Hotcoin Research | Market Insights: May 13, 2024 - May 19, 2024

Cryptocurrency Market Performance

Currently, the total market capitalization of cryptocurrencies is $1.32 trillion, with BTC accounting for 54.41%.

This week's market showed a fluctuating upward trend, with BTC experiencing a significant surge from May 15 to 16, followed by a weekend of consolidation. The current price of BTC is $67,125.

The main reasons for the increase: The U.S. April CPI was 3.4%, lower than the previous month's 3.5%, in line with market expectations, coupled with a substantial net inflow into U.S. Bitcoin spot ETFs. This week, the net inflow into U.S. Bitcoin spot ETFs was $947 million, while Hong Kong Bitcoin spot ETFs saw a net outflow of $35.2 million, resulting in a total net inflow of $911 million for Bitcoin spot ETFs.

This week, altcoin projects did not see significant increases, but the PolitiFi sector (related to U.S. election figures and memes) saw strong performances from TRUMP and MAGA VP (MVP), mainly due to the approaching U.S. elections.

The "Fear & Greed Index" is at 72, with 1 day showing neutral and 6 days showing greed.

Understanding Now

Review of Major Events This Week

1. The circulation of USDT on TON reached $200 million in less than a month after its issuance, setting a new record for the fastest growth in USDT issuance;

2. Vitalik proposed EIP-7706, aiming to add a new type of gas for transaction calldata;

3. LayerZero CEO: Up to 100,000 addresses have been recognized as witches;

4. Worldcoin's inflation rate may soar to 4% daily within the next 70 days, as insiders attempt to cash out at high levels;

5. BounceBit Chain announced the introduction of a dual-token PoS mechanism, allowing users to stake BB and BBTC and earn approximately 15% annual interest;

6. BlockTower Capital's main hedge fund was hacked, resulting in the depletion of some funds;

7. On May 16, U.S. stocks opened higher, with the Dow, S&P 500, and Nasdaq hitting intraday all-time highs again;

8. On May 16, Binance announced the launch of a liquidity pairing program, inviting projects that aim to enhance liquidity and build a healthy ecosystem to connect with qualified liquidity providers;

9. Floki DAO voted to approve the proposal to "burn 15.246 billion FLOKI tokens";

10. FTX Digital: The deadline for customer claims will be extended to the end of July or early August;

11. Ondo Finance: The TVL of yield products exceeded $420 million, becoming the largest provider of tokenized U.S. Treasury bonds;

12. The ZK gaming ecosystem Tevaera announced its L0 token distribution, allocating 90% to the community;

13. Mode, Scroll, and Immutable X saw weekly increases in TVL exceeding 5%.

Macroeconomics

1. A U.S. court ruled that Coinbase cannot force the SEC to create new cryptocurrency rules;

2. Ripple submitted a motion seeking to seal and revise certain SEC lawsuit documents;

3. On May 15, the U.S. April unadjusted CPI year-on-year recorded 3.4%, down from the previous month's 3.5%, in line with market expectations. The April core CPI month-on-month fell to 0.3%, the lowest since December last year;

4. On May 15, the drop in U.S. April CPI boosted interest rate cut expectations, with the three major U.S. stock indices opening higher: the Dow rose 156 points, the S&P 500 increased by 0.4%, and the Nasdaq gained 0.5%. WSB concept stocks cooled down, with GameStop (GME) down 15.9% and AMC Theatres (AMC) down 10.5%;

5. On May 16, according to CME's "FedWatch" data, the probability of the Federal Reserve maintaining interest rates in June is 91.5%, while the probability of a 25 basis point rate cut is 8.5%.

ETF

According to statistics, from May 13 to May 17, the net inflow into U.S. Bitcoin spot ETFs was $947 million;

As of May 17, GBTC had a total outflow of $17.621 billion, and U.S. Bitcoin spot ETFs held a total of $12.633 billion.

As of May 17, Hong Kong Bitcoin spot ETFs had a net outflow of $35.2 million, with total holdings of $22.7 million.

Foreseeing the Future

Upcoming Events

1. The 2024 ETH Beijing Hackathon will be held from May 17 to 19;

2. Pi Network and WIF officials will hold the "WIF <> PIONEX COMMUNITY PARTY" offline event on May 24 at 19:00 at VIVA PARTY ROOM in Taipei, with speakers including Dog Brother, Cool Lab, Crypto Paul, and DA Traders Alliance Tsucccc;

3. Consensus 2024 will take place from May 29 to May 31, hosted by CoinDesk, aiming to gather developers, investors, and founders to address industry challenges;

4. Bitcoin Seoul 2024 will be held from May 29 to 31 in Seoul, South Korea, bringing together the brightest minds in policy, finance, human rights, and technology, focusing on Bitcoin.

Project Progress

1. Blockchain data indexer Subsquid plans to launch its native token SQD on Friday (May 18), which aims to support Subsquid's independent node operator network, whose collective computing power can parse large amounts of on-chain data;

2. The application deadline for the a16z Speedrun accelerator is May 19, with each startup joining the Speedrun accelerator program receiving $750,000;

3. The Dragon8 hard fork of the sports and entertainment blockchain solution Chiliz Chain is scheduled for execution on May 21, introducing new developer tools and fully implementing the previously announced Chiliz Chain Tokenomics 2.0, with the annual inflation rate of CHZ decreasing from 8.8% until it reaches 1.88% after 14 years and maintaining that value thereafter. Additionally, Chiliz Chain will implement EIP-1559, where the vast majority of accrued gas will be burned;

4. The Ultimate application will shut down on May 22, 2024, as Jupiter has acquired Ultimate Wallet and its mobile team;

5. The Neutron (NTRN) network will undergo a network upgrade at block height 10,525,000 (expected on May 23 at 22:30), with Binance expected to suspend token deposits and withdrawals for the Neutron (NTRN) network on May 23 at 21:30 Beijing time to support the network upgrade.

Important Events

1. PayPal's new policy effective May 20 will eliminate buyer and seller protection for NFTs, and NFT purchases will no longer be supported by the company's buyer protection program. Additionally, NFT sales exceeding $10,000 will not be protected against false claims and refunds;

2. Musk requested that former OpenAI board member Helen Toner submit records related to the decision to dismiss Sam Altman and restore his position by May 21;

3. The SEC will engage in court debates on May 22 regarding the compensation plan for the fraud case against Terraform Labs and Do Kwon, with the SEC seeking approximately $4.7 billion in forfeited profits and pre-judgment interest, as well as a total of $520 million in civil penalties; Terraform's legal team suggested a civil penalty of $1 million, without paying forfeited profits;

4. The U.S. Securities and Exchange Commission (SEC) will decide on May 23 whether to approve VanEck's application for a spot Ethereum ETF;

5. The U.S. Securities and Exchange Commission (SEC) will decide on May 24 whether to approve ArkInvest/21 Shares' application for a spot Ethereum ETF.

Token Unlocking

1. ApeCoin (APE) will unlock approximately 15.6 million tokens on May 17 at 8:00, worth about $19 million, accounting for 2.48% of the circulating supply.

2. Immutable (IMX) will unlock approximately 25.53 million IMX tokens on May 17 at 8:00, worth about $57.95 million, accounting for 1.75% of the circulating supply.

3. Nym (NYM) will unlock approximately 3.02 million tokens on May 18 at 8:00 Beijing time, accounting for 0.39% of the circulating supply, worth about $470,000.

4. Manta Network (MANTA) will unlock approximately 6.67 million tokens on May 18 at 17:30 Beijing time, accounting for 2.66% of the circulating supply, worth about $11 million.

Hotcoin is a licensed CEX with 6 million users, aiming to provide decentralized, secure, and reliable digital currency trading and asset management services to global users.

Hotcoin Research is the research department under Hotcoin. The team is dedicated to providing objective, independent, and comprehensive analysis, aiming to become an authoritative insight platform in the cryptocurrency field. Analysts regularly publish insightful articles: analyzing industry insights, in-depth analysis of potential projects in popular sectors, and tutorials on how to profit from WEB3, striving to present users with the most friendly and authentic WEB3 experience.