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Bitget Research: BTC Briefly Breaks $70,000 Resistance Level, ENA Price Continues to Rise

Tommy & Jarseed
2024/04/08
Bitget Research: BTC Briefly Breaks $70,000 Resistance Level, ENA Price Continues to Rise
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, BTC experienced a slight pullback after breaking through the $70,000 resistance level for the third time within a month. The spot BTC ETF saw net inflows for four consecutive days. As the Bitcoin halving approaches, both Bitcoin and its ecosystem projects show signs of a potential upward breakthrough. ENA doubled its price within a week after the TGE and became last week's most profitable stablecoin project, while USDe reached a market cap of $2 billion, ranking fourth among stablecoins. The highlights are as follows:
  • Sectors with strong wealth creation effects: Bitcoin ecosystem (BRC-20, ARC-20, BTC Layer 2, etc.), Ethena (ENA), Nakamoto upgrade-related tokens (STX, T).
  • Top searched tokens and topics: Pixels, Harvest Finance, and Matr1x.
  • Potential airdrop opportunities: Morph and TimeSwap.
Data collection time: April 8, 2024, 4:00 AM (UTC)

1. Market Environment

The price of spot gold briefly pulled back before surging again, breaking a new record high at $2353 per ounce. BTC slightly pulled back after breaking through the $70,000 resistance level for the third time within a month. From April 2 to April 5, the spot BTC ETF experienced four days of net inflows, indicating a positive shift in market sentiment.
The ETH/BTC rate weakened, falling 13% over the past month. Over the past 24 hours, ETH chain gas fees dropped to around 10 gwei, and activity on the ETH mainnet significantly decreased. Among Layer 2 networks, Base's TVL recently saw a notable increase, whereas Starknet, Optimism, and Arbitrum's TVL fell by 10%, 9%, and 5%, respectively, over the past week.

2. Wealth Creation Sectors

2.1 Sector Movements — Bitcoin ecosystem (BRC-20, ARC-20, and BTC Layer 2)

Main reasons:
(1) The upcoming Bitcoin halving makes Bitcoin ecosystem projects highly attractive to the market, with numerous Bitcoin asset issuance protocols and scaling protocols preparing to announce significant news around the halving.
(2) Atomicals Protocol's ARC-20 token splitting solution Beta version entered the testing phase.
Gainers: In the past 24 hours, ATOMARC has increased by 24% and MUBI by 26%. Over the past week, CKB has increased by 37%, and other leading BRC-20 and ARC-20 assets have also seen significant increases.
Factors affecting future market conditions:
  • The introduction and effectiveness of new and existing Bitcoin ecosystem projects around the halving, and the actions of major funds during this period will directly impact the sector's trend. Currently, the ARC-20 sector exhibits weak asset liquidity, which is favorable for market manipulation. The market caps of ATOMARC and QUARK are not very high, making it worthwhile to pay attention to sector movements and invest timely.

2.2 Sector Movements — Ethena (ENA)

Main reasons:
(1) In the past week, Ethena's protocol fees reached $8.3 million, ranking it as the top stablecoin protocol and significantly outperforming the second-ranked MakerDAO. USDe's market cap has also rapidly reached the $2 billion mark.
(2) Ethena has been a hot topic of discussion on social media and among the top industry influencers, with some comparing it to Luna to highlight risks, while others have praised it for proactively disclosing potential risks. Amid discussions and disagreements, Ethena's social media exposure has continuously increased.
Gainers: ENA doubled in price within a week of its TGE, rising from an opening price of about $0.6 to $1.2.
Factors affecting future market conditions:
  • The growth of USDe's circulating supply: Currently at a $2 billion market cap and ranked fourth among stablecoins, if USDe’s market cap can approach or even surpass the third-ranked DAI, ENA's price potential could be greatly expanded.
  • The expected yield of Ethena promotion and the effect of external project partners: The second season of Ethena promotion has started, collaborating with numerous renowned projects like Zircuit, offering additional rewards for staking USDe. If Ethena continues to expand in this manner, allowing USDe holders to earn extra profits from external sources, the project could develop more rapidly.

2.3 Sectors to Focus on Next — Tokens related to the Nakamoto upgrade (STX and T)

Main reason: The Stacks Nakamoto upgrade is scheduled to begin between April 15 and 29, with the necessary guide contracts ready. The upgrade will transition the BTC cross-chain bridge to a threshold signature scheme. Threshold Network and its $tBTC represent a threshold signature cross-chain BTC bridge solution that has been operational for 5 years.
Specific tokens: STX (Stacks) and T (Threshold Network)

3. Top Searches

3.1 Popular DApps

Pixels: Pixels is a Web3 casual game based on the Ronin network, featuring a social and leisurely open-world environment where exploration, farming, and creation are key activities. According to DappRadar, Pixels boasts a user base of 740,000, indicating a substantial scale of engagement. A distinctive feature of Pixels is its integration of play-to-earn (P2E) functionality with farming NFTs, aimed at providing a comprehensive gaming environment through the PIXEL token. This integration of currency use and gameplay has made it a favorite among a wide range of players.

3.2 X (former Twitter)

Matr1x
Matr1x is a global Web3 entertainment platform that integrates multiple games. Its first game, Matr1x Fire, is a mobile shooting game set in the metaverse, marking the first of its kind in the Web3 gaming industry.
The cryptocurrency gaming sector has recently rebounded collectively. The Matr1x token, FIRE, has performed well. Key factors affecting the price of FIRE include its unique position in the gaming and Web3 entertainment fields, the success and adoption of its flagship game, Matr1x Fire, and the overall growth and engagement of its platform.

3.3 Google Search (global and regional)

Global focus:
Harvest Finance
Harvest Finance is a multi-chain DeFi yield dashboard project that conveniently allows users to view their multi-chain deployed LPs, Yield Farming, and quickly claim profits.
The project's token price surged by up to 160% yesterday, eventually closing at a 100% increase. The token is now listed on Coinbase, Kraken, and Binance, leading to significant social media attention. However, the project has not announced any important features or special partnerships, and the reason behind the token's price increase remains unclear. Investors are advised to keep an eye on the project.
Regional focus:
(1) Southeast Asia shows strong interest in AI and MEME topics:
Southeast Asian users have significantly increased their attention to memecoins and AI tokens. Memecoins such as PEPE, WEN, and SHIBA INU are widely searched by users in Southeast Asia. The simple and cute imagery of memecoins make them very popular among the region’s users. AI tokens like FET, WLD, and ARKM top the search results, with high volatility and retail participation due to industry iterations.
(2) Europe and the CIS region show high interest in mainstream tokens:
Users in Europe and the CIS regions mainly focus on tokens such as SOL, FTM, and TRON. The rebound of mainstream tokens to higher levels after recent adjustments indicates that retail investors are optimistic about the future performance of mainstream tokens, expecting potential breakthroughs and placing their bets accordingly. The recent surge in popularity on the Solana chain has spurred other chains to follow suit. This, coupled with an increased willingness among users to engage in blockchain ecosystems, has also led to a higher demand for tokens associated with these chains.

4. Potential Airdrop Opportunities

Morph
Morph is a consumer-grade blockchain that meets users' daily blockchain needs through zkEVM and responsive technology. It aims to provide project founders with one-stop development tools and solutions, built on three key technologies: decentralized sequencers, Optimistic zkEVM integration, and modular design.
Morph announced a $19 million seed round funding led by Dragonfly Capital, with participation from Pantera Capital and others.
How to participate: Visit the Morph website and log in. Add the testnet RPC to your wallet, claim test ETH from the official faucet, and bridge it to the Morph testnet where you can engage with projects.
TimeSwap
TimeSwap is a liquidation-free lending protocol that uses its unique AMM model and design for lending. Users can lend tokens from the pool to earn fixed income, or use leverage without the risk of liquidation.
The DeFi lending protocol TimeSwap completed a seed round funding led by Multicoin Capital, with participation from Mechanism Capital and Defiance Capital. The amount raised was not disclosed.
How to participate: Visit the TimeSwap website and log in. Select an LP pool with TIME subsidies, form the corresponding LP and deploy it to pre-mine TIME tokens.
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