Bitget Research Institute: BTC breaks through $70,000 to test the upper resistance level, Base chain Meme has a significant wealth effect
Original author: Bitget Research Institute
In the past 24 hours, many new popular currencies and topics have emerged in the market, and it is very likely that they are the next opportunity to make wealth.
Summary
BTC spot ETF has experienced net inflows for 4 consecutive days, and BTC has returned to test the resistance level above US$70,000. The wealth creation effect of Base ecological meme coins was strong over the weekend, pushing the Base ecological TVL and DEX trading volumes to both break through record highs.
The sectors with strong wealth creation effects are: Base Ecology (DEGEN, MFER), Solana Ecology (JTO, JUP, WIF), and RWA sectors;
The most popular tokens and topics searched by users are: PENDLE, DEGEN, Farcaster;
Potential airdrop opportunities include: Zircuit, PublicAI;
Data statistics time: 4:00 on April 1, 2024 (UTC+ 0)
1. Market environment
The market expects that the Federal Reserve will keep interest rates unchanged in May, and the probability of cutting interest rates by 25 basis points in June is more than 60%. Amid the prospect of interest rate cuts and tensions between Russia, Ukraine and the Middle East, the price of gold reached a new high, breaking through the $2,250/ounce mark.
BTC once again broke through 70,000 US dollars, repeatedly testing the upper resistance level. After experiencing five consecutive days of net outflows, the BTC Spot ETF experienced four consecutive days of net inflows last week. The market focused on the inflow/outflow of the BTC Spot ETF on Monday. The market focused on the Base chain over the weekend: Base chain TVL exceeded 1.17 billion U.S. dollars, and the explosion of popular meme coins on the chain caused the single-day DEX trading volume on Base to exceed 1.2 billion U.S. dollars, a record high.
2. Wealth creation sector
1) Sector changes: Base Ecology (DEGEN, MFER)
main reason:
(1) Base ecological TVL exceeded 3.2 billion U.S. dollars, and dex 24-hour trading volume exceeded 1.2 billion U.S. dollars, both breaking record highs. Fund inflows and fund activity within the ecosystem increased significantly throughout March.
(2) This weekend, the founders of popular blue-chip NFT mfers and Doodles in the last bull market successively issued coins on the Base chain. The huge wealth effect caused by MFER stimulated the rise of meme coins and the surge in transaction volume in the entire Base ecosystem.
(3) DEGEN: In addition to the surge in tokens and extensive discussions on social media, DSWAP and DINO on Degen Chain also performed well. At the same time, Degen has reshaped the Farcaster ecosystem, allowing Casters to use DEGEN to reward high-quality content creators. As Farcaster announced Paradigms investment and a valuation of US$1 billion, the market continues to be optimistic.
Rise:
DEGEN has risen by more than +300% in one week and more than +4000% in one month; MFER’s currency price was only 0.008 u within one hour of opening, and its ATH reached 0.32 u, with the highest increase reaching +3900%.
Factors affecting the market outlook:
The continued inflow of funds into the Base ecosystem may directly affect the overall trend of meme coins on the Base chain. The development of the Degen Chains own ecosystem, the development of the SocialFi track, and the progress of Farcasters currency issuance will all affect the performance of the DEGEN currency price. Traders can pay close attention to changes in ecological TVL, DEX trading volume and other data. The fundamentals continue to improve, and the assets mentioned are expected to break new highs. At the same time, judging from history, the ceiling of meme coins on the Base chain is limited, so beware of the risks of chasing high prices.
2) Sector changes: Solana ecology (JTO, JUP, WIF)
main reason:
(1) The price of SOL currency exceeded US$200 again. SOL was relatively resistant to the decline during the market correction, and the TVL of the Solana ecosystem did not decline significantly during the market correction. It continued to rise at a high speed during the rebound.
(2) WIF’s consecutive new highs and Solana’s long-tail meme coin’s wealth creation effect continue to benefit Solana ecological applications. On March 30, the DEX transaction volume on the Solana chain was US$1.313 billion, second only to Ethereum’s US$1.5 billion. . In April, the market expects that Marginfi and Parcl, well-known projects in the Solana ecosystem, will issue coins, injecting new vitality into the ecosystem.
Rise:
JTO rose by +30% in the past 24 hours and broke a new all-time high; JUP rose by +20% in the past 24 hours and broke a new all-time high; WIF rose by +60% in the past week and +390% in the past month.
Factors affecting the market outlook:
(1) The continued inflow of funds into the Solana ecosystem, and the TGE airdrops of several well-known projects coming this year (Kamino, Parcl, Marginfi, DFlow, Backpack, MagicEden, Tensor, etc.) will bring continued development and popularity to the Solana ecosystem. Support SOL currency price.
(2) The development of each leading ecological project directly affects its own currency price. For example, the development of the derivatives trading market on Jupiter and the rate of return of JLP will play a crucial role in the currency price trend of JUP.
3) The following sectors need to be focused on: RWA track
main reason:
BlackRock announced the launch of its first tokenized fund issued on the public blockchain. The entry of the giant has ignited the second spring of the RWA track. RWA may remain one of the most important narratives of this bull market. . After Bitget listed Goldfinch (GFI), the token experienced three consecutive days of rise, and the price of ONDO doubled in a single month. Bitget Research also mentioned in the Western European market research report that just issued the currency last week: ONDO is ranked fifth in the Google Search cryptocurrency-related vocabulary search rankings in Western Europe in early 2024. (https://www.bitget.com/zh-CN/research/articles/12560603807344)
Specific currency list:
MKR: MakerDAO was the most important target of market attention when RWA first entered the mainstream. It is a project that cannot be bypassed when discussing RWA.
ONDO: The current flagship token in the RWA track, backed by TradFi giants: BlackRock, Goldman Sachs and Bridgewater.
GFI: Goldfinch has strong financing endorsements from a16z and Coinbase, and provides borrowers with global lending services in a decentralized manner.
PROPS: Rumors that Aptos is preparing to release an important RWA announcement in April have caused the PROPS of real estate RWA projects in the ecosystem to surge recently.
Parcl that has not yet issued coins: Solana is a real estate derivatives trading platform. The market expects that the project will issue coins in April.
3. User hot searches
1) Popular Dapps
Pendle Finance：
Pendle Finance is a yield trading protocol that allows users to split interest-earning assets into income assets YT and principal assets PT. The separation of interest-earning assets and principal assets allows market players to develop different trading strategies for different scenarios. With the Shanghai upgrade, Ethereum became an interest-bearing asset after being pledged. The subsequent launch of EigenLayer allowed for re-pledge of LST. Coupled with the launch of more and more interest-bearing RWAs based on treasury bonds or similar, Pendle gradually became the largest in the crypto world. yield trading agreement.
Currently, Pendles TVL has climbed to US$3.54 billion. Following this, Pendle’s protocol token PENDLE also gradually reached a record high. The crypto market has recently ushered in a RWA boom, which is a huge benefit to the Pendle protocol. Investors are recommended to continue to pay attention to the trend of Pendle protocol introducing RWA assets. The market size has huge potential.
2）Twitter
DEGEN：
Degen Chain is built based on Arbitrum Orbit. The Base network only serves as the settlement layer, and the DA layer uses AnyTrust. Channels first became popular on Farcaster, which distributes tokens among builders, content creators and users. DEGEN reshapes the Farcaster ecosystem, allowing Casters to use DEGEN to reward high-quality content creators. Yesterday, Farcaster announced Paradigms lead investment financing, with a valuation of US$1 billion. Degen, as the first ecological project, has high hopes from the market.
In terms of tokens, DEGEN has conducted a relatively large-scale airdrop. As of now, DEGEN has 53,000 holders, with more than 553,000 transactions, and is still growing rapidly. The token price has also increased in the past month. 45 times. Whether DEGEN can continue to be strong in the future requires continued attention to the ecological construction situation and whether SocialFi can produce a positive flywheel effect.
3) Google Search Region
From a global perspective:
Farcaster is a completely decentralized protocol that facilitates developers to build decentralized social network applications. Farcaster recently announced the completion of a financing round led by Paradigm with a valuation of US$1 billion. The ecosystem derived from Farcaster has recently become popular on the Base chain, including Degen, Higher, etc. Degen has launched its Layer 3 DegenChain, using DEGEN tokens as its original token, directly pushing the price of DEGEN tokens to new highs.
Web3 SocialFi has always been a hot topic and track in the industry, but both Lens and Friend.tech are short-lived. Farcasters appearance this time provides a relatively complete ecological structure design and complete products, both for users and Developers are relatively friendly, and with the support of major institutions, the enthusiasm for hype in the social field will be rekindled.
Judging from the hot searches in each region:
(1) There are no obvious hot spots in Africa and Latin America:
The regional popularity in Africa and Latin America shows a relatively scattered performance. Among them, MEME, AI, RWA and some recently launched cryptography all appear in hot searches. This situation shows that the overall market is divided into themes. When the market is relatively stable, rotational speculation of sector themes has begun.
(2) Southeast Asia, CIS, and Europe as a whole still maintain continued enthusiasm for RWA:
BlackRock recently launched BUIDL, the first tokenized asset fund on the Ethereum network. At the same time, Coinbase has been selected as a critical infrastructure provider. Since the news was released, the RWA field has been dominating the encryption market, and the ecosystem has shown a booming trend, with various types of asset projects constantly emerging. So far, BlackRocks on-chain fund BUIDL has attracted US$245 million in deposits, showing strong demand.
4. Potential airdrop opportunities
Zircuit
Zircuit is a Layer 2 public chain project based on zkRollups parallelism and AI integration. It is invested by Pantera and Dragonfly. The current TVL of the project has exceeded US$1.1 billion. Zircuits current ecology is gradually improving and already includes functions such as staking, cross-chain bridges, and browsers. Users can also obtain air investment qualifications by participating in ecological construction and community interaction.
Specific participation methods: 1) Enter the staking page (https://stake.zircuit.com/) and participate in staking to win points; 2) Participate in deploying nodes to win points (https://build.zircuit.com/build).
PublicAI
PublicAI is a distributed AI network. The network simplifies the process of outsourcing a variety of tasks, from data annotation to many data annotations related to artificial intelligence. The platform enables other organizations to enhance data analysis, data annotation, and accelerate machine learning model development with a large, structured pool of participants.
The project has not yet announced its financing status, but according to its official website, the project has received support from the Solana Foundation, Nvidia and first-tier VCs.
Specific participation methods: 1) Enter the page (https://beta.publicai.io/participant) to register and log in, 2) forward a comment on PublicAI and carry the corresponding topic tag, 3) become a data dock node.
Original link: https://www.bitget.fit/zh-CN/research/articles/12560603807492
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
