Bitget Research: Crypto market oversold, short-term rebound opportunity emerges
TechFlow Selected TechFlow Selected
Bitget Research: Crypto market oversold, short-term rebound opportunity emerges
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
Over the past 24 hours, BTC spiked down to $49,000 before entering a phase of recovery, currently fluctuating around $55,000. After the market's sharp decline, certain sectors began to rebound rapidly. Specifically:
-
Wealth-generating sectors: AI sector, DeFi assets, Solana ecosystem
-
Most-searched tokens & topics: Ethena, BTC and ETH spot ETFs, Japan Stock Market
-
Potential airdrop opportunities: Zircuit Mainnet Festival, Kamino S3
Data collection time: August 6, 2024, 4:00 (UTC+0)
I. Market Environment
Over the past 24 hours, ETH plunged sharply to around $2,100 and BTC spiked down to $49,000, spreading panic across the market. Subsequently, the crypto market saw a corrective rebound, entering a phase of recovery. This upward momentum may continue for several days, but there remains a high probability of a second market bottom due primarily to increasing regulatory pressure expected on crypto market makers, who might directly offload crypto assets, thereby affecting token prices.
Macroscopically, two core factors triggered the crypto market downturn:
-
Sharp deterioration in global capital market sentiment: The U.S. economy faces recessionary pressures, with U.S. equities declining for three consecutive trading sessions. Japan’s stock market experienced circuit breakers for two consecutive days, and the VIX fear index surged 27% in one day.
-
Regulatory pressure on crypto market makers: Jump Trading, a leading crypto market maker, may have sold ETH under regulatory pressure, causing ETH’s price to drop significantly.
II. Wealth-Generating Sectors
1) Sector Movement: AI Sector (TAO, ARKM, RENDER)
Main reasons:
-
The AI sector had undergone prolonged consolidation after a deep correction, making it an early target for capital inflows during the broader market’s oversold rebound;
-
NVIDIA opened lower yesterday but rebounded strongly during and after trading hours, reigniting bullish sentiment across the entire AI sector;
Price performance: TAO, ARKM, and RENDER rose 29.5%, 19.5%, and 13% respectively over the past 24 hours;
Factors influencing future outlook:
-
NVIDIA’s future trajectory: As a bellwether for the AI sector, NVIDIA’s performance impacts overall market valuation. If NVIDIA continues its rebound in tomorrow’s U.S. markets, the crypto AI sector could see sustained gains;
-
News catalysts: Monitor project updates, product launches, and partnership announcements. Consider positioning ahead of AMAs, as projects are likely to release positive news during this period of improved liquidity.
2) Sector Movement: DeFi Assets (AAVE, ONDO)
Main reasons:
-
AAVE experienced significant liquidations yesterday, generating $6 million in revenue. With AAVE’s profit distribution mechanism activated, buybacks support the token’s price;
-
ONDO, a leading RWA project, saw a strong bounce from oversold levels, offering high narrative potential;
Price performance: AAVE and ONDO rose 21% and 20.7% respectively within 24 hours;
Factors influencing future outlook:
-
Project revenue trends: Following AAVE’s tokenomics upgrade, its price will increasingly correlate with protocol revenues. During market stress, protocol income spikes temporarily, providing short-term price support;
-
Open interest changes: For example, ONDO’s open interest began rising from lows yesterday, indicating hot money inflow. Use tv.coinglass to monitor derivatives data—first check net long positions; then determine if there is a net increase in long contracts, rising OI, and expanding trading volume. If so, institutional buying is likely ongoing, supporting continued holding.
3) Sector to Watch: SOL Ecosystem Projects (WIF, HNT, POPCAT, BILLY)
Main reason:
-
SOL rebounded 17% within 24 hours, stabilizing above the $140 psychological level, with strong short-term speculative interest driving its ecosystem tokens higher.
Specific token list:
-
WIF, POPCAT, BILLY: Meme coins on the Solana ecosystem—when SOL rises, top Solana meme coins typically outperform;
-
HNT: Leading DePin project deployed on Solana. With the broader DePin sector showing signs of recovery, Solana-based DePin projects benefit from dual tailwinds.
III. User Search Trends
1) Popular Dapp
Ethena
Ethena faced FUD on social media due to reported annual losses. However, founder Guy Young clarified that USDe processed over $50 million in redemptions overnight—the largest redemption event to date—without any issues. The collateral and reserves backing USDe have consistently remained above 101% of supply. While the next monthly proof of reserves was scheduled for month-end, it will now be released earlier this week to enhance transparency.
2) Twitter
BTC & ETH Spot ETFs:
According to Coinglass, U.S. Bitcoin spot ETFs recorded $5.7 billion in trading volume yesterday—the highest since March 26—with BlackRock’s IBIT accounting for $2.94 billion. However, net outflows reached $168.4 million, marking two consecutive days of outflows. In contrast, U.S. Ethereum spot ETFs saw $49 million in net inflows, led by BlackRock’s ETHA with $47.1 million in inflows.
3) Google Search & Regional Trends
Global overview:
Japan Stock Market:
Yesterday, Japan’s Nikkei and Topix indices both dropped over 8%, marking the country’s worst single-day equity market decline since 1987. Today, Japanese markets staged a violent rebound, with the Nikkei 225 surging 9.7% and the Topix gaining 10%.
Regional search trends:
(1) Search trends in Asia are highly fragmented. Polygon, Stellar, AAVE, and Solana appeared on top search lists in Indonesia, Philippines, Thailand, and Malaysia respectively, showing no common pattern.
(2) In Western and English-speaking regions, searches are also scattered, though AI-related tokens are relatively popular: FET appeared in Spain and the U.S., OCEAN in France, and AGIX in Australia.
(3) In Latin America, Brazil’s top searches included PEPE, SOL, and XLM, while Argentina searched Kelp, AGIX, and NEAR.
IV. Potential Airdrop Opportunities
Zircuit
Zircuit, an EVM-compatible zkRollup network, has published its ZRC tokenomics in official documentation. The total ZRC supply is 10 billion tokens, with 21% allocated to airdrops and community rewards (7% for Season 1 airdrop, 14% for future airdrops and incentives). A total of 262,200 unique addresses are eligible to claim. The snapshot for the first-season airdrop was taken on July 8, 2024.
Backed by Binance Labs, Pantera Capital, Dragonfly, and others, Zircuit has already announced its airdrop plan. However, users can still deposit supported assets into the network to qualify for future airdrop rounds. The Zircuit Mainnet Festival is live—users earn ZRC based on gas consumed on-chain.
How to participate in Zircuit Mainnet Festival: (1) Bridge ETH to the Zircuit mainnet (https://bridge.zircuit.com/); (2) Spend gas—any transaction on Zircuit incurs ETH gas fees; (3) Spent gas and rolls may take up to an hour to appear in your account (http://festival.zircuit.com/).
Kamino
Kamino S2 has concluded, with 350 million KMNO tokens to be distributed to users in mid-August. Rewards will be fully unlocked and automatically staked upon claim. Users can unstake without a cooldown period. Check allocations at app.kamino.finance.
Kamino’s TVL has recently surpassed Marinade, making it the second-largest DeFi protocol by TVL in the Solana ecosystem and the largest lending protocol. Users can deposit SOL, JitoSOL, other LSTs, USDC, USDT, and other Kamino-supported tokens to earn APY and Kamino points.
Join TechFlow official community to stay tuned
Telegram:https://t.me/TechFlowDaily
X (Twitter):https://x.com/TechFlowPost
X (Twitter) EN:https://x.com/BlockFlow_News
