This week’s Market Watch: Memes are on the rise! Is the market in danger?
The market focus this week is definitely meme coins!
Among them, Troll tokens surged more than a thousand times in a week because Musk changed his personal introduction to Chief Troll Officer (CTO)!
Not only Musk’s concept meme coin has skyrocketed, but Zuzalu, which was previously proposed by Buterin, was also seen as a speculation opportunity, rising 20 times in 3 days.
What does the meme coin surge mean for the market?
Before answering this question, let’s briefly review the rotation of the currency sector in the past three months:
Bitcoin, Inscription → Layer 1 (SOL, Avax) → New Concept L1 (Sei, Inj, Tia) → ETH Ecosystem (Arb, Op, Metis, Pendle) → Memes (Troll, Smiley)
Meme coins are usually seen as the last sector to rise because funds on the market cannot find other avenues for speculation . When funds are invested in meme coins, it also means an increase in risk appetite on the market, which is more important for the subsequent trend of the market. dangerous.
Review of key industry news this week
ETF pass = the beginning of a crash? $800 million in Bitcoin transferred from Grayscale address to Coinbase Prime
On 1/17, a total of 18,638 Bitcoins (approximately $798 million) were transferred from the Grayscale Trust address to Coinbase Prime.
Since the adoption of the BTC spot ETF on January 10, the Grayscale Trust address has transferred a total of 31,638 BTC (approximately US$1.366 billion) to Coinbase Prime during the opening hours of the US stock market for three consecutive trading days starting from January 12.
Ethereum developers deploy Cancun upgrade on Goerli testnet
The major benefits of the Cancun upgrade to ETH can make Gas Fee on Layer 2 cheaper and transactions faster. On 1/17, Ethereum core developers deployed the Cancun upgrade on the Goerli test network, which is also the outpost of the official upgrade. war.
After the Solana mobile phone was sold out in the airdrop craze, the Saga Chapter 2 mobile phone was launched immediately
The first-generation Saga mobile phone was initially ignored. However, the airdrop value of the content exceeded the price of the mobile phone, causing it to be sold out. Solan took advantage of the opportunity to launch the second-generation "Saga Chapter 2" mobile phone, priced at 450 US dollars. More than a million pre-orders were received in one week, which is quite astonishing.
🛎️Extended reading: This is the magic machine in the currency circle! Solana second-generation mobile phone sold 30,000 units in 30 hours, and pre-orders surpassed Vision Pro. Why is it so attractive?
ETH and BTC Ecological Observation
ETH/BTC exchange rate tracking: This week’s surge is just the beginning
The ETH/BTC exchange rate is about 0.059, and the exchange rate has increased by 4.5% this week. As mentioned in last week's weekly report, the breakthrough of the EB exchange rate is just the beginning.
BTC ecological development: After the adoption of ETF, the trend is weak
The price of Bitcoin fell by about 7.7% this week. Surprisingly, the prices of Ordi, Rats and other inscriptions performed strongly and did not fall with Bitcoin, while the Bitcoin ecological currencies were relatively weak.
DeFi market changes: flat
+1.17%, the overall lock-up volume of DeFi has not changed much this week.
Changes in total locked-up volume of Layer 2: slight decrease
The U.S. dollar standard fell slightly this week by 3.5%.
Among the top 10 Layer 2 locked positions this week, Metis has the best performance, with an increase of 13.09% in seven days, overwhelming other Layer 2s. It revolves around V God’s mother being the founder, excellent currency price performance, and decentralized sorting. With the weapon narrative bonus, even if the ecology is lacking, it still makes him a focus that cannot be ignored in Layer 2.
Track growth this week: almost major tracks are declining
LSD: 36.34 b → 35.49 b → -2.33%Lending: 23.75 b → 22.85 b → -3.7%Decentralized exchange currency: 14.86 b → 14.9 b → +0.27%Over-collateralized stablecoin: 10.43 b → 10.2 b → -2.2%
Emerging Potential Agreement of the Week: Yield Farming Wins
The author selected the companies with the highest TVL growth within seven days and met the agreements with at least $10 million, and found that Sui accounted for three of them.
It is worth noting:
- Renzo is a protocol related to the Eigenlayer concept. Users deposit Ethereum to get ezETH. The reward includes pledge APR + platform points + Eigen points. The advantage is that you don’t have to wait for Eigenlayer to increase the upper limit, and you can also enjoy point accumulation. It also recently received US$3.2 million in financing.
- Dojo is the first native AMM Dex on the Inj chain, and its currency price has increased 3 times from its low point.
- 8 ~ 10 is called the Sui ecological protocol. With the recent strong rise in the price of sui currency, you can pay more attention to the related ecology.
Market financing situation: DeFi accounts for 30% of the total
Most of the financing projects this week are Web 3 and infrastructure, accounting for more than 60%.
The highest financing amount this week was MAP Protocol, which received a strategic investment of US$50 million from Bitrise Capital’s Bitcoin Ecosystem Growth Fund.
MAP Protocol is Layer 2 of Bitcoin. MAP provides infrastructure to improve interoperability between assets, storage and computing, enabling users and developers to use and build anything cross-chain in a peer-to-peer manner.
Stablecoin market capitalization: defying market corrections, continues to rise
This week it rose slightly by 0.21%, with a total scale of US$133.8 billion, still accounting for more than 70% of USDT’s market capitalization.
Stablecoins are fearless of the ups and downs of the market and have continued to increase for two consecutive months.
Data interpretation: To observe whether the overall market rise is caused by the influx of external hot money, you can observe changes in the market value of stablecoins.
As the market rises, the market value of stablecoins increases → It is possible that OTC funds are pouring into the market to push up currency prices.
The market rises and the market value of stablecoins decreases or decreases→ It is more likely that the Air Force is at a disadvantage in the long-short game.