Crypto Market Weekly Report: ETH Leads the Rise Triggering a General Surge in Alts, BTC ETF Continues to See Net Inflows

Market View

macro liquidity

This week's currency liquidity has improved. The Federal Reserve's meeting minutes showed that policymakers are concerned about insufficient progress in reducing inflation, suggesting that high interest rate policies may last longer. As a result, expectations for interest rate cuts have fluctuated, and the dollar index fell for the week. All three major U.S. stock indexes hit historical highs, with technology stocks continuing to lead the gains. The crypto market followed the trend of the U.S. stock market and rebounded strongly.

full market行情

This week, Bitcoin has rebounded, while Ethereum has seen significant gains. The market focus revolves around ETH and the Meme sector:

1. ETH: A regulatory agency has requested to accelerate the update of the ETH ETF application documents, increasing the approval probability from 25% to 75%, with a deadline of August 7. Analysts predict that the scale of the ETH ETF could reach 10% of the BTC ETF.

2. ZKSYNC: This L2 project plans to airdrop in June, with a total token supply of 21 billion coins, and the market expects a market value of up to 10 billion USD, comparable to similar projects.

3. LISTA: A certain trading platform will launch the liquidity staking and decentralized stablecoin protocol token.

BTC market analysis

On-chain data shows that the number of long-term BTC holders is decreasing while the number of short-term holders is increasing. The market is experiencing some divergence, and the inflow of new funds is slowing down, with long-term volatility converging. The market capitalization of stablecoins remains stable, and the fundamentals of long-term funds are still positive.

The MVRV-ZScore indicator is currently at 2.5, entering the middle stage. Institutional funds have shown a net inflow for two consecutive weeks, indicating that investors are relatively optimistic about the outlook.

In terms of futures, the funding rate has slightly increased this week, and the BTC open interest has significantly risen, indicating that the main funds in the market are entering. The long-short ratio is 1.3, which is at a neutral level.

In the spot market, BTC rebounded close to new highs. The probability of the ETH spot ETF passing has greatly increased, triggering a widespread rise in alts.

Market Data

public chain TVL situation

This week's total TVL is $106.3 billion, an increase of approximately $13.1 billion, with a rise of 14%. ETH chain increased by 20%, TRON chain by 3%, BSC chain by 9%, SOLANA chain by 7%, ARB chain by 18%, and BLAST chain by 28%. The MERLIN chain performed the best, soaring by 171%.

Locked Amount of Each Chain Protocol

The DeFi protocols on major public chains such as ETH, BSC, Polygon, Arbitrum, Optimism, Base, and Solana have all experienced varying degrees of rise in locked assets.

NFT market data

This week, the NFT market performance remains sluggish. Although ETH has risen significantly, it has not managed to boost the NFT market. The floor prices of major blue-chip projects fluctuate, trading volume continues to decline, and there is no significant rebound in the number of new and returning users.