Bitget Research: Fed Cuts Interest Rates by 50bps, Market Sentiment Improves as Altcoins Rally

In the past 24 hours, many new popular tokens and topics have emerged in the market, presenting potential wealth-creation opportunities.

Overview

At 4:00 AM (UTC+8) on Thursday, the Federal Reserve announced a 50bps rate cut during the FOMC meeting, signaling the start of its easing cycle. Key highlights include:

• Sectors with wealth creation effects: Public chain sector (SEI and SUI), and Modular sector (TIA, SAGA, and DYM).
• Top searched tokens and topics: MomoAI, KDA, and Bigtime.
• Potential airdrop opportunities: Symbiotic and Polymarket.

Data collection time: September 19, 2024, 4:00 AM (UTC+0)

1. Market Environment

At 4:00 AM (UTC+0) on Thursday, the Federal Reserve announced a 50bps rate cut during the FOMC meeting, lowering the federal interest rate to a range of 4.75% to 5.00% and signaling the start of its easing cycle. The market's response was clear, with Bitcoin stabilizing above $61,000, while other cryptocurrency sectors gained momentum.

In terms of ETFs, Bitcoin ETFs saw a net outflow of $52.7 million while Ethereum ETFs saw a net outflow of $9.8 million yesterday. This suggests that ETF traders adopted a risk-averse strategy and were not actively trading in response to the rate cut.

In the broader crypto ecosystem, the public chain sector rebounded strongly, with several public chain tokens nearing their unlock periods recorded significant gains. The 50bps rate cut has boosted market sentiment, encouraging more active participation from traders.

2. Wealth Creation Sectors

2.1 Sector Movements – Public Chain Sector (SEI, SUI, and TAIKO)

Primary reasons:
The recent price increases in SEI, SUI, and TAIKO have been driven by overall market enthusiasm, technological innovations, and ecosystem development in the public chain sector. SEI's impressive performance in decentralized exchanges resulted in a price surge of over 20% in the past 24 hours. Meanwhile, SUI has seen a 17.2% increase, driven by its efficient trading speed and thriving DeFi ecosystem. The performance of these projects reflects investor confidence in emerging public chain technologies and highlights the market's demand for high performance, scalability, and new application scenarios.

Gainers:

In the last 24 hours, SEI, SUI, and TAIKO increased by 22.1%, 14.5%, and 24.1%, respectively.

Factors affecting future market conditions:

￮ Market and institutional support: The support of USDC on the SUI network, the launch of the Grayscale SUI trust, and indications of large buy orders have all contributed to strong market backing and liquidity support.

￮ Thriving ecosystem: SUI's TVL in the DeFi sector has surpassed $600 million, demonstrating its competitiveness. A healthy ecosystem typically attracts greater market recognition and investment interest. Additionally, macroeconomic and policy factors, such as the FOMC meeting's impact on market sentiment, may indirectly influence the price movements of these tokens.

2.2 Sector Movements: Modular Sector (TIA, SAGA, and DYM)

Primary reasons:
The data availability (DA) layer ecosystem, led by Celestia, continues to attract significant attention from developers actively experimenting within the space. Additionally, specialized DA projects are conducting airdrops for TIA stakers. After an extended period of consolidation, the price of TIA has nearly returned to its initial TGE price, suggesting it may be undervalued. Recently, some investors have begun increasing their positions, prompting a revaluation of various tokens in the DA sector.

Gainers:

In the last 24 hours, TIA, SAG, and DYM increased by 16.3%, 23.2%, and 14.5%, respectively.
Factors affecting future market conditions:

￮ Ecosystem health and user growth: These projects have shown signs of ecosystem growth and user expansion, which directly impacts their market value. Additionally, the general rise in modular blockchain projects reflects broader confidence in the sector's future.

￮ Market sentiment and speculative factors: Social media and investor discussions indicate that market sentiment significantly influences the potential growth of these tokens and short-term fluctuations. For example, news about Eclipse Labs' funding has sparked short-term bullish sentiment for TIA and DYM.

3. Trending Searches

3.1 Popular dApps:

MomoAI:

MomoAI is an AI-driven social gaming platform focused on the Web3 ecosystem. Its key features include rapid user growth and deep engagement, facilitated by viral marketing mechanisms and AI technologies. Recent developments, such as the MOMO airdrop promotion and the launch of its game, have successfully attracted a large user base, showcasing the effectiveness of its growth and engagement strategies. MomoAI has achieved remarkable user growth, surpassing 1 million users in just 50 days and ranking high on DappRadar, highlighting its leadership in the Web3 gaming ecosystem.

3.2 X (former Twitter)

Kadena (KDA)

Kadena is a proof-of-work blockchain network designed to enhance scalability and provide a more stable on-chain development environment for developers. In the past 24 hours, Binance listed KDA's futures trading pair, drawing widespread attention from the community and driving up the token's price. With improving macro liquidity, the token's price may continue to rebound for some time. Bitget has also listed this asset, making it worth monitoring.

3.3 Google Search (Global and Regional)

• Global focus:

Bigtime:

Recently, Bigtime opened the third phase of its Clockie Chaos promotion, sustaining strong user interest. Over the past two weeks, the project's token has doubled in price, showing a steady upward trend. Contract data shows that Bigtime's open interest surged on September 3 and September 12, primarily due to a decrease in net short positions and an increase in net long positions. With its popularity remaining high, the token is certainly worth monitoring.

• Regional focus:

1. Blum has garnered significant attention in regions like the CIS, with Grass and Sandbox being the top searches in countries including Ukraine and Russia.

2. In Europe and America, searches are more diverse, focusing on projects that have shown strong recent growth, including KDA, HNT, NEIRO, and FLOKI. Additionally, keywords related to the FOMC meeting and FED have trended due to heightened interest in rate decisions.

4. Potential Airdrop Opportunities

Symbiotic

Symbiotic is a generalized restaking project designed to enable decentralized networks to bootstrap powerful, fully sovereign ecosystems. It offers decentralized applications with a method called Active Validation Service (AVS) to collectively ensure mutual security.

Symbiotic recently raised $5.8 million in a seed funding round led by Paradigm and Cyber Fund.

How to participate: Visit the project's official website, link your wallet, and deposit ETH and ETH LSD assets.

Polymarket

Polymarket is a decentralized prediction marketplace that allows users to forecast market outcomes. All prediction events are initiated by the community, and participants can earn rewards for correct predictions.

Polymarket has raised $70 million across two funding rounds, securing $40 million in Series B funding led by Founders Fund in 2023 and $25 million in Series A funding in 2022.

How to participate: Although no official airdrop has been announced, community speculation suggests that users should register an account, bind a wallet, deposit USDC via the Polygon network, and engage in predictions to qualify for the project's airdrop opportunities.