Crypto Market Weekly Report: ETH Leads the Rise Driving Alts Pump, BTC ETF Continues to Attract Capital

Market Overview

This week, the crypto market is overall positive, with ETH rising sharply by nearly 30%, driving alts to generally rise. BTC also rebounded, approaching its historical high. The market is mainly focused on the ETH ETF and the Meme sector.

The Federal Reserve's meeting minutes show that decision-makers still have concerns about the progress of inflation decline and may continue to maintain a high interest rate policy. The dollar index fell on a weekly basis, and the three major US stock indices reached historic highs, with strong performance in tech stocks.

BTC Market Analysis

On-chain data shows that long-term holders of BTC have decreased while short-term holders have increased, leading to a partial divergence in the market. The speed of new capital inflows has slowed, and long-term volatility has somewhat converged. The market capitalization of stablecoins remains stable, and the long-term capital outlook is still positive.

The MVRV-ZScore indicator is at 2.5, in the middle stage. Institutional funds have seen a net inflow for two consecutive weeks, and investors are relatively optimistic about the outlook.

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

ETH and altcoin market

The probability of ETH spot ETF approval has significantly increased from 25% to 75%, driving ETH to break through 3800 USD. This has also triggered a wave of pump in the alts.

Zksync plans to conduct a token airdrop in June, with a total of 21 billion coins, and the market expects a market value of up to 10 billion USD.

Public Chain Ecosystem Development

This week, the total locked value in DeFi ( TVL ) reached 106.3 billion USD, a week-on-week 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%. The emerging public chain Merlin performed the best, with a TVL surge of 171%.

NFT Market Performance

The overall performance of the NFT market remains sluggish, and the significant rise of ETH has not led to a recovery in the NFT market. The floor prices of blue-chip projects fluctuate, with BAYC down 5%, CryptoPunks down 12%, while Pudgy Penguins and Azuki both rise by 10%.

NFT trading volume continues to decline, with no significant rebound in the number of new buyers and repeat users.

Overall, the crypto market has seen a general rise this week driven by ETH, but the NFT market has yet to shake off its sluggishness. Investors need to closely monitor the progress of the ETH ETF and the Federal Reserve's policy direction.