Crypto Market Weekly Recap (08.05-08.11): Supply Dynamics and Active New Coins on the Rise

Explore the latest insights from the crypto market in our weekly recap, covering the interplay of market dynamics and the emergence of new blockchain projects.

Navigating Crypto Market Trends

In the midst of evolving financial landscapes, the crypto market has demonstrated a unique pattern during the past week, contrasting the behavior of traditional stock markets. As the stock market adjusts from an uptrend, the crypto realm takes cues from factors such as spot ETF news, shaping its trajectory.

Macro Liquidity Insights

A tightening of monetary liquidity has become evident, with the consensus expectation that the U.S. Federal Reserve will hold off on raising interest rates in September, followed by potential rate cuts in the coming year. The recent substantial increase in U.S. Treasury bond issuance is poised to significantly impact Q4 liquidity. The resulting rebound of the U.S. Dollar Index indicates support from this liquidity squeeze.

Marketwide Assessment

This week, the crypto market witnessed narrow fluctuations, with volatility hitting historic lows. While no pronounced highlights occurred, unscrupulous actors attempted to manipulate altcoins, causing temporary distress. The spotlight remains on nascent blockchain projects, where opportunities abound.

Highlighted Projects

  • RLB: Betting platform RLB has burned 1.7 billion out of 5 billion tokens, ensuring ongoing repurchases and destruction. With daily repurchases funded by 10% of betting and 20% of lottery revenue, RLB’s profitability outpaces Uniswap, boasting an annualized revenue of $600 million and $350 million in profits.
  • MC: Gaming guild MC rebounded due to YGG’s short squeeze impact. With a total market cap of $150 million and a treasury holding of $100 million, MC presents an attractive valuation.
  • AIMBOT: Trading robot AIMBOT auto-buys in the first two blocks of new coins, aiming to capitalize on early market action. Profit distribution and a 5% trading tax enhance its appeal.

BTC Trends and Analysis

1) On-chain Data: BTC’s reduced volatility may signal an upcoming period of prolonged consolidation. Historical trends indicate that prolonged periods of boredom often precede substantial price movements.

2) Futures Market: This week’s neutral futures funding rate, coupled with varying levels of leverage for long and short positions, indicates short-term tops and bottoms.

3) Spot Market: Despite BTC’s upward trajectory, it struggles to breach previous highs. Market volatility is expected to surge with the potential approval of the Belad BTC spot ETF, though the SEC’s decision might be delayed, sustaining a short-term downtrend.

Conclusion

In this week’s crypto market recap, we’ve observed a diverse range of market movements, from macro liquidity shifts to emerging altcoin projects. The dynamics between traditional and crypto markets continue to influence trends, inviting both caution and opportunity for market participants.