Market Recovery Unveiled: Which Sectors Are the Rising Stars?
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Market Recovery Unveiled: Which Sectors Are the Rising Stars?
Market liquidity is expected to improve significantly in the fourth quarter of this year.
Navigating Web3 tides with focused insightsBy 1912212.eth, Foresight News
This month, as the Federal Reserve meeting approached, market sentiment quietly warmed, like a spring breeze clearing away prior gloom. On September 17, BTC surged from below $58,000, rising strongly over two consecutive days and breaking through the $61,000 mark with unstoppable momentum. When the Fed officially announced a significant rate cut, the crypto market felt like it had finally received long-awaited rain after a drought—every concern and uncertainty instantly dissipated. BTC accelerated further, achieving the rare feat of six consecutive green daily candles, delivering an impressive weekly gain of 7.52% and pushing prices close to $65,000, showcasing robust recovery strength.
The surge in prices acted as a powerful stimulant, effectively silencing all skepticism and challenges. ETH followed closely, rebounding from a low of $2,150 to firmly establish itself above $2,600, finally easing previous FUD (fear, uncertainty, doubt). Notably, after the ETH/BTC exchange rate hit a three-year low, it demonstrated remarkable resilience, regaining ground and returning above 0.04—a clear sign of full market confidence restoration. AAVE stood out by breaking above $180, marking its highest level since May 2022, while numerous altcoins followed suit, injecting vitality into the market.
Positive developments continued pouring in: U.S. presidential candidate Kamala Harris publicly stated that if elected, she would support investment growth in AI and cryptocurrency sectors. The total market cap of the crypto market once again climbed above $2.2 trillion. Recently, spot trading volume in the crypto market exceeded $80 billion in a single day—more than double the $40 billion low seen in June.
On-chain data also showed strength: the total market cap of stablecoins surpassed $172.2 billion, reaching its highest level since May 2022, with a weekly increase of over 0.5%. Ki Young Ju, CEO of CryptoQuant, noted on social media: "Institutions are no longer aggressively shorting Bitcoin. Over the past five months, net open interest in CME futures has dropped by 75%."
Market fear levels have finally normalized, returning to neutral. As the market continues to rebound, which sectors beyond Bitcoin and Ethereum are standing out?
Sui
Sui has recently delivered exceptionally strong performance. After briefly dropping below $0.50 in early August, it quickly rebounded near $1.00, and after several weeks of consolidation, surged again from around $0.80 to nearly $1.80—the price more than doubled.
September brought a dense wave of positive news for Sui. In early September, Mysten Labs launched pre-orders for a gaming handheld console priced at $600 per unit, which sold out rapidly, generating substantial buzz. Just one week later, Grayscale announced it had opened access to SUI for qualified investors, opening a major capital gateway. On the same day, Binance listed SUI perpetual contracts denominated in coins with up to 20x leverage, further fueling upward momentum.
On September 17, a Sui co-founder announced that USDC would soon be extended to the Sui network. The next day, Sui's TVL surged past $1 billion, setting a new all-time high.
Its ecosystem projects also saw significant gains, including SUIP, CETUS, and NAVX. Even the meme coin BLUB rose steadily during this period, climbing to a market cap of $45 million.
Projects to Watch
Scallop
Scallop is a lending protocol on Sui. Benefiting from SUI’s price surge, the launch of Swap V2, and reward campaigns, its TVL has skyrocketed to $154 million. Its token price rose from around $0.15 at the beginning of September to above $0.40, with a historical high of $1.44.
CZ Narrative
On September 17, He Yi published a long post addressing anxiety within the crypto community regarding listing rumors—highlighting just how stagnant market conditions had become. However, just one week later, as sentiment warmed, CZ’s release from prison became a major event in the crypto world. According to data from the U.S. Federal Bureau of Prisons, CZ is scheduled to be released on September 29, a news item that recently even trended on热搜.
Speculation has intensified around CZ’s post-release activities and Binance Launchpad tokens, driving a rally across Binance-related projects and new launch tokens.
On September 23, IO on Binance Launchpool rose 8.8%, ALT surged 17.48% in a single day, AI gained 15.89%, NTRN climbed 11.75%, and ARKM jumped 22.16%. SEI rose from a recent low of $0.26 to a peak of $0.47.
Projects to Watch
ENA
As a stablecoin project on Launchpool, its second-quarter airdrop distribution coincided precisely with the day after CZ’s release. This timing may help absorb selling pressure amid favorable broader market conditions. Additionally, Ethena introduced sENA, a liquidity receipt token for staked ENA, enhancing composability and utility across other protocols, providing some support to the token price. The current price is around $0.33, with a historical high of $1.50.
EDU
Open Campus is a Binance-supported decentralized education platform designed to address key challenges in today’s education sector. The current price is $0.69, with a historical high of $1.34. It’s well known that after stepping down as Binance CEO, CZ announced his intention to focus on education. While it remains unclear whether he will share updates about his educational initiatives after release, market attention could attract fresh capital inflows.
HOOK
Hooked Protocol provides infrastructure for learn-to-earn products targeting enterprises and users. It operates in the education sector as well, with a historical high of $4.10 and a current price of $0.49. However, token liquidity remains relatively low at present.
AI Sector
The AI sector had been quiet for some time, but renewed activity from OpenAI has reignited interest in crypto. OpenAI is not only in talks to raise $7 billion in funding but has also launched o1, an AI model with reasoning capabilities—internally codenamed "Strawberry." OpenAI o1 can reason through complex tasks and solve problems harder than those handled by previous models in science, coding, and mathematics. In tests, o1 performed similarly to PhD students on challenging benchmarks in physics, chemistry, and biology, excelling particularly in math and coding.
Due to its high valuation ceiling and alignment with current trends, the AI sector often shines during market rallies. ARKM surged from around $1.00 to surpass $1.50. NEAR rose for three consecutive days, climbing from $4.50 to $5.46. TAO posted a rare eight-day winning streak, jumping from around $280 to over $599.
Notable Projects
WLD
WLD hasn’t seen significant price movement due to consistent monthly sell-offs. In July, the Worldcoin Foundation announced that WLD tokens allocated to Tools for Humanity (TFH), Worldcoin’s contributor, originally set to begin linear daily unlocks on July 24, 2024, would now see 80% of tokens held by TFH team members and investors extend their vesting schedule from three to five years. Additionally, in April, Worldcoin announced plans to launch World Chain later this year—now approaching Q4, a major catalyst is drawing near.
Looking back, from October last year through the first half of this year, WLD was heavily influenced by Sam Altman and OpenAI—any move by its CEO or company caused sharp volatility. Strictly speaking, although WLD belongs to the identity/ID sector, its AI association is now so strong that it has become a key OpenAI-related narrative in crypto. Current price: $1.88; all-time high: $11.97.
TIA Leads Modular Blockchain
After its exchange listing, TIA surged from $2 to over $20—an over tenfold gain. However, it later declined along with weak broader markets, falling to around $3.70.
Chris Burniske, Placeholder investor and staunch TIA bull, recently boldly recommended buying TIA under $5. Notably, he previously made a similar call during the last bear market when SOL was below $10. Burniske argues that critics misunderstanding TIA fail to recognize the following:
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CelestiaOrg, as an ecosystem, is now fully operational, with a passionate and diverse group of developers actively building.
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"Evil VC" holders who received liquidity are less likely to dump in October as expected, having witnessed ecosystem progress and the team’s vision.
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Many major supporters of TIA are not as short-term focused as portrayed externally.
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Potential buyers waiting on the sidelines due to unlock concerns will be encouraged to act as positive price action and reduced uncertainty unfold.
TIA is scheduled to unlock approximately 175.74 million tokens on October 31, sparking concern among investors. However, with over a month remaining and overall market sentiment still optimistic, the impact may be mitigated. Today, the Celestia Foundation completed a $100 million funding round led by Bain Capital Crypto, with participation from Syncracy Capital, 1kx, Robot Ventures, and Placeholder—bringing the project’s total funding to $155 million.
Since hitting a low of $3.70, TIA has steadily recovered, surging 24.19% on September 23 alone and nearing $7. SAGA posted five consecutive daily gains, rising from $1.40 to over $2.70. DYM saw two single-day spikes exceeding 20% recently, briefly breaking above $2.00.
Projects to Watch
Avail
Avail is a modular blockchain project that raised tens of millions in venture funding with a prestigious investor lineup. After mainnet launch, it faced intense controversy and negative feedback due to its airdrop details. The current price is $0.15, with a historical high of $0.246 and a market cap of $288 million. Compared to TIA, SAGA, and DYM, AVAIL has yet to see a significant price surge.
Outlook
Currently, sectors such as gaming and social, which have faced skepticism, remain directionless without notable breakthroughs. New meme coins have not sparked significant speculative fervor. Instead, a large portion of capital has flowed into the areas discussed above.
Macro-wise, following this month’s rate cut, markets widely expect further cuts in November and December, with estimates suggesting another 70 basis points of cuts by year-end—though the Fed’s dot plot suggests 50 basis points. Ongoing rate cuts will continue injecting liquidity into the crypto market, supporting sustained bullish momentum. Additionally, after the U.S. presidential election results are announced in early November, hesitant capital may finally enter the crypto space.
Historically, October has been an extremely bullish month for crypto. Markets tend to perform strongly toward year-end and early next year, while summer months typically show weaker performance.
Regarding Bitcoin spot ETFs, cumulative net inflows since launch have reached $17.7 billion. Since September 9, only two days saw minor outflows, with all others recording positive inflows—including a single-day high of $263 million. Data remains optimistic, reflecting firm confidence from external buyers.
TOKEN2049 in 2023 marked the dawn of the bull run before year-end. Could the recently concluded TOKEN2049 signal the bottom of a new bull cycle? Only time will tell.
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