Crypto Market Weekly Report: ETH ETF Applications Accelerate, BTC Rebound Approaching New Highs

Market Overview

This week, the crypto market showed an overall upward trend, mainly influenced by the progress of the Ethereum ETF applications and the Federal Reserve's monetary policy. Bitcoin rebounded to near its historical high, with Ethereum leading the market. The focus of the market is mainly on ETH and the Meme sector.

The Federal Reserve's meeting minutes show that policymakers are concerned about insufficient progress in the decline of inflation, suggesting that they will maintain a high interest rate policy. Expectations for interest rate cuts fluctuate, and the dollar index falls weekly. The three major U.S. stock indices have all reached historic highs, with tech stocks continuing to lead. The crypto market follows the strong rebound of the U.S. stock market.

Key Focus

1. Ethereum ETF: Regulators have requested to expedite the update of the ETH ETF application documents, increasing the probability from 25% to 75%. The final approval deadline has been extended from May 23 to August 7. However, some analysts predict that the size of the ETH ETF may only reach 10% of the BTC ETF.

2. ZkSync: The Layer 2 project ZkSync plans to conduct a token airdrop in June, with a total of 21 billion tokens. The market expects its market value to reach 10 billion USD, comparable to similar projects such as ARB, OP, and STRK.

3. Lista: A well-known exchange Metadrop platform will launch the Lista token. This project is a liquidity staking and decentralized stablecoin protocol developed by the original BSC chain project team.

Bitcoin Market Analysis

On-chain data shows that the number of long-term BTC holders is decreasing, while the number of short-term holders is increasing. The market is showing some divergence, with the inflow of new funds slowing down, and long-term volatility has somewhat converged. The market cap of stablecoins remains stable, and the fundamentals of long-term funds are still positive.

The MVRV-Z Score indicator is currently at 2.5, in the middle stage. Institutional funds have shown net inflows for two consecutive weeks, indicating that investors remain optimistic about the market outlook.

In the futures market, this week the funding rate has slightly increased, and the BTC open interest has significantly risen, indicating that the main capital is entering the market. The long-short ratio is 1.3, and the market sentiment is neutral.

Overview of Public Chain Ecosystem

This week, the total locked value in DeFi ( TVL ) reached 10.63 billion USD, with a month-on-month increase of 14%. The TVL on the ETH chain grew by 20%, TRON by 3%, BSC by 9%, Solana by 7%, Arbitrum by 18%, and Blast by 28%. Notably, the TVL on the Merlin chain surged by 171% this week, and the Merchant Finance project on it saw an over 40,000% increase in TVL in the past week.

NFT Market Performance

The overall performance of the NFT market is sluggish, failing to benefit from the rise in ETH prices. The floor prices of blue-chip projects are mixed: BAYC is down 5%, CryptoPunks is down 12%, Pudgy Penguins and Azuki are both up 10%, and Milady is up 27%. The overall trading volume in the market continues to decline, with no significant rebound in the number of new buyers and repeat users.

Overall, this week the crypto market saw a slight rebound driven by ETH, but the performance of niche segments such as NFTs remains weak. Investors are keeping an eye on the progress of the ETH ETF application, and while market sentiment has improved, further changes still need to be observed.