Crypto Market Weekly Report: Liquidity Improvement Alts Active

Market Overview

This week, the crypto market has shown a volatile trend. The Federal Reserve expects inflation to ease further, with the US Dollar Index nearing a new high for 2024. Global funds continue to favor US stocks, with about $30 billion in new capital flowing in over the past month. In contrast, the crypto market has underperformed compared to US stocks.

Market Trends

Among the top 100 tokens by market capitalization, those with significant increases include LDO, ZK, and ZRO. LDO, as the leading staking token on Ethereum, benefits from expectations surrounding the ETH ETF, while ZK is an Ethereum Layer 2 solution. ZRO is an emerging cross-chain bridge project, with its market capitalization approaching that of similar projects.

Overall, Ethereum-related projects are performing actively, which is related to the potential approval of the ETH ETF in early July. In addition, the European Cup event has also attracted some market attention.

Bitcoin Analysis

On-chain data shows that despite market fluctuations, Bitcoin investors are still in profit. However, investment interest has declined, with spot and derivatives trading volumes continuously shrinking. This aligns with the pattern that the market needs time to digest the selling pressure after Bitcoin reaches new highs.

In the futures market, the funding rate has slightly decreased, and the long-short ratio is 2.3, indicating a high sentiment among retail investors for bottom fishing. The open interest continues to decline. Overall, the market sentiment is slightly neutral.

Public Chain Ecosystem

This week, the total locked value of public chains (TVL) is $100.9 billion, a 9.6% decrease compared to the previous period. The TVL of mainstream public chains has nearly all declined, with only the TON chain rising against the trend by 15%. Ethereum still dominates, but its market share has decreased.

In the ecosystem of various chains, the locked-up volume of top protocols on mainstream public chains such as Ethereum, BSC, and Polygon has generally declined. Emerging public chains like Arbitrum, Optimism, and Base are gradually developing their ecosystems.

NFT market

The NFT market continues to be sluggish. The floor prices of mainstream blue-chip projects such as CryptoPunks and BAYC have significantly dropped, with declines ranging from 13% to 35%. Only Milady has risen against the trend by 4%. Overall trading volume has slightly decreased, and the number of first-time buyers and repeat buyers is also declining.

Summary

The current crypto market has entered a correction phase, and Ethereum-based projects may perform well in the short term. The TON and Solana ecosystems are also worth paying attention to. Overall, the market still needs time to digest the previous gains, and investors should remain cautious.