Today, the cryptocurrency market saw mixed movements. At the closing of the US stock market, Bitcoin fell below $70,000, while Ethereum hovered below $36 million. According to data from CoinmarketCap, the biggest gainers in the past 24 hours were Dogwifhat (WIF), Internet Computer (ICP), APTOS, BEAM, and SUI, with gains ranging from 9% to 19%.
Affected by negative regulatory news, the KUCOIN platform coin saw a decline of over 14% in the past 24 hours. Earlier in the day, the US Commodity Futures Trading Commission (CFTC) accused KuCoin of operating an illegal digital asset derivatives exchange, while the US Department of Justice accused KuCoin and its two founders of violating banking secrecy laws and unauthorized fund transfers.
Base Chain Dominates Meme Hype
The hype in the cryptocurrency sector is changing rapidly. Multiple indicators show that cryptocurrency traders are seeking profit opportunities on the Base blockchain in the meme coin-dominated speculation frenzy.
Base, built on the OP Stack by cryptocurrency exchange Coinbase and launched to developers in August, initially had slow growth. However, in the past few weeks, its Total Value Locked (TVL) increased from $450 million at the beginning of the month to nearly $1 billion on Tuesday.
Blockchain data shows that the average daily trading volume on Base, which was less than 500,000 transactions a few months ago, has now tripled to over 1.5 million transactions per day. The number of unique addresses has doubled to 65,000 wallets.
Some market observers believe that direct access to Base through Coinbase’s exchange and wallet applications may have stimulated retail investors’ massive pursuit of the network. In the past 24 hours, the network has generated $1.8 million in fees.
According to CoinmarketCap data, as of March 2024, 21 of the top 25 tokens by trading volume on Base were meme coins.
In the past week, meme coins with cat-themed names such as toshi (TOSHI), thank you base god (TYBG), normie (NORMIE), and brett (BRETT) have seen price increases of 1,300%. The tokens of technical projects AERO from decentralized exchange Aerodrome and SEAM from Seamless have surged by up to 90%. According to CoinmarketCap data, the overall price increase of Base ecosystem project tokens currently ranks first, followed by TON.
Meanwhile, developer Michael Silberling of Optimism pointed out on X that the popularity of meme coins on Base has led to high gas fees, exceeding the fees users paid before the Dencun upgrade. Most of the transactions come from meme coin trading and trading bots aimed at buying tokens within minutes of their issuance, leading to network congestion.
Spot Bitcoin ETF Ends Five Consecutive Days of Outflows
According to data released by investment firm Farside, the net inflow of funds into the US spot Bitcoin ETF yesterday amounted to $15.4 million, ending five consecutive days of outflows.
Fidelity’s FBTC led the inflows with $261.8 million, followed by BlackRock’s IBIT with $35.5 million. Other funds such as BITB, BTCO, EZBC, and BRRR received funds ranging from $11 million to $20 million. Meanwhile, Grayscale’s ETF (GBTC) continued to see outflows, with outflows slightly exceeding $350 million.
In addition, the London Stock Exchange announced that it will launch a Bitcoin and Ethereum Exchange Traded Note (ETN) market on May 28. The notice stated that the exchange will start accepting applications for trading crypto ETNs from April 8. The market will be approved by the UK regulatory agency, the Financial Conduct Authority. ETNs are similar to Exchange Traded Funds (ETFs) as they aim to reflect investments that track indices or benchmarks.
BTC Rebound Imminent?
Amberdata’s chart tracks the 24-hour change in the number of active Bitcoin options contracts at different strike price levels on Deribit. The data shows a significant increase in open call options contracts with strike prices of $90,000 and $105,000, indicating market expectations of Bitcoin continuing to rise to six figures in the coming months.
Trader and analyst Matthew Hyland is optimistic about the future of Bitcoin. He stated on X, “If this support is strong enough, the possibility of Bitcoin price rising to $100,000 will increase.”
Hyland believes that the daily Relative Strength Index (RSI) value dropping below the key level of 50 on March 20 was a “good signal” for a rebound. Currently, the daily RSI is slightly above 60, still below the classic bull market area of above 70.
Author: Mary Liu, BitpushNews
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