MIIX Capital Weekly Report: Regulatory benefits emerge frequently, market confidence recovers

Written by: MIIX Capital

The SEC approved the 19b-4 forms for eight ETH spot ETFs. Although online trading still needs to wait for the approval of the S-1 registration statement, the entire market has higher expectations for ETH price trends and has begun to warm up in advance.

1. Investment and Financing Observation

Last week, the crypto marketXiaobai NavigationThere were 33 investment and financing events, up 26.9% from the previous month, with a total fund size of over 270 million USD, up 58.8% from the previous month. With the market recovery, the scale has expanded significantly:

• DeFi announced 8 investment and financing events.Among them, Ethereum liquid re-staking platform Kelp raised $9 million, led by SCB Limited and Laser Digital;

• GameFi track announced 1 investment and financing,RPG blockchain game Aria completed its seed round of financing, led by Folius Ventures, Spartan Group and Merit Circle;

• NFT track announced 1 investment and financing event, Singapore collectibles design company Mighty Jaxx received another US$11 million in an extension of its Series A+ round of financing;

• DePIN announced 1 investment and financing,Blockless, a DePIN project focused on providing computing power support, raised $8 million in two rounds of early financing;

• Infrastructure and Tools Track Announces 8 Financing Deals, among which zero-knowledge hardware startup Cysic completed a $12 million pre-A round of financing, led by HashKey Capital and OKX Ventures;

• Other Web3/crypto applications announced 8 financings,Among them, Web3 social media platform Farcaster completed a $150 million financing, led by Paradigm and a16z crypto etc.

From the month-on-month data, last week'scryptocurrencyThe number of investment and financing transactions in the market has begun to rebound significantly, and the total scale of funds has also expanded rapidly, indicating that institutions will increase capital leverage and investment frequency when the market recovers. Among them, there are 6 financings of tens of millions of dollars, including Fracmaster, Cysic, Dora Factory, Plume Network, Fantom and StripChain. The market is betting on DeFi, RWA and SocialFi fields; among VCs, the most active institution this week is Paradigm, followed by OKX Ventures and Animoca Brands, which are also active.

About FarcasterFarcaster is a decentralized social network based on Optimism that supports open protocols for many clients. Users can freely move their social identities between applications, and developers can freely build applications with new features on the network.About CysicCysic is a ZK hardware acceleration project dedicated to designing advanced ASIC chips to help reduce ZK proof generation time. It currently has multiple ecosystem partners, including Scroll, Nil Foundation, and Hyper Oracle.About Kelp DAOKelp DAO Kelp is a triple yield re-staking protocol based on EigenLayer. Kelp plans to use the latest financing funds to expand its Bitcoin, Solana and BNB Chain.BlockchainThe liquid re-staking service on the blockchain is expected to launch 1-2 new chains in the third quarter of this year.

2. Industry data

US BTC spot ETF has seen net inflows for 10 consecutive days

SoSoValue data: As of the close of trading on Friday, May 24, Eastern Time, BTC spot ETFs have seen net inflows for 10 consecutive days. According to statistics as of the 27th, the total net asset value of global BTC spot ETFs was US$61.203 billion, and the ETF net asset ratio (market value to BTC total market value) reached 4.53%.

In the data of the past two weeks, the net assets of BTC spot ETFs have shown positive growth, and the proportion of net assets has also been increasing. The growth rate of ETFs is significantly higher than the output of BTC, that is, the buying power is greater than the supply. It is expected that the BTC market will show a slow upward fluctuation.

Hong Kong ETH ETF trading volume increased significantly

As of the close of May 24, the total transaction volume of 6 Hong Kong virtual asset ETFs was approximately HK$45.3323 million, of which the transaction volume of 3 ETH ETFs increased significantly compared with the past. This happened after the approval of the 19b-4 form of the US ETH spot ETF, which shows that the US policy and economic trends have a strong impact on the crypto market, and the Hong Kong ETF market still needs more power to guide and drive.

Hong Kong ETF transaction data on May 24Hua Xia BTC ETF (3042.HK) had a transaction volume of HK$15.168 million; Hua Xia ETH ETF (3046.HK) had a transaction volume of HK$8.5851 million; Harvest BTC ETF (3439.HK) had a transaction volume of HK$6.8468 million; Harvest ETH ETF (3179.HK) had a transaction volume of HK$9.2268 million; Bosera HashKey BTC ETF (3008.HK) had a transaction volume of HK$1.7207 million; Bosera HashKey ETH ETF (3009.HK) had a transaction volume of HK$3.7849 million;

Selling pressure eased, whales increased their holdings by 20,000 BTC

IntoTheBlock data on May 23: In the past week, whale addresses holding 1,000 to 10,000 BTC have increased their holdings by a total of 20,000 BTC. This shows that for long-term holders, the buying bullish phase has begun to return, especially compared with the sharp sell-off that occurred after BTC reached a high of $73,000 in March. The recent market selling pressure has been significantly reduced, providing more room for bullish sentiment.

Farcaster user data hits new high

Dune data: The decentralized social protocol Farcaster data has hit record highs since the 21st:

• May 22, Farcaster daily interactions (Unique Reaction) 69,901 times, Unique Cast 60,387 times;

• On May 25, Farcaster's total revenue exceeded $1.45 million, and currently stands at $1.4579 million, with a total number of users reaching over 400,000;

Farcaster positions itself as the infrastructure in the social field, which is closer to the concept of "Layer" rather than a single Dapp application. This gives Farcaster the potential to derive more diverse and broader application scenarios, and also makes its growth performance significantly different from other SocialFi products, which deserves special attention.

On May 22, Farcaster completed a $150 million financing led by Paradigm and a16z crypto, Haun, USV, Variant, Standard Crypto and others participated in the investment. The announcement stated that this year will focus on the growth of daily active users and adding developer primitives to the protocol, such as channel functions and private messaging functions.

3. VC holdings

Note: The above data comes fromhttps://platform.arkhamintelligence.com/, statistical time: 15:00, May 27, 2024 (UTC+8).

4. This week's focus

May 27

• Solana MainNet V1.18 will be released on May 27 to solve the mainnet congestion problem;

• Bitlayer will launch a two-week Mining Gala event from May 27 to June 10.

• Sei has voted to pass the "Upgrade to V2" proposal, and the mainnet upgrade will be carried out on May 27;

• YGG will unlock about 16.69 million tokens at 22:00 on May 27, worth about 16.94 million US dollars, accounting for 4.49% in circulation;

May 28

• The Conference Board Consumer Confidence Index for May in the United States;

• London SecuritiesexchangeAccepting listing applications for BTC and ETH ETN, the first batch is expected to be listed on May 28;

• Blast will be upgraded to support blobs at 5:00 on May 28;

• The Open Beta testnet of blockchain game Illuvium is expected to be launched on May 28;

• SingularityNET (AGIX) will unlock approximately 8.71 million SingularityNET (AGIX) at 8:00 on May 28Token, worth about $8.4 million, accounting for 0.68% in circulation;

• RomeBlockchainBlockchain Week Rome will be held from May 28 to 31, 2024;

May 29

• Federal Reserve Board Governor Lisa Cook and 2024 FOMC voting member and San Francisco Fed President Mary Daly spoke on artificial intelligence;

• The US SEC made a decision on the listing and trading of BTC spot ETF options;

• The UK consultation on its implementation of the Organization for Economic Cooperation and Development (OECD) encryption reporting framework will close on May 29;

• Bitcoin Seoul takes place in Seoul, South Korea from May 29 to 31;

• Consensus 2024 hosted by CoinDesk was held in Austin, Texas, USA from May 29 to May 31;

• BinanceThe latest NFT collection of international soccer superstar Cristiano Ronaldo will be released on May 29;

• Blockchain Economy Istanbul;

• GenAI Summit San Francisco 2024;

May 30

• Initial jobless claims in the U.S. this week;

• The Federal Reserve releases the Beige Book on economic conditions;

• FOMC permanent voting member and New York Fed President Williams participated in a roundtable meeting;

• 2024 FOMC voting member and Atlanta Fed President Bostic spoke on the economic outlook;

• The U.S. Department of Justice will hold a seminar on competition investigations in the artificial intelligence industry at Stanford University on May 30;

• Virtual asset trading platform VAEX began to ban Hong Kong users from trading;

• OKX HK will delist stablecoins and corresponding currency pairs on May 30, 2024, and will list Hong Kong dollar-denominated currency pairs on "Coin-to-Coin Trading";

• Cryptopunks held an auction for the digital avatar series "Super Punk World";

May 31

• The annual rate of the US core PCE price index in April;

• EOS NewTokenThe economic model is planned to be deployed to the mainnet by the end of May;

• BNB Chain announced the winners of the 2024 Q2 hackathon and entered a one-month incubation period;

• The Uniswap Foundation will launch an on-chain vote on May 31 to upgrade the fee mechanism to reward UNI holders;

• Hong Kong companies that have not applied for a virtual asset trading platform license must end their Hong Kong operations by the end of May;

• Optimism Token OP 将于 5 月 31 日 8:00 解锁 3134 万枚，价值约 7961 万美元，占流通量 2.88%；

• 1.66 million Echelon Prime tokens PRIME will be unlocked at 8:00 on May 31, worth approximately $31.66 million, accounting for 4.23% in circulation;

• Tornado Cash (TORN) will unlock 92,000 tokens at 11:30 on May 31, worth about $240,000, accounting for 2.41% in circulation;

June 1

• Dogechain Wallet will be closed on June 1st, and users need to withdraw DOGE in time;

• dYdX token DYDX will unlock about 33.33 million pieces at 8:00 on June 1, worth about 67 million US dollars, accounting for 11.91% of circulation;

• ZetaChain (ZETA) will unlock about 5.29 million tokens at 8:00 on June 1, worth about $8.2 million, accounting for 1.99% in circulation;

• 1inch (1INCH) will unlock about 98.74 million coins at 8:00 on June 1, worth about 42 million US dollars, accounting for 8.52% in circulation;

• Manta Network (MANTA) will unlock about 1.87 million tokens at 7:59 on June 1, worth about 3.2 million U.S. dollars, accounting for 0.74% in circulation;

• Sui token SUI will unlock about 65.08 million pieces at 8:00 on June 1, worth about 68.07 million US dollars, accounting for 2.78% in circulation;

June 2

• Ethena (ENA) will unlock about 53.6 million tokens at 7:00 on June 2, worth about $46 million, accounting for 3.62% in circulation;

5 Conclusion

Last week, the FIT21 bill was passed by the U.S. House of Representatives, marking a friendly shift in the U.S. regulatory authorities’ attitude toward cryptocurrencies.cryptocurrency行业明确了更规范的监管方向和政治支持；而美国 BTC 现货 ETF 连续 10 天净流入，正驱动预计 BTC 阶段行情呈现缓慢波动上行；另外，加密货币市场投融笔数有开始大幅回升，资金总规模也迅速扩张，表明机构在行情回暖时，会加大资金杠杆和投资频率，市场热度押注 DeFi、RWA 和 SocialFi 领域。

This week, 18 token projects will be unlocked, among which PRIME, OP, Sui, DYDX, 1INCH and ENA have a cumulative unlocking amount of more than 300 million US dollars. As the total amount of circulating tokens in the market becomes more and more inflated, whether there are more takeover orders in the crypto market still needs to be carefully judged. At the same time, as the Trump team accepts cryptocurrency donations, positive market information is increasing, and it is expected that there will be more and more crypto topics surrounding the election in the future; and the fee incentive mechanism voting launched by UniSwap this week may bring stability and benefits to UNI and the industry in the future market.

We can see that with the US legislative attitude towards encryption, the overall trend is positive and market confidence is recovering. Although the final implementation time is still uncertain, it has taken a big step on the path of regulatory challenges and laid a solid foundation for future innovation and development of the industry.

The article comes from the Internet:MIIX Capital Weekly Report: Regulatory benefits emerge frequently, market confidence recovers

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