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Bitget Research: Cryptocurrency Market Rebounds After Sharp Decline, Memecoin and AI Sectors Show Strong Performance

Tommy & Jarseed
2024/04/15
Bitget Research: Cryptocurrency Market Rebounds After Sharp Decline, Memecoin and AI Sectors Show Strong Performance
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

Rapid shifts in international conditions have led to a major downturn followed by a rebound in the cryptocurrency market. During the decline, over $708 million in futures were liquidated in a 4-hour period across the entire network, with $602 million from long positions. During the market rebound, the MEME, AI, and RWA sectors demonstrated the strongest performance.
  • Sectors with strong wealth creation effects: The recently launched popular memecoins (SLERF, MEW, BOME, and WIF), AI sector (RNDR, AGIX, TAO, and FET), and RWA sector (ONDO, PRCL, and RWA tokens with low market cap).
  • Top searched tokens and topics: EigenLayer, DRiP, and GCR.
  • Potential airdrop opportunities: Synthr and LI.FI
Data collection time: April 15, 2024, 4:00 AM (UTC)

1. Market Environment

As expectations for a Fed rate cut diminished, and the risk aversion in the market intensified, the US dollar index rose above $106, and spot gold broke through the $2430 mark before plummeting nearly $100. Following an attack by Iran on Israel, there were no further actions from either side, temporarily easing tensions in the Middle East.
The conflicts and easing of tensions over the weekend significantly influenced the trajectory of cryptocurrency market: an initial attack by Iran on Saturday caused a sharp decline in BTC and altcoins, followed by a swift market rebound after further actions were halted.
During the decline, altcoins fell much more than BTC, which increased its market dominance to 53%, the highest since April 2021. The strong rebound in the Memecoin, AI, and RWA sectors during the recovery highlights the preferences of major funds and the market. Investors should therefore focus on the leading assets in these three sectors for short-term returns.

2. Wealth Creation Sectors

2.1 Sector Movements —Recently launched popular memecoins (SLERF, MEW, BOME, and WIF)

Main reason: The recent memecoin season has introduced a new generation of popular memecoins that rebounded strongly from an overcorrection amid market volatility. During the market downturn, significant investments by whale wallets and smart money capitalized on the low prices, leading to robust gains during the rebound.
Gainers: In the past 24 hours, SLERF rose by 31%, MEW by 89%, BOME by 6%, and WIF by 12%.
Factors affecting future market conditions:
  • The new generation of popular memecoins is characterized by the activities of whales with significant influence and high visibility. WIF has been listed on Binance and Robinhood, gaining significant exposure; SLERF and BOME have seen major whale acquisitions during volatile price movements; MEW, after its TGE, distributed an airdrop worth up to $4 million, with the project yet to profit from this asset. Thus, whales with significant control over several new generation memecoins have ample motivation to pump these assets that have already garnered significant market attention. The market enthusiasm for the memecoin sector and the timing of whale activities are critical factors for profitability in this sector.

2.2 Sector Movements — AI sector (RNDR, AGIX, TAO, and FET)

Main reason: The AI sector remains one of the main areas of speculation during this bull market, with strong market expectations and consensus among investors. The recent listing of the leading AI project TAO on Binance indicates continued speculation in the AI sector.
Gainers: In the past 24 hours, RNDR, AGIX, TAO, and FET each rose by 19%, 17%, 15%, and 15%, respectively.
Factors affecting future market conditions:
  • Continuous improvements and market cap increases in AI giants like OpenAI will also enhance the potential and reach of Web3 AI projects.
  • If the Web3 AI segment introduces new innovations widely accepted by the market, it could spark another surge in this sector.
  • A forthcoming decision on the token merger proposal for SingularityNET, Fetch.ai, and Ocean Protocol could influence the entire AI sector depending on the outcome and post-merger performance.

2.3 Sectors to Focus on Next — RWA sector (ONDO, PRCL, and RWA tokens with low market cap)

Main reason: Previously, BlackRock announced the launch of its first tokenized fund on a public blockchain, injecting fresh energy into the RWA sector. RWA may become one of the most important narratives of this bull market. The RWA sector showed remarkable performance during the market's downturn and subsequent rebound.
Key projects:
  • Ondo (ONDO) – As the leading token in the RWA sector, it is backed by TradFi giants such as BlackRock, Goldman Sachs, and Bridgewater. During the recent market downturn and rebound, the leading RWA token ONDO stood out, showing resilience in the downturn and quickly rising 30% to approach a new high.
  • Parcl (PRCL) – A real estate digital investment platform based on Solana that is set to have its TGE soon. BackPack has announced that it would list PRCL.
  • RWA tokens with low market cap: RWA tokens with solid fundamentals and lower market caps are likely to see higher percentage gains in the hype around leading RWA projects. RIO, GFI, and PROPS are worth exploring.

3. Top Searches

3.1 Popular DApps

EigenLayer:
EigenLayer is a middleware protocol based on Ethereum, introducing the concept of restaking. This enables Ethereum nodes to restake their staked ETH or LSD tokens into other protocols or services requiring security or trust, thus earning double rewards and governance rights.
EigenLayer recently launched its mainnet, along with the first batch of AVS projects, including AltLayer, Brevis, Eoracle, Lagrange, Witness Chain, and Xterio. The AVS projects span various sectors, including Rollup as a service, Oracle, ZK protocol processing, DePIN, and gaming. Investors are encouraged to actively participate in early AVS projects to capitalize on potential profits, but should also be cautious of the potential risks, as the first batch of EigenLayer AVS projects requires further market and time validation to assess underlying risks.

3.2 X (former Twitter)

DRIP:
DRIP is a blockchain-based collectibles project, featuring limited edition art, music, videos, comics, and games. Creations published on the platform are generally priced affordably but boast a distinctive and innovative artistic style, earning acclaim from users both within and outside the crypto community.

3.3 Google Search (global and regional)

Global focus:
GCR: As the conflicts in the Middle East intensified over the weekend, the cryptocurrency market experienced a significant pullback, with Bitcoin quickly dropping to $60,000. Legendary trader GCR, who had not posted for about a year, broke his silence by encouraging cryptocurrency market participants to hold onto their spot assets and not to give up. GCR is known for his legendary short position in the Luna event, where he profited $10 million. In the past, he has often shared his investment philosophy on social media, making him a popular figure in the cryptocurrency market. His recent post during this time of shaky market confidence has sparked widespread discussion across the global crypto community.
Regional focus:
(1) Europe and the CIS region show significant interest in memecoins:
Amid tensions in the Middle East over the weekend, the cryptocurrency market saw a significant pullback, with most memecoins losing nearly all their gains since the beginning of 2024. However, as the market began to recover, some investors started buying back into memecoins for potentially higher profits. Searches from European users indicate a high frequency of inquiries about memecoins, suggesting significant participation from the European market in memecoin trading.
(2) Asia shows increased interest in BTC and ETH ETFs:
Reports by Bloomberg about the potential approval of BTC and ETH ETFs in Hong Kong this week have heightened interest in this event across Asia. As a financial hub in Asia, Hong Kong has always been at the forefront of financial innovation. Should these ETFs be approved, they are expected to become a focal point in Asia, providing traditional finance and large capital an avenue to enter the cryptocurrency space, positively impacting both industry growth and retail investment.

4. Potential Airdrop Opportunities

Synthr
Synthr is a full-chain synthetic protocol allowing for the cross-chain minting and transfer of synthetic assets without needing a cross-chain bridge. The project enables on-chain asset minting through synthetic assets (Synthetix), allowing for the easy integration of RWAs such as real estate, bonds, or stocks for cross-chain transactions and transfers.
The project raised $4.25 million from top-tier funds like MorningStar Ventures, Kronos Research, and Axelar Fdn.
How to participate: The project is currently in its testing phase. Users can interact with the testnet by registering a wallet and collecting test tokens from the faucet. It is recommended to keep a close eye on the project’s progress and actively engage with the project.
LI.FI
LI.FI is a multi-chain liquidity aggregation protocol that supports exchanges between any two assets by aggregating bridges and DEX aggregators from over 20 networks including Ethereum, Arbitrum, Optimism, Solana, Polygon, and Base.
The cross-chain infrastructure protocol LI.FI completed a $17.5 million Series A funding round led jointly by CoinFund and Superscrypt, with participation from Bloccelerate, L1 Digital, Circle, Factor, Perridon, Theta Capital, Three Point Capital, Abra, and nearly 20 angel investors.
How to participate: Visit the project's website and engage in cross-chain swaps across multiple chains, and maintain the activity and transfer volume of the wallet address to qualify for potential airdrop opportunities.
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