Mt.Gox Continues Asset Liquidation, Short-term Market Outlook Poor

cdLast Updated: August 5, 2024

3 minutes read

The US July ISM Manufacturing PMI dropped significantly more than economists expected, causing interest rates to fall to their lowest in months. Despite the US spot Ethereum ETF net inflow of $26.2 million and spot Bitcoin ETF net inflow of $50.4 million yesterday, Bitcoin continues its downward trend, indicating poor short-term market conditions. Highlights include:

Strong wealth creation sectors: Curve-related tokens (CRV, CVX), Meme sector (NEIRO)
User-searched tokens & topics: Morpho, Aptos
Potential airdrop opportunities: Symbiotic, Mezo

Data Timestamp: August 2, 2024, 4:00 (UTC)

1. Market Environment

The US July ISM Manufacturing PMI fell significantly more than expected, leading to a broad drop in interest rates to their lowest levels in months. Additionally, initial jobless claims in the US surged to their highest level in nearly a year. These data points suggest that the US is on the brink of a monetary easing cycle by the Federal Reserve, which is generally positive for risk markets.

Despite the significant net inflows into US spot Ethereum and Bitcoin ETFs, Bitcoin has maintained a downward trend. After hitting $70,000 earlier this week, it sharply corrected and fell to a two-week low of $62,700 last night, indicating poor short-term market conditions.

2. Wealth Creation Sectors

Curve-related Tokens (CRV, CVX)

Reasons:

A whale recently withdrew a total of 18 million CRV (worth $4.68 million) from Binance and OKX at an average price of $0.26. Additionally, another whale withdrew 5.5 million CRV (worth approximately $1.51 million) from Binance yesterday.

Performance:

Over the past 24 hours, CRV and CVX have risen by 7.46% and 5.38%, respectively.

Future Factors:

Curve remains a top venue for large stablecoin transactions, retaining decent real profits. However, its outdated narrative and previous incidents, along with the current liquidation, pose concerns. Despite this, many whales have bought CRV at prices above $0.30, indicating potential for price appreciation.

Meme Sector (NEIRO)

Reasons:

NEIRO has gained significant support from KOLs, especially Japanese ones. Influencers with tens of thousands of followers, such as @apipiro22, @mikky_8080, @yukimaru_potty, @BrotherMKT, @KookCapitalLLC, and @OfficialTravlad, have endorsed NEIRO, driving its price up.

Performance:

NEIRO rose by over 15% yesterday despite the overall market downturn.

Future Factors:

Active DeFi infrastructure is crucial, with the valuation dependent on active users and DEX trading volume. Investors should monitor these data points closely to assess market valuation trends. Increased liquidity following the launch of Ethereum ETFs may also boost related meme tokens.

3. User Search Trends

Popular Dapp: Morpho

Morpho, a DeFi lending protocol, recently completed a $50 million funding round led by Ribbit Capital, with participation from a16z crypto, Coinbase Ventures, Variant, Pantera, Brevan Howard, BlockTower, and Kraken Ventures. It combines the liquidity pool model of Compound or AAVE with the capital efficiency of an order book P2P matching engine, improving APY through peer-to-peer matching.

Twitter Trends Projects:

Aptos

OKX Ventures and the global blockchain leader Aptos Foundation announced a new $10 million fund to support Aptos ecosystem growth and Web3 adoption. This fund aims to develop an accelerator program in collaboration with Ankaa, fostering high-quality projects and applications based on Aptos.

Aptos is a scalable Layer 1 PoS blockchain that uses the Move programming language to make on-chain transactions more reliable, easy to use, and secure. The accelerator will provide selected Aptos ecosystem projects with risk support, focused guidance, market exposure, and a joint network of experts from OKX, Ankaa, and the Aptos Foundation.

Google Search & Regional Trends:

Global:

Market concerns, such as “Why is down today” & “fear and greed index,” spiked due to the ISM PMI data and rising fear index (VXX) by 13.55%, reflecting increased risk aversion and subsequent crypto asset declines.

Regional Trends:

CIS Region: Tapswap, a Tap2Earn Mini App praised by Telegram founder Pavel Durov, initially launched on Solana and later transitioned to the TON ecosystem, maintaining high popularity.
Asia: No clear trends, but notable interest in Tesla and Nvidia in the Philippines.
Latin America: Higher interest in SOL and ETH, with AI projects trending in Colombia and Argentina.

4. Potential Airdrop Opportunities

Symbiotic

Symbiotic is a restaking project aimed at fostering powerful, fully sovereign ecosystems within decentralized networks. It provides decentralized applications with an “Active Verification Service” (AVS) to ensure mutual security. Recently, Symbiotic completed a seed funding round of $5.8 million, with investments from Paradigm and Cyber Fund.

Participation Method:

Connect your wallet on the project’s official website and deposit ETH or ETH LSD assets.

Mezo

Mezo, a BTC Layer 2 project, focuses on BTC DeFi, enabling on-chain transactions and financial services for BTC holders. Recently, Mezo announced a $21 million funding round with investments from Pantera Capital, Hack VC, and Multicoin Capital.