First line situation | Cryptocurrency market fluctuates and pumps; Notcoin promotes the adoption of cryptocurrencies on Telegram; The attacker of Gala Games returns 22 million dollars; Trump campaign team accepts cryptocurrency donations.

Crypto World Daily Digest: Notcoin drives the adoption of cryptocurrencies on Telegram; Exploiter of Gala Games returns $22 million through GALA tokens; Trump campaign team accepts cryptocurrency donations

First, let's look at the trading activity of Bitcoin ETF. According to Farside Investor data, on May 21st, Fidelity Bitcoin Spot ETF (FBTC) had an inflow of $25.8 million, while Bitwise Bitcoin Spot ETF (BITB) had an outflow of $4.2 million.

The skyrocketing growth of Notcoin has driven the adoption of cryptocurrencies on Telegram.

Based on the TON blockchain, blockchain games are attracting millions of users on Telegram, with Notcoin and other idle games leading the way. Notcoin's explosive growth has attracted over 30 million users in less than two months, and established a cryptocurrency wallet based on an open network.

With the popularity of viral games like Notcoin, Telegram's large user base has proven to be a green field for the adoption of cryptocurrencies. The "idle game" that allows users to earn non-token rewards by tapping the screen has attracted 3% of Telegram users to use Web3. Subsequently, NOT token was listed on well-known cryptocurrency exchanges, bringing unexpected wealth to casual gamers.

Game developers are also following the TON ecosystem. Michał Dąbrowski, CEO and founder of Elympics, a blockchain game infrastructure provider, said that Web3 games are ready to attract new cryptocurrency users.

Dąbrowski told Cointelegraph that blockchain-based infrastructure fills the gap in monetization mechanisms for game developers, allowing studios to incentivize and attract players using cryptocurrency wallets. Elympics sees the enormous potential of the TON ecosystem and aims to help studios and developers deploy Web3 games on these platforms.

Elympics CEO added that Web3 functionality is revitalizing idle game genres. The virtual currency earned by players in the game is now being monetized, allowing users to gain ownership and value from their gaming time.

Gala Games' attacker returns $22 million

Previously, there were reports of a vulnerability attack related to Gala Games. An attacker minted GALA tokens worth $200 million, but only managed to sell a portion of them. Now, Gala Games has received approximately $22 million worth of Ether.

On May 21st, the attacker's wallet returned 5913.2 ETH, worth $22.3 million, which is close to the market capitalization of 600 million GALA they sold the previous day.

Gala Games explained on social media that the affected wallet was frozen due to the use of the new "GalaChain Blocklist Protocol" feature, which effectively froze 4.4 billion GALA out of 5 billion GALA within 45 minutes. Gala Games has not publicly confirmed the identity or method of the attacker, but some community members believe that the attack came from a security contractor who made a mistake after not using a VPN connection to the wallet.

Trump campaign team accepts cryptocurrency donations

Former US President Donald Trump is currently facing criminal charges from four jurisdictions. In this situation, he announced that his 2024 presidential campaign will accept cryptocurrency donations.

In a notice on May 21, the Trump 2024 campaign team announced that they have launched a fundraising page accepting cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), Shiba Inu (SHIB), Ripple (XRP), Solana (SOL), and more. The statement referred to Senator Elizabeth Warren's attack on cryptocurrencies, falsely claiming without evidence that she is the "official representative" of President Joe Biden in Congress.

Trump said he will ensure that attendees can donate to his campaign in the form of cryptocurrency. With less than six months until Election Day, Trump is the presumptive Republican candidate for the 2024 U.S. presidential election. He may face off against the Democratic candidate, President Biden.

Trump, although accepting cryptocurrency donations, did not specifically mention digital assets or blockchain on the "Issues" page of his campaign website when it was released. President Biden has rarely made public statements about cryptocurrency, but he did sign an executive order to establish a regulatory framework for digital assets in 2022.

Market Analysis: The market is fluctuating and pumping, with strong performance in the Meme concept.

✨ Market Trend:

1. BTC and ETH Performance: Bitcoin consolidates above $70,000, showing strong support. Ethereum also briefly surpassed $3,800, indicating strong market confidence in these mainstream cryptocurrencies.
2. Macro Economic Impact: The pump in the US stock market and its historic high, as well as dovish speeches from Federal Reserve officials, have increased market expectations for a rate cut in September. These factors may further drive the encryption market to pump.

✨ Market Highlights:

Meme Concept Coin:

1. Impressive Performance: Meme coins like PEPE, PEOPLE, FLOKI, WOJAK, MOG, which are part of the Ethereum ecosystem, have shown outstanding performance.
2. Inflationary Tokens: On-chain tokens such as WIF and MANEKI on Solana have relatively delayed performance.

Social concept coin.

1. Rising cryptocurrencies: DEGEN, HIGHER, Only1 and other cryptocurrencies have performed well.
2. Investment News: Farcaster, the social protocol on Base on-chain, has received investments from a16z and Paradigm, further boosting market confidence in social concept coins.

Ether Name Service (ENS) has experienced a significant pump in price.

1. Support from Vitalik Buterin: Vitalik Buterin has mentioned ENS multiple times and referred to it as an important tool for unifying different Layer2 networks on Ethereum. This provides long-term value support for ENS.

Layer2 Network:

1. Zksync Airdrop Plan: Zksync plans to conduct a token airdrop in June, with a total supply of 21 billion tokens and an estimated market value of 10 billion US dollars.
2. Market Valuation Comparison: The valuations of popular Layer2 networks such as ARB, OP, STRK, etc. during the same period were around $12 billion, indicating a strong market interest in Layer2 projects.
3. Futures Market: Aevo prediction market has listed Zksync futures tokens, currently priced at $0.69, providing investors with an opportunity for early positioning.

The overall trend of the current encryption market is showing a volatile upward trend, driven by multiple favorable information. Mainstream currencies such as BTC and ETH are performing steadily, and various hot concept currencies have also seen significant gains. In particular, the investment and development of Layer2 networks and social protocols demonstrate the market's high attention and expectations for these emerging areas. It is recommended that investors closely follow these hot areas while remaining sensitive to changes in the macroeconomic environment in order to adjust investment strategies in a timely manner.

Macro: US stocks closed higher, Asian markets rose slightly, oil prices continued to fall.

On May 21, Reuters reported that the U.S. stock market closed slightly higher on Tuesday, with the S&P 500 and Nasdaq hitting record highs. Investors evaluated the latest comments from Federal Reserve officials to find clues about the timing of interest rate cuts, while Nvidia's quarterly earnings drew closer.

The specific three major indices: the Dow Jones Industrial Average rose by 0.17%, the S&P 500 Index rose by 0.25%, and the Nasdaq Composite Index rose by 0.22%.

Nvidia will announce its performance after Wednesday's closing, as the third largest company by market capitalization on Wall Street, this information may be an important market catalyst and will test whether the sharp rise in artificial intelligence related stocks can continue.

According to data from options analysis firm Trade Alert, by Friday, Nvidia's options are expected to fluctuate by 8.7%, or $200 billion in market cap. The stock price of this chip manufacturer rose 0.64% on Tuesday and has risen about 93% so far this year after surging nearly 240% in 2023.

Investors are also following the minutes of the latest Federal Reserve policy meeting scheduled for Wednesday. Several Fed officials reinforced the central bank's stance on the need to remain patient before starting the rate cuts.

Federal Reserve policymakers said on Tuesday that the Fed should wait a few more months to ensure that inflation truly returns to its target track of 2% before cutting rates again.

Asian stocks rose slightly on Wednesday as anxious investors dared to hope that artificial intelligence giant Nvidia could meet lofty expectations while remaining cautious about interest rate prospects in the US and UK. The MSCI Asia Pacific Index rose 0.4%, marking its fourth consecutive week of gains and reaching a two-year high. The Japanese Nikkei Index slipped 0.6%.

The Reserve Bank of New Zealand has evaluated its inflation issue and stated that interest rates must remain at a higher level for a longer period to cope with the impact on the local market. As bond yields soar, the exchange rate of the New Zealand dollar against the US dollar has risen by 0.9% to a one-month high of $0.6151.

Due to the threat of intervention by Japan, which hindered the pump of the USD/JPY exchange rate, the exchange rate remained stable at 156.20. Data released by the Ministry of Economy, Trade and Industry of Japan showed that the depreciation of the yen promoted exports but also triggered import-related inflation and affected business confidence.

The UK inflation data will be announced later, which may determine whether the Bank of England will implement loose policies as early as June or wait until August. It is expected that the core consumer price inflation in April will slow down from 4.2% in March to 3.6%. Any lower inflation rate will reduce the possibility of an interest rate cut in June and may put pressure on the British pound.

Crude oil prices fell for the third consecutive trading day on Wednesday, as the market expects the Federal Reserve to maintain high interest rates for a long time due to persistent inflation, which could affect fuel consumption in the world's largest oil-consuming country. Brent crude oil futures fell 43 cents, or 0.5%, to $82.45 per barrel. U.S. West Texas Intermediate (WTI) crude oil futures fell 50 cents, or 0.6%, to $78.16. Oil prices fell about 1% on Tuesday.

Gold prices held steady at $2,424 per ounce after touching a historic high of $2,449.89 earlier this week.

"Author: Sherry S. & Icing." This article represents only the author's opinions and does not constitute any trading advice. This content is original and owned by Gate.io. If you need to reproduce it, please indicate the author and source, otherwise legal responsibility will be pursued.