Bitget Research: U.S. SEC Approves Spot Ethereum ETF 19b-4, ETHFI and Other Ecosystem Assets Expected to Continue Rising

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Bitget Research2024/05/24 07:27

By:John & Victoria

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

Cryptocurrency prices experienced significant volatility on Thursday, with liquidations of all leveraged crypto derivative positions surging to over $360 million on the same day, the highest level since May 1.

Sectors with strong wealth creation effect: RWA and Ethereum staking sectors.
Top searched tokens and topics: Plume Network and Lista (LISTA).
Potential airdrop opportunities: Sanctum and Synthr.

Data collection time: May 24, 2024, 4:00 AM (UTC)

1. Market Environment

Cryptocurrency prices saw significant volatility on Thursday. Before gaining approval, ETH first fell to $3500 around the close of the traditional U.S. market, then surged to around $3900, and finally stabilized above $3800 after confirmation. Bitcoin also dropped to a low of $66,000, surged to $68,300, and then fell back below $68,000.

According to CoinGlass, during this volatile period, liquidations of all leveraged crypto derivative positions surged to over $360 million, the highest level since May 1. Most of the liquidated positions were long positions, valued at approximately $250 million, indicating that high-leverage traders were heavily betting on an immediate post-ETF approval surge. ETH traders were hit the hardest, with liquidations amounting to $132 million.

2. Wealth Creation Sectors

2.1 Sector Movements — RWA Sector (ONDO)

Primary reason: This bull market is mainly fueled by traditional market investments driven by ETFs. RWA, serving as a bridge to traditional financial markets, has continuous product updates and funding. Recently, the RWA Layer 2 network Plume Network completed a $10 million seed round funding.

Gainers: ONDO saw a daily increase of 13.46%.

Factors affecting future market conditions:

Changes in macroeconomic monetary policy: From a macroeconomic perspective, the rise in U.S. 10-Year Treasury Bond Yields supports the fundamentals of the RWA sector. It is essential to monitor subsequent changes in the dollar index, treasury yields, and the cryptocurrency market to adjust trading strategies dynamically.
TVL changes in projects: RWA sector projects are generally supported by TVL, making it essential to monitor the changes in this metric. If a project's TVL rises continuously or suddenly, it is usually a signal to buy.

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

Primary reason: The US Securities and Exchange Commission approved several spot Ethereum ETF 19b-4 forms today, including ETFs from BlackRock, Fidelity, and Grayscale. Since these ETFs only allow Ethereum coin trading and not staking, this regulation 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 10.8% over the last four days, SSV has risen by 7.97% over the last seven days, and ETHFI has risen 22.85% over the last four days.

Factors affecting future market conditions:

Fund inflows following Ethereum ETF approval: With the spot Ethereum ETF approval, its listing seems imminent. If significant amount of funds flow in after approval, it will further drive up the price of ETH.
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 — TON Ecosystem

Primary reasons:

Pantera's investment in TON may exceed $250 million, marking its largest investment in cryptocurrency to date.
High-traffic projects within the TON ecosystem, such as Notcoin, have been listed on Binance, though the TON token itself has not yet been listed. It is widely anticipated that TON's listing on Binance is only a matter of time.
The infrastructure of the TON ecosystem is in its early stages, yet it has already produced high-traffic projects like Notcoin and Catizen, showcasing a substantial user base supported by Telegram.
The issuance of stablecoins within the ecosystem has infused it with financial vitality, with TON's on-chain USDT supply reaching 130 million in two weeks, making it the eighth-largest blockchain for USDT issuance.

Specific projects:

TON: The native token of the Ton chain, currently listed on OKX, Bitget, and other exchanges.
FISH: A leading memecoin in the Ton ecosystem.
REDO: A dog-themed memecoin on the Ton chain.

3. Top Searches

3.1 Popular DApps

Plume Network:

The modular RWA Layer 2 network Plume Network announced its launch on Arbitrum Orbit. Plume is a modular L2 blockchain dedicated to real-world assets (RWA), integrating asset tokenization and compliance providers directly into the chain. The Plume Network team comprises members from companies and projects such as Coinbase, Robinhood, LayerZero, Binance, Galaxy Digital, JP Morgan, and dYdX. They recently raised $10 million in seed round funding led by Haun Ventures with participation from Galaxy Ventures, Superscrypt, A Capital, SV Angel, Portal Ventures, and Reciprocal Ventures. The funds will be used to hire more staff for engineering, marketing, and community functions. Plume Network's open incentivized testnet will launch in the coming weeks, followed by the mainnet later this year.

3.2 X (former Twitter)

Bitget Research: U.S. SEC Approves Spot Ethereum ETF 19b-4, ETHFI and Other Ecosystem Assets Expected to Continue Rising image 0

Lista (LISTA):

Binance Megadrop announced the launch of the liquid staking and decentralized stablecoin protocol Lista (LISTA). The maximum token supply is 1 billion, with an initial circulating supply of 230 million (23% of the supply). The Megadrop will total 100 million tokens (10% of the supply). Binance will list LISTA after the Megadrop, with specific listing plans to be announced later. Lista DAO is a liquid staking and decentralized stablecoin lending protocol. Users can stake and liquid stake on Lista, and borrow lisUSD using a range of decentralized collateral. The announcement also introduces the LISTA token: LISTA is the governance token of Lista DAO, used for governance, protocol incentives, voting, and fee sharing. The protocol consists of the following main components working together: the decentralized stablecoin lisUSD and the BNB liquid staking token slisBNB.

3.3 Google Search (Global and Regional)

Bitget Research: U.S. SEC Approves Spot Ethereum ETF 19b-4, ETHFI and Other Ecosystem Assets Expected to Continue Rising image 1

Global focus:

Ethereum ETF – A new regulatory milestone in the crypto industry: The spot Ethereum ETF has finally been approved. On May 23, local time, the U.S. Securities and Exchange Commission (SEC) officially approved all Ethereum ETFs, offering investors a new opportunity to invest in Ethereum through traditional financial channels. This decision is seen as a major endorsement of the cryptocurrency industry, making it the second crypto ETF approved by the SEC after the spot Bitcoin ETF. Following the approval, Ethereum's price slightly increased and fluctuated around $3800, peaking at $3856. It is currently at $3807, with a 24-hour increase of 1.3%. Although the immediate market reaction was not as volatile as in previous days, the news generated significant attention on X.

Regional focus:

(1) Europe and the CIS region show significant interest in memecoins:

As the crypto market rebounds significantly, the PEPE token continues to reach new highs. Users have started reallocating their funds to memecoins for higher returns. 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. Hong Kong, as a financial hub in Asia, has been at the forefront of financial innovation. With the approval of ETFs, it has once again become a focal point in Asia. Traditional finance and large funds can enter the crypto field through this channel, positively impacting both industry growth and retail investment.

4. Potential Airdrop Opportunities

Sanctum

Sanctum, a Solana ecosystem LST protocol, officially announced the launch of its loyalty program, Sanctum Wonderland. Sanctum Wonderland aims to fully utilize SOL for profit through a gamified experience. Users can stake SOL to collect pets and earn experience points (EXP) to level up, earning EXP through their pets.

Previously, Sanctum, a liquid staking service protocol in the Solana ecosystem, completed an extended seed round of financing led by Dragonfly, with participation from Solana Ventures, CMS Holdings, DeFiance Capital, Genblock Capital, Jump Capital, and Marin Digital Ventures. The total funding has now reached $6.1 million.

How to participate: Open the link, connect your wallet, and enter the invitation code. Exchange SOL for Infinity and deposit at least 0.122 SOL, plus the 0.05 SOL transaction fee. Your wallet should have at least 0.172 SOL. Deposit at least 0.11 SOL for the pet to automatically grow and earn EXP. If the LST balance falls below 0.1 SOL, the pet will enter hibernation and stop earning EXP. It is recommended to deposit more than 1 SOL to earn 10 EXP per minute per SOL. You can withdraw at any time with very low GAS fees.

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.

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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