a vital role in governance and the ecosystem.

Recently, Onyx Protocol approved a proposal to cease XCN incentives for V2, setting the borrowing rewards to zero to encourage user migration to the new version. This adjustment optimizes resource allocation, enhances security, and reallocates remaining XCN rewards to the XCN-WETH farm, supporting ongoing development. These moves strengthen Onyx Protocol’s foundation and positions it for future growth, potentially boosting the token’s value.[12]

SAFE — Daily increase of approximately 16.7%, with a circulating market cap of $554 million.

Safe is a project focused on digital asset management, providing flexible and secure smart account solutions. Through Safe{Core}, it offers modular infrastructure for developers, advancing the adoption of Account Abstraction technology. Since 2018, Safe has safeguarded over $100 billion in assets, serving DAOs, Web3 companies, and individual users .[13]

On October 10, Safe launched a new feature integrated with Kiln, allowing users to seamlessly stake ETH through Safe{Wallet}. This enterprise-grade non-custodial staking solution offers enhanced security and flexibility while maintaining full control over funds. This announcement likely contributed to the single-day price increase of $SAFE .[14]

Data Highlights

Bitcoin ETF Inflow of $294 Million Yesterday
According to SoSoValue data, U.S. Bitcoin spot ETFs saw a net inflow of $294 million on October 21, with a daily trading volume of $1.76 billion. The total cumulative net inflow has reached $21.231 billion, with the total value of BTC managed by these ETFs at $65.337 billion, accounting for 4.88% of Bitcoin’s total market cap.

Ethereum ETF Outflow of $20.8 Million Yesterday
According to SoSoValue data, U.S. Ethereum spot ETFs experienced a net outflow of $20.8 million on October 21, with a daily trading volume of $163 million. The cumulative net outflow stands at $501 million, with the total value of ETH managed by these ETFs at $7.393 billion, representing 2.29% of Ethereum’s total market cap.

Bitcoin Network Hashrate Surpasses 840 EH/s, Reaching an All-Time High
According to BitInfoCharts data, the Bitcoin network’s hashrate has reached a record high of 840 EH/s, highlighting the increasing security of the world’s first blockchain network. Since 2021, Bitcoin’s hashrate has shown a steady upward trend, closely linked to technological advances in mining hardware such as ASICs. While the rising hashrate enhances the network’s security, it also leads to higher mining costs. The reduction in block rewards due to Bitcoin’s halving, combined with the growing hashrate, could trigger a wave of consolidation among smaller mining firms[15].

TON Network Daily Active Users Drop to Around 740,000
According to Tonstat data, the daily active users of the TON network have significantly decreased, plummeting by 69% from a peak of 1.47 million on September 30 to a low of about 450,000. The latest data shows a slight recovery to around 740,000 users. This sharp decline may indicate a short-term drop in user engagement, possibly due to shifts in market sentiment and the completion of token distributions from the previously popular Tap-2-Earn game airdrop, which has since cooled off. If this trend continues, TON could face greater challenges, particularly in maintaining user engagement and achieving long-term growth. The network needs to formulate new strategies to attract and retain users.[16]

Spotlight Analysis

Gate Ventures and HackQuest Co-host Web3 Dev Huddle to Boost Web3 Innovation in Southeast Asia
Gate Ventures and HackQuest will co-host the Web3 Dev Huddle side event on November 14, 2024, at the Gaysorn Tower multipurpose space in Bangkok. The event aims to drive Web3 innovation across Southeast Asia, offering participants the opportunity to engage with top influencers and innovators while exploring the latest developments in Web3 technology.

The event will feature keynote speeches, panel discussions, and startup pitches, covering topics such as the blockchain ecosystem, the convergence of Web3 and AI, and perspectives from investors. The timing of the event aligns with the growing demand for Web3 technologies in Southeast Asia, particularly amid the region’s digital economic transformation. The interaction between developers and top influencers is expected to not only facilitate knowledge sharing but also spark new collaborations, further advancing technological innovation in the region.[17]

Spelling Error in GOAT Causes Panic Sell-Off but Fails to Dampen the AI Meme Token Boom
The GOAT token, promoted by the AI-driven semi-autonomous bot “Truth Terminal,” recently faced a setback due to a spelling error. For a detailed overview of the GOAT token, refer to last week’s report from Gate Research[18].

On October 20, the project released a post containing a typo, where “group” was misspelled as “grouops.” This sparked doubts within the community about the AI’s actual level of intelligence. The incident led to a sharp decline in GOAT’s market cap, which plummeted from $500 million to $250 million, with its lowest price hitting $0.1447. However, GOAT quickly rebounded, with its market cap recovering to over $380 million[19].

Meanwhile, other derivative tokens like $slop have emerged amid the hype. Created as art by an AI bot named namshub, $slop experienced extreme volatility, with its market cap dropping from $18 million to $6 million before bouncing back to $30 million[20]. Other popular tokens like GNON and fartcoin have also gained traction. GNON combines AI with religious themes, while fartcoin is seen as a “beta version” of GOAT. These tokens’ rapid fluctuations and novel concepts have drawn increased attention from investors, highlighting the potential and dynamism of the AI meme token segment in the crypto market.

Nearly Half of Swiss Banks Plan to Implement Tokenization Initiatives
According to a survey conducted by the University of St. Gallen, mintminds, and vision&, 48% of Swiss banks are planning or have already implemented tokenization use cases, while 64% accept cryptocurrencies. Additionally, 58% of banks are exploring other “advanced” blockchain applications, such as trade finance and settlements. The 19 banks surveyed unanimously believe that blockchain’s potential will materialize within the next two to five years, with a more substantial impact expected after five years. However, only 37% of bankers think distributed ledger technology (DLT) will have a significant impact after five years, while the remaining 63% view its importance as moderate.

Notably, 11% of private banks anticipate a significant impact from blockchain in the next two years. Moreover, over a quarter of the banks have ten or more full-time employees dedicated to digital assets, while 21% have between two and five such staff members.

The gradual adoption of digital assets and blockchain technology by Swiss banks reflects an optimistic outlook for the future of the industry. Despite some short-term uncertainties, the high acceptance rate and active planning indicate a desire to maintain a competitive edge. This trend may encourage more financial institutions to follow suit, driving broader digital transformation across the industry. As technology matures and more use cases emerge in the coming years, banks’ confidence in blockchain is expected to grow, fostering greater innovation and collaboration.[21]

Funding News

According to RootData, four cryptocurrency projects announced funding in the past 24 hours. The details are as follows:[22]

Echo Protocol — On October 20th, Echo Protocol announced the completion of a Pre-seed funding round, with the amount undisclosed. The round was led by Spartan Group. Echo is a versatile protocol focused on bridging, re-staking, and decentralized finance (DeFi), offering seamless interoperability within the Move ecosystem. Its mission is to enhance BTC liquidity and introduce innovative re-staking solutions for BTC assets in the Move ecosystem.

Port3 Network — On October 21st, Port3 Network announced the completion of a funding round, with the amount and round not yet disclosed. Port3 Network is an AI service protocol featuring extensive Web3 datasets, a decentralized computing platform, and an open cross-chain execution layer. This initiative aims to automate various Web3 AI applications, including user and community analysis, market trends monitoring, and project evaluations.

B² Network — On October 21st, B² Network announced securing funding, with the amount and round undisclosed. B² Network is an Ethereum Virtual Machine (EVM)-compatible Rollup that leverages zero-knowledge proof technology for validation on Bitcoin.

Ordzaar — On October 21st, Ordzaar completed a $3 million seed round. Ordzaar is an NFT marketplace focused on Bitcoin Ordinals, enabling users to engage with, buy, trade, and sell Ordinals directly on the Bitcoin blockchain.

Airdrop Opportunities

Scroll Announces First Airdrop, 55 Million SCR to Reward Community Contributors
Scroll recently launched its first airdrop, allocating 7% of its total supply (approximately 55 million SCR tokens) to community contributors. The airdrop aims to reward active participants in the Scroll ecosystem, including those involved in on-chain activities, building ecosystem projects, and making technical contributions. To qualify, participants must accumulate at least 200 Marks by October 19, 2024, to receive the SCR tokens.

In this airdrop, 55,000,000 SCR tokens will be distributed to users engaged in on-chain activities, with 40,000,000 SCR allocated proportionally to eligible participants. Additionally, Scroll will offer an extra 10,000,000 SCR as a Flat Boost to ensure every qualifying user receives a minimum token reward. The airdrop will commence on October 22, 2024, and will run for 90 days, aiming to further encourage community engagement and support Scroll’s growth.[23]

EchoProtocol
EchoProtocol, incubated by MoveMent Labs, focuses on enhancing Bitcoin (BTC) liquidity. The protocol aims to facilitate seamless BTC asset interoperability through bridging, liquid staking, and re-staking solutions. In October 2024, EchoProtocol completed its Pre-Seed funding round with backing from prominent investors, including Spartan Group and ABCDE Capital. The project currently has a Total Value Locked (TVL) of 2,000 BTC, approximately $130 million. Participation details are as follows:[24]

1. Users must obtain whitelist approval to stake BTC, USDC, USDT, or APT, with potential annual returns of up to 12%, paid monthly in APT.
2. Participants can earn points from Bsquared, Echo, and Babylon, while enjoying a 10% bonus yield and 1.5x Echo points.
3. The event runs from October 21 to 27, with a participation cap of 500 BTC. Spots will be limited and allocated on a first-come, first-served basis.[25]

Note:
Airdrop plans and participation guidelines may be updated at any time. Users are advised to follow the official channels of Scroll and EchoProtocol for the latest information. Participation should be approached with caution, and users are encouraged to conduct thorough research before getting involved. Gate.io does not guarantee the distribution of future airdrop rewards.Airdrop plans and participation guidelines may be updated at any time. Users are advised to follow the official channels of Scroll and EchoProtocol for the latest information. Participation should be approached with caution, and users are encouraged to conduct thorough research before getting involved. Gate.io does not guarantee the distribution of future airdrop rewards.

Reference：

1. Gate.io, https://www.gate.io/price
2. Gate.io, https://www.gate.io/trade/BTC_USDT
3. Gate.io, 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/indices/usa-indices
8. Investing, https://investing.com/currencies/xau-usd
9. Gate.io, https://www.gate.io/bigdata/homeindex
10. Gate.io, https://www.gate.io/price
11. X, https://x.com/virtuals_io
12. X, https://x.com/OnyxDAO/status/1847322115269099802
13. Safe, https://docs.safe.global/home/what-is-safe
14. Safe, https://safe.global/blog/stake-eth-from-safe-wallet-with-new-kiln-integration
15. BitInfoCharts, https://bitinfocharts.com/comparison/bitcoin-hashrate.html
16. Tonstat, https://www.tonstat.com/#countOfActiveWalletsDaily
17. Gate.io, https://x.com/gate_io/status/1848348567095689476
18. Gate.io, https://www.gate.io/zh/learn/articles/gate-research-btc-eth-lead-gains-usdy-tvl-surpasses-100m-on-solana-goat-ignites-ai-memecoin-frenzy/4431
19. X, https://x.com/truth_terminal/status/1847971007895662781
20. X, https://x.com/fabianstelzer/status/1848013045965992209
21. News，https://www.ledgerinsights.com/almost-half-of-swiss-banks-planning-tokenization-initiatives/
22. Rootdata, https://www.rootdata.com/Fundraising
23. Scroll, https://scroll.ghost.io/introducing-scrolls-first-airdrop-a-celebration-of-the-global-community/
24. Rootdata, https://www.rootdata.com/Projects/detail/Echo%20Protocol?k=MTQ3MzY%3D
25. EchoProtocol, https://x.com/EchoProtocol_/status/1848183099202376013

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