Weekly Web3 Research | Market Has been Consistently Sluggish for a Week; Crypto Derivatives Market Suffered a $279M Liquidation Blow Over the Weekend

2024-07-12, 02:00

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## Weekly Trend Overview
The overall performance of the crypto market has remained sluggish this week, with most mainstream cryptocurrencies experiencing significant fluctuations. The market has rebounded slightly, but the overall market volume has changed relatively little over the past week. Due to the large-scale liquidation caused by last weekend and the significant decline in BTC's computing power, the overall market performance was poor. Under the influence of the recent cycle, the overall market of the crypto market is in a slow climbing stage, and the market needs further positive stimulation to drive the rise. The overall market value growth of the crypto market has rebounded compared to the same period last week, with the current total market value reaching around $2.15 trillion, an increase of 0.85% within 24 hours. The market sentiment remains around 40, similar to last week's market trend. The trend of key mainstream coins this week is mainly characterized by clear ups and downs, and the overall crypto market will likely need to wait for a certain period of time to experience a large-scale rebound.

Compared to last week, the total volume of the crypto market has rebounded this week. Overall, the market is greatly affected by last week's news and market cycle changes. After entering the opening period of this week, the overall market began to show a slight fluctuation and rebound, and it is expected to continue during the weekend closing period. The top 100 crypto projects have a 3:1 rise/fall ratio within a week, with most coins experiencing a slight upward trend. The overall trend of BTC price has fluctuatedwithin a week, with a slight rebound at present. It has fallen below the $58,000 level again near the weekend closing, and the coin price is currently maintained at around $57782, with a weekly increase of about 0.49%. The trend of ETH is similar, currently maintaining around $3148, with a weekly increase of around 0.88%.

The coins that have shown a significant upward trend in the market this week are influenced mainly by their project dynamics, which is relatively considerable compared to last week. TIA ranks first in price increase, with a 7-day increase of 38.13%, and its price is currently maintained at around $6.74.

There is still a possibility of further fluctuations in the overall crypto market this weekend, and a new round of market volatility is expected during the weekend, mainly with a slight rebound. There is a high probability of a significant recovery at the end of July.

## Crypto Market
🔥 The 24-hour trading volume of <a href="/price/tether-usdt" target="_blank" class="blog_inner_link">Tether</a> USDT on Monday exceeded the sum of five digital assets: <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a>, <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a>, <a href="/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a>, USDC, and First Digital USD (FDUSD).

🔥 Cega, a DeFi derivatives protocol, introduced Ethena's USDe and sUSDe vaults to expand its product line. All products of Cega can be used on Ethereum and Arbitrarum networks, and some products can also be used on Solana.

🔥 Last weekend, the crypto derivatives market experienced significant turbulence, resulting in a loss of $279 million in leveraged positions. According to CoinGlass data, approximately 80,590 traders were affected, mainly on centralized exchanges such as OKX, Binance, and Bybit.

🔥 ETF Store President Nate Geraci posted on social media that the revision of spot Ethereum ETFS-1 is expected to expire, and it is currently unclear how quickly the US Securities and Exchange Commission will process it. Nate Geraci stated that he is more concerned about fees, and according to his previous prediction, a spot Ethereum ETF may be launched next week or two.

🔥 According to the latest report on crypto platforms, the crypto market experienced a significant downward trend in June 2024, with an overall decline of up to 11.4%.

🔥 MicroStrategy founder and chairman Michael Saylor reiterated his bullish stance on Bitcoin in his latest post on X, claiming that the design of this cryptocurrency aims to surpass traditional investment tools.

🔥 The blockchain built by Jump Crypto is about to launch its first vulnerability bounty program, FireDancer v0.1 ("Frankendancer"). The six-week program, announced by anonymous developer Cantelope Peel and supported by Immunefi, will begin on July 10 and have a scale of $1 million.

🔥 Tether CEO Paolo Ardoino reveals prevention methods for OpenAI hacking attacks, and USDT stablecoin issuer Tether is developing decentralized artificial intelligence (AI) models as part of its entry into the field.

🔥 The Wall Street Journal reported that the net worth of the baby boomer generation in the United States is $7.8 million, accounting for 51% of the country's wealth, but their Bitcoin ownership is less than 10%. The millennial generation owns 9.2% of the national wealth, but accounts for over 50% of BTC ownership.

🔥 After Bitcoin fell to $55,000 on Monday, German government agencies withdrew assets worth over $200 million from various exchanges later in the US, helping restore sentiment.

🔥 According to data tracked by Coinwarz, the mining difficulty of Bitcoin has decreased from 83.6 TH/s on June 5th to 79.50 TH/s, which is one of the largest difficulty drops since the collapse of the FTX exchange, causing the <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin price</a> to plummet by more than 10% within a week.

🔥 <a href="/price/optimism-op" target="_blank" class="blog_inner_link">Optimism</a> posted on social media that Tess Rinearson, the head of emerging products at OP Labs, stated at the event that by joining the super chain, teams are committed to expanding Ethereum and its value, and recently launched three main features on the OP Stack.

🔥 According to SolanaFloor, Solana has become the cryptocurrency with the highest purchase volume on MoonPay for the seventh consecutive week. Since last Monday, the buy transaction volume has been 47% higher than BTC and 62% higher than $ETH.

🔥 Coin98 Analytics releases L2 Q2 report, with the following key points: 1. Number of independent addresses: Optimism remains the L2 chain with the highest number of independent addresses, reaching 149.6 million, followed by Base (84.7 million) and Arbitrarum (33.2 million); 2. The increase in the number of independent addresses: Blast has the highest increase, reaching 175%, followed by Mantle, with an increase of 160%; 3. The top four L2 chains in TVL ranking are Arbitrarum Base、Blast、Linea， Among them, Scroll and Linea are the two chains with the most significant growth: Scroll TVL has increased by 6.7 times, while Linea TVL has increased by 5.6 times; 4. Net traffic: - ZKsync: net inflow of $872 million- Optimism: Net outflow of $1.441 billion; 5. Newly created NFTs on the chain: The daily number of newly created NFTs on the Base chain exceeds that of other chains. Between June 5th and 6th, Base added 11.3 million NFTs in just two days; In that quarter, a total of 52 million NFTs were added, ranking first in the L2 chain.

🔥 On July 9, Consensus, the development company of MetaMask, announced at the Ethereum Community Conference (EthCC) held in Brussels that it will soon launch the MetaMask Delegation Toolkit, which aims to improve the user experience of blockchain applications more seamlessly.

🔥 VanEck's head of digital asset research, Matthew Sigel, stated that over the next 20 years, more than $6 trillion in assets may <a href="/price/flow-flow" target="_blank" class="blog_inner_link">Flow</a> into cryptocurrencies.

🔥 BONK DAO announced in X that it has received a proposal from vault to burn approximately 84 billion BONKs, representing the amount of BONKs sent to DAO by Q2 BONKBot.

🔥 Arbitrarum posted on X platform that it is publicly recruiting users interested in becoming representatives of Arbitrarum DAO to the community. Arbitrum's (Re) Authorization Week will be held from July 17 to 24. It aims to increase community participation in DAO decision-making processes by encouraging more representatives to participate actively and allowing more ARB token holders to delegate their voting rights to active representatives.

🔥 According to Bloomberg ETF analyst Eric Balchunas on X, "It seems that the final deadline for the Solana ETF is mid-March 2025. But from now until then, the most important date is November. If Biden wins, these ETFs are likely to be eliminated. If Trump wins, anything is possible.

🔥 The non-profit DAO SOFA team announced a partnership with Merlin Chain, a Bitcoin L2 scalability solution. Merlin will deploy mBTC into SOFA's smart contract vault, expanding its revenue strategy to include crypto options and structured products.

🔥 According to the official website of AMINA Group, China Pacific Insurance Group (CPIC)'s subsidiary, China Pacific Insurance Investment Management (Hong Kong) (CPICMIMHK), has reached a strategic cooperation with AMINA Group headquartered in Switzerland, aiming to bridge the traditional financial and crypto worlds in the Asia Pacific region.

🔥 Sui announced the launch of the Sui indexing framework, providing customizable access to Sui on chain data and supporting the creation of customizable data sources using the Sui indexing framework, enabling developers to easily build software and products that respond to on chain events.

🔥 According to the June report released by crypto platforms, the total market value of the crypto market decreased by 7% due to negative news and a lack of catalyst. Nevertheless, the adjusted total lock up volume (TVL) increased by 6.7%, exceeding the decline in market value. The number of active wallets for Bitcoin and Ethereum increased by 26% and 34% respectively, with the number of users holding more than one Bitcoin surpassing one million for the first time. The activities of L2 and L3 have significantly increased. Bitcoin's trading range in June was between $60,000 and $64,000. Despite a decline in trading volume on centralized exchanges (CEX), decentralized exchanges (DEX) have seen their best performance in three months. Overall, despite the weak market performance in June, multiple positive indicators indicate that the foundation of the crypto market remains solid and is expected to continue growing in the future.

🔥 On July 10, payment company WSPN announced that its stablecoin Worldwide USD (WUSD) has made progress in the deposit experience. Users can now obtain WUSD through various convenient channels: Alchemy Pay website: Users can directly purchase WUSD on the Alchemy Pay website using US dollars and other means, and transfer it to other trading platforms to participate in transactions.

🔥 According to official sources, Blast announced that BLIP 2 has been approved, and the Blast Foundation will provide double points to all BLAST holders. BLAST holders will also receive double points based on their balance since the token generation event (TGE). This change will take effect soon.

🔥 Bitwise releases its Q2 2024 market review report, which reveals the distribution of Bitcoin holder types. Among them, individual holders account for 57%, holding a total of 12 million bitcoins; Fund/ETF holders account for 3.9%, holding a total of 800,000 bitcoins; 3.4% of miners hold a total of 700,000 bitcoins. In addition, only 1.4 million bitcoins are eft to be mined, accounting for 6.6%.

🔥 According to the snapshot governance page, the Lido community voted to approve the proposal to designate entities to respond to pending class action lawsuits against <a href="/price/lido-dao-ldo" target="_blank" class="blog_inner_link">Lido DAO</a>. The proposal states that a private plaintiff has filed a class action lawsuit with the number 3:23-cv-06492 in the Federal District Court for the Northern District of California, listing "LIDO DAO, a general partnership," as a defendant.

🔥 Michael Lewellen, a security consultant for <a href="/price/compound-comp" target="_blank" class="blog_inner_link">Compound</a> DAO, stated on X platform that the official website of Compound Finance has been hacked and is currently targeting a phishing website.

🔥 stablecoin issuer Circle has made significant progress in the digital currency field, launching the stablecoin Euro Coin (EURC) backed by the Euro.

🔥 Terraform Labs, a bankrupt crypto company, is considering selling four of its businesses as part of a $4.5 billion deal with US securities regulators that will terminate its operations, including portfolio tracking platform Pulsar Finance, crypto wallet platform Station, decentralized autonomous organization (DAO) management platform Enterprise, and its smart contract automation protocol Warp.

🔥 Jupiter co-founder Meow stated in an article on X platform that operating a sustainable and sustainable securities market requires sustained attention from both traders and liquidity providers. Jupiter's mission is to ensure that this is not a zero sum game, but rather a platform where both parties collaborate to meet their risk/return needs. Therefore, Jupiter will not hastily adopt temporary solutions, but rather make overall improvements.

## Regulatory & Macro Policies
🔥 According to a survey sponsored by crypto investment firm Paradigm, former President Donald Trump's recent embrace of cryptocurrency may win the support of some hesitant Republican voters as he seeks to return to the White House.

🔥 The Invesco Galaxy and iShares Ethereum ETFs have submitted new 8-A12B application documents to the US SEC for their Ethereum ETFs.

🔥 As the November US presidential election approaches, cryptocurrency has become a hot concern for candidates and voters. According to research on crypto platforms, crypto voters have significant influence in key battleground states, with one-sixth of crypto holders residing in these states.

🔥 Former US President Trump will deliver a speech at the Bitcoin conference later this month, highlighting his growing support for the crypto industry. The organizer announced in a statement late Wednesday that the Republican presidential candidate will give a speech on the main stage of the 2024 Bitcoin Conference in Nashville, Tennessee, on July 27.

## Crypto Market Highlights
⭐️Last week, the overall crypto market maintained a volatile trend, continuing to be sluggish. Although most mainstream coins have experienced a moderate rebound this week, the overall increase in the market is still relatively small. However, industry insiders generally maintain an optimistic attitude, and with the positive news gradually exerting its influence, the current sluggish cycle of market volatility may end at the end of July.

⭐️The mainstream coins that have experienced significant market increases this week are not very large. Currently, the cryptocurrency with the highest weekly price increase in the crypto market is TIA, mainly due to the migration of Celestia and the recent market hype of this altcoin. The weekly price increase of this coin is around 38.13%, and the current price is around $6.74. The highest price of this coin in a week was $7.4108. However, the probability of this coin entering a downward channel is relatively high, and cautious investment is needed.
![](https://gimg2.gateimg.com/image/article/17207494001.jpeg)
(Source: Coinmarketcap)

## BTC & ETH Weekly Performance

### Bitcoin (BTC)
![](https://gimg2.gateimg.com/image/article/17207494222.jpeg)
(Data Courtesy Of TradingView)

This week, the overall trend of BTC price was mainly a decline followed by an increase. Influenced by the overall market situation last week and a series of news factors, BTC price continued to fluctuate and decline from above $58,000 during the opening period, reaching a bottom near $54,300, and then began to fluctuate and rebound. <a href="/how-to-buy/secret-scrt" target="_blank" class="blog_inner_link">buy Secret</a> have been fluctuating, and it seems that they have entered a period of slight recovery. The coin currently fluctuates around $57,500 and is within the same price range as the opening price. The high point of BTC's weekly price is around $59,500, while the low point is around $54,300.

Analysis suggests that BTC's price fluctuations this week are greatly influenced by market cycles. However, despite the slight recovery and positive news, BTC's price performance has been affected by computing power, which is not good for the coin and the market. The current BTC price has experienced a bottoming-out stage and is expected to enter the weekend. The coin is expected to experience a further upward trend, with a certain chance of returning to above $59,000, but it will likely be difficult to maintain.

### Ethereum (ETH)
![](https://gimg2.gateimg.com/image/article/17207494353.jpeg)
(Data Courtesy Of TradingView)

The high point of ETH price this week was at $3,220, and the price trend for the week was similar to BTC, with a strong correlation between the two. The price rebound was even greater towards the weekend closing period. Compared to the opening price, the current ETH price has returned to above $3,000 and continues to operate, which gives the coin a better short-term catch-up advantage. During the weekend closing period, the coin price remained relatively stable within a small range, with the current price hovering around $3,110.

Analysis suggests that the performance of ETH coin price this week has basically followed the overall trend of the market, and has been affected by factors from the news side, with updates on the progress of spot ETF applications. The price fluctuation of this coin is similar to that of BTC, and it continues to fluctuate within the same range as the opening price. The subsequent major market changes of this coin still rely more on the recovery trend of the market. There is a high probability of a significant recovery during the weekend closing period. Considering various factors, ETH has entered a new stage of upward cycle.

## Web3 Project Trend
This week, the total market value of seven types of projects has fluctuated, and due to changes in market cycles and external news, each track has different performances. There is still a probability of significant changes in the market trend, and various sectors may receive clear signals of rise and fall during the weekend.

| Project category  | 7d Change  | Top 3 Gainers  | Comment  |
| ------------ | ------------ | ------------ | ------------ |
| Layer 1 | -4.4% | OM,BTSG,P3D | The Layer 1 track maintained a slight decline this week, similar to last week's decline, with a smaller increase in top growth coins.|
| Layer 2  | -5.8%  |STX,BLAST,WBROCK|The overall decline in the Layer 2 sector this week has decreased, but the increase in top growth coins is very limited. |
| DeFi  | -7.1%  | L2,AQTIS,SURE | The decline in the DeFi track has decreased, with most of the top growth projects being non-mainstream projects, and overall liquidity and trading volume still sluggish.|
| NFT  | -6.0% | MOCA,HIMFERS,DOGA |The NFT market has decreased this week, as the market value of the NFT track has fallen significantly throughout June, and the overall market remains sluggish. However, the price rebound of top-growing coins is relatively large.|
| MEME  | -6.7%  | LOVELY,XDOGE,HAROLD| The MEME coin market has decreased this week, while the top growth coins have seen a significant increase, but mostly non-mainstream projects. Overall, there are signs of a rebound in the market.|
| BRC-20  | -8.6% | MRPT,SORABTC,ROUP | The BRC-20 sector still has a clear downward trend this week, with the top growth coins showing decent gains and being significantly affected by changes in market conditions.|
| AI  | -5.7%  | AIPG,KIZUNA,VPS| The downward trend of the AI track this week has been temporarily suspended, and the growth rate of top coins is relatively large. Overall, it is still due to market changes caused by the overall market trend.|

<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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