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Bitget Research: Large Outflow from ETHE Causes ETH to Briefly Fall Below $3100, MUMU Leads Solana Meme Coins in Gains

John & Victoria
2024/07/26
Bitget Research: Large Outflow from ETHE Causes ETH to Briefly Fall Below $3100, MUMU Leads Solana Meme Coins in Gains
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

Amid a sharp decline in the stock market and waning interest in risky assets, including cryptocurrencies, Bitcoin dropped to $64,000 before rebounding to $67,000 during the morning session in Asia. and Ethereum continues to experience net outflows.
  • Sectors with strong relative wealth creation effects: Solana memecoins sector and BTC inscription sector.
  • Top searched tokens and topics: Polymarket and Solana
  • Potential airdrop opportunities: Allora Network and RedStone.
Data collection time: July 26, 2024, 4:00 AM (UTC)

1. Market Environment

Amid a sharp decline in the stock market and waning interest in risky assets, including cryptocurrencies, Bitcoin dropped to $64,000 before rebounding to $67,000 during the morning session in Asia. This increase has led to the liquidation of some short positions. According to Coinglass, $34.21 million was liquidated in the last 4 hours, with $31.47 million in short positions. The main driver was the continuous net inflow into Bitcoin ETFs, which provided significant buying momentum to the market. Yesterday, U.S. spot Bitcoin ETFs saw a total net inflow of $31.4 million.
Ethereum fell over 8% yesterday but has since recovered some losses. Despite this, it underperformed relative to the overall cryptocurrency market. The Grayscale Ethereum Trust ETF (ETHE) saw an outflow of $346.2 million.

2. Wealth Creation Sectors

2.1 Sector Movements: Solana Memecoins (MUMU and NUB)

Primary reasons:
  • For the first time, the 30-day trading volume of Solana-based DEXs has surpassed that of the Ethereum mainnet. With users flocking to trade memecoins, the leading memecoin is now seeing daily trading volumes exceeding $50 million.
Gainers: Within the last 24 hours, MUMU and NUB have risen by 107.79% and 29.92%, respectively.
Factors affecting future market conditions:
  • SOL trend: The price of SOL influences the prices of Solana ecosystem tokens, as many trading pairs on DEXs are priced in SOL. Monitor SOL's price trend closely. If SOL continues to rise, holding SOL ecosystem assets may be advisable.
  • Changes in open interest: SOL's recent increase in open interest suggests increased hot money inflows. Consider using tv.coinglass to gauge the movement of major funds and monitor futures data. Start by observing the uptick in net long positions, and then monitor the futures data for any increase in open interest and trading volume. If this is the case, it means that major players are still buying as prices rise, so it might be advisable to continue holding.

2.2 Sector Movements – BTC Inscription Sector (ORDI and QUARK)

Primary reasons:
  • UniSat has adjusted its inscription service fees so that no service fee will be charged for orders up to 20 inscriptions. Orders exceeding 20 inscriptions will incur a fee starting from the 21st inscription.
  • Lightning Lab has announced the launch of Taproot Assets on the Lightning network, enabling the Bitcoin network to support multiple assets and deliver instant low-fee payments.
Gainers: Despite the overall trend, ORDI and QUARK rose by 10.89% and 15.94% respectively, over the day.
Factors affecting future market conditions:
  • News development: Keep an eye on support and updates from UniSat, KOLs, and top exchanges regarding the inscription sector. Positive news could signal a good time to invest.
  • Changes in futures data: Historical data shows that ORDI futures had a long-to-short ratio below 1 for an extended period, suggesting bullish sentiment from large capital. It's advisable to continuously monitor CoinGlass for any shifts in this trend and take profits accordingly.

3. Top Searches

3.1 Popular DApps

Polymarket:
Polymarket, a decentralized prediction marketplace, recorded its highest monthly trading volume in July, surpassing $275 million so far this month. The platform also surpassed its highest monthly trader count at over 33,000, up more than eightfold from around 4000 in January. This surge is primarily driven by the popularity of election-related prediction markets. According to DefiLlama, Polymarket's TVL has surpassed $70 million and is currently standing at $73.52 million, with a 7-day increase of 47.49%. As a decentralized prediction market platform based on blockchain technology, Polymarket allows users to bet on future outcomes of various topics using cryptocurrencies.

3.2 X (former Twitter)

Bitget Research: Large Outflow from ETHE Causes ETH to Briefly Fall Below $3100, MUMU Leads Solana Meme Coins in Gains image 0
Solana:
According to DeFiLlama, Solana's TVL has reached $5.15 billion, ranking just behind Ethereum and Tron, with a 7-day growth rate of 13.7%. According to CryptoSlam, Solana has overtaken Ethereum to rank first with nearly $6 million in on-chain NFT sales over the past 24 hours. During this period, Solana's NFT sales totaled $5,821,706, representing a 55.7% increase. In contrast, Ethereum's sales amounted to $3,666,892, marking a 21.53% decrease. Bitcoin ranked third with approximately $2.902 million in sales, down by 19.89%. The increase in NFT sales on the Solana chain is primarily driven by the Retardio Cousins, Solana Monkey Business, and Mad Lads NFT collections, with sales of approximately $1.271 million, $1.081 million, and $871,000, respectively, in the past 24 hours.

3.3 Google Search (Global and Regional)

Bitget Research: Large Outflow from ETHE Causes ETH to Briefly Fall Below $3100, MUMU Leads Solana Meme Coins in Gains image 1
Global focus:
Why down today & fear and greed index:
Major U.S. stock indexes fell sharply yesterday, with Tesla dropping 12.33% and the Nasdaq by 3.64%. The fear index (VXX) surged by 13.55%, heightening market risk aversion and contributing to the decline in cryptocurrencies. The Ethereum ETF was approved, and on-chain data indicated that some whales sold the news, leading to a net outflow of $100 million from Ethereum ETFs yesterday, with Grayscale being the primary source of these outflows. The market will require some time to absorb the short-term selling pressure from Grayscale.
Regional focus:
(1) There is no noticeable trend in Google Trends among Asian countries, with RWA, Shiba Inu, and some memecoins becoming the focus of market attention. Market websites like CoinGlass and CoinMarketCap also ranked high in searches across Asian countries.
(2) In the CIS region, memecoins like BLUM are trending in hot searches. In contrast, Europe and the USA are primarily focused on recently popular projects and sectors, such as Monad and crypto AI.

4. Potential Airdrop Opportunities

Allora Network
Allora is a self-improving decentralized artificial intelligence network that enables applications to utilize smarter and more secure AI services. By combining cutting-edge technologies such as peer prediction, federated learning, and zero-knowledge machine learning, Allora opens up a vast array of novel application design possibilities at the intersection of crypto and AI.
Allora raised $3 million in strategic funding, with contributions from Archetype, Delphi Ventures, CMS Holdings, ID Theory, and DCF God. The funding round, which began in March and concluded in early June, was structured as equity financing. To date, Allora has secured a total of $35 million. The funds from this round will be used to recruit five to seven new employees. In February, Upshot rebranded as Allora, transitioning from an NFT evaluation platform to a decentralized AI network. Currently, in the testnet phase, Allora Labs is collaborating with the Allora Foundation to prepare for the mainnet launch this summer. The team has not yet announced plans to link its point system to coins.
How to participate: Complete tasks on Galxe > add the Allora-Testnet testnet to your wallet > request test tokens from the faucet > stake and select validators > link your wallet and send any amount.
RedStone
RedStone is a modular oracle for LST and LRT, providing frequently updated, reliable, and diversified data sources for DApps and smart contracts across multiple L1 and L2 networks. The market anticipates a token launch for this project in the second half of 2024.
In 2022, RedStone raised $7 million in a seed round funding led by Lemniscap with participation from Coinbase Ventures, Blockchain Capital, Distributed Global, Lattice, Arweave, Bering Waters, Maven11, and SevenX Ventures. In 2023, Aave founder and Polygon co-founder, among others, invested in the project during its angel round.
How to participate: 1. RSG points can be received by participating in on-chain promotions and Galxe tasks released by RedStone and its partners; 2. By producing content and participating in designated promotions on the RedStone Discord server, such as the Weekly Best Content or the Hall of Fame, creators can receive RSG points.
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