Bitget Research: Markets hold breath for Ethereum ETF approval, zkSync and LayerZero launch on Bitget pre-market
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Bitget Research: Markets hold breath for Ethereum ETF approval, zkSync and LayerZero launch on Bitget pre-market
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
Yesterday, various approval documents for Ethereum ETFs were updated, and the market awaits the decision tomorrow morning:
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The most promising wealth-generating sectors are: Ethereum Layer2 sector, Ethereum restaking sector;
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User's trending tokens & topics: Farcaster, Constitution DAO (PEOPLE), FIT21 Bill;
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Potential airdrop opportunities: Scroll, EIGENPIE;
Data collection time: May 23, 2024, 4:00 AM (UTC+0)
I. Market Environment
The Federal Reserve released the minutes of its FOMC meeting yesterday, which were slightly hawkish overall. However, the market is currently more focused on whether the Ethereum ETF will be approved. Other assets related to the Ethereum ecosystem are trading at high levels, awaiting the ETF approval outcome.
Regarding Bitcoin ETFs, according to data from Farside, there was a net inflow of $154 million across all providers yesterday. Although the inflow has slowed, it remains consistently positive.
On the regulatory front, the U.S. House of Representatives passed the "Financial Innovation and Technology for the 21st Century Act" (FIT-21) with 279 votes in favor and 136 opposed. The bill clarifies the regulatory boundaries for the crypto industry and is widely seen as a sign of the U.S. government’s shifting stance toward digital assets. The bill now moves to the Senate for further review.
II. Wealth-Generating Sectors
1) Sector Movement: Ethereum Layer2 (ARB, OP, STRK)
Main reason: Influenced by expectations around potential Ethereum ETF approval, Layer2 tokens have generally risen. The market interprets ETF approval as positive news for Layer2 projects, making them attractive investment opportunities alongside ETH.
Price performance: ARB up 19.3% over the past four days, OP up 8.5%, STRK up 16.6%.
Factors affecting future outlook:
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ETH ETF approval outcome: Current prices largely reflect expectations of approval. If the decision unexpectedly fails tomorrow morning, a broad market reversal could occur.
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Project development: As widely used public chains, Layer2 success depends on partner projects and user growth.
2) Sector Movement: Ethereum Staking/Restaking (LDO, SSV, ETHFI)
Main reason: The current ETF proposal allows only exposure to ETH, excluding staking rewards. This limitation reduces attractiveness for investors seeking yield, thereby boosting demand for restaking solutions.
Price performance: LDO up 23.7% over the past four days, SSV up 30% over seven days, ETHFI up 29.1% over four days.
Factors affecting future outlook:
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ETH ETF approval outcome: Similar to Layer2, pricing assumes approval. A rejection would likely trigger a sharp correction.
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Protocol developments: Staking protocols offer stable and predictable cash flows, allowing relatively accurate token valuation based on metrics such as TVL, revenue distribution, and token burn mechanisms.
3) Sector to Watch: MEME Coins
Main reason: Recently, Biden’s Democratic Party explicitly advertised a meme manager position responsible for managing internet content and meme engagement—widely interpreted as a pro-crypto signal from his campaign team.
Key meme coins to watch:
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PEPE: One of the most influential meme figures online, PEPE token has recently hit new highs and is widely considered a top representative of the meme coin category.
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WIF: One of the hottest meme coins this year, featuring the famous "hat dog" image, currently very popular online.
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DOGE: A veteran meme coin favored by Elon Musk, with strong brand recognition and broad community consensus online.
III. User Trends
1) Popular Dapp
Farcaster (Dapp): Farcaster is a decentralized social network enabling developers to build innovative social applications. Users retain full control over their social identity across apps, and developers can freely innovate on the network. On March 31, it was reported that Merkle Manufactory, the developer behind Farcaster, is close to completing a funding round led by Paradigm, with a valuation of approximately $1 billion. Users are advised to download and register via Google Play or Apple Store, potentially qualifying for future airdrops.
2) Twitter
Constitution DAO (PEOPLE): With the U.S. presidential election heating up, election-themed meme coins are emerging on-chain. PEOPLE, originally linked to an attempt to buy a copy of the U.S. Constitution, resonates with current political themes and has seen rising interest. Contract data shows increasing open interest and a shift to negative long/short ratio, signaling institutional participation and potential continuation of the rally. According to Bitget data, PEOPLE rose 14% in the last 24 hours.
3) Google Search & Regional Trends
Global trends:
FIT21 Bill (Event): The FIT21 Act (HR 4763), led by Republicans, passed the House on May 22. It now heads to the 100-member Senate, where consideration may take months. Differences between House and Senate versions must be reconciled before final approval, after which President Biden will have ten days to sign or veto. The bill significantly impacts the crypto industry by clarifying regulations, encouraging innovation in Web3, and providing long-term benefits.
Nvidia Earnings (Event): Tech giant Nvidia released quarterly results after market close yesterday, exceeding expectations and sending shares up 7% in after-hours trading. This could drive the Nasdaq higher in the next session, positively influencing global risk sentiment.
Regional search trends:
(1) In Asia, searches primarily focus on ETH ETF approval outcomes.
(2) In North America, Europe, and Latin America, GALA, NOT, PEOPLE, TAO, and QUANT appear frequently in regional trends.
(3) NOTCOIN and ASH are trending in CIS countries, the Philippines, Turkey, and Poland.
IV. Potential Airdrop Opportunities
Scroll
Scroll recently launched a points system, signaling the final stretch before token issuance. The rules are clear: users earn points by depositing ETH, LSTs, or stablecoins, offering a chance to capture pre-launch airdrop rewards.
Scroll has raised $80 million in total funding from backers including Polychain Capital, Sequoia China, Bain Capital Crypto, Moore Capital Management, Variant Fund, Newman Capital, IOSG Ventures, and Qiming Venture Partners.
How to participate: Connect your wallet at https://scroll.io/sessions and complete tasks under Session Zero to earn points and qualify for future airdrops.
EIGENPIE
Eigenpie is a restaking SubDAO that enables Liquid Staking Token (LST) holders to re-stake their assets and amplify earning potential. By creating dedicated liquid versions for each supported LST, Eigenpie effectively isolates risks associated with individual LSTs.
The protocol’s TVL has just surpassed $1 billion. Given the high valuation in this sector, potential airdrop rewards are promising.
How to participate: Visit the project website and stake ETH or swETH LSD assets into EigenLayer via the protocol. Alternatively, delegate your EigenLayer token voting rights directly to Eigenpie.
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