Bitget Research: Crypto Market Dominated by Negative Sentiment, Accelerated Decline Sets the Stage for a Major Rally

Victoria & John

2024/09/04

Bitget Research: Crypto Market Dominated by Negative Sentiment, Accelerated Decline Sets the Stage for a Major Rally

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

In the past 24 hours, Bitcoin has dropped to $55,600, and the US spot Bitcoin ETFs saw a net outflow of over $287 million. The highlights are as follows:

Sectors with strong wealth creation effect: USDT-M pools with high annual yield and low risk, and the RWA sector (ONDO, Pendle).
Top searched tokens and topics: Penpie, Flux, and AAVE.
Potential airdrop opportunities: Major and Soneium.

Data collection time: September 4, 2024, 4:00 AM (UTC)

1. Market Environment

In the past 24 hours, the cryptocurrency market suddenly plummeted, and the fear index reached its lowest level since the market panic in early August. Bitcoin dropped to $55,600, while U.S. spot Bitcoin ETFs saw a net outflow of over $287 million yesterday. The primary cause was the Bank of Japan governor's statement that, if the economy and prices perform as expected, they will continue to raise interest rates. It is recommended to monitor unlaunched primary market projects, such as Scroll, the Ethereum Layer 2 network, which recently released a 12-second animation ending with "Scroll.Soon.", suggesting that something significant may be forthcoming.

On the macro level, the U.S. ISM August manufacturing PMI report showed that the U.S. economy continues to contract. According to CME’s Fed funds rate data, weak economic data has increased the likelihood of a 50-basis-point rate cut by the Fed in September, rising from 30% the previous day to 39%. The key macroeconomic event in the U.S. remains the August employment report on Friday, which could determine whether the Fed raises rates by 25 or 50 basis points.

2. Wealth Creation Sectors

2.1 Recommended to Monitor – USDT-M Pools with High Annual Yield and Low Risk

Primary reasons:

Given the current market panic and the unlikelihood of a significant short-term rebound, it is advised to hold a large amount of stablecoins and wait for market stabilization before engaging in right-side trading.

Recommended projects:

Kamino: Currently the lending protocol with the highest TVL on Solana, offering an APY of 13% on USDC and 19% on PYSUD.
Aries Markets: Currently the protocol with the highest TVL on Aptos, providing an APY of 10% on USDC and 10.5% on USDT. APT rewards are offered as incentives for both lending and borrowing activities.

2.2 Sectors to Focus on Next – RWA (ONDO and Pendle)

Primary reasons:

The RWA sector continues to draw significant attention within the cryptocurrency industry and is viewed as having substantial potential for market growth. ONDO and PENDLE are leading the RWA sector in government bonds tokenization and crypto asset interest rate swaps, respectively. These segments have a high asset ceiling, and as the volume of managed assets increases, so does the revenue generated by these protocols. Investors should pay special attention to these sectors during market rebounds.

Factors affecting future market conditions:

Total protocol asset size: The cash flow generated by such protocols primarily depends on the asset size they manage. As asset size increases, revenue rises, which should lead to strong performance in their respective token prices.
Policy impact: As the cryptocurrency industry gradually gains legislative approval and societal acceptance, favorable policies for this sector will also become a major factor driving the rise in token prices. With more asset management giants entering this field, we anticipate steady progress in its development.

3. Top Searches

3.1 Popular DApps

Penpie:

Penpie, a yield-bearing asset aggregator built on Pendle, has incurred approximately $27 million in losses due to an attack on its reward protocol. The project has suspended all deposits and withdrawals due to a security vulnerability. The Penpie team is fully committed to resolving this issue. According to market data, Penpie (PNP) has fallen below $1 and is currently quoted at $0.96, reflecting a 24-hour decrease of 35.4%.

3.2 X (former Twitter)

Bitget Research: Crypto Market Dominated by Negative Sentiment, Accelerated Decline Sets the Stage for a Major Rally image 0

Flux:

Flux offers a suite of solutions for decentralized cloud computing and Web3, providing DApps with fast deployment, manageability, and decentralized alternatives to AWS and Google Cloud services. The Binance futures platform listed the FLUXUSDT perpetual futures on September 3, 2024, at 3:00 PM (UTC+8). Following the listing, FLUX saw a price surge of over 40%. Although the token price has since receded, users are advised to exercise caution when participating.

3.3 Google Search (Global and Regional)

Bitget Research: Crypto Market Dominated by Negative Sentiment, Accelerated Decline Sets the Stage for a Major Rally image 1

Global focus:

AAVE：

Aave Labs has announced the introduction of Sky Aave Force, a new initiative led by MakerDAO co-founder Rune and Aave founder Stani. This initiative aims to drive mass adoption and bridge the gap between DeFi and TradFi. Sky Aave Force proposes integrating USDS and savings USDS (sUSDS) on Aave V3, along with providing native token rewards. Additionally, a new Spark/Aave market has been created for seamless integration and exclusive incentives. AAVE has recently experienced steady growth in its business volume and data, indicating a positive price trend. It is advisable to consider participating in this project.

Regional focus:

(1) Interest in the TON mini app has significantly risen in Europe, America, and English-speaking countries: TON Chain has become a trending keyword in Canada, Australia, the Netherlands, and Poland, while Hamster Kombat has appeared in trending searches in the UK.

(2) In regions such as Asia and Latin America, there are no notable hotspots with dispersed search terms. Only a few countries have mentioned the TRON Chain.

4. Potential Airdrop Opportunities

Major

Major is a streamlined game available on Telegram where the primary goal is to collect stars. The more stars you collect, the higher your ranking on the leaderboard and the greater your rewards. Players can earn stars by participating in standard activities, such as daily tasks, referrals, and profile completion. Bitget has launched the Pre-Market, allowing users to place pre-market sell orders to secure profits directly.

In Major, players focus solely on collecting stars. The more stars you collect, the higher your ranking and the greater your rewards. Currently, Major rewards TON tokens to the top 100 users on the weekly leaderboard: 150 tokens for 1st place, 100 tokens for 2nd place, 70 tokens for 3rd place, 50 tokens for 4th–5th places, 20 tokens for 6th–10th places, and 5 tokens for 11th–100th places.

How it works: (1) Receive initial stars after entering the game; (2) Collect more stars by completing daily tasks in the taskbar, referrals, and profile updates.

Soneium

Soneium, an Ethereum Layer 2 solution launched by Sony, aims to bridge blockchain technology (Web3) with everyday internet services (Web2). It will utilize Optimism Rollup technology and build on the Optimism blockchain ecosystem's OP stack.

How to participate: Soneium will launch its testnet on August 28, 2024. Users can participate in testnet interactions once it goes live. For now, it is advisable to learn about the project and join their Discord to secure a role: https://discord.com/invite/soneium.