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Bitget Research: Bitcoin Briefly Falls Below $65,000, BGB Continues to Break New Highs

Victoria & John
2024/04/03
Bitget Research: Bitcoin Briefly Falls Below $65,000, BGB Continues to Break New Highs
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

The market experienced a general decline yesterday, with Bitcoin briefly falling below $65,000 and the total cryptocurrency market cap decreasing by 3.9% in the past 24 hours. Notably:
  • Sectors with strong wealth creation effects: Ethena (ENA), PoW sector, and the Base ecosystem.
  • Top searched tokens and topics: MomoAI, Ethena (ENA), and Wormhole (W).
  • Potential airdrop opportunities: xMetacene and XION.
Data collection time: April 3, 2024, 4:00 AM (UTC)

1. Market Environment

The market continued its decline yesterday, with Bitcoin briefly falling below $65,000 and the total cryptocurrency market cap decreasing by 3.9% in the past 24 hours. Spot Bitcoin ETFs saw a total net inflow of $39.47 million yesterday. However, it is noteworthy that Ark Invest & 21Shares ETF ARKB experienced a net outflow of $346,000 in a single day, marking the first net outflow for this ETF. Apart from the slowdown in ETF inflows, a shift to a more pessimistic outlook on interest rate cuts also played a significant role in the market pullback.
Due to increased pressure from high interest rates, heightened risks in commercial real estate, and ongoing doubts about employment data, the Federal Reserve's statements have struggled to stabilize institutional market sentiment. The market is likely to remain influenced by fluctuations in economic data in the short term, with continued volatility expected until the Bitcoin halving in April.

2. Wealth Creation Sectors

2.1 Sector Movements — ENA listing on Binance

Main reason: The substantial net outflow from spot Bitcoin ETFs might have weakened some investors' confidence in the broader market's future trajectory. Ethena (ENA), as the 50th project in Binance's new token mining phase, has garnered significant attention since its launch. It has shown impressive price performance, with its market cap surpassing $11 billion and its circulating market cap exceeding $1.1 billion, continuing to perform well despite the overall downtrend in altcoins.
Gainers: ENA is up 40% in the past 24 hours.
Factors affecting future market conditions:
  • High expected returns during promotions: Ethena announced the launch of the second season of the Ethena campaign on April 2. "Shards" will be replaced by "Sats" to align with Ethena's addition of BTC as a supported asset. This promotion will last for five months. Users can deposit USDe to earn Sats, with increased rewards for early users in the second season. Users from the first season will receive a 20% increase in Sats earned in the second season.
  • Has a crucial place in the ecosystem with its stablecoin narrative: Various algorithmic stablecoins like $DAI, $FRAX, and $UST have experienced significant growth during different periods. However, this cycle has not seen a sustained explosive phase for decentralized stablecoins, except for brief surges in $LQTY and LSDFi. Ethena Labs supports staking spot ETH through LSD protocols such as Lido, yielding annual returns of 3% - 5%. Users also benefit from the funding rate returns on short positions. Investors hold strong expectations for its capacity to lead the entire stablecoin ecosystem.

2.2 Sector Movements — PoW sector (BCH and LTC)

Main reason: Amidst a general decline in altcoins, BCH and LTC maintained strong positions, with BCH's imminent halving in 11 hours capturing market focus.
Gainers: In the past 24 hours, BCH and LTC fluctuated between $600-$700 and $100-$110, respectively.
Factors affecting future market conditions:
  • BTC performance: The performance of PoW tokens is highly correlated with BTC. If BTC rises, PoW tokens generally trend upwards. It is essential to monitor BTC's pullback positions, as the PoW sector is expected to outperform BTC during the rebound, meriting continued attention.
  • Reduced selling pressure post-halving: With only 11 hours left until BCH's halving, the current block reward of 6.25 BCH will decrease to 3.125 BCH. 219 blocks left and the post-halving selling pressure for BCH has decreased while the mining costs have increased.

2.3 Sectors to Focus on Next — Base ecosystem

Main reason: The TVL of the Base ecosystem has exceeded $3.2 billion, and the continuous influx of funds could directly impact the overall performance of memecoins on the Base chain. The development within the Degen Chain ecosystem, advancements in the SocialFi segment, and Farcaster's token launch progress have all contributed to notable attention towards the Base ecosystem. Traders can closely monitor changes in the ecosystem's TVL, DEX trading volume, and other metrics. With positive fundamentals, the mentioned assets could reach new highs.
Specific tokens:
  • DEGEN: The DEGEN token of Degen Chain is in the spotlight for its low-cost Layer 3 blockchain, construction with Arbitrum Orbit, and AnyTrust DA, along with its role in the Base settlement layer. By reshaping the Farcaster ecosystem, DEGEN token has gained more utility and chain narratives, resulting in continuous increase in its valuation. Additionally, DEGEN's role as a transaction token in social video apps like Drakula has made it one of the most active Memecoin projects within the Base ecosystem, attracting more users and investors. With the rollout of Degen Chain and an increasing user base, the DEGEN token is expected to maintain its upward trajectory.
  • AEVO: Aerodrome currently has a total TVL of $538 million. Fork of the leading OP protocol, Velodrome Finance, it is deployed on Base with its native token being AERO. Recent actions, including AERO's listing on Coinbase and investments by Coinbase Ventures-led Base ecosystem funds into Aerodrome, have rapidly made it one of the top DeFi protocols in the Base ecosystem within just a few months. With a long-term positive outlook, investors could consider opening positions during dips, with the current pullback price hovering around $1.

3. Top Searches

3.1 Popular DApps

MomoAI: A gaming product based on Telegram. In just half a month, its user count surged to 500,000, and in the highly popular Solana ecosystem, the number of its active on-chain wallets quickly reached nearly 100,000, making it one of the top three DApps in the ecosystem. Both its community popularity and daily user activity are exceptionally high.

3.2 X (former Twitter)

Ethena (ENA):
Ethena is a synthetic dollar protocol on Ethereum, providing a crypto-native solution for currencies independent of traditional banking infrastructure. Ethena's synthetic dollar, USDe, offers the first censorship-resistant, scalable, and stable crypto-native solution for financing secured by delta hedging Ethereum collateral. Following its launch on Binance's Launchpad, its price has continued to rise. According to Smart Money 24-hour Ethereum network fund inflow tracking list, approximately $4.13 million flowed into ENA, indicating strong trading interest. Investors might consider engaging in trading ENA or its competitor, LQTY.

3.3 Google Search (global and regional)

Global focus:
Wormhole (W):
Wormhole, a universal messaging protocol launched in October 2020 and initially incubated and backed by Jump Crypto, was designed to enable developers to create native cross-chain applications spanning multiple chains. It has evolved from focusing on a bidirectional cross-chain bridge between Ethereum and Solana into a universal messaging protocol supporting multiple chains. The token airdrop is scheduled for April 3, with a total supply of 10 billion tokens. Approximately 617 million W tokens (about 6.17% of the total supply) will be airdropped to around 400,000 wallets. The current price of the token on Aevo is approximately $1.6, corresponding to a total valuation of $16 billion. With limited short-term growth potential, cautious participation is advised.
Regional focus:
(1) Asia shows strong interest in RWA topics:
Recently, RWA-related topics have gained traction in the Asia region. Recently, a roundtable discussion on the theme of "Real-World Assets (RWA)" took place at the Web3 Festival in Hong Kong. Valuations for projects related to RWA have also been rising, with the RWA project Midas completing a $8.75 million seed round funding, nearly reaching $10 million.
(2) CIS and some European countries have shown interest in BOME:
BOME founder Darkfarms revealed on social media that the project is currently in the final testing phase of a new gameplay. Users can enter the allowlist by burning 888 BOME tokens and entering their Ethereum address, with the chance to acquire collectibles through free claims or airdrops. This gameplay update has garnered attention from BOME holders in the region.
(3) Yesterday's drop has led to the reappearance of terms like crypto bubble and crypto crash in trending searches in Latin American and Middle Eastern countries:
Due to a significant net outflow from spot Bitcoin ETFs and the impact of Wormhole's token launch, Bitcoin's price crashed from $69,000 to below $66,000 yesterday. The market overall saw more than $400 million in liquidations, drawing attention in Latin American and Middle Eastern countries.

4. Potential Airdrop Opportunities

xMetacene – Raised $10 million and offers high potential profit
MetaCene is a SocialFi mini-game similar to xpet, backed by an impressive team and investment. MetaCene's founder and CEO, Alan Taam, boasts over 20 years of experience in the gaming industry, having served as Director General Manager and President at Shanda Games. Chief Product Officer, Cary Chen, also has more than 20 years of experience in the gaming industry, having led the development of several large-scale multiplayer online games with millions of monthly active users and over $1 billion in cumulative revenue. The team is highly experienced.
The project has raised $10 million, led by Folius Ventures, with participation from Animoca Ventures, IGG, and others. Participating in the game offers a chance to secure an allowlist spot and token rewards.
How to participate, 1. Download the Google Chrome plugin: xMetaCene; 2. Log in with X. Enter the invitation code, complete simple tasks such as following, reposting, liking, email binding, and linking your wallet; 3. Use crystals to upgrade your miner, then use crystals to play in battle mode. Defeat the boss to grab a share of the boss chest rewards and earn star honor credits.
XION – Strong financing and advanced concept
XION is a blockchain with abstracted accounts, employing signature-agnostic design that allows users to access XION applications easily through familiar Web2 authentication methods like email or biometrics, along with nearly all types of cryptographic signature schemes. Users do not need to install crypto wallets like MetaMask, although these are still supported, making XION adaptable to different user needs. Additionally, meta accounts offer powerful features including seamless cross-device usage, key rotation, multi-factor authentication, and account recovery.
XION recently completed a $25 million Series A funding round earlier this month, with participation from Multicoin Capital, Animoca Brands, Arrington Capital, and more. The testnet is already live, and the project has very high potential returns.
How to participate: 1. Log in to the official website and sign up with your email; 2. Claim $XION testnet tokens on the faucet, then stake them to get "Securooor" NFTs; 3. Get OATs for tasks like social media recommendations and following on Galxe, which will also serve as a credential for future airdrops.
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