Cryptocurrency daily summary:
Crypto markets fall across the board, but MEW, WIF, and Solana memecoin surge
MonoSwap Hacked, Users Warned Not to Deposit Funds
Fold plans to list on Nasdaq via $365 million SPAC deal
Let’s first look at the trading activities of Bitcoin and Ethereum ETFs. According to Farside Investor data, on July 24, Grayscale Bitcoin Spot ETF (GBTC) saw an outflow of US$26.2 million; at the same time, Fidelity Bitcoin Spot ETF (FBTC) saw an inflow of US$1.4 million, Bitwise Bitcoin Spot ETF (BITB) saw an outflow of US$70.3 million, and ARK 21Shares Bitcoin Spot ETF (ARKB) saw an outflow of US$3.3 million.
Bitwise Ethereum Spot ETF (ETHW) had a net inflow of $29.6 million; Fidelity Ethereum Spot ETF (FETH) had an inflow of $74.5 million; VanEck Ethereum Spot ETF (ETHV) had an inflow of $19.8 million; Grayscale Ethereum Spot ETF (ETHE) had a net outflow of $326.9 million;
MEW, WIF, and Solana memecoin surge as network activity increases
Memecoin in the Solana ecosystem has experienced significant growth over the past seven days, outperforming the broader cryptocurrency market. The total market capitalization of Memecoin on the Solana blockchain has risen significantly over the past seven days, reaching $9.2 billion as of July 24, according to data from CoinGecko.
Cat in Dogs World (MEW) has seen the biggest gain over the past week, up 82% and up 1.4% over the past 24 hours. It is followed by Gigachad (GIGA), which has seen double-digit gains, up 45.5% over the past seven days and up 9% over the past 24 hours.
The largest Solana-based meme token by market cap, Dogwifhat (WIF), is up 1.8% on the day and 21.5% on the week, bringing its market cap to $2.54 billion. Notably, WIF accounts for nearly a third of Solana’s total memecoin market cap. The bullish performance of Solana memecoins reflects the broader investor sentiment towards the sector. According to a recent report from CoinGecko, the asset class has become one of the hottest topics for the second quarter of 2024.
Data from DefiLlama shows that Solana's transaction volume climbed to $2.54 billion on July 19, up from $603.8 million on June 29. The blockchain's all-time high transaction volume was $3.8 billion on March 15. The number of active addresses on the Solana network has increased dramatically in the past two weeks. The number of active addresses on July 23 exceeded 2 million, 72% higher than the 1.45 million on July 10.
MonoSwap Hacked, Users Warned Not to Deposit Funds
On July 24, 2024, the decentralized exchange and staking platform MonoSwap announced that it had suffered a malicious hacker attack and warned users not to stake or add additional funds at this time. MonoSwap is investigating the incident. In the announcement, MonoSwap warned users to withdraw funds from the platform immediately to avoid losses and not to interact with malicious links identified by the protocol in social media posts.
According to the platform, on July 23, 2024, one of its developers accidentally installed a malicious phishing application and was lured by scammers pretending to be venture capitalists. During the call, the scammers installed malware on the developer's computer, which had access to all wallets and contracts of the platform. This allowed the hacker to extract most of the liquidity staked on the platform.
Since the CoinGecko co-founder issued the warning, there have been several high-profile hacks and exploits. Onchain sleuth ZackXBT recently raised the alarm about the Compound Finance website, which redirected users to a phishing page, which the Compound Finance team has since fixed.
Bitcoin rewards app Fold plans to list on Nasdaq via $365 million SPAC deal
Bitcoin rewards app Fold plans to go public on the Nasdaq via a merger with special purpose acquisition company (SPAC) Emerald Acquisition Corp. (EMLD). Once the transaction is completed, the entity will also have more than 1,000 bitcoins ($67 million) on its balance sheet.
New York-based Fold has launched a cash-back debit card that offers bitcoin rewards in lieu of traditional rewards. Fold’s card has processed more than $2 billion in transaction volume and issued more than $45 million worth of rewards, according to an announcement Wednesday.
The transaction, which has been unanimously approved by the boards of directors of both companies, values the pre-transaction equity at $365 million. The post-transaction entity will also have more than 1,000 bitcoins ($67 million) on its balance sheet. Fold has not yet disclosed an expected closing date for the merger and its Nasdaq trading symbol.
Market analysis: The market fell across the board, but market sentiment remained optimistic
Market Trends
BTC: fell below $64,500 and crossed below the Bollinger Bands weekly middle line. If BTC can rebound and recover above the Bollinger Bands weekly middle line this week, the subsequent market is still expected to be bullish. However, if the weekly line closes below the Bollinger Bands middle line, it may continue to fluctuate downward.
ETH: fell below $3,200. Grayscale Ethereum ETF continued to see large outflows. Previously, Grayscale Ethereum ETF had been at a negative premium of around -40% for a long time. Buyers made more profits and sold, which put great pressure on the market.
Altcoins: generally fell, and the Meme sector also fell back. At this time, you can consider buying the previously strong Meme coins in batches, which may bring additional benefits in the future.
Market sentiment: The AHR999 index is 0.87 today, indicating that the current BTC price is suitable for long-term fixed investment. The fear and greed index is 68, and the market sentiment has been in a greedy state for four consecutive days. Although the market fell across the board, the market sentiment did not fall into panic.
Macroeconomics
- U.S. stock performance: The three major U.S. stock indices all fell, with AI giants such as Nvidia and Broadcom leading the decline. The "Big Seven" index fell 5.9%.
-Bond market: The yield on the U.S. 30-year Treasury bond exceeded the yield on the 5-year Treasury bond by the largest margin since May 2023.
-Policy expectations: After Biden withdrew from the election, expectations for a rate cut by the Federal Reserve in September declined, and the market is in a state of macroeconomic instability.
Market Hotspots
Solana Ecosystem:
-SOL/ETH performance: SOL/ETH continued to strengthen. SOL once broke through $180 yesterday. It is expected that this strong performance will continue in the future market.
- On-chain Meme Coins: Memecoins on the Solana chain performed well in this round of rising market. Cat coins POPCAT, MEW, etc. have broken through historical highs, and the lucky cat meme coin MANEKI has also achieved an increase of more than 100% from the bottom.
in conclusion
The current crypto market presents a complex and turbulent situation. Major crypto assets such as BTC and ETH are facing downward pressure, but market sentiment remains relatively optimistic. In a falling market, users should give priority to buying strong tokens on strong public chains in batches. Considering the uncertainty of the macro economy and the changes in market hotspots, investors should remain cautious, diversify risks, and give priority to investing in strong assets.
Macro: Tech stocks plunge as stocks tumble, Wall Street and Asian markets hit hard
The S&P 500 and Nasdaq fell to multi-week lows at the close on Wednesday as weaker-than-expected earnings from Alphabet and Tesla dented investor confidence in large-cap stocks.
Investors have been waiting for the first of the "Big Seven" to report quarterly results to judge whether high valuations are justified. The performance of these seven companies has a significant impact on the market and is bound to have a broad ripple effect on the overall market.
The major indices performed as follows: the Dow fell 1.25%, the S&P fell 2.31%, and the Nasdaq fell 3.64%.
Asian stocks were hit hard in early trading on Thursday as technology stocks underperformed, sending investors into lower-risk assets including short-term bonds, the yen and the Swiss franc.
MSCI's broadest index of Asia-Pacific shares fell 0.7%, with Japan's Nikkei tumbling 2.9% and South Korea's KOSPI falling 2%. Taiwan's markets remained closed due to the typhoon. Chinese blue chips pared earlier losses to fall 0.1%, with the Shanghai Composite falling 0.3% to a five-month low. Hong Kong's Hang Seng fell 0.6%, as Beijing's latest easing measures failed to provide enough support.
Wall Street's fear gauge rose to a three-month high. The U.S. two-year bond yield fell to its lowest level in nearly six months on Wednesday as investors sought the safety of cash and ultra-liquid short-term debt.
The safe-haven yen surged, rising 0.6% to its highest level in two and a half months. The yen surged 1.1% overnight and its gains remain strong ahead of the Bank of Japan meeting next week, where policymakers will discuss whether to raise interest rates. The Swiss franc also rose 0.7% overnight.
Chinese stocks did not receive much support after the country’s central bank unexpectedly cut long-term interest rates and stepped up recent stimulus measures.
The stock market decline led investors to increase bets on global interest rate cuts, with futures markets showing a 100% chance of a September rate cut by the Federal Reserve. The surge in market volatility led to a sharp reduction in carry trades, causing the dollar to fall another 0.6% against the yen to 152.85 on Thursday.
Faced with the collapse led by large-cap stocks, the market re-examined the earnings prospects of the hyped artificial intelligence and the Big Seven stocks. The plunge of Alphabet and Tesla triggered the rout on Wall Street. In addition, concerns about China and global economic growth put great pressure on commodity-linked currencies, and the risk aversion in the Chinese and Japanese markets will continue.
In commodities, oil prices edged lower and held near six-week lows as concerns about China's economic slowdown curbed demand. Brent crude futures fell 0.4% to $81.81 a barrel, while U.S. West Texas Intermediate (WTI) futures also fell 0.3% to $77.33 a barrel.
Gold fell 0.9% to $2,375.92 an ounce.
