Cryptocurrency Market Weekly Review (10.28-11.03) Cryptocurrency Market Outperforms US Stocks, Solana’s Popularity Exceeds Expectations.

Cryptocurrency Market Weekly Recap Cryptocurrencies Outshine US Stocks, Surging Popularity for Solana Surpasses Expectations

Author: Mike

A. Market Perspectives

1. Macro Liquidity

Monetary liquidity is easing. The Federal Reserve did not raise interest rates as expected in its two meetings. Market expectations for rate hikes in December and January have been lowered, with a projected 50 basis point rate cut by September next year. Geopolitical unrest and increased budget demands for military allies by the United States have made the current high interest rate and tight liquidity environment unsustainable. Technically, there has been a rebound in the US stock market, and the cryptocurrency market has outperformed it.

2. Overall Market Performance

Top 100 market capitalization gainers:

• Why is selling risk the good business model?
• SATS increased by 250% in two days, what happened in the BRC-20 market?
• One year after the FTX crash, have the once badly affected market makers in the crypto world recovered?

BTC made a strong comeback this week, catch up with altcoins. The focus is on BTC and SOL. The partial reason for BTC’s rise is the positive progress in various ETF applications approved by the SEC, and the popularity of NFT ecosystem projects has also increased again. SOL has benefited from the Breakpoint conference, which exceeded expectations, and has been subject to repeated speculation.

1. SOL: Planning to advance the Firedancer upgrade in the second half of next year, with the target TPS increasing from 2000 to 1 million. Recently, short-selling transactions have been occurring, and the rise of second and third-tier ecological projects is a manifestation of FOMO sentiment.

2. TIA: A Cosmos ecosystem project mainly used for ETH modular capacity expansion. The mainnet was launched recently, with a small market capitalization, half of SUI, and one-third of APT.

3. JOE: One of the most recent significant gainers among MEME coins. It is an emoji package similar to PEPE, which has increased hundreds of times in a month. There are also similar ones like Smurfs and SPX.

3. BTC Market Performance

1) On-chain data

BTC’s dominance continues to rise. The recent weakness in the ETH/BTC exchange rate is similar to the period from May to July 2022 when the price ratio reached the same level of 0.05. BTC has performed better than most altcoins before halving, currently accounting for about 53% of the total market valuation, a significant increase from the cycle low of 38% at the end of 2022.

Stablecoin’s total market value remains steady. Over the past week, the market value of USDT has still risen, although at a lower rate than two weeks ago, it represents the continued bullish sentiment of European and Asian investors towards BTC in the short term. On the other hand, the market value of USDC, representing US funds, has decreased over the same period. Now, the mainstream belief in the West is that BTC spot ETF approval is more likely to happen in Q1 2024.

The long-term trend indicator MVRV-ZScore is based on the total cost of the market and reflects the overall profitability. When the indicator is greater than 6, it is in the top range; when the indicator is less than 2, it is in the bottom range. MVRV has fallen below the key level of 1, indicating that holders are overall in a loss state. The current indicator is 1.1, entering the recovery phase.

Cryptocurrency investment products have seen net inflows for 5 consecutive weeks. Optimistic sentiment has led to the largest influx of funds in a year. The funds mainly flow into BTC and SOL, while ETH continues to see net outflows.

2) Futures Market

Funding Rate: The rate is significantly positive this week, indicating a strong bullish sentiment in the market. Rates of 0.05-0.1% suggest more long leverage, signaling a short-term market top; rates of -0.1-0% indicate more short leverage, signaling a short-term market bottom.

Futures Open Interest: BTC’s total open interest has increased slightly this week, in sync with the price, indicating that major players are optimistic about the future.

Futures Long-Short Ratio: 0.9. Retail investor sentiment is bearish. Retail investor sentiment is often a contrarian indicator, with levels below 0.7 indicating panic and levels above 2.0 indicating greed. The volatility of the long-short ratio data weakens its significance as a reference.

3) Current market situation

BTC is oscillating upwards and showing strength through consolidation. It turns out that the rehearsal rally triggered by the false news of the approval of a BTC spot ETF has become a real party, with optimism driving capital inflows. From a technical perspective, BTC has maintained its position above the weekly bull-bear divide line and returned to the level it was at when the LUNA collapse occurred in May 2022. This indicates that the market has moved beyond the initial recovery phase and has once again entered an upward trend.

B. Market Data

I. Total Locked Value (TVL) of Public Chains

II. TVL Distribution of Different Public Chains

This week, TVL rose by approximately $140 million, an increase of around 3.4%. The overall market continued to fluctuate, with BTC once again approaching the $36,000 price level but failing to break through. This week, TVL on the ETH chain increased by nearly 4.6%, on the ARB chain by 3.9%, on the OP chain by 3.6%, on the TRON chain by 8%, and on the SOLANA chain by 17.1%, continuing its strong performance from last week. Over the past month, SOLANA has seen a growth rate of nearly 30% on its chain.

III. Locked Value of Various Chain Protocols

1) ETH Locked Value

2) BSC Lock-up Volume

3) Polygon Lock-up Volume

4) Arbitrum Lock-up Volume

5) Optimism Lock-up Volume

6) Base Lock-up Volume

IV. ETH Gas Fee Historical Data

The on-chain transfer fee is approximately $1.9, Uniswap transaction fee is approximately $6.49, and OpenSea transaction fee is approximately $2.52. This week, the gas usage and transaction fees have slightly decreased. In terms of gas consumption, Uniswap occupies the top position, accounting for 12.51% of the overall market. On-chain applications have not yet recovered.

V. NFT Market Data Changes

1) NFT-500 Index

2) NFT Market Situation

3) NFT Trading Market Share

4) NFT Buyer Analysis

This week, the top blue-chip projects’ floor prices have mostly experienced significant gains. BAYC and MAYC increased by 18% and 14% respectively. Azuki increased by 5%, CryptoPunks rose by 9.3%, BoredApeKennelClub surged 12%, The Captainz skyrocketed by 52%, and Milady also rose by over 20%. Over the past week, the NFT market’s trading volume has continued to show noticeable growth. However, there hasn’t been much change in the number of repeat buyers or first-time NFT buyers. After the NFT market rebounded from its bottom, the floor prices of blue-chip projects have also seen substantial rebounds.

5) Latest Project Financing Situation

6) Post-Investment Updates

1) Atem Network – SocialFi

Atem Network launched a $ATEM IDO worth $200,000 on http://GameFi.org: http://gamefi.org/insight/atem-network-launches-200-000-atem-ido-on-gamefi-org-connecting-creators-community

Atem Network is a decentralized content creation protocol that helps creators tokenize their content and build web3 native communities.

2) DappOS – Web3 Operating Protocol

Polygon ecosystem DEX QuickSwap integrates dappOS V2, providing an “intent-driven” trading experience. dappOS Unified Account allows users to manage their total assets directly, achieve balance interoperability, and support gas fee payment with any token, completing associated orders with a single signature. Ethereum, BNB Chain, and other multi-chain users can seamlessly interact with QuickSwap without manually bridging to the Polygon network.

DappOS is an intent-based operating protocol. In June 2023, it obtained pre-seed funding from Binance Labs. In July, it completed a seed round of funding led by IDG Capital and Sequoia China, with a valuation of $50 million.

3) The Beacon – Gamefi

The Beacon has updated its cosmetic system in the third quarter. It now supports the automatic adjustment of character actions and orientations. The new system is more flexible than the previous game characters and offers more image choices and hairstyle options, giving creators more freedom in their creations. The visuals also support independent object movement.

The Beacon is a pixel-style Free2Play action role-playing game issued by TreasureDAO on the Arbitrum chain. The gameplay includes single-player challenges, team adventures, and casual dress-up.

[Image: A summary of the cryptocurrency market in the past week (10.28-11.03): The cryptocurrency market outperformed the US stock market, with Solana’s popularity exceeding expectations.](https://blockchain.miximages.com/cdn-img.panewslab.com//panews/2022/11/5/images/988ecdb9793dd668e9622bbac4690c37.png)

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