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Bitget Wallet Weekly Report |5.May - 12.May

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About this week

In May, the market was abuzz with the arrival of a new token standard - BRC-20, which experienced an astronomical surge of 1200 times with $ORDI leading the charge. This surge brought the BTC ecosystem back into the spotlight, and the popularity of the Ordinals protocol and BRC-20 caused the average transaction fee for Bitcoin to reach a three-year high. For the first time in Bitcoin's history, a block's transaction fee exceeded the block subsidy, creating a new hot topic in the market.

The listing of meme tokens $PEPE and $FLOKI on Binance further intensified the meme craze, and Elon Musk's tweet added further fuel to the fire. $LADYS, a meme token, saw unprecedented growth with a one-day surge of 8100.9%. Nevertheless, it is important to exercise caution when considering participating in such markets, as the temptation of overnight surges may mask underlying risks.

In the past week, a total of 48 new projects were added to our online database. The chart below shows the top performing projects in the past week and reflects the overall increase over the last week.

Bitget Wallet Weekly Report |5.May - 12.May image 0

The Bitget Wallet (Previously BitKeep) Academy continually sources for promising projects showcases trending projects, providing the most detailed information as soon as possible. All the projects mentioned in this article can be traded on the Bitget Wallet (Previously BitKeep) wallet. Bitget Wallet (Previously BitKeep) will select high-quality assets and NFT projects daily to share with Bitget Wallet (Previously BitKeep)ers, helping everyone easily capture market opportunities while obtaining the latest information.

MEME

During an AMA session on May 1st, the CEO of Binance, CZ, made a statement indicating that he wouldn't object to any meme coins being listed on the exchange as long as there was significant demand from users. This statement sent waves across the market, causing coins like PEPE and POGGAI to skyrocket by 96% and 228% respectively. Consequently, Binance listed both PEPE and FOKI on their market, which further fueled sentiments of FOMO.

The current meme coin rankings are incredibly dynamic, with dozens of new coins being introduced every day. The newest meme coins, including LADYS, SPONGE, and BEN, are all experiencing rapid growth. However, it's important to note that previous meme coin booms often come right at the end of a bull market. Thus, we should be mindful that after massive gains, there may be a sharp decline in value.

Bitget Wallet Weekly Report |5.May - 12.May image 1

Figure1:Data from Bitget Wallet (Previously BitKeep) Swap

The current market frenzy calls to mind the wild scenes of the "519 Zoo" in 2021. However, there are several differences between the two markets. It was 2021, and the market was experiencing a bull run, while the current market is still relatively bearish. As such, the market's external environment and the volume of funds in both fields are significantly different. Sentiments of FOMO should not distract investors from these critical points:

First, the life cycle of meme coins is short, and this market cycle will be shorter than the previous one. The leading coin, $DOGE, reached a market cap of over 100 billion, while the current leading coin, AiDoge, exceeds 10 million. It is crucial to make profits at the right time.

Second, the market may crash due to the current focus on the meme and BRC20 pumps. Investors have overlooked BTC and ETH's quiet decline, which could result in another market downturn. 519's market downturn occurred after Bitcoin crashed from over $60,000 to a year of bear market. Although the current market's volume is not as large as in 519, the trend remains the same.

Third, most positive news in the market is related to new project narratives. However, there are already signs of liquidity drying up and insufficient entry funds, making it challenging to maintain this trend without external capital. Ethereum's Shanghai upgrade and Hong Kong's warming up to crypto are potentially good signs, but they may not have a long-term effect. Investors should make profits while they still can.

Lastly, BRC-20 hype can help expand the user base, but the project itself is experimental. $PEPE, $PUNK, $BAYC and $DOMO are some of the popular BRC-20 meme coins, and they hold no real value. Investors should be aware of the risks and not get swept away by the final madness of the market.

Recent performance of top meme coins:

  • MiladyMemeCoin ($LADYS)
    $LADYS was airdropped to the top 100K holders of $PEPE and Milady Maker NFT holders, with the Milady community continues to exhibit strong purchasing power. In addition, Elon Musk tweeted a Milady image, and Zhusu changed his profile picture to an image of Milady as well. The news caused a stir, and $LADYS skyrocketed over 8000% in a day.
  • TURBO ($TURBO)
    KOLs heavily promoted $TURBO on Twitter, and Beeple used an image containing the word $TURBO in a tweet. Elon Musk replied with a crying-laughing emoji, sparking discussion within the community. Trading activity continued to rise, and the price remained strong even after $PEPE listed on Binance and experienced a pullback.
  • DEXT ($DEXT)
    Meme coin on-chain trading continues to surge, with $DEXT being one of the primary tools for dex charting. Holding $DEXT also provides users with additional tool-related benefits, leading to an increase in buying activity and price rise.

Curve Update:

Although the market is currently focused on chasing the meme coin craze, we should not overlook narrative-driven projects that have long-term potential. Curve has become a vital part of the DeFi landscape and recently, the smart contract for the $crvUSD stablecoin was deployed on the mainnet, based on FrxETH. Within hours of its launch, over $20 million worth of $CRVUSD was minted according to on-chain data. Curve is increasingly gaining contributors and is regarded as one of the most decentralized projects in the market currently.

Bitget Wallet Weekly Report |5.May - 12.May image 2

Figure2:Data from Defi Wars

The $CRV token economy ensures that LPs and projects are aligned with Curve, and users can earn $veCRV and trading fees by staking $CRV on the official website. As shown in Figure 2, StakeDAOHQ's $sdCRV has already locked in 5% of $veCRV shares. Almost 5 million $CRV has been locked in the past two months, and this number is increasing every day!

Curve's TriPool algorithm is more intricate compared to UniV3's. While it offers superior pricing, it also incurs higher gas trading fees. However, with the TNG upgrade, Curve aims to decrease TriPool's gas consumption by over 50%, aligning it with UniV3's level. This enhancement will enhance Curve's competitive edge in non-stablecoin pair trading volume. In essence, the TNG upgrade will deliver heightened efficiency and broaden the range of applications for Curve.

All tokens related to the Curve ecosystem are currently experiencing an upward trend:

  • Convex Finance ($CVX): This token incentivizes Curve liquidity providers on the Convex platform and enhances their mining income on Curve. Additionally, there are various stablecoins and types of bitcoins utilized for liquidity provision and trading on Curve.
  • Concentrator ($CTR): Developed by AladdinDAO, this token serves as an income booster for DeFi users seeking to mine DeFi tokens ($CRV, $CVX). By converting assets into $aCRV at an earlier stage, users can enter a compounding state and consistently contribute mainstream asset liquidity to the Curve ecosystem.
  • Conic Finance ($CNC): This token introduces Omnipools to the Curve ecosystem, enabling users to mitigate their risk on Curve by depositing assets. Investors can allocate liquidity from individual assets to different Curve pools, while all Curve LP tokens are staked on Convex to enhance $CRV revenue and earn $CVX rewards.

Sui Ecosystem

SuiNetwork has garnered significant attention in the crypto space since its launch. Though its lead time is longer than Aptos, SuiNetwork's eco-projects are generating more interest in the broader market. The recent IDO witnessed high participation and raised a substantial amount of funds, indicating potential for a liquid market capitalization of roughly 100M. This could potentially drive further development of the entire eco-project.

Recent prominent projects within the Sui ecosystem include:

  • Cetus Protocol ($CETUS): This protocol functions as a decentralized exchange (DEX) and centralized liquidity solution, operating on both the Sui and Aptos blockchains.
  • Suipad ($SUIP): Suipad serves as a launch platform incubated on the Sui blockchain, with support from Mysten Lab, an investor in Sui Network, along with the official team of Sui Network and DAOMaker.
  • Cetus: Cetus is actively developing a DEX and centralized liquidity protocol utilizing $APT and $SUI tokens. This implementation has the potential to enhance capital efficiency by tenfold in comparison to traditional automated market makers (AMMs). The project prioritizes composability, ensuring seamless integration with other ecosystems.
  • Sui Name Service: Within the Sui ecosystem, the Sui Name Service operates as a decentralized digital identity service. It is currently in public beta, and due to the Sui Network's periodic reset, domains registered during this period will eventually expire. However, Sui Name Service has plans to express gratitude towards early adopters.
  • The Bitget Wallet (Previously BitKeep) wallet supports the Sui main network and facilitates token trading. Users can conveniently access and engage with decentralized applications (DApps) that are available for testing directly within the wallet.

More information on the SuiNetwork ecosystem can be found here

Conclusion:

The dominance of Meme coins and the presence of large-scale projects have led to a scarcity of new external funds entering the market. The current trend, which is heavily influenced by Meme coins, bears similarities to the animal market observed in 2021. Meme coins have now entered a potentially risky phase characterized by cyclical tops. It is important to exercise caution when engaging in BRC-20 speculation, as these projects are often experimental in nature.

Moreover, it is worth keeping an eye on other notable projects such as LayerZero, Aztec Network, ZetaChain, zkLink, and Cosmos. These projects hold potential and are worth monitoring for further developments. Bitget Wallet (Previously BitKeep) will be the first to share the latest information on these market hot spots with everyone.

Join Bitget Wallet (Previously BitKeep) English Official Telegram Group for more information: https://t.me/Bitkeep_New

Risk warning: Digital currency is a high-risk investment method. Investors are advised to purchase cautiously and pay attention to investment risks. Bitget Wallet (Previously BitKeep) will select high-quality currencies, but does not undertake guarantee, compensation and other responsibilities for investment behavior. Digital asset contract trading is an innovative product with high risks and strong professionalism. Please judge your investment ability rationally and make investment decisions prudently.

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larkLogo2023-05-12
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