Crypto Market Weekly Report: Ethereum Leads the Rise, NFT Market Remains Tepid

Macro Environment

The Federal Reserve's meeting minutes show that policymakers are concerned about the progress of inflation decline, suggesting that high interest rate policies may continue. Repeated expectations of interest rate cuts have led to a weekly decline in the dollar index. All three major U.S. stock indices have reached historic highs, with technology stocks performing particularly strongly. The crypto market has followed the U.S. stocks with a strong rebound.

Market Overview

This week, Bitcoin rebounded, with Ethereum leading the rise significantly. The market is mainly focused on Ethereum and the Meme coin sector.

1. Ethereum: The U.S. Securities and Exchange Commission has requested to expedite the updates to the Ethereum ETF application documents, significantly increasing the probability of ETF approval.

2. ZKSYNC: This L2 project plans to conduct a token airdrop in June, with a total of 21 billion tokens, and the market expects a market value of up to 10 billion USD.

3. LISTA: A trading platform will launch the liquidity staking and decentralized stablecoin protocol token.

Bitcoin Market Analysis

On-chain data shows that the number of long-term holders is decreasing while the number of short-term holders is increasing. The market is showing some divergence, with the inflow of new funds slowing down, and long-term volatility has somewhat converged. The market capitalization of stablecoins remains stable, and the fundamentals of long-term funds are still positive.

The MVRV-Z Score indicator is at 2.5, indicating a middle stage. Institutional funds have shown net inflows for two consecutive weeks, demonstrating investor optimism about the outlook.

In the futures market, the funding rate has slightly increased this week, and the open interest has significantly risen, indicating that major funds are entering the market. The long-to-short ratio for futures is 1.3, and the market sentiment is neutral.

Public Chain Ecosystem

This week's total locked value ( TVL ) is 106.3 billion USD, with an increase of approximately 13.1 billion USD, a rise of 14%. Ethereum chain TVL rose by 20%, TRON chain rose by 3%, BSC chain rose by 9%, Solana chain rose by 7%, Arbitrum chain rose by 18%, and BLAST chain rose by 28%. The most outstanding performance was from the MERLIN chain, which saw a TVL surge of 171% this week.

NFT Market

The overall performance of the NFT market remains sluggish. Although the price of Ethereum has risen significantly, it has not managed to boost the NFT market. This week, the floor prices of major blue-chip projects fluctuated: BAYC fell by 5%, CryptoPunks dropped by 12%, Pudgy Penguins and Azuki both rose by 10%, and Milady increased by 27%.

The trading volume in the NFT market continues to decline, with no significant rebound in the number of new buyers and repeat users.