Yesterday's CPI data was lower than expected, and the market basically pointed to a steady decline. The Federal Reserve will announce its interest rate plan next week, and the market is expected to fluctuate greatly at that time.
Yesterday's CPI data was lower than market expectations, and it is basically certain that a 25 basis point interest rate cut has become a high probability event. The top crypto assets have stopped falling and rebounded slightly. The main traders in the market are waiting for the Fed's interest rate decision meeting next week. The first interest rate cut after the Fed has maintained high interest rates will have a greater impact on the market. It is expected that the market volatility will increase significantly next week.
In terms of ETFs, Bitcoin ETF had a net outflow of US$43 million yesterday, and Ethereum ETF had a net outflow of US$5 million yesterday, reflecting that market participants as a whole are still cautious about the market, and the market is unable to form continuous net inflows or net outflows.
In terms of crypto ecology, the computing power of Bitcoin has soared after its launch. This ecology has attracted widespread discussion and attention in the industry. Investors are advised to pay close attention to the subsequent development of the project.
Wealth-making sector
Sector changes: DeFi blue chip sector (AAVE, PENDLE)
main reason
The DeFI blue chip sector as a whole has shown strong resilience, largely because DeFi blue chip projects still play an important ecological role in the volatile market, and through continuous development and operation, the data performance of all aspects of its protocol is relatively good. The AAVE protocol has recently continued to break new highs in user activity, and its revenue has also grown steadily. Pendle's current layout of a large LSD has achieved obvious results, and further layout of BTCFi will bring considerable growth to its future revenue.
Rising
AAVE and PENDLE have risen by 13.5% and 28.1% respectively in the past 7 days.
Factors Affecting the Market Outlook
Total asset size of the protocol: The cash flow output of this type of protocol mainly depends on the asset size of the protocol. As the asset size accommodated by the protocol gradually increases, the income that the protocol can generate will also gradually increase, and the corresponding currency price will also have a strong performance.
Project product updates: AAVE previously updated its token economy and introduced a buyback mechanism. This behavior may cause other DeFi projects to follow suit. It is recommended to continue to pay attention to product updates of DeFi projects. If there is news about favorable tokens, trading opportunities often arise.
Sectors that need to be focused on in the future: Solana Meme assets (BEER, WIF, POPCAT)
main reason
The price of SOL rebounded, the panic over ecological assets eased, and liquidity showed signs of temporary improvement, driving the overall ecological assets up;
Specific currency list
BEER: Solana ecosystem's Meme coin. The contract data shows that there is obvious capital inflow. The inflow of hot money has amplified volatility, and the upward trend may continue.
WIF: Solana ecosystem’s Meme coin, previously listed on Robinhood. The SOL token rises, and generally Solana’s top MEME coins rise faster;
POPCAT: The core meme coin on Solana, with trading volume continuing to remain high, with an increase of more than 50 times this year, and the token price is relatively stable.
