Bitget Research: ETH Ecosystem Tokens Continue to Rise, Altcoin Season Might Be Imminent

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Bitget Research2024/05/27 07:25

By:Tommy & Jarseed

In the past 24 hours, many new popular tokens and topics have emerged in the market, which are likely to be the next wealth creation opportunities.

In the past 24 hours, many new popular tokens and topics have emerged in the market, which are likely to be the next wealth creation opportunities.

Overview

The ETH/BTC exchange rate has risen to 0.057, reaching a new high in nearly 70 days. Concurrently, spot BTC ETFs have seen a net inflow for 10 consecutive days over the past two weeks. Top memecoin and blue-chip DeFi projects on the Ethereum chain have surged. Ethereum ecosystem tokens show a strong upward trend, potentially leading to an altcoin season soon.

Sectors with strong wealth creation effect: Blue-chip projects in the ETH ecosystem.
Top searched tokens and topics: Uxlink, Stargate Finance, and MAGA.
Potential airdrop opportunities: Uxlink and Sofamon.

Data collection time: May 27, 2024, 4:00 AM (UTC)

1. Market Environment

Last week, the SEC shifted its stance on spot Ethereum ETFs and approved the crucial 19B-4 forms. The ETH/BTC exchange rate climbed to 0.057, its highest point in the past 70 days. Spot BTC ETFs have also experienced 10 days of net inflows.

Over the weekend, leading memecoins and blue-chip projects that performed well in the previous bull market showed strong performance. Significant buying by large investors boosted the price of PEPE to a new high, while ENS, LDO, and UNI rose 70%, 50%, and 43% respectively over the past seven days. The strong performance of ETH could passively increase the value of altcoins priced in ETH on the chain. As trader enthusiasm surges, an altcoin season could start amid ETH's ongoing rise.

2. Wealth Creation Sectors

2.1 Sector Movements – Blue-Chip Projects in the ETH Ecosystem

Primary reasons:

The SEC’s approval of the spot Ethereum ETF key forms and the continuous rise in ETH have significantly boosted prominent tokens from the previous bull market within the ETH ecosystem. High market cap memecoins like PEPE and TURBO on the ETH chain have surged to new highs with significant whale purchases of blue-chip DeFi tokens like LDO, UNI, and AAVE.

Gainers:

PEPE and TURBO have increased by 78% and 320% respectively over the past seven days.
ENS, LDO, and UNI have increased by 70%, 50%, and 43% respectively over the same period.

Factors affecting future market conditions:

It is likely that the spot Ethereum ETF will be approved and begin trading within a few weeks to a few months. Until then and following the approval, the ETH/BTC exchange rate may continue to rise. ETH is expected to break a new high in the coming months, which will significantly boost the market cap of altcoins. As traders on the Ethereum chain increase their leverage and trading activities, blue-chip projects, especially those with actual earnings in the DeFi sector, are expected to continue rising and kick off an altcoin season.

2.2 Sectors to Focus on Next — Fan Token Sector

Primary reasons:

Major sporting events are approaching with the UEFA European Championship starting on June 14, the Copa America on June 21, and the Olympics on July 26.
Notable movements in fan tokens: For instance, the GAL/TRY trading pair experienced a significant rise followed by a sharp decline. On the Turkish exchange Paribu, its 24-hour trading volume reached $53 million, ranking it first, surpassing the trading volumes of BTC, PEPE, and other tokens.
Binance is set to release Cristiano Ronaldo's latest NFT collection on May 29, with promotions planned around this date.
The Dragon8 hard fork on Chiliz Chain has been delayed, but completion is expected soon.

Specific projects:

CHZ and top fan tokens on the Chiliz chain and BSC, such as ARG and SANTOS.

3. Top Searches

3.1 Popular DApps

Uxlink:

UXLink is the largest Web3 social infrastructure project based on the Telegram ecosystem, connecting over 1.69 million users and attracting investment from ZhenFund, Sequoia Capital, and GGV. Positioned as a social hub based on genuine social interactions on Telegram, UXLink provides a range of modular community management services, creating an efficient, secure, and flexible on-chain social product for Web3 users. By utilizing UXLink's community management tools, users can tailor and engage in diverse community-driven business scenarios.

3.2 X (former Twitter)

Bitget Research: ETH Ecosystem Tokens Continue to Rise, Altcoin Season Might Be Imminent image 0

Stargate Finance:

Stargate Finance recently announced that Stargate V2, a cross-chain bridge based on LayerZero, will go live on May 28. The Stargate community has approved the Stargate V2 proposal, which introduces transaction batching and dynamic credit allocation to enhance cross-chain efficiency and reduce cross-chain costs. Additionally, the Stargate Foundation has initiated a proposal vote regarding the distribution of LayerZero tokens. The proposal outlines the distribution of LayerZero tokens to three categories of users: cross-chain bridge users, liquidity providers (LPs), and veSTG holders.

3.3 Google Search (Global and Regional)

Bitget Research: ETH Ecosystem Tokens Continue to Rise, Altcoin Season Might Be Imminent image 1

Global focus:

MAGA: A recently trending memecoin on Ethereum, centered around former U.S. President Trump's campaign slogan "Make America Great Again." With Trump's formal announcement of his candidacy in the U.S. presidential race and his public endorsement of cryptocurrencies, memecoin circles have quickly embraced related memecoins. MAGA has seen a trading volume of $58 million in the past 24 hours, with its value increasing approximately 12X over the weekend, highlighting its popularity.

Regional focus:

(1) Europe and the CIS region show significant interest in memecoins:

As the crypto market rebounds significantly, the PEPE token continues to reach new highs. Users have started reallocating their funds to memecoins for higher returns. Searches from European users indicate a high frequency of inquiries about memecoins, suggesting significant participation from the European market in memecoin trading.

(2) Asia shows increased interest in BTC and ETH ETFs:

Influenced by the approval of the Ethereum ETF this week, the overall crypto industry has seen a significant increase in searches for ETH ETFs and BTC ETFs. Additionally, Ethereum ecosystem projects within LSD and LRT sectors have also received varying degrees of attention. This indicates that while users are focused on Ethereum itself, they are also interested in Ethereum's staking and yield-generating methods.

4. Potential Airdrop Opportunities

UXLINK

UXLINK is a pioneering Web3 social system designed for mass adoption, enabling users to build social assets and trade cryptocurrencies. It includes a highly modular range of DApps, from entry-level to graph formation, group tools to social trading, all seamlessly integrated into Telegram.

UXLINK recently announced a funding round led by SevenX Ventures, Ince Capital, and HashKey Capital, with a total of $15 million raised.

How to participate: UXLINK has issued "IN UXLINK WE TRUST" NFT collection as airdrop vouchers based on users' community contributions, on-chain interactions, and asset status, divided into four tiers—"MOON," "TRUST," "FRENS," and "LINK"—each corresponding to different rights and amounts of UXLINK token airdrops.

Sofamon

Sofamon is a project based on the Base network, currently developing a personal chat sticker marketplace on Telegram where users can manage their sticker collections, invite friends, and access Sofamon's private group chats.

The Web3 social project Sofamon completed its seed round funding with investments from Polychain Capital, Seed Club Ventures, Inception Capital, among others. Angel investors include Celestia COO Nick White, former Coinbase engineer 0xBeans, and Divergence Ventures co-founder George Lambeth.

How to participate: While no specific airdrop information has been released by the project, given Sofamon's current popularity on social media and in the crypto community, an airdrop opportunity is highly probable. Investors can participate by purchasing the NFT sticker collection launched by Sofamon.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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