Crypto Market Weekly Report: Liquidity Continues to Improve, Overall Market Maintains Pumping Momentum

Macroeconomics and Market Overview

Recently, there are obvious signs of a slowdown in global economic growth. In May, the US added 152,000 jobs, hitting a new low in three months. The market generally expects the Federal Reserve to cut interest rates for the first time in September, with a probability close to 60%. The Bank of Canada was the first among G7 countries to cut interest rates, and the European Central Bank may also soon begin its first interest rate cut cycle in 16 years.

As a result, the US dollar index broke down and fell on a weekly basis, while US stocks continued to rise and reached new all-time highs. The crypto market followed the trend of US stocks, showing an overall oscillating upward trend.

Crypto Market Performance

This week, Bitcoin fluctuated and rose. The improvement in market liquidity has driven the previously significantly fallen new coins, gaming, and inscription sectors to rally in turn. It is worth noting that:

1. A large trading platform's platform token reached a historical high.
2. The POW public chain Kaspa will launch a KRC20 standard similar to ERC20, which is expected to drive a wave of Meme coin issuance.
3. Dogecoin BENJI on the Base chain is performing actively, and a new wallet launched by a certain exchange is expected to enhance the user experience on the Base chain.

Bitcoin Market Analysis

On-chain data

The Bitcoin chip structure is healthy, and after two months of sideways consolidation, speculative enthusiasm has returned to the market. Currently, most investors are holding unrealized profits, with short-term holders bearing the main market losses.

The market capitalization of stablecoins has increased slightly by 1%, and the trend of capital inflow is overall positive. Institutional funds have seen net inflows for four consecutive weeks, with over $15 billion flowing in since the beginning of the year.

The MVRV-Z Score indicator is currently at 2.4, which is at a mid-stage, reflecting a neutral overall profit status in the market.

futures market

The futures funding rate has slightly decreased this week. The BTC futures open interest has significantly increased, indicating that major market funds are entering. The long-short ratio for futures is 0.9, and market sentiment is slightly bearish.

spot market

Bitcoin prices are fluctuating upwards, approaching historical highs. The spot ETF has seen net inflows for 15 consecutive days, with daily increases nearing a 3-month high. Long-term investors (holding for more than 6 months) have increased their holdings for the first time in half a year.

Public Chain Ecosystem

This week's total locked value ( TVL ) reached 10.98 billion USD, rising 3 billion USD, an increase of 2.8%. The TVL of mainstream public chains has risen across the board:

• Ethereum pump 3%
• TRON pump 4%
• BSC pump 8%
• Arbitrum, BLAST, BASE, MERLIN, and Polygon all rose by about 3%.

It is worth mentioning that the emerging public chain BLAST's TVL has surpassed 2.3 billion USD, with a rise of over 40% in the past month, firmly holding the sixth position.

NFT Market Dynamics

This week, the overall trading volume of the NFT market has seen a significant rise, but the number of first-time buyers and repeat buyers has not increased accordingly. The floor prices of major blue-chip projects have generally decreased:

• CryptoPunks down 7%
• Pandora plummeted 49%
• BAYC down 7%
• MAYC down 3%
• Azuki fell by 9%
• Pudgy Penguins down 4%
• LilPudgys down 5%

A few projects are rising against the market:

• Milady pump 2%
• CloneX pump 22%

Overall, the NFT market is still in a sluggish state, and no key factors have emerged to reverse market sentiment.