Bitget Research: Ripple Ruling Boosts Market Sentiment, Solana Sector Continues to Rebound

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Bitget Research2024/08/08 07:39

By:Jarseed & Aaron

In the past 24 hours, many new popular tokens and topics have emerged in the market, which are likely to be the next wealth creation opportunities.

Overview

Ripple Labs Inc. was ordered to pay a $125 million fine, which the company considers a victory over the U.S. Securities and Exchange Commission (SEC). Within the Solana ecosystem, memecoins soared over 30% in the past 24 hours, leading to a surge in the crypto market as SOL recovered from its losses earlier this week. The highlights are as follows:

Sectors with strong wealth creation effect: AI and POW sectors.
Top searched tokens and topics: Ton, Solana, and Ripple.
Potential airdrop opportunities: Plume Network and GaiaNet.

Data collection time: August 8, 2024, 4:00 AM (UTC)

1. Market Environment

The market remained subdued yesterday, still influenced by the broader macroeconomic environment. Ripple Labs Inc. was ordered to pay a $125 million fine, a decision the company considers a victory over the U.S. SEC, led to a modest market rally this morning.

Regarding ETFs, the Bitcoin ETF saw a net inflow of $45.1 million after previous outflows, while the Ethereum ETF experienced a net outflow of $23.7 million. Crypto assets continued to show volatile low-level performance, with the market generally anticipating the possibility of further declines.

Solana and its ecosystem tokens notably rebounded in this downturn, with SOL quickly regaining its lost value. Ecosystem tokens such as JUP, JTO, and Solana sector memecoins WIF and POPCAT also saw significant rebounds.

2. Wealth Creation Sectors

2.1 Sector Movements — Solana Sector (SOL, JUP, and WIF)

Primary reasons:

SOL led the rebound across the Solana ecosystem, bouncing back from a low of $111 to $150, which in turn spurred gains in ecosystem tokens.
SOL's current price hovers around $154, down over 30% in two days. This decline mirrors patterns seen before significant price increases in 2021. The most recent resistance level is at $217.15, and breaking this could potentially push SOL to $279.76.
During this cycle, Solana has been favored by most influencers and investors in the crypto industry. This preference is largely attributed to its open and inclusive ecosystem and a technology roadmap that resonates with mainstream users, resulting in better performance compared to ETH. This positive sentiment is likely to continue.

Gainers: SOL, JUP, and WIF rose by 10%, 10%, and 20%, respectively, within 24 hours.

Factors affecting future market conditions:

Community operations: Memecoin operations significantly influence market movements. Stay updated on AMA sessions and X posts for timely trading opportunities.
Changes in open interest: SOL's recent increase in open interest suggests increased hot money inflows. Utilize tv.coinglass to gauge the movement of major funds and monitor futures data, particularly focusing on the uptick in net long positions. Keep an eye on futures data for any increase in open interest (OI) and trading volume. Such trends typically signify heightened bullish sentiment, implying potential stability in holdings.

2.2 Sectors to Focus on Next – POW Sector (KAS, ALPH, and SMR)

Primary reasons:

Recently, governments globally have been progressively legalizing crypto mining. For instance, Russia has rolled out relevant policies, and the United States is actively expanding this industry. Thus, mining sector is not only focusing on mainstream mining assets but is also exploring new POW tokens for investment. The market has seen some high-quality assets, with recent significant increases in computing power and impressive price performances.

Factors affecting future market conditions:

Movements of computing power giants: The U.S. listed company Marathon Digital recently announced its investment in mining Kaspa, which directly led to Kaspa hitting a new high. Investors should closely monitor the activities of major mining companies to identify quality POW assets.
Computing power performance: The continuous investment in computing power indicates ongoing deployment of mining rigs, which increases the cost of token mining. This suggests that the majority of the market participants believe it is still profitable to invest in computing power at this cost. At the same time, the entry of large computing powers also indicates the possibility of mining groups joining these projects, which is a sign of large capital inflows.
Ecosystem development: The POW sector has several application ecosystems. An ecosystem is key to achieving mass adoption. Therefore, if these ecosystems can attract enough developers and users, the demand for these tokens will rise, potentially sustaining their market performance.

3. Top Searches

3.1 Popular DApps

TON Chain

The TON chain was formerly known as GRAM. GRAM was launched in 2019 but faced a setback when the SEC issued a restraining order the same year, prompting investors and the team to postpone the token issuance. In 2021, the open-source development team NEWTON resumed operations of the GRAM ecosystem and renamed it The Open Network (TON) and changed the token's name from GRAM to TON. Binance announced the listing of TON token, leading to a rapid 10% increase in its price, now trading at $6.15. Bitget was among the first to list TON in the spot and futures markets, allowing users to trade TON tokens on its platform.

3.2 X (former Twitter)

Solana

During the recent market downturn, SOL was among the first to rebound, stabilizing at the $150 mark, up nearly 40% from a low of $110. The SOL/ETH exchange rate has hit a historic high. Binance recently announced an investment in the Solana ecosystem's restaking project Solayer, and Ethena has also integrated with the Solana ecosystem. Furthermore, the Securities and Exchange Commission of Brazil approved the first spot SOL ETF today. Continuous positive news regarding Solana has provided solid support for the SOL token.

3.3 Google Search (Global and Regional)

Bitget Research: Ripple Ruling Boosts Market Sentiment, Solana Sector Continues to Rebound image 1

Global focus:

Ripple (XRP)

A federal judge has finally issued a ruling in the case against Ripple:

The court found that Ripple's institutional sales of XRP violated federal law, resulting in a $125 million fine;
Ripple's sales of XRP to retail clients through exchanges were not found to violate federal law;
The SEC is prohibited from suing Ripple again for violating securities laws.

The fine was significantly lower than the SEC's proposed penalty of $2 billion, making the outcome favorable for Ripple's future development. Consequently, XRP's price surged by 20% following the verdict, currently fluctuating around $0.60.

Regional focus:

(1) The trending searches in Asia are very scattered, with XRP, SOL, WIF, and NEIRO appearing in the top searches of Indonesia, the Philippines, Thailand, and Malaysia, respectively, without any general pattern.

(2) In Europe, the USA, and English-speaking regions, XRP is a focal point of interest, along with AI projects, particularly in Spain, the USA, and Germany.

(3) In Latin America, Brazil's top searches include WIF and SOL, while Argentina's top searches are G, NEAR, and ETH.

4. Potential Airdrop Opportunities

Plume Network

Plume Network is a modular Layer 2 network dedicated to the RWA sector, specializing in integrated asset tokenization to supply vendor products directly on the blockchain. The project recently raised $10 million in a seed round funding, with investments from Haun Ventures, Superscrypt, Galaxy, and SV Angel.

Plume Network has recently launched its testnet and initiated promotions such as Earn Mile, Check In, and Passport.

How to participate: 1. Visit the project's official website and select Connect Wallet to enter the app interface; 2. Earn Plume miles by completing tasks and check-ins within the platform, such as Swap, Stake, and Speculate.

GaiaNet

GaiaNet is a decentralized network offering secure and monetizable AI agents, combining individual proprietary knowledge and skills while protecting privacy. Instead of centralized servers, GaiaNet builds a distributed network of edge computing nodes controlled by individuals and enterprises, hosting finely-tuned AI models based on the node operators’ domain knowledge and expertise.

In May 2024, GaiaNet raised $10 million in a seed round funding led by EVM Capital, Mirana Ventures, Mantle EcoFund, Generative Ventures’ Lex Sokolin, and Republic Capital’s Brian Johnson.

How to interact: 1. GaiaNet announced the Beta version launch on June 5, enabling node operations; 2. Professional developers can train AI models using proprietary data to qualify for airdrops; 3. Regular users can contribute idle hardware computing power to become nodes (similar to io.net) and qualify for airdrops. Refer to the official documentation for detailed node operation instructions.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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