Bitcoin consolidates as meme frenzy rotates to Base chain
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Bitcoin consolidates as meme frenzy rotates to Base chain
The rotation of hype among cryptocurrency sub-sectors is accelerating.
Navigating Web3 tides with focused insightsAuthor: Mary Liu, Bitpush News
Today's crypto market showed mixed performance. At the close of U.S. equities trading, Bitcoin fell below $70,000 and Ethereum hovered under $3,600. According to CoinmarketCap data, the top gainers over the past 24 hours were Dogwifhat (WIF), Internet Computer (ICP), APTOS, BEAM, and SUI, with gains ranging between 9% and 19%.
Impacted by regulatory headwinds, KUCOIN’s exchange token dropped more than 14% in 24 hours. Earlier that day, the U.S. Commodity Futures Trading Commission (CFTC) accused KuCoin of operating an unlicensed digital asset derivatives exchange, while the U.S. Department of Justice charged KuCoin and its two founders with violating the Bank Secrecy Act and engaging in unlicensed money transmitting.
Base Chain Leads Meme Coin Speculation
Sector rotation within the cryptocurrency space is accelerating. Multiple indicators suggest that amid the current meme coin-driven speculative frenzy, traders are increasingly turning to Base blockchain for profit opportunities.
Built by cryptocurrency exchange Coinbase on OP Stack, Base launched for developers in August and initially experienced slow growth. However, over recent weeks, its total value locked (TVL) has surged from $450 million at the beginning of the month to nearly $1 billion by Tuesday.
Blockchain data shows that Base’s average daily transaction volume, previously under 500,000 over the past few months, has tripled to over 1.5 million per day. The number of unique addresses has doubled to 65,000 wallets.
Some market observers say direct access to Base via Coinbase’s exchange and wallet apps may have fueled widespread retail adoption. In the past 24 hours alone, the network generated $1.8 million in fees.
CoinmarketCap data shows that in March 2024, 21 out of the top 25 tokens by trading volume on Base were meme coins.
Over the past week, cat-themed meme coins such as toshi (TOSHI), thank you base god (TYBG), normie (NORMIE), and brett (BRETT) surged up to 1,300%, while tech project tokens like Aerodrome’s AERO and Seamless’s SEAM rose as much as 90%. Data from CoinmarketCap indicates Base-based projects currently lead in overall token gains, followed by TON.
Meanwhile, Optimism developer Michael Silberling pointed out on X that the surge in meme coin activity on Base has driven gas fees higher than what users paid before the Dencun upgrade. Most transactions stem from meme coin trading and bots designed to buy tokens within minutes of launch, causing network congestion.
Spot Bitcoin ETFs End Five-Day Streak of Net Outflows
According to data released by investment firm Farside, yesterday saw a total inflow of $15.4 million into U.S. spot Bitcoin ETFs, ending five consecutive days of net outflows.
Fidelity’s FBTC led the inflows with $261.8 million, followed by BlackRock’s IBIT with $35.5 million. Other funds including BITB, BTCO, EZBC, and BRRR each received between $11 million and $20 million. Meanwhile, Grayscale’s ETF (GBTC) continued to see outflows, exceeding $350 million.
Additionally, the London Stock Exchange announced it will launch a market for Bitcoin and Ethereum exchange-traded notes (ETNs) on May 28. The notice said the exchange will begin accepting applications for crypto ETN trading starting April 8. The market will operate under approval from the UK’s Financial Conduct Authority. ETNs are similar to exchange-traded funds (ETFs), as they aim to reflect returns of an index or benchmark.
Is a BTC Rally Coming?
An Amberdata chart tracks the 24-hour change in open interest for active Bitcoin options contracts at various strike prices on Deribit. The data shows a significant increase in open interest for call options at $90,000 and $105,000 strike prices, indicating market expectations for Bitcoin to rise into six-digit territory over the coming months.
Trader and analyst Matthew Hyland expressed optimism about BTC’s future, stating on X: “If this support level holds firm, the likelihood of Bitcoin rising to $100,000 increases.”
Hyland noted that the daily Relative Strength Index (RSI) falling below the critical 50 level on March 20 was a “good signal” for a rebound. As of now, the daily RSI is slightly above 60, still below the classic bullish zone of 70 and above.
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