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Bitget Research: Altcoins Continue to Decline, BGB Maintains Strong Performance

John & Victory
2024/04/12
Bitget Research: Altcoins Continue to Decline, BGB Maintains Strong Performance
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

In March, the U.S. Producer Price Index (PPI) annual rate reached 2.1%, marking a new high since April 2023. The overall cryptocurrency market is under pressure, with altcoins continuously showing a downtrend. In contrast, BGB has shown an impressive price performance. The highlights are as follows:
  • Sectors with strong wealth creation effect: Base ecosystem, Ton ecosystem, and RWA sector.
  • Top searched tokens and topics: Avalon Finance, BounceBit, and AI Crypto.
  • Potential airdrop opportunities: Zircuit and Nubit.
Data collection time: April 12, 2024, 4:00 AM (UTC)

1. Market Environment

The U.S. March PPI annual rate recorded at 2.1%, a new high since April 2023, indicating that inflation remains sticky. Following the data release, the U.S. Dollar Index (DXY) briefly plummeted over 20 points, U.S. Treasury yields fell, and short-term U.S. interest rate futures rose, putting the overall cryptocurrency market under pressure with altcoins continuing their bearish trend.
In contrast, the BGB token of Bitget showed excellent price performance. This was not only due to the continuous improvement of Bitget's spot trading but also due to the frequent LaunchPool promotions and the newly launched staking product, PoolX. Assets launched through these two products allow users to stake BGB and USDT, gaining both new asset mining profits and enjoying the appreciation of BGB. Additionally, due to the high frequency of recent PoolX and LaunchPool promotions, the demand for BGB has continuously increased, turning it into a golden opportunity, and continuously driving up the price of BGB. If the current high-frequency mining of two to three assets per week continues, the BGB price is expected to rise further.

2. Wealth Creation Sectors

2.1 Sector Movements —Base Ecosystem (AERO)

Main reason: The TVL of the Base ecosystem has exceeded $1.5 billion, and the continued inflow of funds into the Base ecosystem could directly impact the overall trend of memecoins on the Base blockchain. The continuous rise of the AERO price, developments in the SocialFi segment, and the progress in the Farcaster token launch and ecosystem projects have brought significant attention to the Base ecosystem.
Gainers: AERO has increased by 18% in the past 24 hours.
Factors affecting future market conditions:
  • The continued inflow of funds into the Base ecosystem could directly impact the overall trend of memecoins on the Base blockchain. Traders should closely monitor changes in the ecosystem's TVL, DEX trading volume, and other metrics. With fundamentals continuously improving, mentioned assets could break new highs. Historically, however, the price potential for memecoins on the Base chain is limited, and traders should beware of the high-risk assets.

2.2 Sector Movements — TON Ecosystem (INS and TREMP)

Main reason: The wealth effect of the TON token was particularly pronounced under the current market pullback conditions, with the TON price breaking $7 yesterday, setting a new historical high. Yesterday, the TON Foundation airdropped 300,000 TON (approximately $2.19 million) to the most active memecoin traders on Dedust and/or Ston.fi, further fueling trading enthusiasm on the Ton chain.
Gainers: INS increased by 10.5% in the past 24 hours, while TREMP increased by 149% in the same period.
Factors affecting future market conditions:
  • Launchpad wealth effect: INS and TREMP, two tokens from different Launchpad projects within the Ton ecosystem, respectively, have a 10–100x wealth effect. If this wealth effect can be replicated in future projects, the hype around the Ton chain could further intensify.
  • Notcoin's pre-listing performance: As the hottest project on the Ton chain, Notcoin is drawing considerable attention with over 27 million players and 1.68 million followers on X (Twitter). Its trading volume on Getgems is over 3.1 million TON, equivalent to $21 million. If the upcoming Notcoin launch is well-received by the market and the token price performs well, it could further elevate the Ton ecosystem's potential.

2.3 Sectors to Focus on Next — RWA (PARCL and MANTRA DAO)

Main reason: BlackRock announced the launch of its first tokenized fund on a public blockchain, injecting fresh energy into the RWA sector. RWA may become one of the most important narratives of this bull market. The RWA sector is rapidly expanding, with frequent financing and project developments, and the upcoming PARCL token launch could further trigger a second wave of potential wealth effects in the RWA sector.
Key projects:
  1. Parcl: The Parcl ecosystem, based on the decentralized real estate trading platform Parcl Protocol, announced a strategic partnership with SkyBridge Capital, a global alternative investment firm.
  2. Mantra DAO: Mantra announced the launch of the Hongbai Incentivized Testnet, which is also the second phase of the Mantra chain’s testnet. This testnet is expected to expand the ecosystem's user base and encourage the development of DApps on the Mantra chain, marking the first milestone since Mantra's transformation into an RWA chain.

3. Top Searches

3.1 Popular DApps:

Avalon Finance:
Avalon Finance, the first lending protocol on Merlin Chain, surpassed $100 million in TVL and over 7000 users within a week of its launch, becoming the largest lending protocol on Merlin Chain and across the entire BTC ecosystem. It also set a record for the fastest TVL growth in DeFi lending protocol history. Avalon Finance completed a $1.5 million seed round funding in March, with investments from SNZ Capital, Summer Capital, Matrixport Ventures, and others. Avalon Finance has launched a community airdrop plan with an airdrop ratio of up to 20%, allowing users to participate in early airdrops.

3.2 X (former Twitter)

BounceBit:
BounceBit is a Bitcoin restaking and CeDeFi protocol. In terms of project background, BounceBit secured a $6 million seed round funding led by Blockchain Capital, with support from Binance Custody (CEFFU), Breyer Capital, and Mainnet Digital, ensuring the security of users' staked assets. Yesterday, Binance Labs announced an investment in BounceBit, aiming to expand Bitcoin's capabilities beyond its traditional role acting as a store of value. Currently, BounceBit's TVL has reached $784 million. Users can participate in network validation and various profit-generating promotions.

3.3 Google Search (global and regional)

Global focus:
Masa Network (MASA) – Masa Network is a bilateral data market connecting data providers (users) and data consumers (developers), also known as a decentralized data marketplace developer. It announced the launch of its mainnet and MASA token on April 11, 8:00 PM (UTC+8). MASA token will be issued simultaneously on Ethereum, BNB Chain, and Masa Network (a dedicated Avalanche subnet). Earlier in January, Masa Network completed a $5.4 million seed round funding led by Anagram. On April 11, Bitget listed Masa Network (MASA), with the deposit channel now open and MASA/USDT trading pair available from April 12, 4:00 PM (UTC+8). Investors may consider buying at their discretion.
Regional focus:
(1) Europe and the CIS region show significant interest in AI crypto:
The interest primarily stems from Binance's announcement that it will list Bittensor (TAO) on April 11, 8:00 PM (UTC+8), which has sparked discussions and attention on Twitter and various communities. As the artificial intelligence (AI) trend in the crypto domain continues to heat up, the cost to register a subnet on the Bittensor network soared to $6.7 million, maintaining high discussion volume of AI-related topics in the community.
(2) No significant trends in Africa, Asia and English-speaking countries:
These regions display a more dispersed pattern of interest, with Floki, Crypto Bubbles, and RWA frequently appearing in hot searches, particularly as more retail investors focus on memecoins and RWA narratives ahead of the Bitcoin halving. This indicates a divergence in the overall market. As the broader market is relatively stable, sector rotation begins to occur.

4. Potential Airdrop Opportunities

Zircuit
Zircuit is a Layer 2 blockchain project based on zkRollup that integrates parallel processing and AI, invested by Pantera and Dragonfly. Its TVL has already surpassed $1.1 billion. Zircuit's ecosystem has evolved to include features such as staking, cross-chain bridges, and an explorer. Users can receive airdrops by participating in ecosystem development and community interaction.
The current Zircuit staking plan offers a multi-benefit opportunity for those who have previously participated in the Eigenlayer ecosystem projects. This allows for maximizing returns with minimal risk. The Zircuit staking plan aims to reward participating users and the community, helping to guide native liquidity for Zircuit. There are three other participation methods available, only the staking method is explained below.
How to participate: 1. Go to the Stake page ( https://stake.zircuit.com/) and stake to earn points; 2) Deploy nodes to earn points ( https://build.zircuit.com/build).
Nubit
Nubit is a scalable Bitcoin-native DA layer, secured by Bitcoin. Nubit effectively expands Bitcoin's data capacity, supporting applications like Ordinals, Layer 2, and oracles, thus broadening the scope and efficiency of the Bitcoin ecosystem.
Nubit completed a $3 million pre-seed round funding with participation from dao5, OKX Ventures, Primitive Ventures, and others. The team stated that they are preparing for the mainnet launch. The current rule is that the more inscriptions in your wallet, the higher your score and the faster your access. 2000 points will grant access to the test network tasks.
How to participate: Connect your BRC-20 and Unisat wallets at: www.points.nubit.org/#/?invite=CLgqe, then follow the project on Twitter, link your wallet, and after inviting, you can view your points.
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