Bitget Research: U.S. SEC approves Ethereum spot ETF 19b-4, ETHFi and other ecosystem assets expected to continue rising
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Bitget Research: U.S. SEC approves Ethereum spot ETF 19b-4, ETHFi and other ecosystem assets expected to continue rising
In the past 24 hours, several new trending cryptocurrencies and topics have emerged in the market, which could very well represent the next wealth-building opportunities.
Navigating Web3 tides with focused insightsAuthor: Bitget Research
Summary
Cryptocurrency prices experienced significant volatility on Thursday, with liquidations across all leveraged crypto derivative positions surging to over $360 million—the highest level since May 1:
- High-growth potential sectors: RWA sector, Ethereum staking sector;
- User's top-searched tokens & topics: Plume Network, Lista (LISTA);
- Potential airdrop opportunities: Sanctum, Synthr;
Data collection time: May 24, 2024, 4:00 AM (UTC+0)
1. Market Environment
Cryptocurrency prices saw sharp fluctuations on Thursday. Before official approval, ETH dropped to $3,500 around the close of U.S. traditional markets, then surged to near $3,900, eventually stabilizing above $3,800 after confirmation. Bitcoin also dipped to a low of $66,000 before rising to $68,300, later retreating below $68,000.
According to data from CoinGlass, total liquidations of leveraged crypto derivatives positions on that day exceeded $360 million—reaching the highest level since May 1. The majority of liquidated positions were longs, valued at approximately $250 million, indicating that highly-leveraged traders had heavily bet on an immediate post-ETF approval rally. ETH traders were hit hardest, with liquidations totaling $132 million.
2. Wealth-Creating Sectors
1) Sector Movement: RWA Sector (ONDO)
Main reason: This bull market is primarily driven by ETF-fueled institutional buying. As a bridge to integrate traditional finance into crypto, the RWA sector continues to see product updates and funding rounds. Recently, Plume Network, an RWA Layer 2 platform, secured a $10 million seed round.
Price performance: ONDO rose 13.46% today.
Factors influencing future trends:
- Macroeconomic policy shifts: Rising 10-year U.S. Treasury yields provide fundamental support for the RWA sector. Monitor changes in the U.S. Dollar Index, Treasury yields, and crypto markets to dynamically adjust trading strategies;
- Changes in project TVL: Most RWA projects are backed by TVL. Watch for sustained or sudden increases in TVL across RWA projects—this often signals a good buying opportunity.
2) Sector Movement: Ethereum Staking Sector (LDO, SSV, ETHFI)
Main reason: Today, the U.S. Securities and Exchange Commission (SEC) approved multiple 19b-4 filings for spot Ethereum ETFs, including those from BlackRock, Fidelity, and Grayscale. However, these ETFs will only hold ETH tokens and will not support staking, significantly reducing their appeal to investors seeking yield. This regulatory limitation presents a substantial opportunity for Ethereum restaking protocols.
Price performance: LDO up 10.8% over the past four days; SSV up 7.97% over the past seven days; ETHFI up 22.85% over the past four days.
Factors influencing future trends:
- Post-ETF capital inflows: With ETF listings now imminent, strong initial capital inflows could further push up ETH’s price.
- Protocol developments: Staking sector projects typically have stable and predictable cash flows, making their token valuations more assessable. Key factors include protocol TVL, revenue distribution models, and token burn mechanisms.
3) Sector to Watch: TON Ecosystem
Main reasons:
- Pantera has invested at least $250 million in TON, marking its largest-ever investment in a cryptocurrency project.
- Notcoin, a high-traffic project within the TON ecosystem, has been listed on Binance. While the TON token itself is not yet listed, market expectations suggest it’s only a matter of time.
- The TON ecosystem is still in early development but has already produced high-traffic applications like Notcoin and Catizen, showcasing the massive user base inherited from Telegram.
- Increased issuance of stablecoins within the ecosystem has boosted liquidity—TON’s USDT supply has reached $130 million in just two weeks, ranking it eighth among blockchains by USDT issuance volume.
Project list:
- TON: Native token of the Ton blockchain, already listed on exchanges such as OKX and Bitget.
- FISH: Leading meme token in the TON ecosystem.
- REDO: Dog-themed meme coin on the Ton chain.
3. User Search Trends
1) Popular Dapp
Plume Network:
Modular RWA L2 network Plume Network announced its launch on Arbitrum Orbit. Plume is a modular L2 blockchain dedicated to real-world assets (RWA), integrating asset tokenization and compliance providers directly on-chain. The team includes members from Coinbase, Robinhood, LayerZero, Binance, Galaxy Digital, JP Morgan, and dYdX. It recently completed a $10 million seed round led by Haun Ventures, with participation from Galaxy Ventures, Superscrypt, A Capital, SV Angel, Portal Ventures, and Reciprocal Ventures. Funds will be used to expand hiring in engineering, marketing, and community operations. Plume Network’s incentivized testnet will launch in the coming weeks, followed by mainnet later this year.
2) Twitter
Lista (LISTA):
Binance Megadrop will feature Lista (LISTA), a liquid staking and decentralized stablecoin protocol. The token has a maximum supply of 1 billion, with an initial circulating supply of 230 million (23%), of which 100 million (10%) will be distributed via Megadrop. Binance will list LISTA following the Megadrop, with specific listing details to be announced later. Lista DAO is a liquid staking and decentralized stablecoin lending protocol allowing users to stake, perform liquid staking, and borrow lisUSD using various decentralized collaterals. The report introduces the LISTA token: LISTA is the governance token of Lista DAO, used for governance, protocol incentives, voting, and fee sharing. The protocol consists of key integrated components: the decentralized stablecoin lisUSD and the BNB liquid staking token slisBNB.
3) Google Search & Regions
Global overview:
ETH ETF: A new compliance milestone for the crypto world. On May 23, U.S. time, the U.S. Securities and Exchange Commission (SEC) officially approved all spot Ethereum ETFs, offering investors a new way to access Ethereum through traditional financial channels. This decision marks a major endorsement for the crypto industry and represents the SEC’s second approval of a crypto ETF following the spot Bitcoin ETF. After the announcement, Ethereum’s price saw a modest rise, fluctuating around $3,800, peaking at $3,856 and currently trading at $3,807—a 24-hour gain of 1.3%. While the price reaction was less volatile than earlier speculation suggested, the news sparked considerable attention across social media platforms like Twitter.
Regional search trends:
(1) Europe and CIS regions show growing interest in MEME coins:
As the crypto market rebounds strongly, PEPE continues to reach new highs, prompting users to reinvest in meme coins for higher returns. European search behavior indicates relatively high search frequency for meme coins, reflecting active participation from European investors in the meme coin rally.
(2) Increased focus on BTC and ETH ETFs in Asia:
Following Bloomberg reports suggesting Hong Kong may approve BTC and ETH ETFs this week, search interest in Asia has noticeably increased. As a core financial hub in Asia, Hong Kong continues to lead in financial innovation. With the ETF approvals, it is once again becoming a focal point for the region. These products enable traditional finance and large capital to enter the crypto space, creating positive implications for both industry development and retail investors.
4. Potential Airdrop Opportunities
Sanctum
Solana-based LST protocol Sanctum has officially launched its loyalty program, Sanctum Wonderland. The initiative aims to gamify yield generation using SOL. Users can stake SOL to collect pets and earn experience points (EXP) as their pets level up.
Previously, Sanctum, a liquid staking protocol in the Solana ecosystem, completed an expanded seed round led by Dragonfly, with participation from Solana Ventures, CMS Holdings, DeFiance Capital, Genblock Capital, Jump Capital, and Marin Digital Ventures, bringing its total funding to $6.1 million.
How to participate: Open the link, connect your wallet, enter the referral code. Step ②: Swap SOL for Infinity, deposit at least 0.122 SOL plus 0.05 SOL for gas—your wallet should hold at least 0.172 SOL. Deposit at least 0.11 SOL to allow pets to grow automatically and earn EXP. If your LST balance falls below 0.1 SOL, your pet will hibernate and stop earning EXP. For optimal results, deposit 1 SOL or more—1 SOL earns 10 EXP per minute. Withdrawals are allowed anytime, and gas fees are extremely low.
Synthr
Synthr is a cross-chain synthetic asset protocol that enables the minting and transfer of synthetic assets across chains without relying on cross-chain bridges. By leveraging synthetic asset technology (similar to Synthetix), the platform allows real-world assets like real estate, bonds, or stocks to be brought on-chain for seamless cross-chain trading and transfers.
The project has raised $4.25 million from top-tier funds including MorningStar Ventures, Kronos Research, and Axelar Fdn.
How to participate: The project has just opened its testnet. Users can participate in early interactions by accessing the testnet, registering a wallet, and claiming test tokens via faucet. Stay updated on project developments and actively engage in on-chain activities.
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