Bitget Research: Market Awaits Ethereum ETF Approval, zkSync and LayerZero Launch on Bitget Pre-Market

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Bitget Research2024/05/23 07:59

By:Jarseed & Aaron

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.

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, all relevant forms for Ethereum ETF applications were updated. The market is now awaiting the results of the approval process early tomorrow morning.

Sectors with strong wealth creation effects: Ethereum Layer 2 and Ethereum Restaking sectors.
Top searched tokens and topics: Farcaster, Constitution DAO (PEOPLE), and FIT21 Bill.
Potential airdrop opportunities: Scroll and EIGENPIE.

Data collection time: May 23, 2024, 4:00 AM (UTC)

1. Market Environment

Yesterday, the Federal Reserve released the minutes from its FOMC meeting, showing a slight hawkish tone. However, the market is currently more focused on whether the Ethereum ETF will be approved. Various assets related to the Ethereum ecosystem are experiencing high volatility as they await the ETF's approval results.

Regarding Bitcoin ETFs, data from Farside indicates a net inflow of $154 million yesterday. Although the pace of inflows has decreased, a consistent inflow is still being maintained.

In terms of cryptocurrency industry regulations, the U.S. House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT21) yesterday by a vote of 279 to 136. This legislation defines the regulatory boundaries for the cryptocurrency industry and is widely seen as an official shift in the U.S. government's stance towards the crypto industry. The bill has been forwarded to the Senate for further approval.

2. Wealth Creation Sectors

2.1 Sector Movements – Ethereum Layer 2 Sector (ARB, OP, and STRK)

Primary reason: Influenced by the potential approval of the Ethereum ETF, Ethereum Layer 2 tokens have generally risen. The market perceives the approval of the Ethereum ETF as a positive development for Layer 2 tokens. Thus, while watching the ETF developments, investors are also advised to keep an eye on investment opportunities in related Layer 2 tokens.

Gainers: ARB has increased by 19.3% over the last four days, OP by 8.5%, and STRK by 16.6%.

Factors affecting future market conditions:

Approval of Ethereum ETFs: The market has largely priced in the approval of the Ethereum ETF. Should there be unexpected developments in the ETF approval tomorrow morning, a trend reversal might occur.
Development of Layer 2 projects: As a widely used chain ecosystem, the future development of Layer 2 depends on its collaboration with projects and user growth.

2.2 Sector Movements: Ethereum Staking Sector (LDO, SSV, and ETHFI)

Primary reason: The forms related to the Ethereum ETFs state that while Ethereum coin allowed, staking is not. This restriction significantly reduces the appeal of the Ethereum ETF to investors, which is why the Ethereum restaking sector is expected to benefit materially.

Gainers: LDO has risen 23.7% over the last four days, SSV has risen by 30% over the last seven days, and ETHFI has risen 29.1% over the last four days.

Factors affecting future market conditions:

Approval of Ethereum ETFs: The market has largely priced in the approval of the Ethereum ETF. Should there be unexpected developments in the ETF approval tomorrow morning, a trend reversal might occur.
Protocol developments: Projects in the staking sector typically have stable and predictable cash flows, making it possible to accurately estimate their token prices. Key factors include protocol TVL, revenue distribution methods, and token burning activities.

2.3 Sectors to Focus on Next — Memecoin Sector

Primary reason: Recently, in the U.S. elections, the Democratic Party, represented by Biden, explicitly advertised a position for managing memes. This position is responsible for managing daily operations involving top internet content and memes, which is widely interpreted as a pro-crypto move by Biden's team.

Specific tokens:

PEPE: As one of the most influential meme characters, PEPE's token price has been reaching new highs and is widely considered one of the best representatives of memecoins.
WIF: One of the most popular memecoins this year, featuring the famous "dogwifhat" character, which is currently very popular on the internet.
DOGE: A more established memecoin favored by Elon Musk. Its Doge character is widely recognized on the internet, with high user consensus.

3. Top Searches

3.1 Popular DApps

Farcaster (DApp) – A decentralized social network that enables developers to build innovative social networking applications. Users will always be able to freely move their social identities between apps, and developers will always be able to freely build new functionality on the network. On March 31, news broke that Farcaster's developer, Merkle Manufactory, is close to completing a funding round led by Paradigm, valuing the company at approximately $1 billion. The project has developed an application, which users are encouraged to download and register via the Google Store or App Store to potentially qualify for upcoming airdrop opportunities.

3.2 X (former Twitter)

Bitget Research: Market Awaits Ethereum ETF Approval, zkSync and LayerZero Launch on Bitget Pre-Market image 0

Constitution DAO (PEOPLE) – As the quadrennial U.S. presidential election gears up, a range of election-related memecoins emerges on the blockchain. People, a memecoin related to the U.S. Constitution auction, resonates with the theme of the election and has recently seen increased token activity. Futures trading data shows an increase in open interest for PEOPLE, a negative shift in the long/short ratio, and signals of major funds entering the market, which may indicate a continuation of this trend. According to Bitget data, PEOPLE has seen a 24-hour increase of 14%.

3.3 Google Search (Global and Regional)

Bitget Research: Market Awaits Ethereum ETF Approval, zkSync and LayerZero Launch on Bitget Pre-Market image 1

Global focus:

FIT21 Bill (Event) – The Financial Innovation and Technology for the 21st Century Act (FIT21, or HR 4763), led by the Republican Party, was passed by the House of Representatives on May 22 (local time). The Senate, comprised of 100 members, may need several months to consider this bill. Parts of FIT21 could change as House and Senate members resolve differences between their versions of the bill before final approval. President Biden will then have ten days to sign or veto it. The passage of this bill could significantly impact the crypto industry by fostering more applications and innovations in the Web3 space, which is a long-term positive for the industry.

Nvidia Earnings (Event) – Yesterday, the U.S. tech giant Nvidia released its financial results for the last quarter, surpassing market expectations and causing its stock to surge by 7% in after-hours trading. Influenced by this event, the Nasdaq index may continue to reach new highs in the next trading session, positively impacting the sentiment in global risk markets.

Regional focus:

(1) In Asia, the focus was primarily on the Ethereum ETF approval results.

(2) In Europe, the USA, and Latin America, there was significant interest in GALA, NOT, PEOPLE, TAO, and QUANT.

(3) In the CIS region, the Philippines, Türkiye, and Poland, assets like NOTCOIN and ASH were trending.

4. Potential Airdrop Opportunities

Scroll

Scroll has recently launched a points system in preparation for its upcoming token issuance. This system clearly outlines the methods through which users can accumulate points by staking assets such as ETH, LST, and various stablecoins, providing an opportunity for the airdrop before the token launch.

Scroll has completed a funding round of $80 million, with investments from Polychain Capital, Sequoia China, Bain Capital Crypto, Moore Capital Management, Variant Fund, Newman Capital, IOSG Ventures, and Qiming Venture Partners.

How to participate: Users can link their wallets at https://scroll.io/sessions and complete tasks as required by Session Zero to earn points and future airdrop rewards.

EIGENPIE

Eigenpie is a SubDAO focused on restaking, offering LST holders the opportunity to restake their assets and enhance their profit potential. By creating dedicated liquid restaking versions for each LST accepted on our platform, Eigenpie effectively isolates the risks associated with any specific LST.

The project's TVL has recently surpassed the $1 billion mark. The sector has a high valuation and Eigenpie's potential airdrop returns are promising.

How to participate: Visit the project website and stake ETH or swETH into Eigenlayer via the protocol. Additionally, you can directly delegate your Eigenlayer token voting rights to Eigenpie.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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