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Bitget Research: Ethereum Completes Cancun Upgrade, Solana Ecosystem Surges

Jarseed & Victoria
2024/03/14
Bitget Research: Ethereum Completes Cancun Upgrade, Solana Ecosystem Surges
In the past 24 hours, many new popular tokens and topics have emerged in the market, which could potentially be the next wealth creation opportunity.

Overview

The market was relatively calm yesterday, with Bitcoin fluctuating around $73,000. Ethereum's Cancun upgrade was completed, significantly reducing transaction fees on Layer 2 networks, resulting in some Layer 2 projects experiencing positive outcomes. The Solana ecosystem saw a general rise, with the Solana ecosystem memecoin WIF showing a notable increase, which may drive the memecoin sector to new highs.
  • Sectors with strong wealth creation effect: Solana Ecosystem and Meme sector.
  • Top searched tokens and topics by users: SSV, AEVO, FLOKI, and Meme sector tokens.
  • Potential airdrop opportunities: Myshell and Zeta Markets.
Data collection time: March 14, 2024, 4:00 AM (UTC)

1. Market Environment

The overall and core CPI in the US for February exceeded expectations, yet the enthusiasm for the crypto market has not waned. As of March 13, BTC ETF data shows a net inflow of $1 billion in a single day, indicating an accelerating inflow trend. In terms of cryptocurrency prices, Bitcoin has been fluctuating around $73,000, with frequent block trades in the options market, keeping trading active.
Yesterday, Ethereum completed its Cancun upgrade, which led to a slight increase in STRK. However, since OP and ARB did not upgrade immediately, there was no decrease in transaction fees, which failed market expectations and led to a shift in market funds towards Solana. As of now, OP has completed integration, and ARB is in the process of doing so.

2. Wealth Creation Sectors

1) Sector movements — Solana ecosystem (SOL, WIF, and JUP)

Main reasons:
  1. The Cancun upgrade initially underperformed expectations, leading market funds to shift to the Solana ecosystem and bet on SOL and leading tokens within the Solana ecosystem’s various sectors.
  2. SOL's price, sitting 57% below its all-time high, contrasts with ETH, which is only 22% off its all-time high, thereby positioning SOL as a more attractive investment in the market's view.
  3. The famous Solana ecosystem memecoin WIF's community raised $670,000 for advertising at the new landmark MSG Sphere (a giant spherical LED venue) in Las Vegas, USA. Influenced by this news, WIF saw a 30.6% increase in a single day.
Price increase: SOL rose by 10.6%, WIF by 30.6%, and JUP by 16.8%.
Factors affecting future market conditions:
  1. TVL and fund inflow in the Solana ecosystem: The continuous rise of the Solana ecosystem depends on the inflow of funds and the increase in TVL across its projects. A rise in SOL's price directly benefits the leading projects within its ecosystem. As long as the market considers SOL to be of good value at its current price, investing in SOL and its leading projects like JUP and RAY could yield significant potential returns.
  2. The impact of news on memecoins: Memecoins within the Solana ecosystem generally have strong potential due to the low transaction fees. Investors need to follow the progress of projects closely, including endorsements from famous influencers like Elon Musk. In terms of assets, investors can keep an eye on WIF, BONK, and SILLY.

2) Sector movements — Meme sector (PEPE, DOGE, and BONK)

Main reasons:
  1. Famous influencers, like Elon Musk, have recently mentioned PEPE and DOGE in their tweets.
  2. As the market stabilizes, funds are rotating into sectors for speculation, and memecoins, with their simple and easily recognizable themes, have strong retail consensus.
Price increase: PEPE rose by 13.3%, DOGE by 10.2%, and BONK by 11.4%.
Factors affecting future market conditions:
  1. Memecoins are significantly affected by the overall market trend. If the broader market continues to rally, memecoins are likely to maintain outsized gains. However, if the market sees a pullback, memecoins could see a significant drawdown.
  2. Endorsements from influencers, project-specific events, and listings on centralized exchanges are key factors influencing the rise of memecoins. Investors are advised to stay updated on the tweets from the project's core team, promotions and news by influencers, and news about listings on centralized exchanges.

3) Sectors to focus on next — Data availability (DA) sector (TIA and NEAR)

Main reasons: Following Ethereum's Cancun upgrade, the DA fees for Layer 2 projects have decreased. However, based on current performance, Ethereum's DA fees are still higher than those of third-party DA solutions. Therefore, the market might gradually shift its focus to third-party DA solutions in the future.
Specific token list:
  • TIA: A leading token in the modular blockchain and DA sector. Celestia is used by several chains like Manta as their DA layer, significantly reducing costs for these chains.
  • NEAR: The project covers a range of trending topics, and its function as a DA layer stands out as a significant aspect, making it worthy of investor attention.

3. User Trending Searches

1) Popular DApps

Entangle (Token: NGL):
Entangle is a cross-chain DeFi protocol and the first to utilize synthetic derivatives to synergize liquidity and liquidity value across Layer 1 and Layer 2 ecosystems. The protocol completed a $4 million seed and private round funding this year, led by Big Brain Holdings. Listed on Bybit on March 13, Entangle’s token NGL has practical utility and broad applications, such as staking by delegators acting as transmission agents or infrastructure providers. The project currently has high community engagement. With a significant number of airdrop recipients, its current token market cap stands at $37 million, suggesting room for growth compared to leading projects in the sector.

2) Twitter

SSV Network (Token: SSV):
SSV Network is a decentralized staking infrastructure that enables easy and scalable access to decentralized ETH staking for everyone. According to the official website, the total TVL has surpassed $600 million, with over 150,000 ETH staked. As an infrastructure for LSD, it has also begun integrating with platforms like Eigenlayer for re-staking infrastructures. Future developments are expected to further benefit the project, potentially pushing the TVL to new highs. The token is performing well at the moment, with a weekly increase exceeding 38.5%. Engaging in secondary market trading of this token at lower price points could be worthwhile.

3) Google Search (Global and Regional)

From a global perspective:
(1) Ether.Fi:
Ether.Fi is a liquidity re-staking protocol on Ethereum, allowing participants to maintain control of their keys while their deposits are automatically re-staked with Eigenlayer. The project previously announced a successful funding round of $27 million, led by Bullish and CoinFund, with participation from BitMEX founder Arthur Hayes. Recently, Ether.Fi has seen several positive developments, launching on Binance LaunchPool and currently in the mining phase with a confirmed listing on Binance. The user interest is high, with participation in ETHFI mining and anticipation for secondary market trading of the token.
From a regional perspective:
(1) English-speaking countries, Europe, and Africa are primarily focused on the meme sector:
Recently, the Solana ecosystem has seen a surge in meme projects with strong price trends. Memecoins such as PEPE, WIF, and FLOKI have consecutively reached new all-time highs. In particular,
  • The USA has shown significant interest in the memecoin FLOKI, with Poland also paying a lot of attention to this token. FLOKI has seen a 121.9% increase in the past week, marking it as a memecoin of particular interest in the new cycle.
  • Africa has shown a high level of interest in PEPE, which achieved a 24-hour increase of over 15%, reaching its all-time high and moving up to the 34th position in the market cap ranking.
(2) All the regions are maintaining a shared focus on the AEVO token's movements post-launch, exhibiting high levels of search volumes:
AEVO is a decentralized derivatives exchange offering perpetual futures, options, pre-launch token futures, and other types of derivative trading, using an order book and margin model. The platform's trading volume has surpassed $120 billion during the promotion period. Aevo opened airdrop claims yesterday, with 9758 addresses completing the claim for a total of 11.18 million tokens. However, there have been many negative reviews on Twitter regarding the airdrop claim process for AEVO. The project's anti-sybil rules have been questioned by the community, with numerous users reporting that genuine trading addresses did not receive the airdrop, leading to some negative sentiment on social media. AEVO is currently priced at $2.99, with a 24-hour increase of 13%.

4. Potential Airdrop Opportunities

Myshell
MyShell is a Web3-supported AI platform that allows users to create personalized chatbots, referred to as “Shells.” The platform has recently migrated to opBNB, utilizing Optimism’s OP Stack or Optimistic rollups technology. The project has a large user base and a clear airdrop plan on its website, providing an opportunity for early participation.
The project has a solid background, having completed a $5.6 million seed round at a valuation of $57 million, with investment from INCE Capital, Hashkey Capital, Folius Ventures, SevenX Ventures, and OP Crypto. It is also one of the projects selected for the Binance Labs Incubation Season 6.
To participate in the airdrop, users can register an account on the official website and earn shell credits by completing daily tasks, such as creating a Telegram bot. The upcoming airdrop rewards will be based on these shell credits. The token exchange for credits is currently in its seventh season, and participation is still open.
Zeta Markets
Zeta Markets is a DeFi derivatives platform within the Solana ecosystem, offering liquidity derivatives trading for individuals and institutions. The project has published a complete roadmap and announced plans for a Z token airdrop and future token governance rules. Zeta will continue to iterate its products in the future, including releasing Zeta V3 with multi-collateral support. It will also offer a second airdrop for token staking users and implement voting custody.
Zeta Markets has received investments from Electric Capital, Jump Crypto, and Wintermute. Its vision is to create a user-friendly, new on-chain futures trading platform leveraging the stability and security of the Solana network. The Zeta-score project is still ongoing and users with Z-score will have the opportunity to claim Z token airdrops.
How to participate: Zeta Markets features an official credit system where users earn Z-Score credits based on their trading activity on Zeta, with 1 Z-SCORE credit for every $1 traded. In addition, the 24-hour PnL ranking determines the reward multiplier. The second season of Z-Score promotion is currently underway.
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