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Bitget Research: ETHFI Continues to Break New Highs, Restaking Sector Expected to Have Strong Wealth Effects

Victoria & John
2024/03/27
Bitget Research: ETHFI Continues to Break New Highs, Restaking Sector Expected to Have Strong Wealth Effects
In the past 24 hours, many new popular tokens and topics have emerged in the market, which are likely to be the next wealth creation opportunities.

Overview

Yesterday, spot BTC ETFs saw a net inflow, leading to a significant market rebound. Apart from a few leading chains like FTM, SOL, and TON, the Restaking sector currently has a strong expectation for growth, with key projects like ETHFI reaching new price highs. The Restaking sector is anticipated to create significant wealth effects.
  • Sectors with strong wealth creation effect: The public chain sector, the RWA sector, and the Restaking ecosystem.
  • Top searched tokens and topics by users: Anichess, 1introv, and Etherfi.
  • Potential airdrop opportunities: Zeus Network and KiloEx.
Data collection time: March 27, 2024, 4:00 AM (UTC)

1. Market Environment

Bitcoin briefly surpassed $71,000 yesterday before falling back to fluctuate around $70,000. According to Lookonchain data, on March 26, 9 spot Bitcoin ETFs had a net inflow of about $183.7 million, indicating a continued strong market rebound. With Bitcoin resuming its uptrend, chains such as Base, FTM, TON, Aptos, and SUI have also experienced a wealth effect similar to Solana’s, leading to a continued rise for projects within these ecosystems. The market has entered a phase of diverse growth.

2. Wealth Creation Sectors

2.1 Sector movements — Blue chip blockchains (FTM, APT, and TON)

Main reason: With BTC returning to the $70,000 mark, the wealth effect from the market has extended to major chain tokens, with some Layer 1 and Layer 2 projects experiencing positive developments. This extension of wealth effect within their ecosystems has created potential demand for the assets of these chains.
Gainers: APT broke through $18, returning to its historical high; FTM surpassed $1.2; TON reached a new all-time high.
Factors affecting future market conditions:
  • Continuous rise in TVL: According to DefiLlama, Aptos’ TVL surpassed $400 million, setting a new historical high, and TON's total ecosystem TVL exceeded $80 million, also reaching a new high, which is four times the TVL value at the beginning of March. It is recommended to keep an eye on the TVL changes within various ecosystems. If capital inflows are sustained, investing in leading chains is advisable.
  • Ongoing ecosystem development: The TON Foundation will launch the first open league on April 1, offering $115 million worth of Toncoin as community rewards to stimulate ecosystem development and user activity. The official network of Fantom Sonic is scheduled to launch in spring 2024, with expectations for significant value increases as positive developments are realized. Investors are advised to base their investments on these outcomes.

2.2 Sector movements — RWA sector (TRU, ONDO, and TOKEN)

Main reason: BlackRock recently launched its first tokenized asset fund, BUIDL, on the Ethereum network, with Coinbase being chosen as the key infrastructure provider. Since the release of this news, the RWA domain has led the cryptocurrency market, with some small market cap RWA projects gradually being discovered. Investors should keep an eye on the fundamentals of these projects and consider entering positions during dips.
Gainers: TRU rose by 20% in 24 hours, ONDO reached a new all-time high in a single day, and TOKEN rose by 22% in 24 hours.
Factors affecting future market conditions:
  • High sentiment in the RWA sector: Assets with the RWA concept have surged. Ondo Finance, a leading project in this sector, saw its native token ONDO increase by more than 110% over a week, leading the entire RWA sector with several tokens continually setting new highs. POLYX, TOKEN, and RIO (Realio Network) saw weekly gains of 197.4%, 210.5%, and 141.7%, respectively. GFI saw a 24-hour increase of 97.3%. This catch-up trend across the ecosystem indicates that some small-cap RWA projects that were lagging are now catching up, meriting investor attention.
  • Realization of positive developments: TureFi (TOKEN) has launched a new RWA lending platform named Trinity, offering cryptocurrency loans with tokenized RWA as collateral and introducing dollar-based $TRI and tokenized treasury bill products $tfBILL, with annual ROI up to 15%. Besides, the overall TVL in the RWA sector continues to rise, continuously benefiting the projects within this ecosystem.

2.3 Sectors to focus on next — Restaking Ecosystem (ETHFI)

Main reason: The restaking market has seen increased interest in 2024, with Ethereum restaking now leading the narrative. Since December, the TVL in the Restaking sector has experienced explosive growth, currently exceeding $7.5 billion.
Gainers: ETHFI is up 33% in the last 24 hours.
Factors affecting future market conditions:
  • The first-to-launch ETHFI token performs well, with high expectations for the entire sector: The non-custodial liquidity staking protocol Ether.fi is the number one protocol in terms of TVL within this sector, currently having staked 619,000 ETH. Additionally, Ether.fi supports a wide range of assets, including ETH and stETH, and is unique as the only protocol that allows direct LRT exits, whereas other protocols facilitate exits through LP pools (e.g., Curve, Balancer). Ether.fi has completed two rounds of funding, the most recent being a $27 million funding round at the end of February led by Bullish and CoinFund, with participation from 95 investors.
  • Ongoing ecosystem development and numerous collaborations: Ether.fi recently announced a partnership with the decentralized smart contract engine Aethos, using Aethos' strategy engine AVS to ensure the security of the Ether.fi protocol. It also announced that the TVL in its DeFi strategy vault, Ether.fi Liquid, has surpassed $100 million, becoming the largest single DeFi strategy vault to date, with new features coming soon that the community is eagerly anticipating.

3. Top Searches

3.1 Popular DApps

Anichess (Dapp):
Anichess, created by Animoca Brands and developed in collaboration with Chess.com, is a chess-themed GameFi project. This project introduces innovative gameplay to chess as a free game by combining the core values of traditional chess with new features like innovative spell mechanisms to enhance strategy and engagement. Currently, the project has not issued any tokens, but users can earn in-game utilities by completing daily challenges and winning "Orbs of Power" game assets. Due to Animoca Brands' deep involvement, the project initially received high traffic, and future airdrops could be quite generous.

3.2 X (former Twitter)

1intro (DApp): 1intro is the first Liquidity Bootstrapping Pool (LBP) project on the Solana chain. LBPs enable projects to raise funds from retail investors and the community fairly and transparently while introducing innovative mechanisms to protect retail investors. The project has introduced several innovative features, such as the "Refer and Earn" function. Users can connect their wallets and generate personalized referral links to ongoing LBPs, earning 50% of the exchange fees as rewards. Currently, in its early stages, it has not yet successfully launched any LBP. However, due to its first-mover advantage and the wealth effect on the Solana chain, users should keep an eye on this project and participate in its LBP for potentially good returns.

3.3 Google Search (Global and Regional)

Global focus:
Etherfi (ETHFI): TVL of Etherfi continues to grow, reaching $3.083 billion according to DefiLlama. Influenced by an improving market and strong business performance, the price of its token, ETHFI, has steadily increased. Bitget data shows that it has recently surpassed $6, setting a new all-time high. It is currently priced at $6.28, with a 24-hour increase of 28.4%.
Regional focus:
(1) Different regions displayed diverse project and sector interests yesterday:
Qatar, Vietnam, and Pakistan showed a joint interest in Aevo, while users in Europe and the USA focused on GameFi projects like Myra, Gala, and Pixel. GameFi has created some new narratives in this bull market, benefiting from the introduction of AI technology. The combination of blockchain games with AI, various AI-generated NPCs, and AI-generated scenes have improved the development efficiency and potential value increase in games. Additionally, a recent collaboration between OKX and the Web3 gaming platform immutable to launch a GameFi Launchpad is expected to attract a number of fundraising projects.
(2) CIS users have started to pay attention to RWA projects:
RWA projects have maintained good visibility recently due to continuous positive news. Yesterday, the decentralized credit protocol TrueFi launched the Trinity protocol, designed to enhance the capital efficiency of real-world assets. The new protocol will utilize the dollar-based TRI token, supported by collateral assets, making it easier for users to access leverage and hedge risks. The introduction of new projects and the involvement of traditional financial institutions have led to an increase in the token prices of RWA projects, capturing the attention of users.

4. Potential Airdrop Opportunities

Zeus Network — Impressive investor lineup and large user base
Zeus Network aims to facilitate permissionless communication between the Solana and Bitcoin ecosystems. By integrating Bitcoin's liquidity into Solana's high-performance blockchain, Zeus Network promotes decentralized cross-chain communication.
The angel investor lineup revealed by Zeus Network includes notable figures such as Anatoly Yakovenko, co-founder of Solana; Andrew Kang, co-founder of Mechanism Capital; and Muneeb Ali, co-founder of Stacks. This impressive group of investors signifies a deep integration with the Solana ecosystem. On March 26, Zeus Network announced an airdrop to 300,291 unique addresses, marking the first phase of the airdrop. Users can continue to accumulate ZuPoints and participate in the upcoming testnet to qualify for the second phase of the airdrop.
How to participate: Currently, participation is primarily through the Zealy promotion. The main steps involve: 1. Logging into Zealy and binding social media accounts; 2. Completing the related quiz, which is mainly about the project's working principles and business model.
KiloEx — Invested by Binance Labs and expected to launch on Binance
KiloEX, similar to GMX, is a Perp DEX that uses oracle-based pricing. Its core innovations include: 1. A stablecoin-neutral LP with built-in hedging; 2. Copy Trading.
KiloEx is one of the four projects invested in by BinanceLabs in Season 6. Two of the projects from this investment round have already been listed on Binance, suggesting a strong possibility for KiloEx to be listed on Binance as well.
How to participate: The main ways to get involved currently include trading, depositing funds to provide liquidity, and inviting other users. The highest trading volume and ROI are currently on opBNB, making promotions on the opBNB chain recommended. The main methods for trading: 1. Using ZK Bridge to transfer USDT from the BSC chain to the opBNB chain; 2. Choosing "Earn" to deposit funds for liquidity provision or directly trading with USDT.
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