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Bitget Research: Bitcoin Fluctuates in a Narrow Range, Meme Sector Leads a Surge

Victoria & John
2024/04/24
Bitget Research: Bitcoin Fluctuates in a Narrow Range, Meme Sector Leads a Surge
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

Yesterday, BTC continued its rebound, briefly breaking through the $67,000 mark. The market exhibited positive wealth effects in specific sectors. The highlights are as follows:
  • Sectors with strong wealth creation effect: Memecoin and RWA sectors.
  • Top searched tokens and topics: Renzo, Karrat, LayerZero.
  • Potential airdrop opportunities: Owlto Finance, ZKLINK.
Data collection time: April 24, 2024, 4:00 AM (UTC)

1. Market Environment

Yesterday, Bitcoin continued to climb from $65,911 to the $67,000 resistance level, reaching a high of $67,132 in the early morning. Bitcoin surged by over 5% since last Wednesday, and there have also been strong rebounds in the altcoin market, especially memecoins, which have risen by over 20% on a whole. Recently, there has been a significant wealth creation effect in the memecoin sector.
Major U.S. stock indexes performed poorly last week but started the week higher. As of yesterday's market close, the S&P 500, the Dow, and the Nasdaq all rebounded and rose, with the US 10-year Treasury Bond Note Yield rising 0.28%. The overall macroeconomic rebound has also boosted the crypto market. Spot Bitcoin ETFs saw net inflows of $101 million on April 23, a significant improvement from the previous day. However, there is no consensus in the market yet. Moving forward, it remains important to monitor the impact of this inflow on the crypto market.

2. Wealth Creation Sectors

2.1 Sector Movements — Meme Sector (PEPE, FLOKI, and BONK)

Primary reasons:
Leading memecoins continue to strengthen, especially when blue-chip assets and other mainstream sectors continue to move sideways. Memecoins are characterized by relatively small market capitalization, high consensus, and lack of fundamentals, meaning they are easier to popularize via promotion.
Gainers: PEPE +10%, FLOKI +13%, and BONK +29%.
Factors affecting future market conditions:
  • Memecoins are significantly affected by the overall market trend. If the broader market continues to rally, memecoins are likely to maintain outsized gains. However, if the market sees a sharp pullback, memecoins could see a significant drawdown.
  • Endorsements from influencers, project-specific events, and listings on centralized exchanges are key factors influencing the rise of memecoins. Investors are advised to stay updated on the posts from the project's core team, promotions and news by influencers, and news about listings on centralized exchanges.

2.2 Sector Movements — RWA Leaders (ONDO, MKR, and CFG)

Primary reasons: The RWA sector mainly consists of U.S. bond products. As the Federal Reserve continues to signal maintaining high-interest rates, RWAs are seen by the market as favorable for the long term and capable of hedging against current market risks.
Gainers: ONDO +6.5%, MKR +2%, CFG +1.6% (last 24h).
Factors affecting future market conditions:
  • Changes in macroeconomic monetary policy: From a macroeconomic perspective, the rise in US 10 Year Treasury Bond Note Yields supports the fundamentals of the RWA sector. It is essential to monitor subsequent changes in the dollar index, treasury yields, and the cryptocurrency market to adjust trading strategies dynamically.
  • TVL changes in projects: RWA sector projects are generally supported by TVL, making it essential to monitor the changes in this metric. If a project's TVL rises continuously or suddenly, it is usually a signal to buy.

2.3 Sectors to Focus on Next — Bitcoin L2 Chains

Primary reasons: The market is rebounding this week. With the groundbreaking growth of BounceBit's TVL and the launch of Runes, BTC's blockchain data shows extreme activity.
Specific tokens:
  • CKB: A Bitcoin Layer 2 project based on the RGB++ scaling protocol, CKB has stayed true to its original vision as a Layer 2 solution. It adopts isomorphic binding with Bitcoin and further improves the Bitcoin ecosystem.
  • BB: BounceBit is a BTC restaking chain. BB has a maximum supply of 2.1 billion, with an initial circulation of 409.5 million, and is a project with investments from Binance Lab. Binance will list BB after the Megadrop is completed.
  • MERL: A Layer 2 project based on the Bitcoin network. Merlin Chain's on-chain TVL has reached $3.1 billion, the highest TVL among Bitcoin Layer 2 projects.

3. Top Searches

3.1 Popular DApps

Renzo: A restaking protocol built on EigenLayer. Renzo simplifies the complex restaking process for end users, eliminating the need for users to actively select and manage operators and reward strategies. With a current TVL of $1.8 billion, the protocol stands as the second-largest project in the liquid restaking sector. On April 24th, Renzo announced detailed token distribution rules, leading to dissatisfaction within the community. This discontent coincided with a significant depeg of Renzo's native token, ezETH, which dropped to around $1600. While the price has stabilized since then, users are advised to exercise caution when participating.

3.2 X (former Twitter)

The KARRAT Protocol focuses on advancing transformative artificial intelligence and other innovations within the gaming and entertainment sectors. This includes real-time animation content for streaming services and the development of emerging products for retail, telecom, education, and beyond. In a recent official announcement, Coinbase confirmed its intention to support Karrat (KARRAT) on the Ethereum network (as an ERC-20 token), with trading slated to open upon meeting liquidity conditions. Despite an initial price surge followed by a 12.21% decline on the day of listing, caution is advised due to the potential volatility inherent in such projects.

3.3 Google Search (global and regional)

Global focus:
LayerZero is not just about building bridges that allow the movement of assets between chains, but also for building Omnichain solutions. This innovative approach integrates cross-chain and multi-chain capabilities, allowing users to interact with various chains through a unified interface. LayerZero Labs has announced that the timeline for their TGE is approaching as the first half of 2024 draws to a close. The project has attracted significant attention as it gears up for its token launch after securing $120 million in Series B funding.
Regional focus:
(1) Yesterday, the trending searches across various regions of Asia primarily centered around RWA projects:
In recent times, there has been a notable surge in RWA projects originating from Asia. MAP Protocol, a Bitcoin Layer 2 interoperability layer, has entered into a strategic partnership with Oriental Asset Management (Hong Kong) Limited to jointly advance the integration and innovation of traditional financial institutions with Web3 digital assets. This partnership demonstrates the commitment to providing Web3 digital assets and RWA product development and technical support for traditional financial institutions in Hong Kong. The Parcl ecosystem, anchored by the Parcl Protocol—a decentralized real estate trading platform—has announced a strategic partnership with SkyBridge Capital, a prominent global alternative investment firm. As the market recovered, the prices of RWA tokens, led by PRCL, have rebounded.
(2) African and Latin American countries have demonstrated interest in memecoins like PEPE:
Due to ongoing whale purchases and reduced gas fees resulting from decreased on-chain activities, trading of memecoins on the Ethereum blockchain is gaining momentum. Leading memecoins like APU and PEPE have seen significant price surges, while whales continue to accumulate ETH holdings. Notably, since April 17th, a whale associated with an address suspected to be linked to Justin Sun transferred an additional 15,389 ETH, valued at $49.79 million, from Binance. Given the increased attention on ETH recently, investors may want to monitor its performance closely.

4. Potential Airdrop Opportunities

Owlto Finance
Owlto Finance is a decentralized cross-rollup bridge focused on Layer 2. It supports cross-chain transactions among over 15 Layer 2 networks, including Ethereum mainnet, zkSync Era, and Starknet.
Since its launch, Owlto Finance has been gradually integrating with official ecosystems like zkSync, Starknet, Arbitrum, Optimism, Linea, Base, Polygon, BNB Chain, Mantle, Scroll, Taiko, Manta, and Kroma. Notably, it has garnered endorsements from official X accounts of prominent Layer 2 platforms, highlighting its close ties within the ecosystem. The project has also introduced a point system. Besides aiming for an Owlto airdrop, users can also accumulate points through transactions on other Layer 2 networks that have not yet issued tokens.
To participate, simply visit the official website, choose the source and target chains, and enter the desired amount. Owlto currently supports ETH, USDC, USDT, and BNB. Users can also accumulate points through daily check-ins on the website.
zkLink
zkLink develops zero-knowledge blockchain solutions for the ETH ecosystem. It aims to solve blockchain interoperability and standardization challenges by developing an aggregated rollup infrastructure that simplifies the deployment of multi-chain dApps while reducing liquidity fragmentation.
During the token sale on Coinlist on January 26, 2024, 31,250,000 ZKL tokens were sold with a total FDV of $150 million and a unit price of $0.15. User engagement within the ecosystem is high. Users can earn loyalty points by interacting with zkLink's ecosystem dApps, completing on-chain tasks, engaging on social media, and actively participating in the community.
Here's how to get involved:
By completing simple quests, users can acquire various identities and level up, such as achieving the status of a level 8 ZK Hero. This progression provides a means for users to participate more actively in the community. (Link: https://zealy.io/c/zklink/invite/0rBOlRwqvc_FKHx3vB7Fv)
Users can earn points and NFT certificates by completing various tasks on Galxe, which can qualify them for potential airdrop rewards. (Link: https://galxe.com/zkLink)
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