Web3 AI Daily Review (2024/9/9)

2024-10-18 18:26:23

Collection

Last Friday, the non-farm payroll data fell short of expectations, reigniting concerns about a recession in the U.S. economy and leading to a sharp decline in U.S. stocks. Both the Japanese and South Korean stock markets opened lower, with the Nikkei 225 index dropping by as much as 3% at one point, but the losses subsequently narrowed. As expectations for a significant interest rate cut by the Federal Reserve in September increased, European and American stock markets rebounded significantly, with most star tech stocks rising, and Tesla gaining over 2%.

I. Attention Value - Market Highlights

1. Market Trends

(1) Macroeconomic Sector:

l US and European stock markets rebound strongly, Nasdaq futures rise 1% before market open

Last Friday, non-farm payroll data fell short of expectations, reigniting concerns about a recession in the US economy, which led to a significant drop in US stocks. The Japanese and South Korean stock markets opened lower, with the Nikkei 225 index dropping as much as 3% at one point, but the declines were subsequently narrowed. As expectations for a significant interest rate cut by the Federal Reserve in September increased, US and European stock markets rebounded significantly, with most star tech stocks rising, including Tesla, which gained over 2%.

(2) Web3 Sector:

l US Bitcoin ETFs record longest net outflow

With the Fed's interest rate cut imminent, anxiety in global markets has spread to digital assets. The US Bitcoin market has seen its longest daily net outflow since the launch of Bitcoin ETFs earlier this year. Over the eight days from August 30 to September 6, investors withdrew nearly $1.2 billion from 12 ETFs.

Last week, US employment data was mixed, and uncertainty about the US economic outlook is impacting the cryptocurrency market. The relationship between the cryptocurrency and stock markets is becoming increasingly tight. Bitcoin has continued to fluctuate downward in September, now down about 7%. Over the weekend, Bitcoin prices saw a slight increase, currently priced at $54,925.

Figure 1: Bitcoin Market

Source: Dot Labs

2. Hot Events

Web3 Sector:

l Farcaster's new user growth has entered a low-growth phase, dropping from a peak of about 15,000 daily new users in early February to about 650 currently

The Web3 social network Farcaster, highly praised by Vitalik, has seen its new user growth enter a low-growth phase, dropping from a peak of about 15,000 daily new users in early February to about 650 currently, similar to another struggling social app, Lens. Meanwhile, Farcaster's daily active users (DAU) have decreased from a peak of 100,000 in early July to 60,000, a decline of about 40%; additionally, the number of posts and interactions on Farcaster has dropped by over 60% from their peaks. Earlier, the once-popular social app friend.tech's developers announced they would abandon control over smart contracts, and the platform has essentially shut down. In May of this year, Farcaster completed a $150 million Series A funding round, with a valuation of $1 billion, led by Paradigm.

l Tokyo Electric Power subsidiary experiments with mining using surplus renewable energy, potentially generating $2.5 billion in annual revenue

According to Mars Finance, Agile Energy X, a subsidiary of Tokyo Electric Power, announced it will begin installing Bitcoin mining equipment next to solar power plants in Tochigi and Gunma Prefectures, utilizing surplus renewable energy for mining experiments. The company's representative, Kenji Tateiwa, stated that mining could provide a new revenue source for power generation companies and promote further adoption of green energy. According to Agile Energy X's estimates, if renewable energy accounts for nearly half of the national power supply, about 70 million households' annual electricity consumption would be wasted. If 10% of that could be used for Bitcoin mining, it is expected to generate about 360 billion yen ($2.5 billion) in annual revenue. This initiative aims to address the issue of electricity waste caused by the volatility of renewable energy generation while supporting the Japanese government's goal of achieving carbon neutrality by 2050.

3. Hot Narratives

The Bitcoin scaling solution Fractal Bitcoin tweeted that it has launched its mainnet, with the first block already mined. It has partnered with UniSat Wallet and OKX Wallet to reward active Bitcoin users through the Fractal Mainnet Bootstrap program and provide incentives for developers in the first season. Additionally, it is set to launch a voting platform that will utilize OP_CAT, allowing Fractal holders to vote on key proposals.

From the very beginning, there has been anticipation about whether the "new asset frenzy" of inscriptions could be replicated on Fractal, but attention has now shifted to two other points. The first is the "mining" of "first-mover advantage," and the second is the new infrastructure related to OP_CAT. Since the latter needs to wait for a period after the mainnet launch to materialize, it can be said that the biggest and most direct hot topic currently related to Fractal is "mining." Among the NFT projects related to "mining," the most attention-grabbing are FSIC and ASIC.

4. Potential Catalysts

Debate between Donald Trump and Kamala Harris

As BeInCrypto previously pointed out, the upcoming presidential debate between Donald Trump and Kamala Harris has brought cryptocurrency into the spotlight. Both candidates have made this topic central to their campaigns. According to recent reports, Harris seems increasingly enthusiastic about supporting cryptocurrency policies.

Meanwhile, Trump has made optimistic comments about Bitcoin and the broader cryptocurrency market, garnering support from industry insiders. Pennsylvania Senator John Fetterman predicts that the debate will be "very intense," acknowledging that both Trump and Harris have the ability to stand firm on their positions. According to CoinGecko data, due to the anticipation of the debate, PolitiFimeme coins have already experienced volatility, with some Trump-inspired coins achieving double-digit gains.

US Consumer Price Index

This week, inflation is in focus as the Federal Reserve will release the August Consumer Price Index (CPI) and the less significant Producer Price Index (PPI) before its next meeting. These data may play a key role in determining the Fed's interest rate decisions. The US Bureau of Labor Statistics (BLS) will release the August CPI on Wednesday, September 11. In July, the inflation rate fell from 3% in June to 2.9%, a shift that boosted Bitcoin's performance.

Economists now expect the inflation rate to further decline to 2.7%. If this expectation holds true, Bitcoin's strength will be further enhanced. The core CPI (excluding volatile items like food and energy) for August is expected to drop from 3.2% in July to 3.1%. The monthly increase for both overall CPI and core CPI in August is expected to be 0.2%.

II. Attention Value - Hot Projects

1. Social Media Highlights

Ethereum is a decentralized, open-source public blockchain platform with smart contract functionality. With the continuous development of Ethereum 2.0 and Layer 2, it has become one of the most widely used blockchains today. In July of this year, Ethereum's spot ETF was officially approved for trading. Although recent declines in $ETH due to reduced income and whale exits have been significant, the market remains mainly optimistic due to its low inflation rate and strong development capabilities.

Key Projects:

· io.net

io.net is a decentralized computing network that aims to provide computing power for machine learning by assembling nearly 1 million GPUs from independent data centers, cryptocurrency miners, and projects like Filecoin and Render. It features products such as IO Workers, IO Cloud, and IO Browser, and is valued at over $1 billion on Solana.

At the end of August, the project launched a staking program requiring GPU and CPU providers to lock a specific amount of $IO based on their device capacity and contribution to the network, aiming to enhance the security and performance of the GPU Internet (IOG) while providing community members with opportunities to earn rewards through contributions. Within a week of launching the program, it successfully raised about $1.5 million. Additionally, the project has partnered with Flock.io to create Proof of AI (PoAI), which is expected to significantly improve AI model training and inference on the network.

2. Smart Money Accumulation

· Smart Money Holdings

Source: ChainEDGE, Dot Labs

Project Overview:

Mog(@MogCoinEth /X)

$Mog is an emerging cultural token that, unlike traditional animal-themed meme coins, centers on deeper cultural values such as politics, lifestyle, and religion. It is the native ERC-20 cryptocurrency token of the Mog Coin ecosystem, playing a core role in platform operations. Compared to traditional meme coins like Dogecoin and Shiba Inu, $Mog, which focuses on deeper cultural themes, may achieve greater growth and profit potential in the current cycle, marking a shift in meme coin investment from simple fun and entertainment to deeper cultural identity.

POPCAT(@POPCATSOLANA /X)

$POPCAT is a meme coin based on the Solana blockchain, initially launched in October 2020. The meme features a cat named "Oatmeal" that rapidly switches between open and closed mouth states, creating a "pop" visual effect, aiming to leverage this pop culture phenomenon to attract community participation and investment. This year, $POPCAT's market cap soared to nearly $273 million, with over 22,000 followers on X and more than 5,700 members in its Telegram group, making it the third most popular meme coin in the Solana ecosystem.

· Smart Money Inflows

Source: ChainEDGE, Dot Labs

Project Overview:

1. WOJAK(@wojakcoineth /X)

$WOJAK is an ERC-20 token based on the Ethereum blockchain, inspired by the popular Wojak meme, which depicts a cartoon face expressing various emotions. Launched on April 17, 2023, the token aims to establish a decentralized platform connecting meme enthusiasts worldwide, fostering community interaction and creative expression. The project plans to launch an NFT series called "Anonthology" to reward long-term holders and establish cultural connections with other meme coins.

2. LST(@marginfi /X)

MarginFi is one of the leading lending protocols in the Solana decentralized finance ecosystem, standing out in the market with its innovative strategies. At the end of last year, MarginFi further expanded its business scope by launching its own liquid staking token, $LST, making it one of the platforms with the highest natural yields in all liquid staking on Solana.