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Bitget Research: Mainstream Cryptocurrency Trends Weaken, Celsius Continues to Rise Through Token Burns

Jarseed & Aaron
2024/05/09
Bitget Research: Mainstream Cryptocurrency Trends Weaken, Celsius Continues to Rise Through Token Burns
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 crypto market is generally in a volatile state, with some sectors starting to pull back. The overall market trend is unclear. Some projects rose against the trend for specific reasons, such as Celsius' rise due to its token burn. Capital currently lacks trading enthusiasm and is awaiting further signals from the macro market.
  • Sectors with strong wealth creation effects: Celsius (CEL) and AI (RNDR, LPT, ARKM).
  • Top searched tokens and topics: Jupiter Exchange, Bitlayer, and TRB.
  • Potential airdrop opportunities: MEZO and Bitlayer.
Data collection time: May 9, 2024, 4:00 AM (UTC)

1. Market Environment

The Fed's continued emphasis on controlling inflation at 2% has made the release of CPI data next Wednesday a focal point in the market. The crypto market has generally entered a "boring" phase, where there is no clear direction of change, and trading amplitude has noticeably decreased. The market is expected to decide on a new direction after the release of CPI data next Wednesday.
Several mainstream ETFs have shown zero or small inflows and outflows in recent days, indicating that ETF investors are closely monitoring the market's future trends rather than rushing to buy or sell. Investors are waiting for further signals from the Fed to determine future asset price movements.

2. Wealth Creation Sectors

2.1 Sector Movements: Celsius (CEL)

Primary reason: Celsius is a crypto lending company that gained popularity among U.S. retail and institutional investors during the last bull market. However, the project eventually went bankrupt due to the collapse of Luna and 3AC. In a desperate move to keep the token afloat, CEL has burned 94% of its total supply, leading to a counter-trend rise in its price.
Gains: Over 550% in the last 9 days.
Factors affecting future market conditions:
  • Celsius business: While its desperate measures may result in impressive short-term gains, in the long term, Celsius' governance and team will need to achieve real business development to support the continuous and stable rise of the token's price. Investors should keep an eye on Celsius's company-level direction and make investment decisions based on its ability to actually advance its business.
  • Celsius bankruptcy reorganization progress: The soaring price of the CEL token reflects the market's optimistic expectations for the success and future potential of Celsius' reorganization. This change in sentiment is an indicator of investor confidence that crypto firms may regain market support through strategic adjustments, even after significant financial and legal difficulties.

2.2 Sector Movements: AI Sector (RNDR, LPT, and ARKM)

Primary reason: Major U.S. tech companies have recently held launch parties for their new AI-integrated products, such as Apple with its brand-new M4 chip product line. Through its partnership with Apple, RNDR has attracted the attention of speculative market capital. Similar sectors have also seen varying degrees of gains.
Gainers: RNDR is up 8.84% in the last 24 hours, LPT is up 11.81% in the last 24 hours, and ARKM is up 8.69% in the last 24 hours.
Factors affecting future market conditions:
  • The crypto AI sector will continue to experience hype for new products, technologies, and partnerships from U.S. tech companies. The AI sector is a known hotbed for speculation. Investors should clearly distinguish between leading segments and keep an eye on relevant topics as they become available. However, the chances of substantial collaboration are relatively small, and investors also need to be aware of the risks.
  • The AI sector continues to witness the emergence of new projects with high valuations, which may impact the current competitive landscape. Investors should keep an eye on the sector's competitive landscape and lock investments in leading projects. Most other projects capitalizing on the concept have seen their popularity dissipate relatively quickly.

2.3 Sectors to Focus on Next — TON Ecosystem

Primary reason: The TON ecosystem has seen rapid growth in TVL recently, with the current TVL reaching $508 million. When considering the development history of past blockchains, infrastructure projects (liquid staking, swap, lending, etc.) will emerge on the TON chain and leading aggregators will gradually form. Investors can participate in such projects to reap high early-stage APRs and potentially receive airdrops.
Specific projects:
  • Tonstakers: This project is the largest liquid staking service provider in the TON ecosystem. Users can stake their TON in the protocol to earn a 3.8% APY. Although the project has not yet launched its token, it presents potential airdrop opportunities.
  • STON.fi: This project is currently the largest DEX in the TON ecosystem, with some LP pools supported by the TON Foundation. Users can provide liquidity on DEXs to earn returns. Although the project has not yet launched its token, it presents potential airdrop opportunities.
  • EVAA Protocol: This project is currently the largest lending project in the TON ecosystem. Users can deposit tokens into this protocol to enjoy interest on their loaned assets. Although the project has not yet launched its token, it presents potential airdrop opportunities.

3. Top Searches

3.1 Popular DApps

Jupiter Exchange: Jupiter is a decentralized exchange (DEX) aggregator operating on the Solana blockchain, enabling users to complete on-chain swaps with minimal slippage. The project strives to be the most prominent launchpad platform in the Solana ecosystem through exposure and promotional activities. JUP tokens can be used to participate in voting and receive airdrop rewards from the project team. Additionally, JUP holders can participate in subsequent launchpad voting events.

3.2 X (former Twitter)

Bitlayer (DApp): Bitlayer is a Layer 2 network that offers Bitcoin-equivalent security. The project has developed a token based on the BitRC-20 protocol standard to promote token diversity within the ecosystem. The project has received investments from ABCDE, OKX, and others. Although the token has not been launched yet, the project team has issued Lucky Helmet NFTs, which are poised to deliver substantial value to their holders.

3.3 Google Search (Global and Regional)

Global focus:
UMA (Token): The token experienced significant volatility yesterday, with a sudden $6 million buy order in the futures market and overbuying in the spot market, resulting in negative funding rates. Despite no recent major product updates or positive news, the token's short-lived 50% price surge was mainly driven by large capital inflows from major investors. The price has since experienced a pullback, and traders can consider some small-scale speculative trading by carefully setting take-profit and stop-loss targets.
Regional focus:
(1) Yesterday, the top trending searches across various regions of Asia mainly focused on TRB, CEL, and FRONT:
TRB, CEL, FRONT (tokens): These tokens have recently seen unusual activity in the secondary market. According to futures data, the long-to-short ratio is significantly below the equilibrium value of 1, indicating a strong buying interest from major players. The upward trend in these tokens is mainly due to substantial inflows of hot money from large institutions or organizations. Should the long-to-short ratio reverse and the volume of open futures decrease, it could indicate a potential trend reversal for these tokens. Traders are advised to be cautious of risks and to focus on intraday trading.
(2) No significant trends in Africa, Asia, and English-speaking countries/regions:
These regions exhibit a more dispersed interest, with BTC, ETH, and Solana frequently appearing in trending searches. Users are also showing interest in narratives related to AI and memes.

4. Potential Airdrop Opportunities

MEZO
Mezo is a BTC Layer 2 project focusing on the BTC ecosystem. It assists BTC holders with on-chain transfers and financial management, driving the development of the BTC DeFi system. Mezo recently announced the completion of a $21 million funding round with participation from industry-leading institutions such as Pantera Capital, Hack VC, and Multicoin Capital.
The official announcement of their BTC asset staking plan and the introduction of a referral system have set strong expectations for an upcoming airdrop. The project is currently in the early stages of its operation.
How to participate: 1. Visit the project's official website and find an invite code on Discord; 2. Enter the invite code and connect a Unisat wallet; 3. Deposit BTC.
Bitlayer
Bitlayer is a Layer 2 network that offers Bitcoin-equivalent security. The project has innovatively designed a token based on the BitRC-20 protocol standard to promote token diversity within the ecosystem. The project has secured $5 million in funding, with investments from ABCDE, OKX, and others.
The official website of Bitlayer now includes a "Bridge & Earn" feature, allowing users to bridge BTC to the Bitlayer network to qualify for future airdrop opportunities. Users can expect airdrops from the project, and the token offers substantial growth potential.
How to participate: 1) Visit the official website and navigate to the "Bridge & Earn" page; 2) Connect your wallet and deposit BTC into the Bitlayer network.
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