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Bitget Research: ETH to BTC Conversion Rate Rebounds to 0.051, Restaking Sector Experiences Strong Rebound

Tommy & Jarseed
2024/04/29
Bitget Research: ETH to BTC Conversion Rate Rebounds to 0.051, Restaking Sector Experiences Strong Rebound
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

Spot Bitcoin ETFs have seen net outflows for three consecutive weeks, with the broader market experiencing a volatile decline. The ETH/BTC exchange rate rebounded to above 0.051, leading to a rise in the Layer 2 and Restaking sectors Upcoming events in early May, such as the Federal Reserve's monetary policy meeting and the U.S. non-farm payroll report, are expected to significantly impact the market.
  • Sectors with strong wealth creation effects: Restaking and ETH Layer 2.
  • Top searched tokens and topics: UXLINK, AI Arena, and American Coin.
  • Potential airdrop opportunities: UXLINK and AI Arena.
Data collection time: April 29, 2024, 4:00 AM (UTC)

1. Market Environment

Spot Bitcoin ETFs have seen net outflows for three consecutive weeks, with the broader market experiencing a volatile decline. The market is focused on the Federal Reserve's monetary policy meeting scheduled for May 2, with remarks from Powell expected afterward; on May 3, the U.S. non-farm payroll report will be released. In Asia, Huaxia's BTC and ETH ETFs will be issued on April 29 and listed on the Hong Kong Stock Exchange on April 30, marking the first launch of their kind in the Asian market.
Yesterday, ETH rose, and the ETH/BTC exchange rate rebounded to above 0.051, leading to a rise in the Layer 2 and Restaking sectors. While the upward trend in ETH did not continue today, token prices in the Restaking sector remained stable after their increase.

2. Wealth Creation Sectors

2.1 Sector Movements – Restaking (ETHFI and SSV)

Primary reasons:
The restaking sector saw the strongest rebound amid the rise in ETH, with ETHFI and SSV maintaining relative price stability even as ETH fell again today. Yesterday, Ether.fi's TVL surpassed $4 billion, with a daily increase of 5%. With Renzo (REZ), a project in the same sector, set to open airdrop claims, the market's focus is on the restaking sector.
Gainers:
ETHFI rose 31% yesterday, and SSV rose 14%, maintaining a slight rise for 10 consecutive days.
Factors affecting future market conditions:
  • Changes in the ETH/BTC exchange rate will be a decisive factor for the overall direction of the ETH ecosystem. Over the past year, the strengthening of BTC's price has led to a 20% decline in the ETH/BTC exchange rate, with a recent rebound of 5% in the past week. The expectation of a spot Ethereum ETF could potentially further elevate this rate, which is crucial for the initiation of a rally in the Ethereum ecosystem and most altcoins.
  • Continuous fund inflows and stability in the Restaking sector are also critical. Significant security incidents in renowned projects during their initial stages could have fatal impacts on the projects and negatively affect the development of the entire sector.

2.2 Sectors to Focus on Next — ETH Layer 2

Primary reasons:
The ETH/BTC exchange rate has returned above 0.051, with whales like Justin Sun and Wu Jihan buying large amounts of ETH amid the market decline, possibly speculating on the anticipation of the May 23 Ethereum ETF and the upcoming Ethereum Prague upgrade. Yesterday, driven by the rise in ETH, OP, ARB, STRK, and METIS all saw notable increases.
Specific tokens:
  • OP, ARB, STRK, and METIS.

3. Top Searches

3.1 Popular DApps

UXLINK (UXUY):
UXLINK is a pioneering Web3 social system designed for mass adoption, enabling users to build social assets and trade cryptocurrencies. It includes a highly modular range of DApps, from entry-level to graph formation, group tools to social trading, all seamlessly integrated into Telegram.
Recently, on-chain data for UXLINK has become increasingly active, attracting more user attention and interaction, and the project may soon confirm an airdrop.

3.2 X (former Twitter)

AI Arena:
Developed by ArenaX Labs, AI Arena is a PvP fighting game where players can evolve their game characters through AI learning. The combat system is similar to Nintendo's "Super Smash Bros." It combines gaming, NFTs (IP), and AI algorithms to offer a novel gaming experience while protecting the intellectual property of AI practitioners and assisting them in monetization.
ArenaX Labs recently announced the completion of a new funding round of $6 million led by Framework Ventures, with participation from SevenX Ventures, FunPlus/Xterio, and Moore Strategic Ventures. The funds are planned to be used to build the PvP fighting platform and develop similar games.

3.3 Google Search (Global and Regional)

Global focus:
American Coin: A memecoin project on the Solana blockchain. There was no significant focus in crypto tweets yesterday, with searches generally centered on memecoins. American Coin had a trading volume exceeding $13 million in the past 24 hours, showing high on-chain trading activity. After several wash trades the token price has continuously reached new highs. It has a substantial number of holders and has garnered widespread market attention.
Regional focus:
(1) Yesterday's trending searches in various regions of Asia mainly focused on Ethereum and related ecosystems:
Yesterday, there was widespread interest in Ethereum and its ecosystem across Asia, primarily influenced by the news of the upcoming ETH ETF set to launch in Hong Kong on April 30. In addition to Ethereum itself, there was also significant interest in Ethereum restaking platforms, which frequently appeared in top searches. Tokens associated with Ethereum restaking generally increased in value yesterday.
(2) In Africa, Europe, and the CIS region, searches for large market cap mainstream cryptocurrencies were notably high:
With the crypto market currently experiencing a general pullback, users in these regions have increased their searches for information on mainstream cryptocurrencies, looking for more secure investment opportunities and coins that are overly undervalued due to market declines. The primary cryptocurrencies being searched are BTC, SOL, XRP, LINK, and ICP.

4. Potential Airdrop Opportunities

UXLINK
UXLINK rapidly builds a Web3 social platform based on acquaintance networks, providing deep social scenarios and token incentives to retain users and foster growth, quickly establishing a strong user base.
UXLINK has raised over $9 million in funding. Investors in this round include OKX Ventures, Manifold, Web3Port Foundation, UOB Venture, Comma3 Ventures, Cypher Capital, Kucoin Ventures, Gate Labs, Forgame, ECV, Signum Capital, 7UPDAO, and others. UXLINK participated in the Stanford Blockchain Accelerator.
How to participate:
The airdrop will be conducted through NFT vouchers, with four themed NFTs issued: MOON, TRUST, FRENS, LINK. The themes were chosen by community vote, and the minting is expected to start on May 3. UXLINK is currently urging community members to complete three key tasks promptly: invite friends to join UXLINK, interact on the chain, and link wallet assets.
AI Arena
AI Arena is an AI-driven Web3 competitive game that allows users to train their own AI characters for combat. The outcome of each battle depends on the player's skills developed during training, aiming to help users understand the operations and learning processes of artificial intelligence. AI Arena is currently open for pre-registration, and ArenaX Labs plans to launch a beta version of the game on the Arbitrum mainnet soon.
ArenaX Labs recently announced the completion of a new funding round of $6 million led by Framework Ventures, with participation from SevenX Ventures, FunPlus/Xterio, and Moore Strategic Ventures. The funds are planned to be used to build the PvP fighting platform and develop similar games.
How to participate:
Visit the official website, connect your wallet, link your Twitter and Discord accounts, and select Claim to receive tokens and a character. After entering the game, you can log in directly with your wallet and follow the prompts to complete the basic training. After completing the basic training, you will receive a character, then go to the bottom right to stake, enter the staking amount, select Stake, and confirm within your wallet. Finally, join the ranking competition.
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