Cryptocurrency Market Performance

Currently, the total market capitalization of cryptocurrencies is $2.33 trillion, with BTC accounting for 55.334% at $1.29 trillion. The market capitalization of stablecoins is $164 billion.

This week, the price of BTC fell from its peak of $70,000 on July 29 to $61,000 at one point, and due to a combination of factors such as net outflows from the U.S. ethereum spot ETF, the price of ETH fell from $3,390 to below $3,000 at one point.The majority of the top 200 projects in CoinMarketCap's market capitalization fell between 10-40%, extending the decline from last week, with the: Neiro-related tokens dominated this week's hot list, with Neiro (ETH) up 964.56% in 7 days. The lack of crypto liquidity in the summer, the main liquidity is concentrated in BTC, ETH, Shanzhai a drop, and the heat of MEME is difficult to sustain, with an average lifespan of 1-2 weeks.

It is worth mentioning that the U.S. Federal Open Market Committee (FOMC) voted unanimously on Wednesday (July 31) to keep interest rates unchanged in the range of 5.25% to 5.5%, and Fed Chairman Jerome Powell said that interest rates may be cut in September if conditions are ripe.

Crypto market performance is expected to continue to be weak in August, pending a reversal in the market after the September rate cut.

The 'Fear & Greed Index' of August 3rd37 (market sentiment shifted to fear from last week's greed), this week's sentiment: 1 day of fear, 2 days of neutrality, and 4 days of greed.

Understanding the present

A look back at the week's big events

1.  Swell Network: to snapshot on the 30th, first airdrop planned for Oct. 8；

2. YouTube once again has a fake Elon Musk scam that scams users into sending cryptocurrencies;

3. Layer3: open airdrop claims and support token pledges on July 30th;

4. Vitalik Buterin's outlook for the next decade of ethereum, citing improved scalability and lower transaction fees;

5. a suspected change to the Worldcoin Vault's savings interest rules, which will only generate revenue for the first 500 Worldcoins;

6. the Discord on Metis, the Ethernet Layer2 network, was hacked and users were warned not to click on any suspicious links;

7. grayscale announces that its decentralized AI fund, which holds five crypto assets, is now open to qualified investors;

8. matrixport says bitcoin is currently uncorrelated with nasdaq;

9. top trader Eugene Ng Ah Sio has completed building a position in long term holdings of torrents;

10. bitcoin mining difficulty has been increased by 10.5% to 90.67 T, a record high;

11. stablecoin market cap and Tether performance: stablecoin market cap reaches $164 billion, a nearly two-year high; Tether's first-half net profit of $5.2 billion is at an all-time high;

12. Solana DEX surpassed Ether for the first time in history in July, reaching $55.876 billion in trading volume;

13. Polymarket adopts explosive growth, with weekly activity up ~14x year-to-date.

Macroeconomics

1. Fed policy and market expectations: probability of Fed rate cut in September is 100%, keeping rates unchanged and not seeking to issue CBDC's granted;

2. on July 28, speaking at the Bitcoin 2024 conference, Trump stated that his first day as president-elect would be to fire current SEC Chairman Gray Gensler;

3. on August 1, two U.S. artists filed a lawsuit against the U.S. SEC on Monday, seeking a declaratory judgment from a Louisiana court that their upcoming NFT project would not violate U.S. securities laws;

4. the SEC published a Terraform indemnification announcement, which will prioritize indemnification of investors and creditors.

ETF

According to statistics, during July 29-August 2, the U.S. Bitcoin Spot ETF had a net outflow of: $82.4 million; as of August 2, GBTC (Grayscale) had a total outflow of: $19.059 billion, and is currently holding $15.005 billion, while IBIT (BlackRock) is currently holding $21.456 billion. Total market capitalization of the U.S. Bitcoin Spot ETF is: $59.383 billion.

U.S. Ether Spot ETF net outflows: $169.4 million.

Foreseeing the Future

Upcoming Events

1. Malaysia Blockchain Week 2024, the inaugural blockchain week in Malaysia, will be held from July 31 to August 1. The event, hosted by Lydian Labs, focuses on education, regulatory advocacy, and showcasing innovative projects;

2. WebX Asia 2024, organized by CoinPost, a Japanese Web3 media outlet, will be held in Tokyo, Japan, on August 28-29, 2024, which gathers professionals related to cryptoassets, blockchain, and other Web3 technologies, and offers attendees direct Aptos will be held at 2020；

3. aptos will host Code Collision, a hackathon with a total prize pool of $500,000, from August 1 to September 30, 2024, with registrations accepted from July 2 to September 30 across five tracks: DeFi/RWA, Gaming/NFTs, AI/DePIN, Social, and Other Innovations;

4. the FORESIGHT 2024 Annual Summit will be held from August 11 to August 12 at the Hong Kong Marriott Ocean Park Hotel. The third annual FORESIGHT Summit returns to Hong Kong after a 15-month hiatus. Co-organized by Foresight Ventures, Foresight News, and The Block, the Summit aims to provide a stage for global Web3 builders to network and exchange ideas, and to build a bridge connecting the East and West and smoothing out geographical differences.

Project Progress

1. Starknet Cairo 2.7.0 version is scheduled to be upgraded on August 5th. 2;

2. Jupiter Active Pledge Reward Claim is open until August 6, users need to take the initiative to claim ASR rewards, JUP will be automatically pledged while other tokens will be sent to wallets;

3. Gitcoin Grants 21 will be launched from August 7th to 21st;

4. dexter, founder of Whales Market, announced that the GM token is ready for release, with news expected around the 24th. dexter said that GM won't be a VC pnd coin, or a cabal meme coin, but rather a community-focused utility AI coin with the most lines of code written in the last few months.

Important Events

1. coinbase narrows subpoena to ask gensler to provide emails only from his time as SEC chairman, SEC must file response by august 5；

2. FTX and the CFTC have agreed to a $12.7 billion settlement, with a related hearing scheduled for August 6th;

3. the deadline for filing claims in the Terraform Labs bankruptcy case is set for August 22nd at 5:00 BST, with users who filed claims against TFL prior to January 21st, 2024 and TLL prior to July 1st, 2024 required to file prior to the general deadline.

Token Unlocking

1. Hashflow token HFT will be unlocked on August 7 for 13.62 million units, valued at approximately $2.47 million, or 3.11% of the circulating volume;

2. Xai token XAI will be unlocked on August 9 with 35.88 million tokens, valued at approximately $10.56 million, or 6.91% of the outstanding volume;

3. Immutable token IMX will be unlocked on August 9 for 32.47 million units valued at approximately $45.46 million, or 2.11% of the outstanding volume.

About Us

Hotcoin Research, as the core investment research department of Hotcoin, is dedicated to providing comprehensive and professional analysis of the crypto market. Our goal is to offer clear market insights and practical operational guidance for investors at all levels. Our professional content includes "Play to Earn Web3" tutorial series, in-depth analysis of crypto market trends, detailed analysis of potential projects, and real-time market observations. Whether you are a newcomer exploring the crypto world or a seasoned investor seeking deep insights, Hotcoin is your reliable partner for understanding and seizing market opportunities.

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