Cryptocurrency daily summary:

  • Grayscale withdraws Ethereum futures ETF application

  • Solana DePIN Project Acquires PlanetWatch Network

  • LayerZero says employees are strictly prohibited from receiving airdrops

Let’s first look at the trading activities of Bitcoin ETFs. According to Farside Investor data, on May 7, Grayscale Bitcoin Spot ETF (GBTC) continued to outflow $2,860; at the same time, Fidelity Bitcoin Spot ETF (FBTC) inflowed $4.1 million, and ARK 21Shares Bitcoin Spot ETF (ARKB) inflowed $2.8 million.

Grayscale's spot Bitcoin ETF saw net inflows for the past two days, ending a 78-day streak of outflows, and today's outflows ended the situation. Bloomberg ETF analysts believe that "this may be a short-term tactical trade or some kind of pairing trade."

According to SEC filings, the futures trust ETF filed by NYSE Arca, Inc. last September was withdrawn on May 3. It is unclear why the proposal was withdrawn. NYSE Arca declined to comment. Grayscale did not immediately respond to a request for comment.

The SEC has previously delayed considering Grayscale’s Ethereum futures ETF, most recently in March. However, the SEC previously approved a batch of Ethereum futures ETFs in October 2023, including ProShares, VanEck, and Bitwise.

In the past few weeks, the SEC has delayed making a decision on Ethereum spot ETFs, including one from Grayscale. Optimism about the SEC approving such products has waned in the past few months. Bloomberg ETF analyst Eric Balchunas lowered his estimate of the probability of Ethereum spot ETF approval by the end of May from around 70% to 25%.

Ambient, a decentralized physical infrastructure network focused on collecting environmental data, has raised $2 million in a seed round of funding. Luca Franchi, co-founder and CEO of Ambient, said the funding round began in February and closed in April.

Ambient was founded in January of this year and subsequently acquired the PlanetWatch network in March. Franchi noted that the project was based on DePIN, focused on air quality monitoring, and decided to migrate to the Solana blockchain.

The PlanetWatch network currently has its own token, PLANETS, on the Algorand blockchain, but Ambient intends to launch its new token on Solana.

“The current network is powered by the PLANETS token. In the coming weeks, we will release a roadmap for launching new tokens on Solana, as well as migration incentives and a platform overhaul to drive Ambient’s ambitions,” Franchi said.

LayerZero — An interoperability protocol that aims to provide developers with the ability to build cross-chain applications with modular security parameters. LayerZero Labs is a core contributor to the protocol.

LayerZero Labs completed its initial snapshot of the potential airdrop on May 1. However, co-founder Bryan Pellegrino confirmed on May 6 that LayerZero Labs employees will not be eligible for the upcoming airdrop and are strictly prohibited from claiming the project’s tokens.

Polygon modular blockchain project Avail posted on the X platform that it has launched the second phase of the Unification Drop Claim, which will last from now until 16:00 UTC on May 12. In order to reward the Avail community, the second phase will launch rewards for multiple groups, including: providing rewards for more Clash of Nodes participants; providing rewards for Polygon PoS Liquid Stake protocol users.

Market analysis: BTC pulls back, altcoins generally fall

Overview of market trends:

The cryptocurrency market performed poorly today, with BTC falling below $63,000. ETH also fell, falling below the $3,000 mark, and other altcoins also generally fell. In terms of macroeconomics, the US stock market fluctuated, and the hawkish remarks of Federal Reserve officials further put pressure on the market, leading to a decline in the crypto market.

Market hot spots:

1. Price fluctuations of ERN: $ERN The token surged by more than 30% after announcing the launch of artificial intelligence-based Layer 2 solutions, but then the increase fell back. This technological upgrade has significantly stimulated market interest and investment in ERN. Another Optimism-based Layer 2 protocol, MODE, saw its price plummet after being launched on the trading platform. This may be due to the fact that there are too many Layer 2 solutions in the current market, causing investors' attention and funds to be dispersed.


2. Significant rise in TRB:$TRB As a strong currency, Tellor once rose 10 times at the end of 2023, showing strong market manipulation characteristics. TRB rose 20% today, showing its activeness during market fluctuations.


3. Development of Solana Ecosystem: Sanctum, the second phase of the launch of Solana’s leading DEX Jupiter, is about to issue tokens. Sanctum is a liquidity staking platform and announced that it will take a snapshot on May 10th.$SOL Users who participate in the Solana token sale will receive airdrop points. This dynamic adds more participation and activity to the Solana ecosystem.

The current crypto market is affected by multiple factors, including macroeconomic uncertainty and the Fed's policy expectations. Investors should remain cautious during this period, especially for currencies that rely on strong market manipulation and high volatility. Investors should fully manage risks, allocate their portfolios reasonably, and pay close attention to market dynamics and related news in order to make wise investment decisions.

Macro: US market continues to rise, Asian market is calm and cautious

On May 7, U.S. markets extended their gains, with the S&P 500 closing higher for the fourth straight session, its best winning streak since March. The Dow Jones is on its longest uptrend since December 2023, rising for the fifth straight session.

Specifically, the Dow Jones Index rose by 0.08%, the S&P Index rose by 0.13%, and the Nasdaq Index fell slightly by 0.1%. Among the large companies, stocks of META, ALPAHBET, APPLE and other companies representing technology stocks all rose.

Nonfarm payrolls data and better-than-expected earnings reports on Friday helped ease investor expectations of sticky inflation and a strong economy that is keeping interest rates high.

Overall, the Fed and policymakers have been consistent in their messaging in recent weeks that rate cuts will come, but the central bank will be cautious in implementing them. Investors are set to focus on the Producer Price Index (PPI) on May 14 and the Consumer Price Index (CPI), expected around May 15.

Asian markets remained fairly quiet at the midpoint of the week, May 8. Hong Kong stocks finally fell on Tuesday, while Asian and emerging market indexes were largely flat.

MSCI's index of Asia-Pacific shares fell 0.19% as mainland China blue chips fell, while Hong Kong's Hang Seng rose 0.52%. Japan's Nikkei fell about 1% as traders booked profits after a 1.6% gain in the previous session. The tech-heavy index also succumbed to pressure from a sell-off in U.S. chip stocks on Tuesday.

In currencies, the dollar remained firm despite lower U.S. Treasury yields as markets assessed signals from U.S. policymakers and economic data for the path of the Federal Reserve rate. The yen remained on the back foot despite Japanese authorities saying they were conducting currency intervention to support it.

In commodities, Brent crude futures fell 32 cents, or 0.38%, to $82.84 a barrel. U.S. West Texas Intermediate crude futures fell 28 cents, or 0.36%, to $78.10 a barrel.

Gold prices fell 0.16% to around $2,310 an ounce.