Bitget Research: BTC tests resistance above $70,000 as Base chain Meme wealth effect becomes prominent
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Bitget Research: BTC tests resistance above $70,000 as Base chain Meme wealth effect becomes prominent
Over the past 24 hours, several new trending cryptocurrencies and topics have emerged in the market, and they could very well represent the next wealth-building opportunities.
Navigating Web3 tides with focused insightsAuthor: Bitget Research
Summary
BTC spot ETF recorded net inflows for four consecutive days, with BTC reclaiming the $70,000 level to test resistance. Over the weekend, meme coins in the Base ecosystem demonstrated strong wealth creation effects, driving both Total Value Locked (TVL) and DEX trading volume in the Base ecosystem to new all-time highs.
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High-performing sectors include: Base ecosystem (DEGEN, MFER), Solana ecosystem (JTO, JUP, WIF), and RWA sector;
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Top user-searched tokens & topics: PENDLE, DEGEN, Farcaster;
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Potential airdrop opportunities: Zircuit, PublicAI;
Data collection time: April 1, 2024, 04:00 (UTC+0)
1. Market Environment
The market expects the Federal Reserve to likely hold interest rates steady in May, with over 60% probability of a 25-basis-point rate cut in June. Amid expectations of rate cuts and ongoing geopolitical tensions in Ukraine-Russia and the Middle East, gold prices hit a new high, breaking above $2,250 per ounce.
BTC broke above $70,000 again, repeatedly testing resistance levels above. After five consecutive days of net outflows, BTC spot ETFs saw four straight days of net inflows last week. Market attention is now focused on Monday’s BTC spot ETF inflow/outflow data. Over the weekend, focus centered on the Base chain: Base's TVL surpassed $1.17 billion, while meme coin activity drove its single-day DEX trading volume above $1.2 billion, setting a new record.
2. Wealth-Generating Sectors
1) Sector Movement: Base Ecosystem (DEGEN, MFER)
Main reasons:
(1) Base ecosystem TVL exceeded $3.2 billion, and DEX 24-hour trading volume surpassed $1.2 billion, both reaching historical highs. Capital inflows and liquidity activity within the ecosystem showed significant improvement throughout March.
(2) Over this past weekend, founders of popular blue-chip NFTs from the previous bull market—mfers and Doodles—launched tokens on the Base chain. The massive wealth effect generated by MFER triggered a surge in other Base-based meme coins and a sharp rise in trading volumes.
(3) DEGEN: Beyond the token’s price surge and widespread social media discussion, DSWAP and DINO on Degen Chain also performed well. Additionally, DEGEN has reshaped the Farcaster ecosystem by enabling Casters to tip high-quality content creators using DEGEN. With Farcaster recently announcing investment from Paradigm and a $1 billion valuation, it continues to gain strong market confidence.
Price performance:
DEGEN rose over +300% in one week and more than +4,000% in one month; MFER opened at just $0.008 per token an hour after launch, reaching an all-time high (ATH) of $0.32, representing a peak gain of +3,900%.
Factors influencing future trends:
Continued capital inflows into the Base ecosystem may directly affect the overall trajectory of Base-linked meme coins. The development of Degen Chain’s internal ecosystem, progress in the SocialFi sector, and potential Farcaster token launches will all impact DEGEN’s price. Traders should closely monitor metrics such as ecosystem TVL and DEX trading volume. As fundamentals remain positive, mentioned assets could reach new highs. However, historically, meme coins on Base have limited upside potential—caution is advised against chasing high prices.
2) Sector Movement: Solana Ecosystem (JTO, JUP, WIF)
Main reasons:
(1) SOL reclaimed the $200 mark, demonstrating resilience during market pullbacks. While broader markets corrected, Solana’s ecosystem TVL remained stable and resumed rapid growth during the rebound phase.
(2) WIF continued hitting new highs, and mid-to-long-tail meme coins on Solana generated substantial wealth effects, benefiting ecosystem applications. On March 30, Solana’s DEX trading volume reached $1.313 billion, second only to Ethereum’s $1.5 billion. In April, market anticipation builds around upcoming token launches from prominent projects like Marginfi and Parcl, expected to inject fresh momentum into the ecosystem.
Price performance:
JTO surged +30% in the past 24 hours, setting another new high; JUP rose +20% in 24 hours, also reaching a new ATH; WIF gained +60% over the past week and +390% over the past month.
Factors influencing future trends:
(1) Continued capital inflows into the Solana ecosystem, along with upcoming token generation events (TGEs) and airdrops from major projects such as Kamino, Parcl, Marginfi, DFlow, Backpack, MagicEden, and Tensor, will sustain ecosystem growth and visibility, supporting SOL’s price.
(2) The individual development of leading ecosystem projects will directly influence their respective token prices. For example, the expansion of derivative markets on Jupiter and yields from JLP will be crucial drivers for JUP’s price movement.
3) Sector to Watch: RWA Track
Main reasons:
BlackRock announced the launch of its first tokenized fund issued on a public blockchain. The entry of such a financial giant has reignited the RWA sector, which may remain one of the most important narratives in this bull cycle. After listing Goldfinch (GFI), Bitget observed three consecutive days of price increases for GFI, while ONDO doubled in value within a month. According to Bitget Research’s recent report on Western Europe published last week: ONDO ranked fifth among cryptocurrency-related Google Search terms in Western Europe in early 2024. (https://www.bitget.com/zh-CN/research/articles/12560603807344)
Specific token list:
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MKR: When RWA first entered mainstream awareness, MakerDAO was the most watched project—an unavoidable reference when discussing RWA.
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ONDO: Currently the flagship token in the RWA space, backed by traditional finance giants including BlackRock, Goldman Sachs, and Bridgewater.
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GFI: Goldfinch is strongly backed by a16z and Coinbase, offering global lending services to borrowers through decentralized mechanisms.
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PROPS: Rumors that “Aptos plans to release a major RWA announcement in April” led to a recent surge in PROPS, a real estate-focused RWA project within the ecosystem.
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Parcl (not yet launched): A real estate derivatives trading platform on Solana, widely expected to launch its token in April.
3. User Search Trends
1) Popular Dapp
Pendle Finance:
Pendle Finance is a yield-trading protocol allowing users to split income-generating assets into Yield Tokens (YT) and Principal Tokens (PT). This separation enables market participants to devise different trading strategies based on varying scenarios. Following the Shanghai upgrade, staked ETH became an income-bearing asset. Then EigenLayer enabled restaking of LSTs, and increasingly more RWA assets tied to U.S. Treasuries or similar instruments have emerged—Pendle has gradually become the largest yield-trading protocol in the crypto space.
Pendle’s TVL has now climbed to $3.54 billion. Consequently, Pendle’s native token PENDLE has steadily reached new highs. With the recent RWA boom in the crypto market, Pendle stands to benefit significantly. Investors are advised to closely follow Pendle’s integration of new RWA assets, given the enormous market potential.
2) Twitter
DEGEN:
Degen Chain is built using Arbitrum Orbit, with the Base network serving only as a settlement layer and AnyTrust used for data availability (DA). It first gained popularity through channels on Farcaster, distributing tokens among builders, content creators, and users. DEGEN has reshaped the Farcaster ecosystem by enabling Casters to tip quality content creators using DEGEN. Yesterday, Farcaster announced a funding round led by Paradigm, achieving a $1 billion valuation. As the first project with a full ecosystem built on Farcaster, DEGEN is highly anticipated by the market.
Regarding the token, DEGEN conducted a large-scale airdrop. To date, DEGEN has over 53,000 holders and more than 553,000 transactions, with numbers still growing rapidly. The token price has increased 45-fold over the past month. Whether DEGEN can maintain its strength depends on continued ecosystem development and whether SocialFi can generate a positive flywheel effect.
3) Google Search & Regional Trends
Globally:
Farcaster is a fully decentralized protocol that allows developers to build decentralized social networking applications. Recently, Farcaster announced a funding round led by Paradigm, valuing the project at $1 billion. The ecosystem derived from Farcaster has recently exploded on the Base chain, including projects like Degen and Higher. Degen even launched its own Layer 3—DegenChain—using DEGEN as its native token, pushing the DEGEN price higher repeatedly.
Web3 SocialFi has long been a hot topic and sector in the industry. However, previous attempts like Lens and Friend.tech were short-lived. Farcaster presents a more robust ecosystem design and complete product experience, friendly to both users and developers. Backed by support from major institutions, it may rekindle speculative enthusiasm in the social sector.
By regional search trends:
(1) No significant hotspots in Africa and Latin America:
Search interest in Africa and Latin America appears fragmented, with MEME, AI, RWA, and some recently launched crypto projects appearing on trending lists. This indicates thematic diversification across the market. As the broader market remains relatively stable, sector rotation and thematic speculation are beginning.
(2) Southeast Asia, CIS, and Europe continue showing sustained interest in RWA:
BlackRock recently launched BUIDL, its first tokenized asset fund on the Ethereum network. Coinbase has been selected as a key infrastructure provider. Since this news broke, the RWA sector has dominated the crypto market, showing vigorous development with continuous emergence of new asset types. To date, BlackRock’s on-chain fund BUIDL has attracted $245 million in deposits, reflecting strong demand.
4. Potential Airdrop Opportunities
Zircuit
Zircuit is a parallelized, AI-integrated Layer 2 public chain project based on zkRollup, backed by Pantera and Dragonfly. Its TVL has already surpassed $1.1 billion. The Zircuit ecosystem is gradually maturing, incorporating features such as staking, cross-chain bridges, and block explorers. Users can earn eligibility for future airdrops by participating in ecosystem development and community engagement.
How to participate: 1) Visit the staking page (https://stake.zircuit.com/) to stake and earn points; 2) Participate in node deployment to earn points (https://build.zircuit.com/build).
PublicAI
PublicAI is a decentralized AI network that simplifies outsourcing various tasks—from data annotation to many other AI-related labeling activities. The platform enables organizations to enhance data analysis and labeling through a vast, structured network of participants, accelerating machine learning model development.
While the project has not disclosed any fundraising details, according to its official website, it has received support from the Solana Foundation, Nvidia, and top-tier VCs.
How to participate: 1) Register and log in at (https://beta.publicai.io/participant); 2) Share and comment on PublicAI posts with relevant hashtags; 3) Become a Data Dock node.
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