Crypto Market Weekly Report: Casual Games Are Booming, Computing Power Competition Is Fierce

Macroeconomic Environment

In May, U.S. inflation fell to a three-year low, but the Federal Reserve remains cautious. Monetary policy is trending towards easing, but the extent of interest rate cuts anticipated by the market may be difficult to achieve. U.S. stocks continue to hit new highs, while the crypto market is showing a volatile trend.

Market Overview

This week, Bitcoin experienced fluctuations and adjustments, while altcoins generally declined. The inflow of new funds was limited, which constrained the performance of smaller cryptocurrencies. The altcoin season index fell back to the low levels of the first half of 2023, with only about 20% of the top 100 altcoins outperforming Bitcoin in the last 90 days. Market hotspots are concentrated in the Base ecosystem, Bitcoin ecosystem, and newly launched tokens.

Projects worth paying attention to include:

1. IO: Decentralized AI Computing Power project, which may launch a staking mechanism in the future.
2. BRETT: A well-known Meme token in the Base ecosystem.
3. PIZZA: The first five-character inscription in the Bitcoin ecosystem, and the first Meme token issued on the Unisat wallet BTC L2.

Bitcoin Market Analysis

on-chain data

• The trading volume of inscriptions has significantly decreased, while the trading volume of runes has surged to 60% of daily transactions.
• The market capitalization of stablecoins has increased slightly by 1%, with a positive trend in capital inflow.
• Institutional funds have seen a net inflow for 5 consecutive weeks, reflecting the market's expectations for a loosening of U.S. monetary policy.
• The MVRV-Z index is 2.3, in the neutral range.

Futures Market

• The funding rate has slightly decreased and remains at a neutral level.
• The position volume has slightly declined.
• The long-short ratio is 1.3, and the market sentiment is neutral.

spot market

Bitcoin prices are experiencing wide fluctuations, and this trend is expected to continue until the end of July. Market liquidity is insufficient, with fewer sector-specific opportunities and more individual stock opportunities.

Public Chain Ecosystem

The total locked value ( TVL ) reached 111.6 billion USD, with a week-on-week growth of 1.6%. The TVL of mainstream public chains generally decreased, with only the TRON chain increasing. It is worth noting that the TVL of the Solana chain is approaching 6 billion USD, and it is expected to surpass the BSC and TRON chains.

NFT Market

The overall performance of the NFT market is flat:

• The floor prices of blue-chip projects fluctuate.
• Trading volume has significantly declined
• The number of new buyers and repeat buyers is synchronously decreasing.

Some standout projects include Pandora (+66%), Ringers (+24%), and DeFrogs (+44%).

Financing Dynamics

This week, the financing activity in the crypto market remains stable, mainly concentrated in infrastructure, Web3, and DeFi.