BGB Sail: May Edition
Our BGB Sail Series provides an in-depth analysis of BGB performance, together with a recap of the market situation at the end of each month.
BGB Sail: April Edition can be found here.
May appears to be the extension of April's cooling-off period as the global market cap contracted by 2.6%, landing at US$1,179,097,406,821 on May 31, 2023 (0:00 AM UTC). The only three tokens with growing market cap are USDT (stablecoin), XRP (L1 token/altcoin) and STETH (liquid staking derivatives). This is also the first time that STETH is among the Top 10 biggest cryptocurrencies by market cap.
The Month-over-Month change in ETH’s market cap is negative but almost negligible, whereas DOGE lost more than one-third of its value over the course of 30 days and as a result fell by two places in the ranking. Meanwhile, the difference between Top 4’s market cap and the rest is so large that it's most likely that Top 4 will continue to stay put for a long time.
Let's take a look at the performance of the Top 10 in May. Please note that stablecoins (Tether and USD Coin) and LSD (liquid staking derivatives - STETH) are excluded because their value is supposed to remain ‘stable'. Except for XRP with an impressive 9.3% increase, all tokens in the Top 10 - BTC, ETH, BNB, XRP, ADA, DOGE and SOL - suffered from some small to heavy losses in May.
Some possible explanations for the downward momentum include the regulatory uncertainties surrounding native U.S. crypto firms and crypto firms with an U.S. arm and the spreading panic over the U.S. debt limit.
Read more about the debt ceiling deal and its implications on markets here: Debt Ceiling Is Lifted. Now What?
Basically, we are seeing more securities regulators targeting crypto exchanges, indicating these areas' view of crypto as securities. Here is a summary of May's key headlines:
• Bittrex U.S. filed for Chapter 11 bankruptcy;
• Top market makers Jane Street and Jump Crypto decided to withdraw from the U.S. crypto exchange market;
• Hotbit announced its shutdown;
• The Securities Commission Malaysia ordered Huobi Global to stop its operations in the country for ‘illegally operating a digital asset exchange’ here;
• The Philippines’ Securities and Exchange Commission charges Gemini for ‘offering and promoting unregistered securities products’;
• Hong Kong's Securities and Futures Commission has published the finalised requirements for crypto trading platforms to provide retail crypto trading from June 01, 2023 and opened the registration for crypto exchange licensing;
• Beijing released the Web3 Innovation and Development White Paper and committed to spending 100 million yuan each year until 2025 to turn Beijing into the global innovation hub for the digital economy;
• Zhengzhou establishes a US$8.5 billion Metaverse fund;
• The most recent PayPal report with the U.S. SEC shows that the payment giant's crypto holdings as of March 31, 2023 stand at US$943 million in Bitcoin, Ethereum, Bitcoin Cash and Litecoin, up by 56% from Q4 2022’s US$604 million. They also offer crypto transfers to 60 million users of Venmo.
Data from The Block shows that there was a decline in the monthly volume of both spot and futures markets. While spot volume has fallen to the lowest level since November 2020, the volume of BTC futures on derivatives exchanges is still a tad higher than January's figure.
BGB Performance in May
In contrast to the majority of the market, BGB has had a great month. It outperformed all Top 10 tokens and belonged to the group of two only exchange tokens ending the month with a profit.
BGB locked in a 14% rise MoM with its monthly high having increased by 6.7% to US$0.506853. According to CoinGecko, this surge in value of the token was accompanied by a 51.2% increase in 30D volume to US$482,744,291.
When it comes to liquidity, BGB is undeniably the best exchange token. The volume-to-mcap ratio measures how easy it is for a token to change hands and thus can be used as a basic indicator of liquidity. Blockchain data platform Coinranking.com considers a token with a volume-to-mcap ratio of 0.001 or higher as ‘first tier’ tokens. Out of the eight exchange tokens, GT has the lowest average volume-to-mcap ratio for May at 0.001, barely made it to the first tier list; HT has the highest and BGB has the second-highest figure of 0.027 and 0.024, respectively.
However, it doesn't necessarily mean that HT is a better investment than BGB. Going back to the MoM performance chart, the top gainer of the month is MX (+27.5%) and BGB (+14%). HT lost nearly 10% of its value in just 31 days. An analysis based on both values - price performance and liquidity - would suggest that BGB is the best option due to its steady price increment (high liquidity means prices are more stable).
It's obvious, then, to see BGB moves up in the exchange token ranking, leaving HT and MX way behind. New to BGB and Bitget? Check this out: Bitget Token (BGB) Introduction.
What are the reasons behind this success, you might wanna ask?
First of all, owning BGB means you will benefit from the expansion of the ever-growing Bitget ecosystem. Bitget is the first exchange to launch a crypto copy trading product in 2020 - the first of many innovative rollouts throughout the past three years; the better we become, the more profitable it is to invest in BGB. Besides, BGB is the ticket to multiple activities on Bitget, including Bitget Launchpad (hold BGB to get exclusive access to highly anticipated IEOs), Bitget Launchpool (stake BGB to earn new, promising project tokens for free), Bitget Lottery (hold BGB to win prizes in BGB every day), BGB Earn (generate more BGB from your current holdings and/or secure the opportunity to buy BGB at discounted prices), Bitget VIP Program, GroupCoin (hold BGB to get the chance to purchase staple cryptocurrencies at special prices), Vote-To-List (hold BGB to decide whether the project will be listed on the exchange and get rewards for your participation).
The IEO on Bitget Launchpad in May attracted 19,263 participants who altogether locked 123,037,455 BGB to get the opportunity to purchase Bitcoin Improvement Proposals 1 (BIP1) and gain the first-mover advantage/take up arbitrage opportunities since Bitget was the first exchange to open BIP1 trading. At its all-time high, BIP1 value is more than four times the IEO price, which translates to a ROI of over 300%.
The most popular farming pool on Bitget Launchpool has 30,485,728 BGB (ca. US$12 million) staked. With all pools having an APY of 69% or higher, demand for BGB for sure has skyrocketed - no one wants to miss out on these opportunities!
Since the beginning of June, we have completed three rounds of Bitget Launchpool, each having two pools (normal staking and refer-and-earn), and are currently holding two new rounds for 3TH and BHAT. The carefully selected reward tokens make farming more lucrative, thereby driving the demand for BGB further up.
To sum things up, BGB has never failed to impress. See yourself how:
The flourishing of Bitget is undeniably integral to BGB's victory. Public recognition and customer satisfaction motivate us to relentlessly work on product improvements and developments to bring about the best crypto experience to users worldwide.
Spot Futures Activities
Albeit the broader CEX sector struggled with declining volume in May, Bitget users have been showing uninterrupted resilience. The average daily number of outstanding contracts increased by 3.8%, with the daily average Bitcoin OI rising by 5.2%. Some notable changes to Bitget Futures in the single month of May include the leverage adjustment for XRPUSDT contracts (to 125X) and the addition of 21 new pairs:
The total volume of Bitget Spot Trading in May went up by 22.9% to US$5,370,388,809, mainly thanks to the initial listing of the most sought-after tokens:
• SUI/USDT (5X)
Earning With Bitget
We have been continuously expanding the variety of investment products on Bitget, with Bitget Range Sniper being the latest introduction. The lowest APR on Bitget Range Sniper up until now is guaranteed at 20% despite your speculation of market sentiment, the highest is up to 500%, and that's why Bitget Range Sniper has become the new obsession of many investors.
Bitget Range Sniper differentiates itself from other earning schemes on Bitget in that the asset to be paid out is flexible. In case the market moves in the opposite direction to your prediction, you'll get the payout in Bitcoin or Ethereum, which is perfect because you can hold them and lock in the profit once prices go up. If prices progress in line with your expectation, your profits will be realised immediately by the payout in USDT. You win, either way.
Also allowing investors and technical analysts to ride with the waves is Bitget Smart Trend. Bitget Smart Trend is principal-protected, which means investors have the opportunity to place a bet on BTC/ETH prices of the next seven days without worrying about losses at settlement. You can subscribe to Bitget Smart Trend with Bitcoin or Ethereum or USDT, but the gains are distributed in the form of the asset you use to subscribe. High APR is also to be seen with Bitget Smart Trend; the most recent Bearish ETH investments offer up to 70% and 90% APR.
Source: Bitget Smart Trend
Bitget Dual Investment takes full advantage of the ‘buy low, sell high' strategy. It's designed to provide long-term investors with a 2-in-1 plan; that is, subscribers can buy a cryptocurrency (with stablecoin) and earn interest in that cryptocurrency if its price at the end of the subscription period is equal to lower than their expectations. If the price of that cryptocurrency is eventually higher than the expected price, purchase is not enabled and interests are calculated in stablecoins. That's the Buy Low scenario.
On the other hand, Sell High subscribers will sell their crypto holdings at a favourable price in the future and earn interests in stablecoins. Should markets move against them at the end of the subscription period, no selling is allowed and interests are calculated in the cryptocurrency to be subscribed. In short, users will receive their original holdings plus interests even in disadvantageous conditions.
Imagine planning your long-term crypto investments. You can either let your stables sit there until your limit order is filled or jump to Bitget Dual Investment to make some extra money on the idle funds.
Now back to Bitget SharkFin, the original capital-guaranteed structured investment product. There are twelve rounds of SharkFin in May, each with full options of earning BTC from BTC deposit, earning BTC from USDT deposit, earning ETH from ETH deposit and earning ETH from USDT deposit. 100% of the cases ended up in the Shark Scenario, which is the scenario with much higher APR, hence subscribers turned out to be winners all the time.
Source: Bitget SharkFin
The charm of Bitget Earn is irresistible. In May only, the total fund subscribed to these four products amounted to US$10.5 million. Bitget SharkFin is the most popular one not only in terms of the total amount subscribed but also pertaining to the number of subscribers. The second best option for long-term investors is Bitget Dual Investment, whilst it's Bitget Smart Trend for farmers.
Learn Earn With Bitget Academy
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