Cryptocurrency daily summary:
Starknet Launches $25 Million Token Incentive Program for Top Projects
Memecoin surges as GameStop stock soars
Let's first look at the trading activities of Bitcoin ETFs. According to Farside Investor data, after the market reopened on May 28, Grayscale Bitcoin Spot ETF (GBTC) continued to outflow $105.2 million; at the same time, Fidelity Bitcoin Spot ETF (FBTC) inflowed $34.3 million, Bitwise Bitcoin Spot ETF (BITB) inflowed $3.3 million, ARK 21Shares Bitcoin Spot ETF (ARKB) inflowed $4.1 million, and WisdomTree Bitcoin Spot ETF (BTCW) had a net inflow of $1.4 million.
AI crypto tokens are not following the chip giant’s upward trend, but crypto analysts believe this situation is only temporary
Artificial intelligence-related crypto tokens have fallen over the past 24 hours after Nvidia (NVDA) shares surged more than 7% on May 28, but traders say that won’t last long.
“NVDA is surging, AI coins are quiet for now, but don’t expect this to last,” cryptocurrency trader Matthew Hyland wrote in a May 28 post.
Nvidia's stock price is seen as an indicator of the performance of artificial intelligence tokens, and NVDA's performance is a measure of the market's sentiment towards artificial intelligence. According to Google Finance, Nvidia's stock price has soared 22% in the past five trading days, closing at a record high of $1,140 on May 28, and the stock has risen nearly 137% so far this year. Nvidia's first-quarter revenue increased by 18% from the fourth quarter of 2023 and soared 262% from the same period last year to $26 billion, about 5.6% higher than analysts' expectations.
Meanwhile, several of the largest AI crypto tokens by market cap have not followed Nvidia’s lead and have been falling over the past week. According to CoinMarketCap, Render (RNDR), Fetch.ai (FET), and SingularityNET (AGIX) have fallen 8.14%, 11.39%, and 11.19%, respectively, over the past seven days.
Starknet Launches $25 Million Token Incentive Program for Top Projects
Starknet launches $25 million token incentive program for top projects, the first part of the Starknet Catalyst program to incentivize blockchain development on the network. The Starknet Foundation will distribute 20 million Starknet (STRK) tokens to the most advanced projects on the network.
As part of its new Catalyst initiative, the Starknet Foundation will distribute approximately $25.2 million worth of Starknet tokens to 21 of the best-performing projects in the ecosystem, according to an announcement shared with Cointelegraph.
Diego Oliva, CEO of the Starknet Foundation, said the program selects rewards for top user-facing protocols based on a number of factors, which are weighed by the Stark Foundation in conjunction with independent third parties. The funding program is designed to accelerate Starknet's innovation of Ethereum's Layer 2 scaling solution based on zero-knowledge rollup technology. The funding will be divided into two categories, separating advanced projects from emerging projects on the network.
According to L2beat, Starknet is the seventh largest Ethereum layer 2 with a total locked value of over $1.08 billion and a market share of 2.32%. The cumulative TVL of Ethereum layer 2 networks exceeds $46 billion.
Memecoin rises as GameStop stock surges
GameStop stock was trading at $23.78 at 4:19 PM EST on May 28. The company’s stock price has risen 25.16% in the past 24 hours, according to data from the New York Stock Exchange. This has led to a rise in some memecoins, including GME and KITTY.
GME is a memecoin with the same ticker as GameStop. KITTY comes from the social network name of the financial analyst Roaring Kitty, who participated in the short squeeze of GameStop three years ago. Rebecca Stevens, senior research analyst at The Block, pointed out that memecoin has grown rapidly in the past year, and following the strong rebound in early March, the MEME index continues to significantly outperform other indexes.
Market Analysis: Meme is still the main narrative in the market, and Solana’s Meme performance is eye-catching
Market trend:
BTC and ETH dynamics
-BTC: It fell below $67,500 overnight, showing an increase in short-term volatility in the market. The decline in BTC's market share means that investors may be looking for alternative assets with higher returns. Altcoins may perform better.
-ETH: It once fell below $3,800, which also shows the instability of the market. The market sentiment of ETH may be affected, but its application in the fields of DeFi and NFT is still an important supporting factor.
Macroeconomics:
-U.S. stocks continued to rise and hit record highs, with the performance of technology leader Nvidia being particularly outstanding. This strong performance of the traditional financial market may attract some funds to flow back to the stock market, thereby creating a certain diversion pressure on the cryptocurrency market.
-Cryptocurrency concept stock Robinhood rose more than 6% after the market, showing that the market's confidence in cryptocurrency trading platforms remains strong, which may drive some funds into the crypto market.
Market hot spots:
Solana is a Meme Token
-Solana-related Meme tokens generally rose, showing a trend of funds rotating from ETH to Solana. This may be related to the high performance and low transaction fees of the Solana network.
-Specific tokens such as$WIF 、$BONK 、$BOME , MANEKI, PENG and others performed well, especially PENG, which increased by 200% in the past 7 days, showing the market's pursuit of these high-risk and high-return assets.
Modular Blockchain TIA
-TIA's surge may be related to its upcoming unlocking of 30% of the circulating tokens in October. This expected increase in supply usually has a negative impact on prices, but the rise before the unlocking may be the result of investors (especially VCs) making early arrangements.
Fan Token CHZ
-CHZ’s surge is related to the upcoming European Cup. Fan tokens usually perform well when there are major sporting events, likely driven by the enthusiasm of fans and investors.
Summary and Outlook
1. Short-term volatility: The price fluctuations of BTC and ETH show the instability of the market, but in the long run, the fundamentals of mainstream cryptocurrencies remain strong.
2. Market rotation: Funds rotate from ETH to Solana, showing the market’s interest and demand for different blockchain ecosystems.
3. Hot sectors: Meme tokens, modular blockchains, and fan tokens have become hot spots in the market recently. Investors need to pay attention to the dynamics and potential risks of these sectors.
4. Macroeconomic impact: The strong performance of the U.S. stock market and the rise of cryptocurrency concept stocks may have a certain positive impact on the crypto market, but we need to be wary of the risk of capital diversion.
In the current market environment, investors need to pay close attention to macroeconomic trends and the performance of hot market sectors, and make reasonable allocations based on their own risk tolerance.
Macro: Global stock markets fell overall as investors cautiously awaited inflation data; gold and crude oil prices rose
On May 28, U.S. Treasury yields rose to multi-week highs as investors cautiously awaited inflation data due later this week. The Nasdaq surpassed 17,000 for the first time on Tuesday, driven by gains in Nvidia shares, while the S&P 500 rose slightly and the Dow fell.
Specifically, the Nasdaq rose 0.59% to close above 17,000, while the S&P 500 edged up 0.02% and the Dow fell 0.55%.
As traders returned from a break, semiconductor-heavy Nvidia Corp. rose 7%, boosting shares of other chip stocks. The semiconductor index rose 1.9%. S&P 500 technology stocks led gains among sectors, with health care and industrials among the biggest losers.
The U.S. core personal consumption expenditures price index report for April is due later this week. The Fed’s preferred inflation barometer is expected to remain stable in monthly data. Expectations for the timing of rate cuts have been volatile, with policymakers remaining cautious as data still reflects firm inflation.
Only November and December this year have a greater than 50% chance of rate cuts of at least 25 basis points, according to the CME Group’s FedWatch tool. The probability of a September cut fell to around 46% from more than 50% a week ago.
The dollar held steady on Wednesday as markets bet the Federal Reserve was unlikely to cut interest rates later this year ahead of key inflation data this week, while the yen fell to its lowest level in four weeks. Rising U.S. Treasury yields also boosted the dollar after poor performances at two- and five-year auctions raised doubts about demand for U.S. government bonds.
On May 29, Asian regional stock markets mostly fell, with the exception of mainland China. The MSCI Asia Pacific stock index fell 0.8%. Japan's Nikkei fell 0.4%, Australia's benchmark fell more than 1%, and Hong Kong's Hang Seng fell 1.2%.
Mainland Chinese blue chips rose 0.3% as the International Monetary Fund raised its GDP growth forecast for China in 2024 and 2025. The IMF said on Wednesday that China's economy will grow 5% this year after "strong" growth in the first quarter.
Japanese consumer confidence and Australian inflation were in focus in Asia on Wednesday as investors pondered the broader implications of a broad rise in bond yields.
In commodities, crude oil rose for the fourth consecutive day, reaching a four-week high, as the market speculated that OPEC+ would maintain its production cut policy at its meeting on Sunday. U.S. crude oil futures settled up 2.71% at $79.83 per barrel, while Brent crude oil futures settled up 1.35% at $84.22 per barrel.
Gold prices rose slightly, with spot gold up 0.33% to $2,358.58 an ounce. U.S. gold futures rose 1.17% to $2,359.70 an ounce.
